Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 21, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HCI | |
Entity Registrant Name | HCI Group, Inc. | |
Entity Central Index Key | 1400810 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,757,033 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Fixed-maturity securities, available for sale, at fair value (amortized cost: $156,528 and $96,163, respectively) | $158,325 | $97,084 |
Equity securities, available for sale, at fair value (cost: $57,836 and $45,387, respectively) | 59,779 | 45,550 |
Limited partnership investments, at equity | 21,795 | 2,550 |
Investment in joint venture, at equity | 4,747 | 4,477 |
Real estate investments | 19,580 | 19,138 |
Total investments | 264,226 | 168,799 |
Cash and cash equivalents | 271,413 | 314,416 |
Accrued interest and dividends receivable | 1,451 | 1,059 |
Income taxes receivable | 2,624 | |
Premiums receivable | 18,516 | 15,824 |
Prepaid reinsurance premiums | 16,072 | 34,096 |
Deferred policy acquisition costs | 15,063 | 15,014 |
Property and equipment, net | 12,188 | 12,292 |
Deferred income taxes, net | 2,220 | 2,499 |
Other assets | 41,195 | 35,587 |
Total assets | 642,344 | 602,210 |
Liabilities and Stockholders' Equity | ||
Losses and loss adjustment expenses | 51,177 | 48,908 |
Unearned premiums | 185,958 | 214,071 |
Advance premiums | 19,708 | 4,380 |
Assumed reinsurance balances payable | 9,651 | 218 |
Accrued expenses | 9,963 | 4,826 |
Income taxes payable | 13,507 | |
Long-term debt | 130,227 | 129,539 |
Other liabilities | 16,137 | 17,683 |
Total liabilities | 436,328 | 419,625 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Preferred stock | ||
Common stock (no par value, 40,000,000 shares authorized, 10,137,006 and 10,189,128 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively) | 0 | 0 |
Additional paid-in capital | 19,927 | 20,465 |
Retained income | 183,792 | 161,454 |
Accumulated other comprehensive income, net of taxes | 2,297 | 666 |
Total stockholders' equity | 206,016 | 182,585 |
Total liabilities and members' capital | 642,344 | 602,210 |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Available-for-sale Debt securities, Amortized cost | $156,528 | $96,163 |
Available-for-sale Equity securities, Amortized cost | $57,836 | $45,387 |
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 | 10,137,006 | 10,189,128 |
Common stock, outstanding | 10,137,006 | 10,189,128 |
7% Series A Cumulative Convertible Preferred Stock [Member] | ||
Preferred stock, no par value | ||
Preferred stock, authorized | 1,500,000 | 1,500,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
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 $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | ||
Gross premiums earned | $109,567 | $93,888 |
Premiums ceded | -27,839 | -27,508 |
Net premiums earned | 81,728 | 66,380 |
Net investment income | 1,409 | 1,059 |
Policy fee income | 541 | 257 |
Net realized investment (losses) gains | -193 | 4 |
Other-than-temporary impairment losses | -1,690 | 0 |
Other | 415 | 417 |
Total revenue | 82,210 | 68,117 |
Expenses | ||
Losses and loss adjustment expenses | 19,039 | 18,565 |
Policy acquisition and other underwriting expenses | 9,799 | 9,129 |
Salaries and wages | 4,898 | 4,185 |
Interest expense | 2,661 | 2,574 |
Other operating expenses | 4,767 | 5,354 |
Total expenses | 41,164 | 39,807 |
Income before income taxes | 41,046 | 28,310 |
Income tax expense | 15,668 | 10,690 |
Net income | 25,378 | 17,620 |
Preferred stock dividends | 3 | |
Income available to common stockholders | $25,378 | $17,623 |
Basic earnings per common share | $2.50 | $1.60 |
Diluted earnings per common share | $2.21 | $1.44 |
Dividends per common share | $0.30 | $0.28 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $25,378 | $17,620 |
Change in unrealized gain on investments: | ||
Net unrealized gain arising during the period | 737 | 2,306 |
Other-than-temporary impairment loss | 1,690 | |
Call and repayment losses charged to investment income | 36 | 15 |
Reclassification adjustment for net realized losses (gains) | 193 | -4 |
Net change in unrealized gain | 2,656 | 2,317 |
Deferred income taxes on above change | -1,025 | -893 |
Total other comprehensive income, net of income taxes | 1,631 | 1,424 |
Comprehensive income | $27,009 | $19,044 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $25,378 | $17,620 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 1,408 | 2,085 |
Net amortization of premiums on investments in fixed-maturity securities | 230 | 206 |
Depreciation and amortization | 1,289 | 1,203 |
Deferred income tax benefit | -746 | -832 |
Net realized investment losses (gains) | 193 | -4 |
Other-than-temporary impairment losses | 1,690 | 0 |
Income from real estate investments | -44 | |
Loss from limited partnership interest | 265 | |
Net loss (gain) on disposal or sale of real estate investments | 26 | -1 |
Foreign currency remeasurement gain | -4 | -15 |
Changes in operating assets and liabilities: | ||
Premiums and reinsurance receivable | -2,692 | -3,359 |
Advance premiums | 15,328 | 13,063 |
Prepaid reinsurance premiums | 18,024 | 12,849 |
Accrued interest and dividends receivable | -392 | -205 |
Other assets | -5,811 | -3,036 |
Assumed reinsurance balances payable | 9,433 | -3,666 |
Deferred policy acquisition costs | -49 | -113 |
Losses and loss adjustment expenses | 2,269 | -89 |
Unearned premiums | -28,113 | -14,948 |
Income taxes | 16,131 | 8,049 |
Accrued expenses and other liabilities | 5,190 | 6,261 |
Net cash provided by operating activities | 59,003 | 35,068 |
Cash flows from investing activities: | ||
Investment in real estate under acquisition, development, and construction arrangement | -479 | |
Investments in limited partnership interests | -19,510 | |
Investment in joint venture | -270 | |
Purchase of property and equipment | -227 | -92 |
Purchase of real estate investments | -45 | -320 |
Purchase of fixed-maturity securities | -65,271 | -19,306 |
Purchase of equity securities | -19,201 | -7,709 |
Proceeds from sales of fixed-maturity securities | 2,234 | 1,691 |
Proceeds from calls, repayments and maturities of fixed-maturity securities | 985 | 633 |
Proceeds from sales of equity securities | 4,755 | 2,764 |
Proceeds from sales of real estate investments | 5 | 1 |
Net cash used in investing activities | -97,024 | -22,338 |
Cash flows from financing activities: | ||
Proceeds from the exercise of common stock options | 125 | |
Cash dividends paid | -3,227 | -3,206 |
Cash dividends received under share repurchase forward contract | 187 | 171 |
Repurchases of common stock | -595 | -353 |
Repurchases of common stock under share repurchase plan | -1,610 | -6,987 |
Debt issuance costs | -234 | |
Tax benefits on stock-based compensation | 259 | 915 |
Net cash used in financing activities | -4,986 | -9,569 |
Effect of exchange rate changes on cash | 4 | 17 |
Net (decrease) increase in cash and cash equivalents | -43,003 | 3,178 |
Cash and cash equivalents at beginning of period | 314,416 | 293,098 |
Cash and cash equivalents at end of period | 271,413 | 296,276 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 2,500 | |
Cash paid for interest | 2,801 | 1,847 |
Non-cash investing and financing activities: | ||
Unrealized gain on investments in available-for-sale securities, net of tax | 1,631 | 1,424 |
Series A Preferred Stock [Member] | ||
Non-cash investing and financing activities: | ||
Conversion of Series A Preferred Stock to common stock | $910 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Income [Member] | Accumulated Other Comprehensive Income, Net of Tax [Member] | Share Repurchase Plan [Member] | Share Repurchase Plan [Member] | Share Repurchase Plan [Member] | Series A Preferred Stock [Member] |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | ||
USD ($) | |||||||||
Beginning Balance at Dec. 31, 2013 | $160,521 | $48,966 | $110,441 | $1,114 | |||||
Beginning Balance, shares at Dec. 31, 2013 | 10,939,268 | 110,684 | |||||||
Net income | 17,620 | 17,620 | |||||||
Total other comprehensive income, net of income taxes | 1,424 | 1,424 | |||||||
Conversion of preferred stock to common stock, shares | 100,478 | -100,478 | |||||||
Issuance of restricted stock, shares | 98,720 | ||||||||
Exercise of common stock options, value | 125 | 125 | |||||||
Exercise of common stock options, shares | 50,000 | 50,000 | |||||||
Forfeiture of restricted stock, shares | -505 | ||||||||
Repurchase and retirement of common stock, value | -353 | -353 | -7,805 | -7,805 | |||||
Repurchase and retirement of common stock, shares | -7,017 | -210,836 | -210,836 | ||||||
Deferred taxes on debt discount | 215 | 215 | |||||||
Common stock dividends | -6,038 | -6,038 | |||||||
Preferred stock dividends | 3 | 3 | |||||||
Tax benefits on stock-based compensation | 915 | 915 | |||||||
Stock-based compensation | 2,085 | 2,085 | |||||||
Ending Balance at Mar. 31, 2014 | 168,712 | 44,148 | 122,026 | 2,538 | |||||
Ending Balance, shares at Mar. 31, 2014 | 10,970,108 | 10,206 | |||||||
Beginning Balance at Dec. 31, 2014 | 182,585 | 20,465 | 161,454 | 666 | |||||
Beginning Balance, shares at Dec. 31, 2014 | 10,189,128 | ||||||||
Net income | 25,378 | 25,378 | |||||||
Total other comprehensive income, net of income taxes | 1,631 | 1,631 | |||||||
Forfeiture of restricted stock, shares | -1,088 | ||||||||
Repurchase and retirement of common stock, value | -595 | -595 | -1,610 | -1,610 | |||||
Repurchase and retirement of common stock, shares | -13,165 | -37,869 | -37,869 | ||||||
Common stock dividends | -3,040 | -3,040 | |||||||
Tax benefits on stock-based compensation | 259 | 259 | |||||||
Stock-based compensation | 1,408 | 1,408 | |||||||
Ending Balance at Mar. 31, 2015 | $206,016 | $19,927 | $183,792 | $2,297 | |||||
Ending Balance, shares at Mar. 31, 2015 | 10,137,006 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 — Summary of Significant Accounting Policies |
Basis of Presentation | |
The accompanying unaudited, consolidated financial statements for HCI Group, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2015 and the results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2015. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2014 included in the Company’s Form 10-K, which was filed with the SEC on March 10, 2015. | |
In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. | |
Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, deferred income taxes, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements. | |
All significant intercompany balances and transactions have been eliminated. | |
Reclassifications | |
Certain reclassifications of prior year amounts have been made to conform to the current year presentation. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 2 — Recent Accounting Pronouncements |
Accounting Standards Update No. 2015-03. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-03 (“ASU 2015-03”), Interest – Imputation of Interest (Subtopic 835-30), which requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability. ASU 2015-03 does not change the recognition and measurement guidance for debt issuance costs. ASU 2015-03 is effective for all public entities for reporting periods beginning after December 15, 2015 and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2015, and for interim periods within fiscal years beginning after December 15, 2016. Early adoption is permitted for financial statements that have not been previously issued. The Company plans to adopt this guidance in December 2015, which will have no effect on the consolidated results of the Company’s operations and comprehensive income. | |
Accounting Standards Update No. 2015-02. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (“ASU 2015-02”), Consolidation (Topic 810), which revises the consolidation model affecting limited partnerships and similar legal entities, evaluation of fees paid to a decision maker or a service provider, effect of fee arrangements and related parties on the primary beneficiary determination, and certain investment funds. ASU 2015-02 is effective for all public entities for reporting periods beginning after December 15, 2015. For all other entities, the amendments in ASU 2015-02 are effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. Any adjustments related to an early adoption in an interim period should be reflected as of the beginning of the fiscal year that includes that interim period. Entities may apply the amendments in ASU 2015-02 retrospectively or use a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. Adoption of this guidance had no effect on the Company’s consolidated financial statements. | |
Accounting Standards Update No. 2015-01. In January 2015, the FASB issued Accounting Standards Update No. 2015-01 (“ASU 2015-01”), Income Statement – Extraordinary and Unusual Items (Subtopic 225-20), which eliminates the concept of extraordinary items. Entities are no longer required to evaluate whether an underlying event or transaction is extraordinary. ASU 2015-01 applies to all reporting entities and is effective for all entities for reporting periods beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Entities may apply the amendments in ASU 2015-01 either (a) prospectively or (b) retrospectively to all prior periods presented in the financial statements. Adoption of this guidance had no effect on the Company’s consolidated financial statements. |
Investments
Investments | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Investments | Note 3 — Investments | ||||||||||||||||||||||||
Available-for-Sale Securities | |||||||||||||||||||||||||
The Company holds investments in fixed-maturity securities and equity securities that are classified as available-for-sale. At March 31, 2015 and December 31, 2014, 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 March 31, 2015 | |||||||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 10,854 | $ | 38 | $ | (6 | ) | $ | 10,886 | ||||||||||||||||
Corporate bonds | 35,749 | 516 | (448 | ) | 35,817 | ||||||||||||||||||||
Asset-backed securities | 4,319 | 4 | (1 | ) | 4,322 | ||||||||||||||||||||
Mortgage-backed securities | 15,473 | 41 | (26 | ) | 15,488 | ||||||||||||||||||||
State, municipalities, and political subdivisions | 80,132 | 1,437 | (115 | ) | 81,454 | ||||||||||||||||||||
Redeemable preferred stock | 9,503 | 399 | (43 | ) | 9,859 | ||||||||||||||||||||
Other | 498 | 1 | — | 499 | |||||||||||||||||||||
Total | 156,528 | 2,436 | (639 | ) | 158,325 | ||||||||||||||||||||
Equity securities | 57,836 | 2,908 | (965 | ) | 59,779 | ||||||||||||||||||||
Total available-for-sale securities | $ | 214,364 | $ | 5,344 | $ | (1,604 | ) | $ | 218,104 | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 2,881 | $ | 5 | $ | (8 | ) | $ | 2,878 | ||||||||||||||||
Corporate bonds | 23,645 | 57 | (430 | ) | 23,272 | ||||||||||||||||||||
Asset-backed securities | 697 | — | — | 697 | |||||||||||||||||||||
Mortgage-backed securities | 3,004 | 8 | (3 | ) | 3,009 | ||||||||||||||||||||
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 March 31, 2015 and December 31, 2014, $116 and $113, respectively, of U.S. Treasury securities relate to a statutory deposit held in trust for the Treasurer of Alabama. | |||||||||||||||||||||||||
Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities as of March 31, 2015 and December 31, 2014 are as follows: | |||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Due in one year or less | $ | 702 | $ | 706 | |||||||||||||||||||||
Due after one year through five years | 41,177 | 41,394 | |||||||||||||||||||||||
Due after five years through ten years | 80,922 | 81,890 | |||||||||||||||||||||||
Due after ten years | 18,254 | 18,847 | |||||||||||||||||||||||
Mortgage-backed securities | 15,473 | 15,488 | |||||||||||||||||||||||
$ | 156,528 | $ | 158,325 | ||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Due in one year or less | $ | 715 | $ | 721 | |||||||||||||||||||||
Due after one year through five years | 25,973 | 26,093 | |||||||||||||||||||||||
Due after five years through ten years | 56,448 | 56,847 | |||||||||||||||||||||||
Due after ten years | 10,023 | 10,414 | |||||||||||||||||||||||
Mortgage-backed securities | 3,004 | 3,009 | |||||||||||||||||||||||
$ | 96,163 | $ | 97,084 | ||||||||||||||||||||||
Sales of Available-for-Sale Securities | |||||||||||||||||||||||||
Proceeds received, and the gross realized gains and losses from sales of available-for-sale securities, for the three months ended March 31, 2015 and 2014 were as follows: | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Realized | Realized | ||||||||||||||||||||||||
Proceeds | Gains | Losses | |||||||||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 2,234 | $ | 58 | $ | (6 | ) | ||||||||||||||||||
Equity securities | $ | 4,755 | $ | 208 | $ | (453 | ) | ||||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 1,691 | $ | 65 | $ | (9 | ) | ||||||||||||||||||
Equity securities | $ | 2,764 | $ | 75 | $ | (127 | ) | ||||||||||||||||||
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 March 31, 2015 and December 31, 2014, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: | |||||||||||||||||||||||||
Twelve Months or | |||||||||||||||||||||||||
Less Than Twelve Months | Greater | Total | |||||||||||||||||||||||
As of March 31, 2015 | Gross | Estimated | Gross | Estimated | Gross | Estimated | |||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||
Loss | Value | Loss | Value | Loss | Value | ||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. treasury and U.S. government agencies | $ | (6 | ) | $ | 1,857 | $ | — | $ | — | $ | (6 | ) | $ | 1,857 | |||||||||||
Corporate bonds | (429 | ) | 7,997 | (19 | ) | 981 | (448 | ) | 8,978 | ||||||||||||||||
Asset-backed securities | (1 | ) | 923 | — | — | (1 | ) | 923 | |||||||||||||||||
Mortgage-backed securities | (26 | ) | 5,160 | — | — | (26 | ) | 5,160 | |||||||||||||||||
State, municipalities, and political subdivisions | (89 | ) | 16,087 | (26 | ) | 613 | (115 | ) | 16,700 | ||||||||||||||||
Redeemable preferred stock | (43 | ) | 2,537 | — | — | (43 | ) | 2,537 | |||||||||||||||||
Total fixed-maturity securities | (594 | ) | 34,561 | (45 | ) | 1,594 | (639 | ) | 36,155 | ||||||||||||||||
Equity securities | (944 | ) | 17,273 | (21 | ) | 834 | (965 | ) | 18,107 | ||||||||||||||||
Total available-for-sale securities | $ | (1,538 | ) | $ | 51,834 | $ | (66 | ) | $ | 2,428 | $ | (1,604 | ) | $ | 54,262 | ||||||||||
At March 31, 2015, there were 115 securities in an unrealized loss position. Of these securities, 7 securities had been in an unrealized loss position for 12 months or greater. | |||||||||||||||||||||||||
Twelve Months or | |||||||||||||||||||||||||
Less Than Twelve Months | Greater | Total | |||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | Gross | Estimated | ||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||
As of December 31, 2014 | Loss | Value | Loss | Value | Loss | Value | |||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. treasury and U.S. government agencies | $ | (8 | ) | $ | 2,485 | $ | — | $ | — | $ | (8 | ) | $ | 2,485 | |||||||||||
Corporate bonds | (428 | ) | 12,720 | (2 | ) | 998 | (430 | ) | 13,718 | ||||||||||||||||
Asset-backed securities | — | 209 | — | — | — | 209 | |||||||||||||||||||
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. | |||||||||||||||||||||||||
Based on the Company’s recent review, the unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. Because the decline in fair value is attributable to changes in interest rates or market conditions and not a decline in credit quality, and because the Company has the ability and intent to hold these securities and it is probable that the Company will not 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 March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||
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 first quarter of 2015, the Company determined that four equity securities were other-than-temporarily impaired after considering the length of time each security had been in an unrealized loss position, the extent of the decline and the near term prospect for recovery. As a result, the Company recognized impairment losses of $1,690 and $0, respectively, for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||
Limited Partnership Investments | |||||||||||||||||||||||||
The Company has interests in limited partnerships that are not registered under the United States Securities Act of 1933, as amended, the securities laws of any state or the securities laws of any other jurisdictions. These partnerships are private equity funds managed by general partners who make decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships. The following table provides information related to the Company’s investments in limited partnerships. | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Investment Strategy | Carrying | Unfunded | (%) | Carrying | Unfunded | (%)(a) | |||||||||||||||||||
Value | Balance | Value | Balance | ||||||||||||||||||||||
Primarily in senior secured loans and, to a limited extent, in other debt and equity securities of private U.S. lower-middle-market companies. (b)(c)(e) | $ | 4,856 | $ | 7,550 | 16.5 | (a) | $ | 2,550 | $ | 9,860 | 16.5 | ||||||||||||||
Value creation through active distressed debt investing primarily in bank loans, public and private corporate bonds, asset-backed securities, and equity securities received in connection with debt restructuring. (b)(d)(e) | 2,200 | 5,800 | (g) | — | — | — | |||||||||||||||||||
Maximum long-term capital appreciation through long and short positions in equity and/or debt securities of publicly traded U.S. and non-U.S. issuers, derivative instruments and certain other financial instruments. (f) | 14,739 | — | 68.66 | (a) | — | — | — | ||||||||||||||||||
Total | $ | 21,795 | $ | 13,350 | $ | 2,550 | $ | 9,860 | |||||||||||||||||
(a) | Represents the percentage investment held by the Company at the balance sheet date. | ||||||||||||||||||||||||
(b) | Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions will be received when underlying investments of the funds are liquidated. | ||||||||||||||||||||||||
(c) | Expected to have a 10-year term and the capital commitment is expected to expire on September 3, 2019. | ||||||||||||||||||||||||
(d) | Expected to have a three-year term from the end of the capital commitment period, which is March 31, 2018. | ||||||||||||||||||||||||
(e) | At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods. | ||||||||||||||||||||||||
(f) | Withdrawal is permitted upon at least 45 days’ written notice to the general partner, provided that the Company has been a limited partner for at least 12 months. | ||||||||||||||||||||||||
(g) | The fund began in February 2015 and reports on a three-month lag. The general partner has not provided the Company’s investment percentage as of March 31, 2015. | ||||||||||||||||||||||||
The following is the aggregated summarized unaudited financial information of limited partnerships, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. In applying the equity method of accounting, the Company uses the most recently available financial information provided by the general partner of each of these partnerships. The financial statements of these limited partnerships are audited annually. | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Operating results: | |||||||||||||||||||||||||
Total income | $ | (261 | ) | ||||||||||||||||||||||
Total expenses | 703 | ||||||||||||||||||||||||
Net loss | $ | (964 | ) | ||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||
Total assets | $ | 37,895 | $ | 15,940 | |||||||||||||||||||||
Total liabilities | $ | 1,018 | $ | 513 | |||||||||||||||||||||
For the three months ended March 31, 2015 and 2014, the Company recognized net investment losses of $265 and $0, respectively, for these investments. At March 31, 2015 and December 31, 2014, the Company’s cumulative contributed capital to the partnerships totaled $22,150 and $2,640, respectively, and the Company’s maximum exposure to loss aggregated $21,795 and $2,550, respectively. | |||||||||||||||||||||||||
Investment in Joint Venture | |||||||||||||||||||||||||
In March 2015, the Company contributed additional cash of $270 to the joint venture organized in September 2014. The joint venture intends to use the additional funds to acquire additional land for development. | |||||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, the Company’s maximum exposure to loss relating to the joint venture was $4,747 and $4,477, respectively, representing the carrying value of the investment. At March 31, 2015 and December 31, 2014, undistributed losses of $23 and $23, respectively, from this equity method investment were included in consolidated retained income. The joint venture partners received no distributions during the first quarter of 2015. The following tables provide summarized unaudited financial information for the three months ended March 31, 2015 and the unaudited financial positions of the joint venture at March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Operating results: | |||||||||||||||||||||||||
Total revenues | $ | — | |||||||||||||||||||||||
Total expenses | (1 | ) | |||||||||||||||||||||||
Net loss | $ | (1 | ) | ||||||||||||||||||||||
The Company’s share of net loss* | $ | — | |||||||||||||||||||||||
* | Included in net investment income in the Company’s consolidated statements of income. | ||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||
Construction in progress - real estate | $ | 4,797 | $ | 3,612 | |||||||||||||||||||||
Cash | 487 | 1,323 | |||||||||||||||||||||||
Other | 35 | 40 | |||||||||||||||||||||||
Total assets | $ | 5,319 | $ | 4,975 | |||||||||||||||||||||
Other liabilities | 45 | — | |||||||||||||||||||||||
Members’ capital | 5,274 | 4,975 | |||||||||||||||||||||||
Total liabilities and members’ capital | $ | 5,319 | $ | 4,975 | |||||||||||||||||||||
Investment in joint venture, at equity | $ | 4,747 | $ | 4,477 | |||||||||||||||||||||
Real Estate Investments | |||||||||||||||||||||||||
Real estate investments include the Acquisition, Development and Construction Loan Arrangement (“ADC Arrangement”) and the Company’s real estate and 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 March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Land | $ | 11,476 | $ | 11,476 | |||||||||||||||||||||
Land improvements | 1,425 | 1,425 | |||||||||||||||||||||||
Buildings | 3,104 | 3,097 | |||||||||||||||||||||||
Other | 1,327 | 1,359 | |||||||||||||||||||||||
Total, at cost | 17,332 | 17,357 | |||||||||||||||||||||||
Less: accumulated depreciation and amortization | (1,163 | ) | (1,107 | ) | |||||||||||||||||||||
Real estate, net | 16,169 | 16,250 | |||||||||||||||||||||||
ADC Arrangement classified as real estate investment | 3,411 | 2,888 | |||||||||||||||||||||||
Real estate investments | $ | 19,580 | $ | 19,138 | |||||||||||||||||||||
Depreciation and amortization expense related to real estate investments was $103 and $98, respectively, for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||
ADC Arrangement | |||||||||||||||||||||||||
During the first quarter of 2015, the Company amended the maximum loan amount under the ADC Arrangement from $9,785 to $10,200. The increased financing is intended for use in acquiring additional land. | |||||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, the Company’s maximum exposure to loss relating to this variable interest was $3,411 and $2,888, respectively, representing the carrying value of the ADC Arrangement. | |||||||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||||
Net investment income (loss), by source, is summarized as follows: | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 826 | $ | 997 | |||||||||||||||||||||
Equity securities | 927 | 257 | |||||||||||||||||||||||
Investment expense | (145 | ) | (85 | ) | |||||||||||||||||||||
Limited partnership investments | (265 | ) | — | ||||||||||||||||||||||
Real estate investments | (83 | ) | (284 | ) | |||||||||||||||||||||
Cash and cash equivalents | 135 | 174 | |||||||||||||||||||||||
Other | 14 | — | |||||||||||||||||||||||
Net investment income | $ | 1,409 | $ | 1,059 | |||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | Note 4 — Fair Value Measurements | ||||||||||||||||
The Company records and discloses certain financial assets at their estimated fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: | |||||||||||||||||
Level 1 | - | Unadjusted quoted prices in active markets for identical assets or liabilities. | |||||||||||||||
Level 2 | - | Other inputs that are observable for the asset and liability, either directly or indirectly. | |||||||||||||||
Level 3 | - | Inputs that are unobservable. | |||||||||||||||
Assets Measured at Estimated Fair Value on a Recurring Basis | |||||||||||||||||
The following table presents 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 March 31, 2015 and December 31, 2014: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 271,413 | $ | — | $ | — | $ | 271,413 | |||||||||
Fixed-maturity securities: | |||||||||||||||||
U.S. Treasury and U.S. government agencies | 3,973 | 6,913 | — | 10,886 | |||||||||||||
Corporate bonds | 34,836 | 981 | — | 35,817 | |||||||||||||
Asset-backed securities | — | 4,322 | 4,322 | ||||||||||||||
Mortgage-backed securities | — | 15,488 | — | 15,488 | |||||||||||||
State, municipalities, and political subdivisions | — | 81,454 | — | 81,454 | |||||||||||||
Redeemable preferred stock | 9,859 | — | — | 9,859 | |||||||||||||
Other | — | 499 | — | 499 | |||||||||||||
Total fixed-maturity securities | 48,668 | 109,657 | — | 158,325 | |||||||||||||
Equity securities | 59,779 | — | — | 59,779 | |||||||||||||
Total available-for-sale securities | 108,447 | 109,657 | — | 218,104 | |||||||||||||
Total | $ | 379,860 | $ | 109,657 | $ | — | $ | 489,517 | |||||||||
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 | 1,809 | — | 2,878 | |||||||||||||
Corporate bonds | 22,274 | 998 | — | 23,272 | |||||||||||||
Asset-backed securities | — | 697 | — | 697 | |||||||||||||
Mortgage-backed securities | — | 3,009 | — | 3,009 | |||||||||||||
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 | |||||||||
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 March 31, 2015 and December 31, 2014: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Limited partnership investments (a) | $ | — | $ | — | $ | 14,727 | $ | 14,727 | |||||||||
ADC Arrangement classified as real estate investment | $ | — | $ | — | $ | 3,360 | $ | 3,360 | |||||||||
Financial Liabilities: | |||||||||||||||||
Long-term debt: | |||||||||||||||||
8% Senior notes | $ | — | $ | 42,472 | $ | — | $ | 42,472 | |||||||||
3.875% Convertible senior notes | — | — | 93,146 | 93,146 | |||||||||||||
Total long-term debt | $ | — | $ | 42,472 | $ | 93,146 | $ | 135,618 | |||||||||
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 | |||||||||
(a) | Represents the net asset value for one of three funds. The Company’s share of net asset value for two funds was not available or practicable to estimate as of the balance sheet date. |
Other_Assets
Other Assets | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Other Assets | Note 5 — Other Assets | ||||||||
The following table summarizes the Company’s other assets: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Benefits receivable related to retrospective reinsurance contracts | $ | 34,502 | $ | 28,123 | |||||
Deferred costs related to retrospective reinsurance contracts | 533 | 473 | |||||||
Deferred offering costs on senior notes | 3,482 | 3,653 | |||||||
Prepaid expenses | 1,190 | 1,444 | |||||||
Restricted cash | 300 | 300 | |||||||
Other | 1,188 | 1,594 | |||||||
Total other assets | $ | 41,195 | $ | 35,587 | |||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | Note 6 — Long-Term Debt | ||||||||
The following table summarizes the Company’s long-term debt: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
8% Senior Notes, due January 30, 2020 | $ | 40,250 | $ | 40,250 | |||||
3.875% Convertible Senior Notes, due March 15, 2019* | 89,977 | 89,289 | |||||||
Total long-term debt | $ | 130,227 | $ | 129,539 | |||||
* | net carrying value | ||||||||
During the first quarter of 2015, the Company increased its cash dividends on common stock from $0.275 per share to $0.30 per share, which resulted in an adjustment in the conversion rate applicable to the Company’s 3.875% Convertible Senior Notes. As a result, each $1 of notes will be convertible into 16.0173 shares of common stock, which is the equivalent of approximately $62.43 per share, effective February 18, 2015. | |||||||||
For the three months ended March 31, 2015 and 2014, interest expense included the contractual interest coupon, discount amortization and amortization of allocated issuance costs aggregating $2,661 and $2,574, respectively, the amounts of which included non-cash interest expense of $858 and $782, respectively. As of March 31, 2015, the remaining amortization period of the debt discount was 3.9 years. |
Reinsurance
Reinsurance | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Insurance [Abstract] | |||||||||
Reinsurance | Note 7 — Reinsurance | ||||||||
The Company cedes a portion of its homeowners’ insurance exposure to other entities under catastrophe excess of loss reinsurance and quota share treaties. The Company remains liable for claims payments in the event that any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1st each year. The Company purchases reinsurance each year taking into consideration probable maximum projected losses and reinsurance market conditions. | |||||||||
The impact of the catastrophe excess of loss reinsurance and quota share treaties on premiums written and earned is as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Premiums Written: | |||||||||
Direct | $ | 81,989 | $ | 79,662 | |||||
Assumed | (535 | ) | (723 | ) | |||||
Gross written | 81,454 | 78,939 | |||||||
Ceded | (27,839 | ) | (27,508 | ) | |||||
Net premiums written | $ | 53,615 | $ | 51,431 | |||||
Premiums Earned: | |||||||||
Direct | $ | 83,606 | $ | 78,520 | |||||
Assumed | 25,961 | 15,368 | |||||||
Gross earned | 109,567 | 93,888 | |||||||
Ceded | (27,839 | ) | (27,508 | ) | |||||
Net premiums earned | $ | 81,728 | $ | 66,380 | |||||
During the three months ended March 31, 2015 and 2014, there were no recoveries pertaining to reinsurance contracts that were deducted from losses incurred. At March 31, 2015 and December 31, 2014, there were 28 reinsurers participating in the Company’s reinsurance program. There were no amounts receivable with respect to reinsurers at March 31, 2015 and December 31, 2014. Thus, there were no concentrations of credit risk associated with reinsurance receivables and prepaid reinsurance premiums as of March 31, 2015 and December 31, 2014. | |||||||||
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 consolidated statements of income as net reductions in ceded premiums of $6,373 and $5,484, respectively, for the three months ended March 31, 2015 and 2014. At March 31, 2015 and December 31, 2014, other assets included $35,035 and $28,596, respectively, and prepaid reinsurance premiums included $5,917 and $5,983, respectively, which are related to these adjustments. |
Losses_and_Loss_Adjustment_Exp
Losses and Loss Adjustment Expenses | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Insurance [Abstract] | |||||||||
Losses and Loss Adjustment Expenses | Note 8 — Losses and Loss Adjustment Expenses | ||||||||
The liability for losses and loss adjustment expenses is determined on an individual case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claim development and losses incurred, but not reported. | |||||||||
Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Balance, beginning of period | $ | 48,908 | $ | 43,686 | |||||
Incurred related to: | |||||||||
Current period | 18,832 | 18,914 | |||||||
Prior period | 207 | (349 | ) | ||||||
Total incurred | 19,039 | 18,565 | |||||||
Paid related to: | |||||||||
Current period | (4,796 | ) | (6,607 | ) | |||||
Prior period | (11,974 | ) | (12,047 | ) | |||||
Total paid | (16,770 | ) | (18,654 | ) | |||||
Balance, end of period | $ | 51,177 | $ | 43,597 | |||||
The establishment of loss reserves is an inherently uncertain process and changes in loss reserve estimates are expected as such estimates are subject to the outcome of future events. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such adjustments are made. During the three months ended March 31, 2015, the Company experienced unfavorable development of $207 with respect to its net unpaid losses and loss adjustment expenses established as of December 31, 2014. Factors attributable to this unfavorable development include an increase in the number of late 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 monthly or quarterly results and cause a temporary disruption of the normal operations of the Company. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 — Income Taxes |
During the three months ended March 31, 2015 and 2014, the Company recorded approximately $15,668 and $10,690, respectively, of income taxes, which resulted in effective tax rates of 38.2% and 37.8%, respectively. The increase in the 2015 effective tax rate was primarily attributable to an increase in overall income and a decrease in interest income earned from tax-exempt securities. The Company’s estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes as well as certain nondeductible and tax-exempt items. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||
Earnings Per Share | Note 10 — Earnings Per Share | ||||||||||||||||||||||||
U.S. GAAP requires the Company to use the two-class method in computing basic earnings per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities effect the computation of both basic and diluted earnings per share during periods of net income. | |||||||||||||||||||||||||
A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below: | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||||||||||
Income | Shares | Per Share | Income | Shares | Per Share | ||||||||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||
Net income | $ | 25,378 | $ | 17,620 | |||||||||||||||||||||
Less: Preferred stock dividends | — | 3 | |||||||||||||||||||||||
Less: Income attributable to participating securities | (1,498 | ) | (1,180 | ) | |||||||||||||||||||||
Basic Earnings Per Share: | |||||||||||||||||||||||||
Income allocated to common stockholders | 23,880 | 9,539 | $ | 2.5 | 16,443 | 10,261 | $ | 1.6 | |||||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||||||
Stock options | — | 135 | — | 149 | |||||||||||||||||||||
Convertible preferred stock | — | — | (3 | ) | 79 | ||||||||||||||||||||
Convertible senior notes | 1,111 | 1,649 | 1,071 | 1,649 | |||||||||||||||||||||
Diluted Earnings Per Share: | |||||||||||||||||||||||||
Income available to common stockholders and assumed conversions | $ | 24,991 | 11,323 | $ | 2.21 | $ | 17,511 | 12,138 | $ | 1.44 | |||||||||||||||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Note 11 — Stockholders’ Equity |
Common Stock | |
In 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. During the three months ended March 31, 2015 and 2014, the Company repurchased and retired a total of 37,869 and 210,836 shares, respectively, at a weighted average price per share of $42.49 and $37.00, respectively, under this authorized repurchase plan. The total cost of shares repurchased, inclusive of fees and commissions, during the three months ended March 31, 2015 and 2014 was $1,610, or $42.51 per share, and $7,805, or $37.02 per share, respectively. The one-year repurchase plan expired March 31, 2015. | |
On January 19, 2015, the Company’s Board of Directors declared a quarterly dividend of $0.30 per common share. The dividends were paid on March 20, 2015 to stockholders of record on February 20, 2015. On April 20, 2015, the Company’s Board of Directors declared a quarterly dividend of $0.30 per common share. The dividends are payable on June 19, 2015 to stockholders of record on May 15, 2015. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock-Based Compensation | Note 12 — Stock-Based Compensation | ||||||||||||||||
Incentive Plans | |||||||||||||||||
The Company currently has outstanding stock-based awards granted under the 2007 Stock Option and Incentive Plan and the 2012 Omnibus Incentive Plan. Only the 2012 Plan is active and available for future grants. At March 31, 2015, there were 4,247,558 shares available for grant under the 2012 Plan. | |||||||||||||||||
Stock Options | |||||||||||||||||
Stock options granted and outstanding under the incentive plans vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years. | |||||||||||||||||
A summary of the stock option activity for the three months ended March 31, 2015 and 2014 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, 2015 | 230,000 | $ | 3 | 3.0 years | $ | 9,256 | |||||||||||
Outstanding at March 31, 2015 | 230,000 | $ | 3 | 2.8 years | $ | 9,861 | |||||||||||
Exercisable at March 31, 2015 | 230,000 | $ | 3 | 2.8 years | $ | 9,861 | |||||||||||
Outstanding at January 1, 2014 | 280,000 | $ | 2.91 | 3.9 years | $ | 14,166 | |||||||||||
Exercised | (50,000 | ) | $ | 2.5 | |||||||||||||
Outstanding at March 31, 2014 | 230,000 | $ | 3 | 3.8 years | $ | 7,683 | |||||||||||
Exercisable at March 31, 2014 | 220,000 | $ | 2.85 | 3.6 years | $ | 7,382 | |||||||||||
There were no options exercised during the three months ended March 31, 2015. The following table summarizes information about options exercised during the three months ended March 31, 2014 (option amounts not in thousands): | |||||||||||||||||
Options exercised | 50,000 | ||||||||||||||||
Total intrinsic value of exercised options | $ | 1,970 | |||||||||||||||
Fair value of vested stock options | $ | 17 | |||||||||||||||
Tax benefits realized | $ | 603 | |||||||||||||||
All outstanding stock options vested and their related compensation expense had been fully recognized prior to 2015. The Company recognized compensation expense related to stock options, which is included in other operating expenses, of approximately $5 for the three months ended March 31, 2014. The associated deferred tax benefits were immaterial. | |||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance and market-based conditions. The fair value of the awards with market-based conditions is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome. The determination of fair value with respect to the awards with only performance or service-based conditions is based on the market value of the Company’s common stock on the grant date. | |||||||||||||||||
Information with respect to the activity of unvested restricted stock awards during the three months ended March 31, 2015 and 2014 is as follows: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Restricted | Average | ||||||||||||||||
Stock | Grant Date | ||||||||||||||||
Awards | Fair Value | ||||||||||||||||
Nonvested at January 1, 2015 | 639,705 | $ | 28.33 | ||||||||||||||
Vested | (41,695 | ) | $ | 36.15 | |||||||||||||
Forfeited | (1,088 | ) | $ | 48.42 | |||||||||||||
Nonvested at March 31, 2015 | 596,922 | $ | 27.75 | ||||||||||||||
Nonvested at January 1, 2014 | 735,650 | $ | 25.48 | ||||||||||||||
Granted | 98,720 | $ | 48.42 | ||||||||||||||
Vested | (21,825 | ) | $ | 21.56 | |||||||||||||
Forfeited | (505 | ) | $ | 32.2 | |||||||||||||
Nonvested at March 31, 2014 | 812,040 | $ | 28.37 | ||||||||||||||
The Company recognized compensation expense related to restricted stock, which is included in other operating expenses, of $1,408 and $2,080, respectively, for the three months ended March 31, 2015 and 2014. At March 31, 2015 and 2014, there was approximately $8,893 and $16,440, 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 20 months. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and related paid dividends, and the fair value of vested restricted stock for the three months ended March 31, 2015 and 2014: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Deferred tax benefits recognized | $ | 543 | $ | 803 | |||||||||||||
Tax benefits realized for restricted stock and paid dividends | $ | 259 | $ | 312 | |||||||||||||
Fair value of vested restricted stock | $ | 1,507 | $ | 471 | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 — Commitments and Contingencies |
Obligations under Multi-Year Reinsurance Contracts | |
As of March 31, 2015, 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 premiums payable to the reinsurers due in one and two years are $66,451 and $10,905, respectively. | |
Financing Commitment | |
As described in Note 3 — “Investments” under ADC Arrangement, the Company is contractually committed to provide financing for a real estate acquisition, development and construction project. At March 31, 2015, $6,917 of the Company’s commitment was unused. | |
Capital Commitment | |
As described in Note 3 — “Investments” under Limited Partnership Investments, the Company is contractually committed to capital contributions under limited partnership agreements. At March 31, 2015, there was an aggregate unfunded balance of $13,350. | |
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 during the first quarter of 2015 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 March 31, 2015 and December 31, 2014 related to this contingency. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited, consolidated financial statements for HCI Group, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2015 and the results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2015. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2014 included in the Company’s Form 10-K, which was filed with the SEC on March 10, 2015. | |
In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. | |
Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, deferred income taxes, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements. | |
All significant intercompany balances and transactions have been eliminated. | |
Reclassifications | Reclassifications |
Certain reclassifications of prior year amounts have been made to conform to the current year presentation. |
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities | At March 31, 2015 and December 31, 2014, 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 March 31, 2015 | |||||||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 10,854 | $ | 38 | $ | (6 | ) | $ | 10,886 | ||||||||||||||||
Corporate bonds | 35,749 | 516 | (448 | ) | 35,817 | ||||||||||||||||||||
Asset-backed securities | 4,319 | 4 | (1 | ) | 4,322 | ||||||||||||||||||||
Mortgage-backed securities | 15,473 | 41 | (26 | ) | 15,488 | ||||||||||||||||||||
State, municipalities, and political subdivisions | 80,132 | 1,437 | (115 | ) | 81,454 | ||||||||||||||||||||
Redeemable preferred stock | 9,503 | 399 | (43 | ) | 9,859 | ||||||||||||||||||||
Other | 498 | 1 | — | 499 | |||||||||||||||||||||
Total | 156,528 | 2,436 | (639 | ) | 158,325 | ||||||||||||||||||||
Equity securities | 57,836 | 2,908 | (965 | ) | 59,779 | ||||||||||||||||||||
Total available-for-sale securities | $ | 214,364 | $ | 5,344 | $ | (1,604 | ) | $ | 218,104 | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 2,881 | $ | 5 | $ | (8 | ) | $ | 2,878 | ||||||||||||||||
Corporate bonds | 23,645 | 57 | (430 | ) | 23,272 | ||||||||||||||||||||
Asset-backed securities | 697 | — | — | 697 | |||||||||||||||||||||
Mortgage-backed securities | 3,004 | 8 | (3 | ) | 3,009 | ||||||||||||||||||||
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 | ||||||||||||||||
Scheduled Contractual Maturities of Fixed-Maturity Securities | The scheduled contractual maturities of fixed-maturity securities as of March 31, 2015 and December 31, 2014 are as follows: | ||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Due in one year or less | $ | 702 | $ | 706 | |||||||||||||||||||||
Due after one year through five years | 41,177 | 41,394 | |||||||||||||||||||||||
Due after five years through ten years | 80,922 | 81,890 | |||||||||||||||||||||||
Due after ten years | 18,254 | 18,847 | |||||||||||||||||||||||
Mortgage-backed securities | 15,473 | 15,488 | |||||||||||||||||||||||
$ | 156,528 | $ | 158,325 | ||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||
Due in one year or less | $ | 715 | $ | 721 | |||||||||||||||||||||
Due after one year through five years | 25,973 | 26,093 | |||||||||||||||||||||||
Due after five years through ten years | 56,448 | 56,847 | |||||||||||||||||||||||
Due after ten years | 10,023 | 10,414 | |||||||||||||||||||||||
Mortgage-backed securities | 3,004 | 3,009 | |||||||||||||||||||||||
$ | 96,163 | $ | 97,084 | ||||||||||||||||||||||
Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available for Sale Securities | Proceeds received, and the gross realized gains and losses from sales of available-for-sale securities, for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Realized | Realized | ||||||||||||||||||||||||
Proceeds | Gains | Losses | |||||||||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 2,234 | $ | 58 | $ | (6 | ) | ||||||||||||||||||
Equity securities | $ | 4,755 | $ | 208 | $ | (453 | ) | ||||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 1,691 | $ | 65 | $ | (9 | ) | ||||||||||||||||||
Equity securities | $ | 2,764 | $ | 75 | $ | (127 | ) | ||||||||||||||||||
Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category | Securities with gross unrealized loss positions at March 31, 2015 and December 31, 2014, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: | ||||||||||||||||||||||||
Twelve Months or | |||||||||||||||||||||||||
Less Than Twelve Months | Greater | Total | |||||||||||||||||||||||
As of March 31, 2015 | Gross | Estimated | Gross | Estimated | Gross | Estimated | |||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||
Loss | Value | Loss | Value | Loss | Value | ||||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. treasury and U.S. government agencies | $ | (6 | ) | $ | 1,857 | $ | — | $ | — | $ | (6 | ) | $ | 1,857 | |||||||||||
Corporate bonds | (429 | ) | 7,997 | (19 | ) | 981 | (448 | ) | 8,978 | ||||||||||||||||
Asset-backed securities | (1 | ) | 923 | — | — | (1 | ) | 923 | |||||||||||||||||
Mortgage-backed securities | (26 | ) | 5,160 | — | — | (26 | ) | 5,160 | |||||||||||||||||
State, municipalities, and political subdivisions | (89 | ) | 16,087 | (26 | ) | 613 | (115 | ) | 16,700 | ||||||||||||||||
Redeemable preferred stock | (43 | ) | 2,537 | — | — | (43 | ) | 2,537 | |||||||||||||||||
Total fixed-maturity securities | (594 | ) | 34,561 | (45 | ) | 1,594 | (639 | ) | 36,155 | ||||||||||||||||
Equity securities | (944 | ) | 17,273 | (21 | ) | 834 | (965 | ) | 18,107 | ||||||||||||||||
Total available-for-sale securities | $ | (1,538 | ) | $ | 51,834 | $ | (66 | ) | $ | 2,428 | $ | (1,604 | ) | $ | 54,262 | ||||||||||
At March 31, 2015, there were 115 securities in an unrealized loss position. Of these securities, 7 securities had been in an unrealized loss position for 12 months or greater. | |||||||||||||||||||||||||
Twelve Months or | |||||||||||||||||||||||||
Less Than Twelve Months | Greater | Total | |||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | Gross | Estimated | ||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||||||||
As of December 31, 2014 | Loss | Value | Loss | Value | Loss | Value | |||||||||||||||||||
Fixed-maturity securities | |||||||||||||||||||||||||
U.S. treasury and U.S. government agencies | $ | (8 | ) | $ | 2,485 | $ | — | $ | — | $ | (8 | ) | $ | 2,485 | |||||||||||
Corporate bonds | (428 | ) | 12,720 | (2 | ) | 998 | (430 | ) | 13,718 | ||||||||||||||||
Asset-backed securities | — | 209 | — | — | — | 209 | |||||||||||||||||||
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 | ||||||||||
Schedule of Company's investments in Limited Partnerships | The following table provides information related to the Company’s investments in limited partnerships. | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Investment Strategy | Carrying | Unfunded | (%) | Carrying | Unfunded | (%)(a) | |||||||||||||||||||
Value | Balance | Value | Balance | ||||||||||||||||||||||
Primarily in senior secured loans and, to a limited extent, in other debt and equity securities of private U.S. lower-middle-market companies. (b)(c)(e) | $ | 4,856 | $ | 7,550 | 16.5 | (a) | $ | 2,550 | $ | 9,860 | 16.5 | ||||||||||||||
Value creation through active distressed debt investing primarily in bank loans, public and private corporate bonds, asset-backed securities, and equity securities received in connection with debt restructuring. (b)(d)(e) | 2,200 | 5,800 | (g) | — | — | — | |||||||||||||||||||
Maximum long-term capital appreciation through long and short positions in equity and/or debt securities of publicly traded U.S. and non-U.S. issuers, derivative instruments and certain other financial instruments. (f) | 14,739 | — | 68.66 | (a) | — | — | — | ||||||||||||||||||
Total | $ | 21,795 | $ | 13,350 | $ | 2,550 | $ | 9,860 | |||||||||||||||||
(a) | Represents the percentage investment held by the Company at the balance sheet date. | ||||||||||||||||||||||||
(b) | Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions will be received when underlying investments of the funds are liquidated. | ||||||||||||||||||||||||
(c) | Expected to have a 10-year term and the capital commitment is expected to expire on September 3, 2019. | ||||||||||||||||||||||||
(d) | Expected to have a three-year term from the end of the capital commitment period, which is March 31, 2018. | ||||||||||||||||||||||||
(e) | At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods. | ||||||||||||||||||||||||
(f) | Withdrawal is permitted upon at least 45 days’ written notice to the general partner, provided that the Company has been a limited partner for at least 12 months. | ||||||||||||||||||||||||
(g) | The fund began in February 2015 and reports on a three-month lag. The general partner has not provided the Company’s investment percentage as of March 31, 2015. | ||||||||||||||||||||||||
Summary of Unaudited Financial Information and Unaudited Financial Position | The joint venture partners received no distributions during the first quarter of 2015. The following tables provide summarized unaudited financial information for the three months ended March 31, 2015 and the unaudited financial positions of the joint venture at March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Operating results: | |||||||||||||||||||||||||
Total revenues | $ | — | |||||||||||||||||||||||
Total expenses | (1 | ) | |||||||||||||||||||||||
Net loss | $ | (1 | ) | ||||||||||||||||||||||
The Company’s share of net loss* | $ | — | |||||||||||||||||||||||
* | Included in net investment income in the Company’s consolidated statements of income. | ||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||
Construction in progress - real estate | $ | 4,797 | $ | 3,612 | |||||||||||||||||||||
Cash | 487 | 1,323 | |||||||||||||||||||||||
Other | 35 | 40 | |||||||||||||||||||||||
Total assets | $ | 5,319 | $ | 4,975 | |||||||||||||||||||||
Other liabilities | 45 | — | |||||||||||||||||||||||
Members’ capital | 5,274 | 4,975 | |||||||||||||||||||||||
Total liabilities and members’ capital | $ | 5,319 | $ | 4,975 | |||||||||||||||||||||
Investment in joint venture, at equity | $ | 4,747 | $ | 4,477 | |||||||||||||||||||||
Summary of Real Estate Investment | Real estate investments consist of the following as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Land | $ | 11,476 | $ | 11,476 | |||||||||||||||||||||
Land improvements | 1,425 | 1,425 | |||||||||||||||||||||||
Buildings | 3,104 | 3,097 | |||||||||||||||||||||||
Other | 1,327 | 1,359 | |||||||||||||||||||||||
Total, at cost | 17,332 | 17,357 | |||||||||||||||||||||||
Less: accumulated depreciation and amortization | (1,163 | ) | (1,107 | ) | |||||||||||||||||||||
Real estate, net | 16,169 | 16,250 | |||||||||||||||||||||||
ADC Arrangement classified as real estate investment | 3,411 | 2,888 | |||||||||||||||||||||||
Real estate investments | $ | 19,580 | $ | 19,138 | |||||||||||||||||||||
Investment Income Summarized | Net investment income (loss), by source, is summarized as follows: | ||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||
Fixed-maturity securities | $ | 826 | $ | 997 | |||||||||||||||||||||
Equity securities | 927 | 257 | |||||||||||||||||||||||
Investment expense | (145 | ) | (85 | ) | |||||||||||||||||||||
Limited partnership investments | (265 | ) | — | ||||||||||||||||||||||
Real estate investments | (83 | ) | (284 | ) | |||||||||||||||||||||
Cash and cash equivalents | 135 | 174 | |||||||||||||||||||||||
Other | 14 | — | |||||||||||||||||||||||
Net investment income | $ | 1,409 | $ | 1,059 | |||||||||||||||||||||
Limited Partnership [Member] | |||||||||||||||||||||||||
Summary of Unaudited Financial Information and Unaudited Financial Position | The following is the aggregated summarized unaudited financial information of limited partnerships, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. In applying the equity method of accounting, the Company uses the most recently available financial information provided by the general partner of each of these partnerships. The financial statements of these limited partnerships are audited annually. | ||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Operating results: | |||||||||||||||||||||||||
Total income | $ | (261 | ) | ||||||||||||||||||||||
Total expenses | 703 | ||||||||||||||||||||||||
Net loss | $ | (964 | ) | ||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||
Total assets | $ | 37,895 | $ | 15,940 | |||||||||||||||||||||
Total liabilities | $ | 1,018 | $ | 513 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Assets Measured at Estimated Fair Value on a Recurring Basis | The following table presents 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 March 31, 2015 and December 31, 2014: | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 271,413 | $ | — | $ | — | $ | 271,413 | |||||||||
Fixed-maturity securities: | |||||||||||||||||
U.S. Treasury and U.S. government agencies | 3,973 | 6,913 | — | 10,886 | |||||||||||||
Corporate bonds | 34,836 | 981 | — | 35,817 | |||||||||||||
Asset-backed securities | — | 4,322 | 4,322 | ||||||||||||||
Mortgage-backed securities | — | 15,488 | — | 15,488 | |||||||||||||
State, municipalities, and political subdivisions | — | 81,454 | — | 81,454 | |||||||||||||
Redeemable preferred stock | 9,859 | — | — | 9,859 | |||||||||||||
Other | — | 499 | — | 499 | |||||||||||||
Total fixed-maturity securities | 48,668 | 109,657 | — | 158,325 | |||||||||||||
Equity securities | 59,779 | — | — | 59,779 | |||||||||||||
Total available-for-sale securities | 108,447 | 109,657 | — | 218,104 | |||||||||||||
Total | $ | 379,860 | $ | 109,657 | $ | — | $ | 489,517 | |||||||||
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 | 1,809 | — | 2,878 | |||||||||||||
Corporate bonds | 22,274 | 998 | — | 23,272 | |||||||||||||
Asset-backed securities | — | 697 | — | 697 | |||||||||||||
Mortgage-backed securities | — | 3,009 | — | 3,009 | |||||||||||||
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 | |||||||||
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 March 31, 2015 and December 31, 2014: | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Limited partnership investments (a) | $ | — | $ | — | $ | 14,727 | $ | 14,727 | |||||||||
ADC Arrangement classified as real estate investment | $ | — | $ | — | $ | 3,360 | $ | 3,360 | |||||||||
Financial Liabilities: | |||||||||||||||||
Long-term debt: | |||||||||||||||||
8% Senior notes | $ | — | $ | 42,472 | $ | — | $ | 42,472 | |||||||||
3.875% Convertible senior notes | — | — | 93,146 | 93,146 | |||||||||||||
Total long-term debt | $ | — | $ | 42,472 | $ | 93,146 | $ | 135,618 | |||||||||
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 | |||||||||
(a) | Represents the net asset value for one of three funds. The Company’s share of net asset value for two funds was not available or practicable to estimate as of the balance sheet date. |
Other_Assets_Tables
Other Assets (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Summary of Other Assets | The following table summarizes the Company’s other assets: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Benefits receivable related to retrospective reinsurance contracts | $ | 34,502 | $ | 28,123 | |||||
Deferred costs related to retrospective reinsurance contracts | 533 | 473 | |||||||
Deferred offering costs on senior notes | 3,482 | 3,653 | |||||||
Prepaid expenses | 1,190 | 1,444 | |||||||
Restricted cash | 300 | 300 | |||||||
Other | 1,188 | 1,594 | |||||||
Total other assets | $ | 41,195 | $ | 35,587 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Summary of Long-term Debt | The following table summarizes the Company’s long-term debt: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
8% Senior Notes, due January 30, 2020 | $ | 40,250 | $ | 40,250 | |||||
3.875% Convertible Senior Notes, due March 15, 2019* | 89,977 | 89,289 | |||||||
Total long-term debt | $ | 130,227 | $ | 129,539 | |||||
* | net carrying value |
Reinsurance_Tables
Reinsurance (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Insurance [Abstract] | |||||||||
Impact of Catastrophe Excess of Loss Reinsurance and Quota Share Treaties on Premiums Written and Earned | The impact of the catastrophe excess of loss reinsurance and quota share treaties on premiums written and earned is as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Premiums Written: | |||||||||
Direct | $ | 81,989 | $ | 79,662 | |||||
Assumed | (535 | ) | (723 | ) | |||||
Gross written | 81,454 | 78,939 | |||||||
Ceded | (27,839 | ) | (27,508 | ) | |||||
Net premiums written | $ | 53,615 | $ | 51,431 | |||||
Premiums Earned: | |||||||||
Direct | $ | 83,606 | $ | 78,520 | |||||
Assumed | 25,961 | 15,368 | |||||||
Gross earned | 109,567 | 93,888 | |||||||
Ceded | (27,839 | ) | (27,508 | ) | |||||
Net premiums earned | $ | 81,728 | $ | 66,380 | |||||
Losses_and_Loss_Adjustment_Exp1
Losses and Loss Adjustment Expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Insurance [Abstract] | |||||||||
Liability for Losses and Loss Adjustment Expenses | Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Balance, beginning of period | $ | 48,908 | $ | 43,686 | |||||
Incurred related to: | |||||||||
Current period | 18,832 | 18,914 | |||||||
Prior period | 207 | (349 | ) | ||||||
Total incurred | 19,039 | 18,565 | |||||||
Paid related to: | |||||||||
Current period | (4,796 | ) | (6,607 | ) | |||||
Prior period | (11,974 | ) | (12,047 | ) | |||||
Total paid | (16,770 | ) | (18,654 | ) | |||||
Balance, end of period | $ | 51,177 | $ | 43,597 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
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 diluted earnings per common share is presented below: | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||||||||||
Income | Shares | Per Share | Income | Shares | Per Share | ||||||||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||
Net income | $ | 25,378 | $ | 17,620 | |||||||||||||||||||||
Less: Preferred stock dividends | — | 3 | |||||||||||||||||||||||
Less: Income attributable to participating securities | (1,498 | ) | (1,180 | ) | |||||||||||||||||||||
Basic Earnings Per Share: | |||||||||||||||||||||||||
Income allocated to common stockholders | 23,880 | 9,539 | $ | 2.5 | 16,443 | 10,261 | $ | 1.6 | |||||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||||||
Stock options | — | 135 | — | 149 | |||||||||||||||||||||
Convertible preferred stock | — | — | (3 | ) | 79 | ||||||||||||||||||||
Convertible senior notes | 1,111 | 1,649 | 1,071 | 1,649 | |||||||||||||||||||||
Diluted Earnings Per Share: | |||||||||||||||||||||||||
Income available to common stockholders and assumed conversions | $ | 24,991 | 11,323 | $ | 2.21 | $ | 17,511 | 12,138 | $ | 1.44 | |||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Summary of Company's Stock Option Plan Activity | A summary of the stock option activity for the three months ended March 31, 2015 and 2014 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, 2015 | 230,000 | $ | 3 | 3.0 years | $ | 9,256 | |||||||||||
Outstanding at March 31, 2015 | 230,000 | $ | 3 | 2.8 years | $ | 9,861 | |||||||||||
Exercisable at March 31, 2015 | 230,000 | $ | 3 | 2.8 years | $ | 9,861 | |||||||||||
Outstanding at January 1, 2014 | 280,000 | $ | 2.91 | 3.9 years | $ | 14,166 | |||||||||||
Exercised | (50,000 | ) | $ | 2.5 | |||||||||||||
Outstanding at March 31, 2014 | 230,000 | $ | 3 | 3.8 years | $ | 7,683 | |||||||||||
Exercisable at March 31, 2014 | 220,000 | $ | 2.85 | 3.6 years | $ | 7,382 | |||||||||||
Information about Options Exercised | There were no options exercised during the three months ended March 31, 2015. The following table summarizes information about options exercised during the three months ended March 31, 2014 (option amounts not in thousands): | ||||||||||||||||
Options exercised | 50,000 | ||||||||||||||||
Total intrinsic value of exercised options | $ | 1,970 | |||||||||||||||
Fair value of vested stock options | $ | 17 | |||||||||||||||
Tax benefits realized | $ | 603 | |||||||||||||||
Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan | Information with respect to the activity of unvested restricted stock awards during the three months ended March 31, 2015 and 2014 is as follows: | ||||||||||||||||
Number of | Weighted | ||||||||||||||||
Restricted | Average | ||||||||||||||||
Stock | Grant Date | ||||||||||||||||
Awards | Fair Value | ||||||||||||||||
Nonvested at January 1, 2015 | 639,705 | $ | 28.33 | ||||||||||||||
Vested | (41,695 | ) | $ | 36.15 | |||||||||||||
Forfeited | (1,088 | ) | $ | 48.42 | |||||||||||||
Nonvested at March 31, 2015 | 596,922 | $ | 27.75 | ||||||||||||||
Nonvested at January 1, 2014 | 735,650 | $ | 25.48 | ||||||||||||||
Granted | 98,720 | $ | 48.42 | ||||||||||||||
Vested | (21,825 | ) | $ | 21.56 | |||||||||||||
Forfeited | (505 | ) | $ | 32.2 | |||||||||||||
Nonvested at March 31, 2014 | 812,040 | $ | 28.37 | ||||||||||||||
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 and related paid dividends, and the fair value of vested restricted stock for the three months ended March 31, 2015 and 2014: | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Deferred tax benefits recognized | $ | 543 | $ | 803 | |||||||||||||
Tax benefits realized for restricted stock and paid dividends | $ | 259 | $ | 312 | |||||||||||||
Fair value of vested restricted stock | $ | 1,507 | $ | 471 |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | $156,528 | $96,163 |
Total available-for-sale securities, Gross Unrealized Gain | 5,344 | 3,148 |
Equity securities, Cost or Amortized Cost | 57,836 | 45,387 |
Total Available-for-sale securities, Gross Unrealized Loss | -1,604 | -2,064 |
Total available-for-sale securities, Cost or Amortized Cost | 214,364 | 141,550 |
Total available-for-sale securities, Estimated Fair Value | 158,325 | 97,084 |
Equity securities, Estimated Fair Value | 59,779 | 45,550 |
Total available-for-sale securities, Estimated Fair Value | 218,104 | 142,634 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities, Gross Unrealized Gain | 2,908 | 1,694 |
Equity securities, Cost or Amortized Cost | 57,836 | 45,387 |
Total Available-for-sale securities, Gross Unrealized Loss | -965 | -1,531 |
Equity securities, Estimated Fair Value | 59,779 | 45,550 |
Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 156,528 | 96,163 |
Total available-for-sale securities, Gross Unrealized Gain | 2,436 | 1,454 |
Total Available-for-sale securities, Gross Unrealized Loss | -639 | -533 |
Total available-for-sale securities, Estimated Fair Value | 158,325 | 97,084 |
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 | 10,854 | 2,881 |
Total available-for-sale securities, Gross Unrealized Gain | 38 | 5 |
Total Available-for-sale securities, Gross Unrealized Loss | -6 | -8 |
Total available-for-sale securities, Estimated Fair Value | 10,886 | 2,878 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 35,749 | 23,645 |
Total available-for-sale securities, Gross Unrealized Gain | 516 | 57 |
Total Available-for-sale securities, Gross Unrealized Loss | -448 | -430 |
Total available-for-sale securities, Estimated Fair Value | 35,817 | 23,272 |
Fixed-Maturity Securities [Member] | Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 4,319 | 697 |
Total available-for-sale securities, Gross Unrealized Gain | 4 | |
Total Available-for-sale securities, Gross Unrealized Loss | -1 | |
Total available-for-sale securities, Estimated Fair Value | 4,322 | 697 |
Fixed-Maturity Securities [Member] | Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 15,473 | 3,004 |
Total available-for-sale securities, Gross Unrealized Gain | 41 | 8 |
Total Available-for-sale securities, Gross Unrealized Loss | -26 | -3 |
Total available-for-sale securities, Estimated Fair Value | 15,488 | 3,009 |
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 | 80,132 | 56,336 |
Total available-for-sale securities, Gross Unrealized Gain | 1,437 | 1,205 |
Total Available-for-sale securities, Gross Unrealized Loss | -115 | -38 |
Total available-for-sale securities, Estimated Fair Value | 81,454 | 57,503 |
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 9,503 | 9,433 |
Total available-for-sale securities, Gross Unrealized Gain | 399 | 178 |
Total Available-for-sale securities, Gross Unrealized Loss | -43 | -54 |
Total available-for-sale securities, Estimated Fair Value | 9,859 | 9,557 |
Fixed-Maturity Securities [Member] | Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 498 | 167 |
Total available-for-sale securities, Gross Unrealized Gain | 1 | 1 |
Total available-for-sale securities, Estimated Fair Value | $499 | $168 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (U.S. Treasury and U.S. Government Agencies [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
U.S. Treasury and U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Statutory deposit held in trust with Treasurer of Alabama | $116 | $113 |
Investments_Scheduled_Contract
Investments - Scheduled Contractual Maturities of Fixed-Maturity Securities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Available-for-sale | ||
Due in one year or less, Amortized Cost | $702 | $715 |
Due after one year through five years, Amortized Cost | 41,177 | 25,973 |
Due after five years through ten years, Amortized Cost | 80,922 | 56,448 |
Due after ten years, Amortized Cost | 18,254 | 10,023 |
Mortgage-backed securities, Amortized Cost | 15,473 | 3,004 |
Fixed-maturity securities, Cost or Amortized Cost | 156,528 | 96,163 |
Due in one year or less, Fair Value | 706 | 721 |
Due after one year through five years, Fair Value | 41,394 | 26,093 |
Due after five years through ten years, Fair Value | 81,890 | 56,847 |
Due after ten years, Fair Value | 18,847 | 10,414 |
Mortgage-backed securities, Fair Value | 15,488 | 3,009 |
Fair Value Total | $158,325 | $97,084 |
Investments_Summary_of_Proceed
Investments - Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available for Sale Securities (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Proceeds | $2,234 | $1,691 |
Gross Realized Gains | 58 | 65 |
Gross Realized Losses | -6 | -9 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Proceeds | 4,755 | 2,764 |
Gross Realized Gains | 208 | 75 |
Gross Realized Losses | ($453) | ($127) |
Investments_Summary_of_Securit
Investments - Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | ($1,538) | ($1,961) |
Fair Value, Less than Twelve Months | 51,834 | 41,010 |
Gross Unrealized Loss, Twelve Months or Greater | -66 | -103 |
Fair Value, Twelve Months or Greater | 2,428 | 5,819 |
Gross Unrealized Loss, Total | -1,604 | -2,064 |
Fair Value, Total | 54,262 | 46,829 |
Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | -594 | -512 |
Fair Value, Less than Twelve Months | 34,561 | 22,162 |
Gross Unrealized Loss, Twelve Months or Greater | -45 | -21 |
Fair Value, Twelve Months or Greater | 1,594 | 1,200 |
Gross Unrealized Loss, Total | -639 | -533 |
Fair Value, Total | 36,155 | 23,362 |
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 | -6 | -8 |
Fair Value, Less than Twelve Months | 1,857 | 2,485 |
Gross Unrealized Loss, Total | -6 | -8 |
Fair Value, Total | 1,857 | 2,485 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | -429 | -428 |
Fair Value, Less than Twelve Months | 7,997 | 12,720 |
Gross Unrealized Loss, Twelve Months or Greater | -19 | -2 |
Fair Value, Twelve Months or Greater | 981 | 998 |
Gross Unrealized Loss, Total | -448 | -430 |
Fair Value, Total | 8,978 | 13,718 |
Fixed-Maturity Securities [Member] | Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | -1 | |
Fair Value, Less than Twelve Months | 923 | 209 |
Gross Unrealized Loss, Total | -1 | |
Fair Value, Total | 923 | 209 |
Fixed-Maturity Securities [Member] | Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | -26 | -3 |
Fair Value, Less than Twelve Months | 5,160 | 1,018 |
Gross Unrealized Loss, Total | -26 | -3 |
Fair Value, Total | 5,160 | 1,018 |
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 | -89 | -19 |
Fair Value, Less than Twelve Months | 16,087 | 3,144 |
Gross Unrealized Loss, Twelve Months or Greater | -26 | -19 |
Fair Value, Twelve Months or Greater | 613 | 202 |
Gross Unrealized Loss, Total | -115 | -38 |
Fair Value, Total | 16,700 | 3,346 |
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | -43 | -54 |
Fair Value, Less than Twelve Months | 2,537 | 2,586 |
Gross Unrealized Loss, Total | -43 | -54 |
Fair Value, Total | 2,537 | 2,586 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | -944 | -1,449 |
Fair Value, Less than Twelve Months | 17,273 | 18,848 |
Gross Unrealized Loss, Twelve Months or Greater | -21 | -82 |
Fair Value, Twelve Months or Greater | 834 | 4,619 |
Gross Unrealized Loss, Total | -965 | -1,531 |
Fair Value, Total | $18,107 | $23,467 |
Investments_Otherthantemporary
Investments (Other-than-temporary Impairment) - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Securities | Securities | ||
Amortized Cost and Fair Value Debt Securities [Abstract] | |||
Number of securities in an unrealized loss position | 115 | 94 | |
Number of securities had been in an unrealized loss position for 12 months or greater | 7 | 9 | |
Other-than-temporary impairment loss | $1,690 | $0 |
Investments_Schedule_of_Compan
Investments - Schedule of Company's Investments in Limited Partnerships (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Investment Securities [Line Items] | ||
Carrying Value | $21,795 | $2,550 |
Unfunded Balance | 13,350 | 9,860 |
Private US Lower Middle Market Companies [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | 4,856 | 2,550 |
Unfunded Balance | 7,550 | 9,860 |
Percentage investment held by the entity | 16.50% | 16.50% |
Bank Loans Public and Private Corporate Bonds Asset Backed Securities Equity and Debt Restructuring [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | 2,200 | |
Unfunded Balance | 5,800 | |
Equity and Debt Securities Publicly Traded US and Non US Issuers [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $14,739 | |
Percentage investment held by the entity | 68.66% |
Investments_Schedule_of_Compan1
Investments - Schedule of Company's Investments in Limited Partnerships (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Private US Lower Middle Market Companies [Member] | |
Investment Securities [Line Items] | |
Expected term | 10 years |
Expiration date of capital commitment | 9/3/19 |
Investment additional maturity term | 2 years |
Bank Loans Public and Private Corporate Bonds Asset Backed Securities Equity and Debt Restructuring [Member] | |
Investment Securities [Line Items] | |
Expected term | 3 years |
Expiration date of capital commitment | 3/31/18 |
Investment additional maturity term | 2 years |
Investment beginning period | 2015-02 |
Description of a reporting lag | The fund began in February 2015 and reports on a three-month lag. |
Equity and Debt Securities Publicly Traded US and Non US Issuers [Member] | |
Investment Securities [Line Items] | |
Written notice required for withdrawal to the general partner | 45 days |
Minimum Period To Withdrawal By Limited Partners | 12 months |
Investments_Summary_of_Unaudit
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Operating results: | |||
Total expenses | $41,164 | $39,807 | |
Balance Sheet: | |||
Other | 41,195 | 35,587 | |
Other liabilities | 16,137 | 17,683 | |
Total liabilities and members' capital | 642,344 | 602,210 | |
Investment in joint venture, at equity | 4,747 | 4,477 | |
Limited Partnership [Member] | |||
Operating results: | |||
Total income | -261 | ||
Total expenses | 703 | ||
Net loss | -964 | ||
Balance Sheet: | |||
Total assets | 37,895 | 15,940 | |
Total liabilities | 1,018 | 513 | |
Balance Sheet: | |||
Total assets | 37,895 | 15,940 | |
Net loss | -964 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Operating results: | |||
Total revenues | 0 | ||
Total expenses | 1 | ||
Net loss | -1 | ||
Balance Sheet: | |||
Total assets | 5,319 | 4,975 | |
Balance Sheet: | |||
Construction in progress - real estate | 4,797 | 3,612 | |
Cash | 487 | 1,323 | |
Other | 35 | 40 | |
Total assets | 5,319 | 4,975 | |
Other liabilities | 45 | ||
Members' capital | 5,274 | 4,975 | |
Total liabilities and members' capital | $5,319 | $4,975 |
Investments_Limited_Partnershi
Investments (Limited Partnership Investments) - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Schedule of Investments [Line Items] | |||
Recognized investment loss | ($265) | ||
Maximum exposure loss relating to VIE | 4,747 | 4,477 | |
Limited Partnership [Member] | |||
Schedule of Investments [Line Items] | |||
Recognized investment loss | -265 | 0 | |
Company's contributed capital to the partnership | 22,150 | 2,640 | |
Maximum exposure loss relating to VIE | $21,795 | $2,550 |
Investments_Investment_in_Join
Investments (Investment in Joint Venture) - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Schedule of Investments [Line Items] | ||
Maximum exposure loss relating to VIE | $4,747,000 | $4,477,000 |
Undistributed loss from equity method investment | -23,000 | -23,000 |
Distribution | 0 | |
Joint Venture [Member] | ||
Schedule of Investments [Line Items] | ||
Additional cash contribution to joint venture | $270,000 |
Investments_Summary_of_Real_Es
Investments - Summary of Real Estate Investment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Real Estate [Abstract] | ||
Land | $11,476 | $11,476 |
Land improvements | 1,425 | 1,425 |
Buildings | 3,104 | 3,097 |
Other | 1,327 | 1,359 |
Total, at cost | 17,332 | 17,357 |
Less: accumulated depreciation and amortization | -1,163 | -1,107 |
Real estate, net | 16,169 | 16,250 |
ADC Arrangement classified as real estate investment | 3,411 | 2,888 |
Real estate investments | $19,580 | $19,138 |
Investments_Real_Estate_Invest
Investments (Real Estate Investments) - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule of Investments [Line Items] | |||
Maximum exposure loss relating to VIE | $4,477 | $4,747 | |
ADC Arrangement [Member] | |||
Schedule of Investments [Line Items] | |||
Loan amount | 9,785 | 10,200 | |
Maximum exposure loss relating to VIE | 2,888 | 3,411 | |
Real Estate Investments [Member] | |||
Schedule of Investments [Line Items] | |||
Depreciation and amortization expenses under real estate investments | $103 | $98 |
Investments_Investment_Income_
Investments - Investment Income Summarized (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment income | ($265) | |
Investment income, Total | 1,409 | 1,059 |
Limited Partnership Investment [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment income | -265 | |
Real Estate Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment expense | -83 | -284 |
Cash and Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment income | 135 | 174 |
Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment income | 14 | |
Available-for-Sale Securities [Member] | Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment income | 826 | 997 |
Available-for-Sale Securities [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment income | 927 | 257 |
Available-for-Sale Securities [Member] | Investment Expense [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment expense | ($145) | ($85) |
Fair_Value_Measurements_Availa
Fair Value Measurements - Available-for-Sale Securities Measured at Fair Value (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ||
Total fixed-maturity securities | $158,325 | $97,084 |
Equity securities | 59,779 | 45,550 |
Total available-for-sale securities | 218,104 | 142,634 |
(Level 1) [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 271,413 | 314,716 |
Total available-for-sale securities | 108,447 | 78,450 |
Total financial assets | 379,860 | 393,166 |
(Level 2) [Member] | ||
Financial Assets: | ||
Total available-for-sale securities | 109,657 | 64,184 |
Total financial assets | 109,657 | 64,184 |
Fixed-Maturity Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 158,325 | 97,084 |
Fixed-Maturity Securities [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 48,668 | 32,900 |
Fixed-Maturity Securities [Member] | (Level 1) [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 3,973 | 1,069 |
Fixed-Maturity Securities [Member] | (Level 1) [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 34,836 | 22,274 |
Fixed-Maturity Securities [Member] | (Level 1) [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 9,859 | 9,557 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 109,657 | 64,184 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 6,913 | 1,809 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 981 | 998 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | Asset-backed Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 4,322 | 697 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | Mortgage-Backed Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 15,488 | 3,009 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 81,454 | 57,503 |
Fixed-Maturity Securities [Member] | (Level 2) [Member] | Other [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 499 | 168 |
Equity Securities [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Equity securities | 59,779 | 45,550 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 271,413 | 314,716 |
Total available-for-sale securities | 218,104 | 142,634 |
Total financial assets | 489,517 | 457,350 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 158,325 | 97,084 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 10,886 | 2,878 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 35,817 | 23,272 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Asset-backed Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 4,322 | 697 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Mortgage-Backed Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 15,488 | 3,009 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 81,454 | 57,503 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 9,859 | 9,557 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Other [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 499 | 168 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Financial Assets: | ||
Equity securities | $59,779 | $45,550 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Balance Sheet (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ||
Limited partnership investments | $21,795 | $2,550 |
ADC Arrangement classified as real estate investment | 3,411 | 2,888 |
(Level 2) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 42,472 | 42,955 |
(Level 2) [Member] | Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 42,472 | 42,955 |
(Level 3) [Member] | ||
Financial Assets: | ||
Limited partnership investments | 14,727 | |
ADC Arrangement classified as real estate investment | 3,360 | 2,835 |
Financial Liabilities: | ||
Total long-term debt | 93,146 | 93,367 |
(Level 3) [Member] | Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 93,146 | 93,367 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Limited partnership investments | 14,727 | |
ADC Arrangement classified as real estate investment | 3,360 | 2,835 |
Financial Liabilities: | ||
Total long-term debt | 135,618 | 136,322 |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 42,472 | 42,955 |
Fair Value, Measurements, Recurring [Member] | Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | $93,146 | $93,367 |
Fair_Value_Measurements_Schedu1
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Balance Sheet (Parenthetical) (Detail) | Mar. 31, 2015 | Dec. 31, 2014 |
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% | |
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% |
Other_Assets_Summary_of_Other_
Other Assets - Summary of Other Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Benefits receivable related to retrospective reinsurance contracts | $34,502 | $28,123 |
Deferred costs related to retrospective reinsurance contracts | 533 | 473 |
Deferred offering costs on senior notes | 3,482 | 3,653 |
Prepaid expenses | 1,190 | 1,444 |
Restricted cash | 300 | 300 |
Other | 1,188 | 1,594 |
Total other assets | $41,195 | $35,587 |
LongTerm_Debt_Summary_of_LongT
Long-Term Debt - Summary of Long-Term Debt (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $130,227 | $129,539 |
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 | $89,977 | $89,289 |
LongTerm_Debt_Summary_of_LongT1
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Fixed annual rate of interest | 8.00% |
Debt instrument, maturity date | 30-Jan-20 |
Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 3.88% |
Debt instrument, maturity date | 15-Mar-19 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ||
Convertible debt, conversion ratio | 16.0173 | |
Convertible debt, conversion price | $62.43 | |
Interest expense on debt | $2,661 | $2,574 |
Non-cash interest expense | $858 | $782 |
Debt discount, remaining amortization period | 3 years 10 months 24 days | |
Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.88% | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Cash dividends on common stock | $0.28 | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Cash dividends on common stock | $0.30 |
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 | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Premiums Written: | ||
Direct | $81,989 | $79,662 |
Assumed | -535 | -723 |
Gross written | 81,454 | 78,939 |
Ceded | -27,839 | -27,508 |
Net premiums written | 53,615 | 51,431 |
Premiums Earned: | ||
Direct | 83,606 | 78,520 |
Assumed | 25,961 | 15,368 |
Gross earned | 109,567 | 93,888 |
Ceded | -27,839 | -27,508 |
Net premiums earned | $81,728 | $66,380 |
Reinsurance_Additional_Informa
Reinsurance - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Number of reinsurers | 28 | 28 | |
Reinsurance recoverable | $0 | $0 | |
Other assets | 41,195 | 35,587 | |
Prepaid reinsurance premiums | 16,072 | 34,096 | |
Credit Concentration Risk [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Recoveries pertaining to reinsurance contracts | 0 | 0 | |
Reinsurance [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Net reduction in ceded premiums | 6,373 | 5,484 | |
Other assets | 35,035 | 28,596 | |
Prepaid reinsurance premiums | $5,917 | $5,983 |
Losses_and_Loss_Adjustment_Exp2
Losses and Loss Adjustment Expenses - Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Balance, beginning of period | $48,908 | $43,686 |
Incurred related to: | ||
Current period | 18,832 | 18,914 |
Prior period | 207 | -349 |
Total incurred | 19,039 | 18,565 |
Paid related to: | ||
Current period | -4,796 | -6,607 |
Prior period | -11,974 | -12,047 |
Total paid | -16,770 | -18,654 |
Balance, end of period | $51,177 | $43,597 |
Losses_and_Loss_Adjustment_Exp3
Losses and Loss Adjustment Expenses - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Unpaid claims and claim adjustment expenses overall development | $207 | ($349) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $15,668 | $10,690 |
Effective tax rates | 38.20% | 37.80% |
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 | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $25,378 | $17,620 |
Less: Preferred stock dividends | 3 | |
Less: Income attributable to participating securities | -1,498 | -1,180 |
Basic Earnings Per Share: | ||
Income allocated to common stockholders, Income (Numerator) | 23,880 | 16,443 |
Income allocated to common stockholders, Shares (Denominator) | 9,539 | 10,261 |
Income allocated to common stockholders, Per Share Amount | $2.50 | $1.60 |
Diluted Earnings Per Share: | ||
Income available to common stockholders and assumed conversions, Income (Numerator) | 24,991 | 17,511 |
Income available to common stockholders and assumed conversions, Shares (Denominator) | 11,323 | 12,138 |
Income available to common stockholders and assumed conversions, Per Share Amount | $2.21 | $1.44 |
Convertible Senior Notes [Member] | ||
Effect of Dilutive Securities: | ||
Dilutive Securities, Income (Numerator) | 1,111 | 1,071 |
Dilutive Securities, Shares (Denominator) | 1,649 | 1,649 |
Convertible Preferred Stock [Member] | ||
Effect of Dilutive Securities: | ||
Dilutive Securities, Income (Numerator) | ($3) | |
Dilutive Securities, Shares (Denominator) | 79 | |
Stock Options [Member] | ||
Effect of Dilutive Securities: | ||
Dilutive Securities, Shares (Denominator) | 135 | 149 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 19, 2015 | Apr. 20, 2015 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | |||||
Stock repurchased and retired, total costs | $595,000 | $353,000 | |||
Dividends per common share declared | $0.30 | $0.28 | |||
Share Repurchase Plan [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock repurchase authorized amount | 40,000,000 | ||||
Repurchase and retirement of common stock, shares | 37,869 | 210,836 | |||
Common stock repurchased and retired, weighted average price | $42.49 | $37 | |||
Stock repurchased and retired, total costs | $1,610,000 | $7,805,000 | |||
Fees and commissions average price repurchase common stock | $42.51 | $37.02 | |||
Time through the company is allowed to repurchase shares | 31-Mar-15 | ||||
Dividends per common share declared | $0.30 | ||||
Date of dividend payable | 20-Mar-15 | ||||
Record date of dividend payable | 20-Feb-15 | ||||
Share Repurchase Plan [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividends per common share declared | $0.30 | ||||
Date of dividend payable | 19-Jun-15 | ||||
Record date of dividend payable | 15-May-15 |
StockBased_Compensation_Incent
Stock-Based Compensation (Incentive Plans) - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Omnibus Incentive Plan New Plan 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common shares available for grant | 4,247,558 |
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 $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise of common stock options, shares | 50,000 | |
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 | 0 | |
Recognized compensation expenses | $5 | |
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 $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding Beginning, Number of Options | 230,000 | 280,000 | 280,000 | |
Exercised, Number of Options | -50,000 | |||
Outstanding Ending, Number of Options | 230,000 | 230,000 | 230,000 | 280,000 |
Exercisable Ending, Number of Options | 230,000 | 220,000 | ||
Outstanding Beginning, Weighted Average Exercise Price | $3 | $2.91 | $2.91 | |
Exercised, Weighted-Average Exercise Price | $2.50 | |||
Outstanding Ending, Weighted-Average Exercise Price | $3 | $3 | $3 | $2.91 |
Exercisable Ending , Weighted-Average Exercise Price | $3 | $2.85 | ||
Outstanding, Weighted-Average Remaining Contractual Term | 2 years 9 months 18 days | 3 years 9 months 18 days | 3 years | 3 years 10 months 24 days |
Exercisable Ending, Weighted-Average Remaining Contractual Term | 2 years 9 months 18 days | 3 years 7 months 6 days | ||
Outstanding Beginning, Aggregate Intrinsic Value | $9,256 | $14,166 | $14,166 | |
Outstanding Ending, Aggregate Intrinsic Value | 9,861 | 7,683 | 9,256 | 14,166 |
Exercisable Ending, Aggregate Intrinsic Value | $9,861 | $7,382 |
StockBased_Compensation_Inform
Stock-Based Compensation - Information about Options Exercised (Detail) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award Options Activity [Abstract] | |
Options exercised | 50,000 |
Total intrinsic value of exercised options | $1,970 |
Fair value of vested stock options | 17 |
Tax benefits realized | $603 |
Stock_Based_Compensation_Infor
Stock Based Compensation - Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan (Detail) (Restricted Stock [Member], USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance, shares | 639,705 | 735,650 |
Granted, Number of Restricted Stock Awards | 98,720 | |
Vested, Number of Restricted Stock Awards | -41,695 | -21,825 |
Forfeited, Number of Restricted Stock Awards | -1,088 | -505 |
Ending balance, shares | 596,922 | 812,040 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $28.33 | $25.48 |
Granted, Weighted-Average Grant Date Fair Value | $48.42 | |
Vested, Weighted-Average Grant Date Fair Value | $36.15 | $21.56 |
Forfeited, Weighted-Average Grant Date Fair Value | $48.42 | $32.20 |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $27.75 | $28.37 |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Awards) - Additional Information (Detail) (Restricted Stock [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Recognized compensation expenses | $1,408 | $2,080 |
Total unrecognized compensation expense, Nonvested restricted stock arrangements granted | $8,893 | $16,440 |
Recognition of remaining compensation expense over a weighted-average period | 20 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 $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred tax benefits recognized | $543 | $803 |
Tax benefits realized for restricted stock and paid dividends | 259 | 312 |
Fair value of vested restricted stock | $1,507 | $471 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 10, 2013 | Mar. 31, 2015 | Dec. 31, 2014 |
Commitment And Contingencies [Line Items] | |||
Future minimum aggregate amounts payable to the reinsurers for one year | $66,451 | ||
Future minimum aggregate amounts payable to the reinsurers for two year | 10,905 | ||
Unused commitment | 6,917 | ||
Capital contribution unfunded balance | 13,350 | 9,860 | |
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 | ||
Premium Tax [Member] | |||
Commitment And Contingencies [Line Items] | |||
Loss contingency amount | 1,754 | ||
Proposed premium tax adjustment with interest | 1,913 | ||
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 | $140 |