Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 23, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | HCI | |
Entity Registrant Name | HCI Group, Inc. | |
Entity Central Index Key | 1,400,810 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,890,921 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Fixed-maturity securities, available for sale, at fair value (amortized cost: $129,507 and $96,163, respectively) | $ 127,104 | $ 97,084 |
Equity securities, available for sale, at fair value (cost: $54,743 and $45,387, respectively) | 53,536 | 45,550 |
Limited partnership investments, at equity | 22,162 | 2,550 |
Investment in joint venture, at equity | 4,751 | 4,477 |
Real estate investments (inclusive of $62 and $0 of consolidated variable interest entities, respectively) | 25,663 | 19,138 |
Total investments | 233,216 | 168,799 |
Cash and cash equivalents (inclusive of $14 and $0 of consolidated variable interest entities, respectively) | 331,542 | 314,416 |
Accrued interest and dividends receivable | 1,505 | 1,059 |
Income taxes receivable | 2,624 | |
Premiums receivable | 29,778 | 15,824 |
Prepaid reinsurance premiums | 26,590 | 34,096 |
Deferred policy acquisition costs | 23,532 | 15,014 |
Property and equipment, net | 11,838 | 12,292 |
Deferred income taxes, net | 6,421 | 2,499 |
Other assets (inclusive of $70 and $0 of consolidated variable interest entities, respectively) | 38,440 | 35,587 |
Total assets | 702,862 | 602,210 |
Liabilities and Stockholders' Equity | ||
Losses and loss adjustment expenses | 57,217 | 48,908 |
Unearned premiums | 235,033 | 214,071 |
Advance premiums | 11,087 | 4,380 |
Assumed reinsurance balances payable | 415 | 218 |
Accrued expenses | 13,854 | 4,826 |
Income taxes payable | 2,261 | |
Long-term debt | 131,647 | 129,539 |
Other liabilities | 22,208 | 17,683 |
Total liabilities | $ 473,722 | $ 419,625 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Preferred stock | ||
Common stock (no par value, 40,000,000 shares authorized, 10,268,270 and 10,189,128 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively) | $ 0 | $ 0 |
Additional paid-in capital | 24,209 | 20,465 |
Retained income | 207,148 | 161,454 |
Accumulated other comprehensive (loss) income, net of taxes | (2,217) | 666 |
Total stockholders' equity | 229,140 | 182,585 |
Total liabilities and stockholders' equity | $ 702,862 | $ 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 ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-sale Debt securities, Amortized cost | $ 129,507 | $ 96,163 |
Real estate investments | 25,663 | 19,138 |
Available-for-sale Equity securities, Amortized cost | 54,743 | 45,387 |
Cash and cash equivalents | 331,542 | 314,416 |
Other assets | $ 38,440 | $ 35,587 |
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 | 10,268,270 | 10,189,128 |
Common stock, outstanding | 10,268,270 | 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 |
Variable Interest Entities [Member] | ||
Real estate investments | $ 62 | $ 0 |
Cash and cash equivalents | 14 | 0 |
Other assets | $ 70 | $ 0 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue | ||||
Gross premiums earned | $ 103,842,000 | $ 88,944,000 | $ 321,174,000 | $ 274,053,000 |
Premiums ceded | (41,077,000) | (27,684,000) | (100,294,000) | (83,764,000) |
Net premiums earned | 62,765,000 | 61,260,000 | 220,880,000 | 190,289,000 |
Net investment (loss) income | (519,000) | 1,213,000 | 2,685,000 | 3,753,000 |
Net realized investment (losses) gains | (296,000) | 3,294,000 | (563,000) | 4,465,000 |
Net other-than-temporary impairment losses recognized in income: | ||||
Total other-than-temporary impairment losses | (2,482,000) | (4,465,000) | ||
Portion of loss recognized in other comprehensive income, before taxes | 596,000 | 596,000 | ||
Net other-than-temporary impairment losses | (1,886,000) | 0 | (3,869,000) | 0 |
Policy fee income | 994,000 | 931,000 | 2,477,000 | 1,826,000 |
Other | 204,000 | 257,000 | 930,000 | 1,023,000 |
Total revenue | 61,262,000 | 66,955,000 | 222,540,000 | 201,356,000 |
Expenses | ||||
Losses and loss adjustment expenses | 26,200,000 | 21,991,000 | 65,804,000 | 58,939,000 |
Policy acquisition and other underwriting expenses | 10,675,000 | 9,986,000 | 30,917,000 | 28,674,000 |
Salaries and wages | 5,040,000 | 4,357,000 | 15,174,000 | 12,614,000 |
Interest expense | 2,698,000 | 2,626,000 | 8,038,000 | 7,809,000 |
Other operating expenses | 4,711,000 | 5,220,000 | 14,040,000 | 15,852,000 |
Total expenses | 49,324,000 | 44,180,000 | 133,973,000 | 123,888,000 |
Income before income taxes | 11,938,000 | 22,775,000 | 88,567,000 | 77,468,000 |
Income tax expense | 4,567,000 | 8,723,000 | 33,796,000 | 29,366,000 |
Net income | 7,371,000 | 14,052,000 | 54,771,000 | 48,102,000 |
Preferred stock dividends | 4,000 | |||
Income available to common stockholders | $ 7,371,000 | $ 14,052,000 | $ 54,771,000 | $ 48,106,000 |
Basic earnings per common share | $ 0.72 | $ 1.34 | $ 5.38 | $ 4.48 |
Diluted earnings per common share | 0.71 | 1.23 | 4.84 | 4.07 |
Dividends per common share | $ 0.30 | $ 0.28 | $ 0.90 | $ 0.83 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 7,371,000 | $ 14,052,000 | $ 54,771,000 | $ 48,102,000 |
Change in unrealized (losses) gains on investments: | ||||
Net unrealized (losses) gains arising during the period | (6,021,000) | (1,542,000) | (9,196,000) | 4,305,000 |
Other-than-temporary impairment losses | 1,886,000 | 0 | 3,869,000 | 0 |
Call and repayment losses charged to investment income | 15,000 | 4,000 | 70,000 | 21,000 |
Reclassification adjustment for realized losses (gains) | 296,000 | (3,294,000) | 563,000 | (4,465,000) |
Net change in unrealized losses | (3,824,000) | (4,832,000) | (4,694,000) | (139,000) |
Deferred income taxes on above change | 1,476,000 | 1,864,000 | 1,811,000 | 54,000 |
Total other comprehensive loss, net of income taxes | (2,348,000) | (2,968,000) | (2,883,000) | (85,000) |
Comprehensive income | $ 5,023,000 | $ 11,084,000 | $ 51,888,000 | $ 48,017,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 54,771,000 | $ 48,102,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 4,047,000 | 6,600,000 |
Net amortization of premiums on investments in fixed-maturity securities | 605,000 | 654,000 |
Depreciation and amortization | 3,911,000 | 3,682,000 |
Deferred income tax benefits | (2,111,000) | (5,319,000) |
Net realized investment losses (gains) | 563,000 | (4,465,000) |
Other-than-temporary impairment losses | 3,869,000 | 0 |
Income from real estate investments | (228,000) | (44,000) |
(Income) loss from joint venture | (4,000) | 22,000 |
Loss from limited partnership interest | 2,862,000 | |
Net loss on disposal of property and equipment | 2,000 | |
Net loss (gain) on disposal or sale of real estate investments | 24,000 | (1,000) |
Foreign currency remeasurement loss | 54,000 | 10,000 |
Changes in operating assets and liabilities: | ||
Premiums receivable | (13,954,000) | (11,909,000) |
Advance premiums | 6,707,000 | 6,013,000 |
Prepaid reinsurance premiums | 7,506,000 | (2,899,000) |
Accrued interest and dividends receivable | (446,000) | 125,000 |
Other assets | (2,722,000) | (13,645,000) |
Assumed reinsurance balances payable | 197,000 | (4,660,000) |
Deferred policy acquisition costs | (8,518,000) | (6,101,000) |
Losses and loss adjustment expenses | 8,309,000 | 3,968,000 |
Unearned premiums | 20,962,000 | 31,891,000 |
Income taxes | 4,885,000 | (2,539,000) |
Accrued expenses and other liabilities | 15,039,000 | 14,396,000 |
Net cash provided by operating activities | 106,330,000 | 63,881,000 |
Cash flows from investing activities: | ||
Investment in real estate under acquisition, development, and construction arrangement | (6,276,000) | (2,608,000) |
Investments in limited partnership interests | (22,486,000) | |
Investment in joint venture | (270,000) | (4,500,000) |
Purchase of property and equipment, net | (565,000) | (325,000) |
Purchase of real estate investments | (293,000) | (352,000) |
Purchase of fixed-maturity securities | (93,081,000) | (56,229,000) |
Purchase of equity securities | (28,095,000) | (32,608,000) |
Distribution from limited partnership interests | 12,000 | |
Proceeds from sales of fixed-maturity securities | 51,510,000 | 67,519,000 |
Proceeds from calls, repayments and maturities of fixed-maturity securities | 5,655,000 | 2,960,000 |
Proceeds from sales of equity securities | 14,111,000 | 9,232,000 |
Proceeds from sales of real estate investments | 5,000 | 1,000 |
Net cash used in investing activities | (79,773,000) | (16,910,000) |
Cash flows from financing activities: | ||
Proceeds from the exercise of common stock options | 263,000 | 125,000 |
Cash dividends paid | (9,638,000) | (9,357,000) |
Cash dividends received under share repurchase forward contract | 561,000 | 514,000 |
Repurchases of common stock | (792,000) | (616,000) |
Repurchases of common stock under share repurchase plan | (1,610,000) | (27,815,000) |
Redemption of Series A preferred stock | (34,000) | |
Debt issuance costs | (234,000) | |
Tax benefits on stock-based compensation | 1,836,000 | 1,384,000 |
Net cash used in financing activities | (9,380,000) | (36,033,000) |
Effect of exchange rate changes on cash | (51,000) | (13,000) |
Net increase in cash and cash equivalents | 17,126,000 | 10,925,000 |
Cash and cash equivalents at beginning of period | 314,416,000 | 293,098,000 |
Cash and cash equivalents at end of period | 331,542,000 | 304,023,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 29,186,000 | 35,836,000 |
Cash paid for interest | 6,406,000 | 5,453,000 |
Non-cash investing and financing activities: | ||
Unrealized loss on investments in available-for-sale securities, net of tax | $ (2,883,000) | (85,000) |
Series A Preferred Stock [Member] | ||
Non-cash investing and financing activities: | ||
Conversion of Series A Preferred Stock to common stock | $ 991,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Income [Member] | Accumulated Other Comprehensive (Loss) Income, Net of Tax [Member] | Share Repurchase Plan [Member] | Share Repurchase Plan [Member]Common Stock [Member] | Share Repurchase Plan [Member]Additional Paid-In Capital [Member] | Series A Preferred Stock [Member] |
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 | 48,102 | 48,102 | |||||||
Total other comprehensive loss, net of income taxes | (85) | (85) | |||||||
Conversion of preferred stock to common stock, shares | 107,298 | (107,298) | |||||||
Issuance of restricted stock | 0 | $ 0 | 0 | 0 | 0 | $ 0 | |||
Issuance of restricted stock, shares | 108,720 | ||||||||
Exercise of common stock options, value | $ 125 | 125 | |||||||
Exercise of common stock options, shares | 50,000 | 50,000 | |||||||
Forfeiture of restricted stock, value | $ 0 | $ 0 | 0 | 0 | 0 | $ 0 | |||
Forfeiture of restricted stock, shares | (8,485) | ||||||||
Repurchase and retirement of common stock, value | (616) | (616) | $ (27,815) | $ (27,815) | |||||
Repurchase and retirement of common stock, shares | (14,070) | (734,924) | |||||||
Redemption of Series A preferred stock | (34) | (25) | (9) | ||||||
Redemption of Series A preferred stock, shares | (3,386) | ||||||||
Deferred taxes on debt discount | 215 | 215 | |||||||
Common stock dividends | (8,828) | (8,828) | |||||||
Preferred stock dividends | 4 | 4 | |||||||
Tax benefits on stock-based compensation | 1,384 | 1,384 | |||||||
Stock-based compensation | 6,600 | 6,600 | |||||||
Ending Balance at Sep. 30, 2014 | 179,573 | 28,834 | 149,710 | 1,029 | |||||
Ending Balance, shares at Sep. 30, 2014 | 10,447,807 | ||||||||
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 | 54,771 | 54,771 | |||||||
Total other comprehensive loss, net of income taxes | (2,883) | (2,883) | |||||||
Issuance of restricted stock | 0 | $ 0 | 0 | 0 | 0 | $ 0 | |||
Issuance of restricted stock, shares | 83,260 | ||||||||
Exercise of common stock options, value | $ 263 | 263 | |||||||
Exercise of common stock options, shares | 90,000 | 90,000 | |||||||
Forfeiture of restricted stock, value | $ 0 | $ 0 | 0 | 0 | 0 | $ 0 | |||
Forfeiture of restricted stock, shares | (38,756) | ||||||||
Repurchase and retirement of common stock, value | (792) | (792) | $ (1,610) | $ (1,610) | |||||
Repurchase and retirement of common stock, shares | (17,493) | (37,869) | |||||||
Common stock dividends | (9,077) | (9,077) | |||||||
Tax benefits on stock-based compensation | 1,836 | 1,836 | |||||||
Stock-based compensation | 4,047 | 4,047 | |||||||
Ending Balance at Sep. 30, 2015 | $ 229,140 | $ 24,209 | $ 207,148 | $ (2,217) | |||||
Ending Balance, shares at Sep. 30, 2015 | 10,268,270 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 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 September 30, 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 for reinsurance contracts 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. Statutory Accounting Practices The Company’s U.S. insurance subsidiaries comply with statutory accounting practices prescribed by the National Association of Insurance Commissioners. There are no state prescribed or permitted practices that have been adopted by the Company’s U.S. subsidiaries. In addition, the Company’s Bermuda insurance subsidiary prepares and files financial statements in accordance with the prescribed regulatory accounting practices of the Bermuda Monetary Authority. Reclassification Certain reclassifications of prior year amounts have been made to conform to the current year presentation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 2 – Recent Accounting Pronouncements Accounting Standards Update No. 2014-09. Accounting Standards Update No. 2015-09. Accounting Standards Update No. 2015-03. Accounting Standards Update No. 2015-02. Accounting Standards Update No. 2015-01. |
Investments
Investments | 9 Months Ended |
Sep. 30, 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 September 30, 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 Cost Gross Gain Gross Loss Estimated Value As of September 30, 2015 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ 108 $ 7 $ — $ 115 Corporate bonds 43,881 93 (3,252 ) 40,722 State, municipalities, and political subdivisions 75,269 1,076 (309 ) 76,036 Redeemable preferred stock 10,249 254 (272 ) 10,231 Total 129,507 1,430 (3,833 ) 127,104 Equity securities 54,743 1,305 (2,512 ) 53,536 Total available-for-sale securities $ 184,250 $ 2,735 $ (6,345 ) $ 180,640 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 September 30, 2015 and December 31, 2014, $115 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 September 30, 2015 and December 31, 2014 are as follows: Amortized Cost Estimated Fair Value As of September 30, 2015 Available-for-sale Due in one year or less $ 4,490 $ 4,493 Due after one year through five years 30,955 30,991 Due after five years through ten years 73,942 71,210 Due after ten years 20,120 20,410 $ 129,507 $ 127,104 Amortized Cost Estimated Fair 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 and nine months ended September 30, 2015 and 2014 were as follows: Proceeds Gross Gains Gross Losses Three months ended September 30, 2015 Fixed-maturity securities $ 48,225 $ 31 $ (436 ) Equity securities $ 6,117 $ 515 $ (406 ) Three months ended September 30, 2014 Fixed-maturity securities $ 47,557 $ 2,759 $ — Equity securities $ 3,302 $ 623 $ (88 ) Nine months ended September 30, 2015 Fixed-maturity securities $ 51,510 $ 90 $ (466 ) Equity securities $ 14,111 $ 844 $ (1,031 ) Nine months ended September 30, 2014 Fixed-maturity securities $ 67,519 $ 3,623 $ (9 ) Equity securities $ 9,232 $ 1,131 $ (280 ) Other-than-temporary Impairment The Company regularly reviews individual impaired 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. When reviewing the impaired fixed-maturity securities, the Company considers its ability and intent to hold these securities and whether it is probable that the Company will be required to sell these securities prior to their anticipated recovery or maturity. For the fixed-maturity securities that the Company intends to sell or it is probable that the Company will have to sell the fixed-maturity securities before recovery or maturity, the unrealized losses are recognized as other-than-temporary losses in income. In instances where there are credit related losses associated with the impaired fixed-maturity securities for which the Company asserts that it does not have the intent to sell, and it is probable that the Company will not be required to sell until a market price recovery or maturity, the amount of the other-than-temporary impairment loss related to credit losses is recognized in income, and the amount of the other-than-temporary impairment loss related to other non-credit factors such as changes in interest rates or market conditions is recorded as a component of other comprehensive income. When determining impairment due to a credit related loss, the Company carefully considers factors such as the issuer’s financial ratios and condition, the security’s current ratings and maturity date, and overall market conditions in estimating the cash flows expected to be collected. The expected cash flows discounted at the effective interest rate of the security implicit at the date of acquisition is then compared with the security’s amortized cost at the measurement date. A credit loss incurs when the present value of the expected cash flows is less than the security’s amortized cost. During the quarter ended September 30, 2015, the Company determined that two fixed-maturity securities the Company intends to hold until maturity had credit related losses. For the three and nine months ended September 30, 2015, the Company recorded $705 of impairment losses on these fixed-maturity securities, of which $109 was related to credit losses, with the remaining amount of $596 related to non-credit factors. The Company did not consider any of its fixed-maturity securities to be other-than-temporarily impaired at December 31, 2014. The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in income for available for sale fixed-maturity securities: Balance at July 1, 2015 $ — Credit impairments on securities during the period 109 Balance at September 30, 2015 $ 109 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 three and nine months ended September 30, 2015, the Company determined that five and eight equity securities, respectively, 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 $1,777 and $3,760 for the three and nine months, respectively, ended September 30, 2015. There were no impairment losses recorded in the three and nine months ended September 30, 2014. Securities with gross unrealized loss positions at September 30, 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: Less Than Twelve Twelve Months or Total As of September 30, 2015 Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Fixed-maturity securities Corporate bonds $ (2,423 ) $ 25,437 $ (829 ) $ 2,242 $ (3,252 ) $ 27,679 State, municipalities, and political subdivisions (287 ) 18,552 (22 ) 414 (309 ) 18,966 Redeemable preferred stock (272 ) 2,909 — — (272 ) 2,909 Total fixed-maturity securities (2,982 ) 46,898 (851 ) 2,656 (3,833 ) 49,554 Equity securities (2,345 ) 28,596 (167 ) 2,650 (2,512 ) 31,246 Total available-for-sale securities $ (5,327 ) $ 75,494 $ (1,018 ) $ 5,306 $ (6,345 ) $ 80,800 At September 30, 2015, there were 123 securities in an unrealized loss position. Of these securities, ten securities had been in an unrealized loss position for 12 months or greater. The gross unrealized loss of corporate bonds in an unrealized loss position for twelve months or more included $588 of the other-than-temporary impairment loss related to non-credit factors. Less Than Twelve Twelve Months or Total As of December 31, 2014 Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair 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, nine securities had been in an unrealized loss position for 12 months or greater. 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. September 30, 2015 December 31, 2014 Investment Strategy Carrying Value Unfunded Balance (%)(a) Carrying Value Unfunded Balance (%)(a) 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) $ 4,621 $ 7,888 16.50 $ 2,550 $ 9,860 16.50 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) 3,605 4,320 0.65 — — — 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) 12,222 — 65.82 — — — High returns and long-term capital appreciation through investments in the power, utility and energy industries, and in the infrastructure sector. (b)(g)(h) 1,714 8,165 (i) — — — Total $ 22,162 $ 20,373 $ 2,550 $ 9,860 (a) Represents the Company’s percentage investment in the fund at the balance sheet date. (b) Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, 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) Expected to have a 10-year term and the capital commitment is expected to expire on June 30, 2020. (h) With the consent of a super majority, the term of the fund may be extended for up to three additional one-year periods. (i) The initial funding occurred in August 2015. The general partner reports quarterly information on a 45-day lag and, as such, had not yet provided the limited partners with their investment percentage as of September 30, 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 September 30, 2015 Nine Months Ended September 30, 2015 Operating results: Total income (loss) $ 82 $ (4,756 ) Total expenses 386 1,343 Net loss $ (304 ) $ (6,099 ) September 30, 2015 December 31, 2014 Balance Sheet: Total assets $ 250,353 $ 15,940 Total liabilities $ 19,280 $ 513 For the three and nine months ended September 30, 2015, the Company recognized net investment losses of $2,400 and $2,862, respectively, for these investments. At September 30, 2015 and December 31, 2014, the Company’s cumulative contributed capital to the partnerships totaled $25,126 and $2,640, respectively, and the Company’s maximum exposure to loss aggregated $22,162 and $2,550, respectively. There were no limited partnership investments in the nine months ended September 30, 2014. Investment in Joint Venture The Company has a 90% equity interest in FMKT Mel JV, LLC, a joint venture company that owns land on which a retail shopping center is being constructed for lease or for sale in Melbourne, Florida. In March 2015, the Company contributed additional cash of $270 to the joint venture. The joint venture used the additional funds in surveying additional land for development. In September 2015, part of the construction project was completed and leased to a regional supermarket chain. At September 30, 2015 and December 31, 2014, the Company’s maximum exposure to loss relating to the joint venture was $4,751 and $4,477, respectively, representing the carrying value of the investment. At September 30, 2015 and December 31, 2014, undistributed losses of $19 and $23, respectively, from this equity method investment were included in the Company’s consolidated retained income. The joint venture partners have received no distributions during 2015. The following tables provide summarized unaudited financial results for the three months and nine months ended September 30, 2015 and the unaudited financial positions of the joint venture at September 30, 2015 and December 31, 2014: Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Operating results: Total revenues $ 17 $ 17 Total expenses (11 ) (12 ) Net income $ 6 $ 5 The Company’s share of net income* $ 5 $ 4 * Included in net investment income in the Company’s consolidated statements of income. September 30, 2015 December 31, 2014 Balance Sheet: Construction in progress – real estate $ 9,959 $ 3,612 Building 1,730 — Cash 502 1,323 Accounts receivable 18 — Other 368 40 Total assets $ 12,577 $ 4,975 Accounts payable $ 87 $ — Construction loan 7,176 — Other liabilities 35 — Members’ capital 5,279 4,975 Total liabilities and members’ capital $ 12,577 $ 4,975 Investment in joint venture, at equity $ 4,751 $ 4,477 Real Estate Investments The Company’s real estate investments include one Acquisition, Development and Construction Loan Arrangement (“ADC Arrangement”), office and retail space that is leased to tenants, wet and dry boat storage, one restaurant, and fuel services with respect to marina clients and recreational boaters. Real estate investments consisted of the following as of September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Land $ 11,476 $ 11,476 Land improvements 1,504 1,425 Buildings 3,116 3,097 Other 1,515 1,359 Total, at cost 17,611 17,357 Less: accumulated depreciation and amortization (1,340 ) (1,107 ) Real estate, net 16,271 16,250 ADC Arrangement classified as real estate investment 9,392 2,888 Real estate investments $ 25,663 $ 19,138 Depreciation and amortization expense related to real estate investments was $87 and $100 for the three months ended September 30, 2015 and 2014, respectively, and $280 and $298 for the nine months ended September 30, 2015 and 2014, respectively. 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. In September 2015, the Company provided the property developer with a $550 bridge loan in addition to the ADC Arrangement at an annual interest rate of 11% to finance its operations. The loan principal and interest is due and payable on or before January 31, 2016. At September 30, 2015 and December 31, 2014, the Company’s maximum exposure to loss relating to this variable interest was $9,392 and $2,888, respectively, representing the carrying value of the ADC Arrangement. Real Estate Development in Progress During the second quarter of 2015, the Company deposited a total of $70 to secure the right to purchase land in Riverview, Florida where a retail center will be constructed for lease or for sale. The land acquisition and the development project will be operated and managed through a joint venture in which the Company’s subsidiary, Greenleaf Essence LLC, has a controlling financial interest and of which it is the primary beneficiary. As such, the joint venture, a limited liability company, is consolidated with the Company’s operations. In addition, the assets of the consolidated joint venture are not permitted to be used to settle obligations of other entities within the consolidated group. In October 2015, the Company completed the acquisition of 2.32 acres of land for a total purchase price of $2,747. Net Investment Income Net investment (loss) income, by source, is summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Available-for-sale securities: Fixed-maturity securities $ 1,123 $ 697 $ 3,000 $ 2,749 Equity securities 914 670 2,710 1,411 Investment expense (199 ) (120 ) (511 ) (329 ) Limited partnership investments (2,400 ) — (2,862 ) — Real estate investments (130 ) (253 ) (151 ) (656 ) Cash and cash equivalents 158 219 455 578 Other 15 — 44 — Net investment (loss) income $ (519 ) $ 1,213 $ 2,685 $ 3,753 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 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 September 30, 2015 and December 31, 2014: Fair Value Measurements Using Total (Level 1) (Level 2) (Level 3) As of September 30, 2015 Financial Assets: Cash and cash equivalents $ 331,542 $ — $ — $ 331,542 Fixed-maturity securities: U.S. Treasury and U.S. government agencies 115 — — 115 Corporate bonds 39,740 982 — 40,722 State, municipalities, and political subdivisions — 76,036 — 76,036 Redeemable preferred stock 10,231 — — 10,231 Total fixed-maturity securities 50,086 77,018 — 127,104 Equity securities 53,536 — — 53,536 Total available-for-sale securities 103,622 77,018 — 180,640 Total $ 435,164 $ 77,018 $ — $ 512,182 Fair Value Measurements Using Total (Level 1) (Level 2) (Level 3) As of December 31, 2014 Financial Assets: Cash and cash equivalents $ 314,416 $ — $ — $ 314,416 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 $ 392,866 $ 64,184 $ — $ 457,050 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 September 30, 2015 and December 31, 2014: Fair Value Measurements Using Total (Level 1) (Level 2) (Level 3) As of September 30, 2015 Financial Assets: Limited partnership investments (a) $ — $ — $ 22,162 $ 22,162 ADC Arrangement classified as real estate investment $ — $ — $ 8,995 $ 8,995 Financial Liabilities: Long-term debt: 8% Senior notes $ — $ 41,232 $ — $ 41,232 3.875% Convertible senior notes — — 92,213 92,213 Total long-term debt $ — $ 41,232 $ 92,213 $ 133,445 (a) Estimated fair value approximates carrying value of these funds, which use fair value accounting. Fair Value Measurements Using Total (Level 1) (Level 2) (Level 3) 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 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 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: September 30, 2015 December 31, 2014 Benefits receivable related to retrospective reinsurance contracts $ 31,101 $ 28,123 Deferred costs related to retrospective reinsurance contracts 735 473 Deferred offering costs on senior notes 3,131 3,653 Prepaid expenses 1,791 1,444 Restricted cash 300 300 Other 1,382 1,594 Total other assets $ 38,440 $ 35,587 In July 2015, the Company received $14,100 under the terms of one of the retrospective reinsurance contracts, which terminated May 31, 2015. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6 – Long-Term Debt The following table summarizes the Company’s long-term debt: September 30, 2015 December 31, 2014 8% Senior Notes, due January 30, 2020 $ 40,250 $ 40,250 3.875% Convertible Senior Notes, due March 15, 2019* 91,397 89,289 Total long-term debt $ 131,647 $ 129,539 * net carrying value Under the terms of the 3.875% Convertible Senior Notes, the conversion rate is subject to adjustment upon the occurrence of certain events, one of which is the payment of a cash dividend on common stock that exceeds $0.275 per share. Since January 2015, the Company’s cash dividend on common stock has been above the referenced dividend per share, resulting in adjustments to the conversion rate. As of September 30, 2015, each $1 of notes would have been convertible into 16.0356 shares of common stock, which was the equivalent of approximately $62.36 per share. For the three months ended September 30, 2015 and 2014, interest expense included the contractual interest coupon, discount amortization and amortization of allocated issuance costs aggregating $2,698 and $2,626, respectively, the amounts of which included non-cash interest expense of $896 and $823, respectively. For the nine months ended September 30, 2015 and 2014, interest expense of $8,038 and $7,809, respectively, included non-cash interest expense of $2,630 and $2,411, respectively. As of September 30, 2015, the remaining amortization period of the debt discount was 3.5 years. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 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 treaties and one quota share arrangement. 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 losses and reinsurance market conditions. The impact of the catastrophe excess of loss reinsurance treaties and one quota share arrangement on premiums written and earned is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Premiums Written: Direct $ 105,787 $ 86,257 $ 343,927 $ 307,199 Assumed (416 ) (172 ) (1,792 ) (1,255 ) Gross written 105,371 86,085 342,135 305,944 Ceded (41,077 ) (27,684 ) (100,294 ) (83,764 ) Net premiums written $ 64,294 $ 58,401 $ 241,841 $ 222,180 Premiums Earned: Direct $ 93,012 $ 85,357 $ 263,814 $ 245,638 Assumed 10,830 3,587 57,360 28,415 Gross earned 103,842 88,944 321,174 274,053 Ceded (41,077 ) (27,684 ) (100,294 ) (83,764 ) Net premiums earned $ 62,765 $ 61,260 $ 220,880 $ 190,289 During the three and nine months ended September 30, 2015 and 2014, there were no recoveries pertaining to reinsurance contracts that were deducted from losses incurred. At September 30, 2015 and December 31, 2014, there were 21 and 28, respectively, reinsurers participating in the Company’s reinsurance program. There were no amounts receivable with respect to reinsurers at September 30, 2015 and December 31, 2014. Thus, there were no concentrations of credit risk associated with reinsurance receivables as of September 30, 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 $2,901 and $6,512 for the three months ended September 30, 2015 and 2014, respectively, and $15,515 and $17,052 for the nine months ended September 30, 2015 and 2014, respectively. At September 30, 2015 and December 31, 2014, other assets included $31,836 and $28,596, respectively, and prepaid reinsurance premiums included $4,158 and $5,983, respectively, related to these adjustments. Management believes the credit risk associated with the collectability of these accrued benefits is minimal based on available information about the individual reinsurer’s financial position. |
Losses and Loss Adjustment Expe
Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Balance, beginning of period $ 54,329 $ 43,044 $ 48,908 $ 43,686 Incurred related to: Current period 24,419 21,643 63,473 59,205 Prior period 1,781 348 2,331 (266 ) Total incurred 26,200 21,991 65,804 58,939 Paid related to: Current period (16,059 ) (3,461 ) (31,111 ) (22,296 ) Prior period (7,253 ) (13,920 ) (26,384 ) (32,675 ) Total paid (23,312 ) (17,381 ) (57,495 ) (54,971 ) Balance, end of period $ 57,217 $ 47,654 $ 57,217 $ 47,654 The establishment of loss reserves is an inherently uncertain process and changes in loss reserve estimates are expected as these 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 and nine months ended September 30, 2015, the Company experienced unfavorable development of $1,781 and $2,331, respectively, with respect to its net unpaid losses and loss adjustment expenses established as of June 30, 2015 and December 31, 2014. Factors attributable to this unfavorable development are the settlement and further development of older claims and a larger than anticipated 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. The Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 – Income Taxes During the three months ended September 30, 2015 and 2014, the Company recorded approximately $4,567 and $8,723, respectively, of income taxes, which resulted in an effective tax rate of 38.3% in each of the three-month periods. During the nine months ended September 30, 2015 and 2014, the Company recorded approximately $33,796 and $29,366, respectively, of income taxes, which resulted in estimated annual effective tax rates of 38.2% and 37.9%, 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 on tax-exempt securities. The Company’s estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes as well as certain nondeductible and tax-exempt items. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 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 affect 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 (share amounts in thousands): Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Net income $ 7,371 $ 14,052 Less: Income attributable to participating securities (437 ) (1,024 ) Basic Earnings Per Share: Income allocated to common stockholders 6,934 9,635 $ 0.72 13,028 9,736 $ 1.34 Effect of Dilutive Securities: Stock options — 85 — 133 Convertible senior notes 1,132 1,651 1,090 1,649 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 8,066 11,371 $ 0.71 $ 14,118 11,518 $ 1.23 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Net income $ 54,771 $ 48,102 Less: Preferred stock dividends — 4 Less: Income attributable to participating securities (3,182 ) (3,415 ) Basic Earnings Per Share: Income allocated to common stockholders 51,589 9,585 $ 5.38 44,691 9,972 $ 4.48 Effect of Dilutive Securities: Stock options — 112 — 139 Convertible preferred stock — — (4 ) 27 Convertible senior notes 3,363 1,650 3,242 1,649 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 54,952 11,347 $ 4.84 $ 47,929 11,787 $ 4.07 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 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. This repurchase plan expired March 31, 2015; therefore, there were no shares repurchased during the three months ended September 30, 2015. During the nine months ended September 30, 2015, the Company repurchased and retired a total of 37,869 shares at a weighted average price per share of $42.49. The total cost of shares repurchased, inclusive of fees and commissions, during the nine months ended September 30, 2015 was $1,610, or $42.51 per share. During the three and nine months ended September 30, 2014, the Company repurchased and retired a total of 246,578 and 734,924 shares, respectively, at a weighted average price per share of $40.56 and $37.83, respectively. The total costs of shares repurchased, inclusive of fees and commissions, during the three and nine months ended September 30, 2014 were $10,005, or $40.58 per share, and $27,815, or $37.85 per share, respectively. On October 16, 2015, the Company’s Board of Directors declared a quarterly dividend of $0.30 per common share. The dividends are payable on December 18, 2015 to shareholders of record on November 20, 2015. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 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 September 30, 2015, there were 4,201,966 shares available for grant under the 2012 Plan. Stock Options Stock options granted and outstanding under the incentive plans vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years. A summary of the stock option activity for the three and nine months ended September 30, 2015 and 2014 is as follows (option amounts not in thousands): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2015 230,000 $ 3.00 3.0 years $ 9,256 Outstanding at March 31, 2015 230,000 $ 3.00 2.8 years $ 9,861 Exercised (80,000 ) $ 2.50 Outstanding at June 30, 2015 150,000 $ 3.26 2.9 years $ 6,142 Exercised (10,000 ) $ 6.30 Outstanding at September 30, 2015 140,000 $ 3.04 2.4 years $ 5,002 Exercisable at September 30, 2015 140,000 $ 3.04 2.4 years $ 5,002 Outstanding at January 1, 2014 280,000 $ 2.91 3.9 years $ 14,166 Exercised (50,000 ) $ 2.50 Outstanding at March 31, 2014 230,000 $ 3.00 3.8 years $ 7,683 Outstanding at June 30, 2014 230,000 $ 3.00 3.5 years $ 8,649 Outstanding at September 30, 2014 230,000 $ 3.00 3.3 years $ 7,589 Exercisable at September 30, 2014 230,000 $ 3.00 3.3 years $ 7,589 The following table summarizes information about options exercised for the three and nine months ended September 30, 2015 and 2014 (option amounts not in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Options exercised 10,000 — 90,000 50,000 Total intrinsic value of exercised options $ 320 — $ 3,508 $ 1,970 Fair value of vested stock options $ — — $ — $ 17 Tax benefits realized $ 117 — $ 1,309 $ 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 $0 and $6, respectively, for the three and nine months ended September 30, 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 and nine months ended September 30, 2015 and 2014 is as follows (share amounts not in thousands): Number of Restricted Stock Awards Weighted Average Grant Date 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 Granted 83,260 $ 44.46 Vested (16,000 ) $ 13.48 Forfeited (33,324 ) $ 23.20 Nonvested at June 30, 2015 630,858 $ 30.55 Vested (2,000 ) $ 37.68 Forfeited (4,344 ) $ 45.52 Nonvested at September 30, 2015 624,514 $ 30.43 Nonvested at January 1, 2014 735,650 $ 25.48 Granted 98,720 $ 48.42 Vested (21,825 ) $ 21.56 Forfeited (505 ) $ 32.20 Nonvested at March 31, 2014 812,040 $ 28.37 Vested (32,000 ) $ 12.95 Forfeited (2,825 ) $ 43.43 Nonvested at June 30, 2014 777,215 $ 28.95 Granted 10,000 $ 37.28 Vested (2,000 ) $ 37.68 Forfeited (5,155 ) $ 39.85 Nonvested at September 30, 2014 780,060 $ 28.96 The Company recognized compensation expense related to restricted stock, which is included in other operating expenses, of $1,258 and $2,267 for the three months ended September 30, 2015 and 2014, respectively, and $4,047 and $6,594 for the nine months ended September 30, 2015 and 2014, respectively. At September 30, 2015 and 2014, there was approximately $8,986 and $11,947, 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 24 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 and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Deferred tax benefits recognized $ 485 $ 875 $ 1,561 $ 2,544 Tax benefits realized for restricted stock and paid dividends $ 28 $ 80 $ 527 $ 781 Fair value of vested restricted stock $ 75 $ 75 $ 1,798 $ 960 During the three and nine months ended September 30, 2015, no performance-based awards were issued. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 – Commitments and Contingencies Obligations under Multi-Year Reinsurance Contracts As of September 30, 2015, the Company had 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 these reinsurers due in one year are $32,990. Lease Commitment The Company entered into a lease for 2,819 square feet of office space in Miami, Florida. The lease commenced February 15, 2015 and has an initial term of three years with monthly rental payments of approximately $5 plus applicable sales tax. The minimum future rental payments due during the twelve months ended September 30, 2016, 2017 and 2018 are $68, $70 and $17, respectively. Financing Commitment As described in Note 3 – “Investments” under ADC Arrangement Capital Commitment As described in Note 3 – “Investments” under Limited Partnership Investments 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 2015. The Company believes it 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 of September 30, 2015, the Department’s review of the reemployment matter was substantially complete and the Department has indicated a net refund of reemployment tax is due to the Company. As such, and based on the current status and expected resolution, the Company reversed approximately $140 during the quarter ended September 30, 2015, which was the net amount accrued as of December 31, 2014 related to this contingency. Legal Proceedings The Company has received three letters dated July 29, 2014, December 10, 2014 and December 12, 2014, each sent by attorneys on behalf of one of three different shareholders, demanding that the Company’s board of directors take actions to rescind portions of compensation attributable to our chief executive officer and certain of our directors. As of September 30, 2015, the board of directors has not taken any of the demanded actions and no lawsuits have been filed in connection with those demands. The Company cannot predict with certainty the ultimate resolution of these demands or any legal proceedings that might arise in connection with them. The Company does not believe any such resolution will have a material adverse effect on its consolidated financial position, results of operations or cash flows. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14 – Related Party Transactions Claddaugh Casualty Insurance Company, Ltd., the Company’s Bermuda domiciled captive reinsurer, has reinsurance treaties with Oxbridge Reinsurance Limited whereby a portion of the business assumed from the Company’s insurance subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc. (“HCPCI”), is ceded by Claddaugh to Oxbridge. With respect to the period from June 1, 2014 through May 31, 2015, Oxbridge assumed $17,800 of the total covered exposure for approximately $4,935 in premiums. With respect to the period from June 1, 2015 through May 31, 2016, Oxbridge assumed $11,600 of the total covered exposure for $3,340 in premiums. The premiums charged by Oxbridge are at rates which management believes to be competitive with market rates available to Claddaugh. Oxbridge has deposited funds into a trust account to satisfy certain collateral requirements under its reinsurance contract with Claddaugh. Trust assets may be withdrawn by HCPCI, the trust beneficiary, in the event amounts are due under the Oxbridge reinsurance agreements. Among the Oxbridge shareholders are Paresh Patel, the Company’s chief executive officer, who is also chairman of the board of directors for Oxbridge, and members of his immediate family and three of the Company’s non-employee directors including Sanjay Madhu who serves as Oxbridge’s president and chief executive officer. Prior to June 1, 2014, Claddaugh also had one reinsurance treaty with Moksha Re SPC Ltd. and multiple capital partners whereby a portion of the business assumed from HCPCI was ceded by Claddaugh to Moksha. With respect to the period from June 1, 2013 through May 31, 2014, Moksha assumed approximately $15,400 of the total covered exposure for approximately $4,300 in premiums, a rate which management believes to be competitive with market rates available to Claddaugh. The $4,300 premium was fully paid by Claddaugh on June 27, 2013. Moksha deposited funds into a trust account to satisfy certain collateral requirements under its reinsurance contract with Claddaugh. Among the Moksha capital partner participants are the Company’s chief executive officer, Paresh Patel, and certain of his immediate family members and Sanjay Madhu, one of the Company’s non-employee directors. This agreement terminated effective May 31, 2014 and has not been renewed. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 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 September 30, 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 for reinsurance contracts 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. |
Statutory Accounting Practices | Statutory Accounting Practices The Company’s U.S. insurance subsidiaries comply with statutory accounting practices prescribed by the National Association of Insurance Commissioners. There are no state prescribed or permitted practices that have been adopted by the Company’s U.S. subsidiaries. In addition, the Company’s Bermuda insurance subsidiary prepares and files financial statements in accordance with the prescribed regulatory accounting practices of the Bermuda Monetary Authority. |
Reclassification | Reclassification Certain reclassifications of prior year amounts have been made to conform to the current year presentation. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities | At September 30, 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 Cost Gross Gain Gross Loss Estimated Value As of September 30, 2015 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ 108 $ 7 $ — $ 115 Corporate bonds 43,881 93 (3,252 ) 40,722 State, municipalities, and political subdivisions 75,269 1,076 (309 ) 76,036 Redeemable preferred stock 10,249 254 (272 ) 10,231 Total 129,507 1,430 (3,833 ) 127,104 Equity securities 54,743 1,305 (2,512 ) 53,536 Total available-for-sale securities $ 184,250 $ 2,735 $ (6,345 ) $ 180,640 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 September 30, 2015 and December 31, 2014 are as follows: Amortized Cost Estimated Fair Value As of September 30, 2015 Available-for-sale Due in one year or less $ 4,490 $ 4,493 Due after one year through five years 30,955 30,991 Due after five years through ten years 73,942 71,210 Due after ten years 20,120 20,410 $ 129,507 $ 127,104 Amortized Cost Estimated Fair 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 and nine months ended September 30, 2015 and 2014 were as follows: Proceeds Gross Gains Gross Losses Three months ended September 30, 2015 Fixed-maturity securities $ 48,225 $ 31 $ (436 ) Equity securities $ 6,117 $ 515 $ (406 ) Three months ended September 30, 2014 Fixed-maturity securities $ 47,557 $ 2,759 $ — Equity securities $ 3,302 $ 623 $ (88 ) Nine months ended September 30, 2015 Fixed-maturity securities $ 51,510 $ 90 $ (466 ) Equity securities $ 14,111 $ 844 $ (1,031 ) Nine months ended September 30, 2014 Fixed-maturity securities $ 67,519 $ 3,623 $ (9 ) Equity securities $ 9,232 $ 1,131 $ (280 ) |
Rollforward of Cumulative Credit Losses in Other-Than-Temporary Impairments Recognized in Income for Available for Sale Fixed-Maturity Securities | The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in income for available for sale fixed-maturity securities: Balance at July 1, 2015 $ — Credit impairments on securities during the period 109 Balance at September 30, 2015 $ 109 |
Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category | Securities with gross unrealized loss positions at September 30, 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: Less Than Twelve Twelve Months or Total As of September 30, 2015 Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Fixed-maturity securities Corporate bonds $ (2,423 ) $ 25,437 $ (829 ) $ 2,242 $ (3,252 ) $ 27,679 State, municipalities, and political subdivisions (287 ) 18,552 (22 ) 414 (309 ) 18,966 Redeemable preferred stock (272 ) 2,909 — — (272 ) 2,909 Total fixed-maturity securities (2,982 ) 46,898 (851 ) 2,656 (3,833 ) 49,554 Equity securities (2,345 ) 28,596 (167 ) 2,650 (2,512 ) 31,246 Total available-for-sale securities $ (5,327 ) $ 75,494 $ (1,018 ) $ 5,306 $ (6,345 ) $ 80,800 At September 30, 2015, there were 123 securities in an unrealized loss position. Of these securities, ten securities had been in an unrealized loss position for 12 months or greater. The gross unrealized loss of corporate bonds in an unrealized loss position for twelve months or more included $588 of the other-than-temporary impairment loss related to non-credit factors. Less Than Twelve Twelve Months or Total As of December 31, 2014 Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair 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. September 30, 2015 December 31, 2014 Investment Strategy Carrying Value Unfunded Balance (%)(a) Carrying Value Unfunded Balance (%)(a) 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) $ 4,621 $ 7,888 16.50 $ 2,550 $ 9,860 16.50 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) 3,605 4,320 0.65 — — — 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) 12,222 — 65.82 — — — High returns and long-term capital appreciation through investments in the power, utility and energy industries, and in the infrastructure sector. (b)(g)(h) 1,714 8,165 (i) — — — Total $ 22,162 $ 20,373 $ 2,550 $ 9,860 (a) Represents the Company’s percentage investment in the fund at the balance sheet date. (b) Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, 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) Expected to have a 10-year term and the capital commitment is expected to expire on June 30, 2020. (h) With the consent of a super majority, the term of the fund may be extended for up to three additional one-year periods. (i) The initial funding occurred in August 2015. The general partner reports quarterly information on a 45-day lag and, as such, had not yet provided the limited partners with their investment percentage as of September 30, 2015. |
Summary of Unaudited Financial Information and Unaudited Financial Position | The joint venture partners have received no distributions during 2015. The following tables provide summarized unaudited financial results for the three months and nine months ended September 30, 2015 and the unaudited financial positions of the joint venture at September 30, 2015 and December 31, 2014: Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Operating results: Total revenues $ 17 $ 17 Total expenses (11 ) (12 ) Net income $ 6 $ 5 The Company’s share of net income* $ 5 $ 4 * Included in net investment income in the Company’s consolidated statements of income. September 30, 2015 December 31, 2014 Balance Sheet: Construction in progress – real estate $ 9,959 $ 3,612 Building 1,730 — Cash 502 1,323 Accounts receivable 18 — Other 368 40 Total assets $ 12,577 $ 4,975 Accounts payable $ 87 $ — Construction loan 7,176 — Other liabilities 35 — Members’ capital 5,279 4,975 Total liabilities and members’ capital $ 12,577 $ 4,975 Investment in joint venture, at equity $ 4,751 $ 4,477 |
Summary of Real Estate Investment | Real estate investments consisted of the following as of September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Land $ 11,476 $ 11,476 Land improvements 1,504 1,425 Buildings 3,116 3,097 Other 1,515 1,359 Total, at cost 17,611 17,357 Less: accumulated depreciation and amortization (1,340 ) (1,107 ) Real estate, net 16,271 16,250 ADC Arrangement classified as real estate investment 9,392 2,888 Real estate investments $ 25,663 $ 19,138 |
Investment (Loss) Income Summarized | Net investment (loss) income, by source, is summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Available-for-sale securities: Fixed-maturity securities $ 1,123 $ 697 $ 3,000 $ 2,749 Equity securities 914 670 2,710 1,411 Investment expense (199 ) (120 ) (511 ) (329 ) Limited partnership investments (2,400 ) — (2,862 ) — Real estate investments (130 ) (253 ) (151 ) (656 ) Cash and cash equivalents 158 219 455 578 Other 15 — 44 — Net investment (loss) income $ (519 ) $ 1,213 $ 2,685 $ 3,753 |
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 September 30, 2015 Nine Months Ended September 30, 2015 Operating results: Total income (loss) $ 82 $ (4,756 ) Total expenses 386 1,343 Net loss $ (304 ) $ (6,099 ) September 30, 2015 December 31, 2014 Balance Sheet: Total assets $ 250,353 $ 15,940 Total liabilities $ 19,280 $ 513 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 and December 31, 2014: Fair Value Measurements Using Total (Level 1) (Level 2) (Level 3) As of September 30, 2015 Financial Assets: Cash and cash equivalents $ 331,542 $ — $ — $ 331,542 Fixed-maturity securities: U.S. Treasury and U.S. government agencies 115 — — 115 Corporate bonds 39,740 982 — 40,722 State, municipalities, and political subdivisions — 76,036 — 76,036 Redeemable preferred stock 10,231 — — 10,231 Total fixed-maturity securities 50,086 77,018 — 127,104 Equity securities 53,536 — — 53,536 Total available-for-sale securities 103,622 77,018 — 180,640 Total $ 435,164 $ 77,018 $ — $ 512,182 Fair Value Measurements Using Total (Level 1) (Level 2) (Level 3) As of December 31, 2014 Financial Assets: Cash and cash equivalents $ 314,416 $ — $ — $ 314,416 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 $ 392,866 $ 64,184 $ — $ 457,050 |
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 September 30, 2015 and December 31, 2014: Fair Value Measurements Using Total (Level 1) (Level 2) (Level 3) As of September 30, 2015 Financial Assets: Limited partnership investments (a) $ — $ — $ 22,162 $ 22,162 ADC Arrangement classified as real estate investment $ — $ — $ 8,995 $ 8,995 Financial Liabilities: Long-term debt: 8% Senior notes $ — $ 41,232 $ — $ 41,232 3.875% Convertible senior notes — — 92,213 92,213 Total long-term debt $ — $ 41,232 $ 92,213 $ 133,445 (a) Estimated fair value approximates carrying value of these funds, which use fair value accounting. Fair Value Measurements Using Total (Level 1) (Level 2) (Level 3) 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 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | The following table summarizes the Company’s other assets: September 30, 2015 December 31, 2014 Benefits receivable related to retrospective reinsurance contracts $ 31,101 $ 28,123 Deferred costs related to retrospective reinsurance contracts 735 473 Deferred offering costs on senior notes 3,131 3,653 Prepaid expenses 1,791 1,444 Restricted cash 300 300 Other 1,382 1,594 Total other assets $ 38,440 $ 35,587 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | The following table summarizes the Company’s long-term debt: September 30, 2015 December 31, 2014 8% Senior Notes, due January 30, 2020 $ 40,250 $ 40,250 3.875% Convertible Senior Notes, due March 15, 2019* 91,397 89,289 Total long-term debt $ 131,647 $ 129,539 * net carrying value |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Insurance [Abstract] | |
Impact of Catastrophe Excess of Loss Reinsurance Treaties and One Quota Share Arrangement on Premiums Written and Earned | The impact of the catastrophe excess of loss reinsurance treaties and one quota share arrangement on premiums written and earned is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Premiums Written: Direct $ 105,787 $ 86,257 $ 343,927 $ 307,199 Assumed (416 ) (172 ) (1,792 ) (1,255 ) Gross written 105,371 86,085 342,135 305,944 Ceded (41,077 ) (27,684 ) (100,294 ) (83,764 ) Net premiums written $ 64,294 $ 58,401 $ 241,841 $ 222,180 Premiums Earned: Direct $ 93,012 $ 85,357 $ 263,814 $ 245,638 Assumed 10,830 3,587 57,360 28,415 Gross earned 103,842 88,944 321,174 274,053 Ceded (41,077 ) (27,684 ) (100,294 ) (83,764 ) Net premiums earned $ 62,765 $ 61,260 $ 220,880 $ 190,289 |
Losses and Loss Adjustment Ex28
Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Balance, beginning of period $ 54,329 $ 43,044 $ 48,908 $ 43,686 Incurred related to: Current period 24,419 21,643 63,473 59,205 Prior period 1,781 348 2,331 (266 ) Total incurred 26,200 21,991 65,804 58,939 Paid related to: Current period (16,059 ) (3,461 ) (31,111 ) (22,296 ) Prior period (7,253 ) (13,920 ) (26,384 ) (32,675 ) Total paid (23,312 ) (17,381 ) (57,495 ) (54,971 ) Balance, end of period $ 57,217 $ 47,654 $ 57,217 $ 47,654 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 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 (share amounts in thousands): Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Net income $ 7,371 $ 14,052 Less: Income attributable to participating securities (437 ) (1,024 ) Basic Earnings Per Share: Income allocated to common stockholders 6,934 9,635 $ 0.72 13,028 9,736 $ 1.34 Effect of Dilutive Securities: Stock options — 85 — 133 Convertible senior notes 1,132 1,651 1,090 1,649 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 8,066 11,371 $ 0.71 $ 14,118 11,518 $ 1.23 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Net income $ 54,771 $ 48,102 Less: Preferred stock dividends — 4 Less: Income attributable to participating securities (3,182 ) (3,415 ) Basic Earnings Per Share: Income allocated to common stockholders 51,589 9,585 $ 5.38 44,691 9,972 $ 4.48 Effect of Dilutive Securities: Stock options — 112 — 139 Convertible preferred stock — — (4 ) 27 Convertible senior notes 3,363 1,650 3,242 1,649 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 54,952 11,347 $ 4.84 $ 47,929 11,787 $ 4.07 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2015 and 2014 is as follows (option amounts not in thousands): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2015 230,000 $ 3.00 3.0 years $ 9,256 Outstanding at March 31, 2015 230,000 $ 3.00 2.8 years $ 9,861 Exercised (80,000 ) $ 2.50 Outstanding at June 30, 2015 150,000 $ 3.26 2.9 years $ 6,142 Exercised (10,000 ) $ 6.30 Outstanding at September 30, 2015 140,000 $ 3.04 2.4 years $ 5,002 Exercisable at September 30, 2015 140,000 $ 3.04 2.4 years $ 5,002 Outstanding at January 1, 2014 280,000 $ 2.91 3.9 years $ 14,166 Exercised (50,000 ) $ 2.50 Outstanding at March 31, 2014 230,000 $ 3.00 3.8 years $ 7,683 Outstanding at June 30, 2014 230,000 $ 3.00 3.5 years $ 8,649 Outstanding at September 30, 2014 230,000 $ 3.00 3.3 years $ 7,589 Exercisable at September 30, 2014 230,000 $ 3.00 3.3 years $ 7,589 |
Information about Options Exercised | The following table summarizes information about options exercised for the three and nine months ended September 30, 2015 and 2014 (option amounts not in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Options exercised 10,000 — 90,000 50,000 Total intrinsic value of exercised options $ 320 — $ 3,508 $ 1,970 Fair value of vested stock options $ — — $ — $ 17 Tax benefits realized $ 117 — $ 1,309 $ 603 |
Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan | Information with respect to the activity of unvested restricted stock awards during the three and nine months ended September 30, 2015 and 2014 is as follows (share amounts not in thousands): Number of Restricted Stock Awards Weighted Average Grant Date 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 Granted 83,260 $ 44.46 Vested (16,000 ) $ 13.48 Forfeited (33,324 ) $ 23.20 Nonvested at June 30, 2015 630,858 $ 30.55 Vested (2,000 ) $ 37.68 Forfeited (4,344 ) $ 45.52 Nonvested at September 30, 2015 624,514 $ 30.43 Nonvested at January 1, 2014 735,650 $ 25.48 Granted 98,720 $ 48.42 Vested (21,825 ) $ 21.56 Forfeited (505 ) $ 32.20 Nonvested at March 31, 2014 812,040 $ 28.37 Vested (32,000 ) $ 12.95 Forfeited (2,825 ) $ 43.43 Nonvested at June 30, 2014 777,215 $ 28.95 Granted 10,000 $ 37.28 Vested (2,000 ) $ 37.68 Forfeited (5,155 ) $ 39.85 Nonvested at September 30, 2014 780,060 $ 28.96 |
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 and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Deferred tax benefits recognized $ 485 $ 875 $ 1,561 $ 2,544 Tax benefits realized for restricted stock and paid dividends $ 28 $ 80 $ 527 $ 781 Fair value of vested restricted stock $ 75 $ 75 $ 1,798 $ 960 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | $ 129,507 | $ 96,163 |
Equity securities, Cost or Amortized Cost | 54,743 | 45,387 |
Total available-for-sale securities, Cost or Amortized Cost | 184,250 | 141,550 |
Total available-for-sale securities, Gross Unrealized Gain | 1,430 | 1,454 |
Total available-for-sale securities, Gross Unrealized Gain | 1,305 | 1,694 |
Total available-for-sale securities, Gross Unrealized Gain | 2,735 | 3,148 |
Total available-for-sale securities, Gross Unrealized Loss | (3,833) | (533) |
Total available-for-sale securities, Gross Unrealized Loss | (2,512) | (1,531) |
Total available-for-sale securities, Gross Unrealized Loss | (6,345) | (2,064) |
Fixed-maturity securities, Estimated Fair Value | 127,104 | 97,084 |
Equity securities, Estimated Fair Value | 53,536 | 45,550 |
Total available-for-sale securities, Estimated Fair Value | 180,640 | 142,634 |
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 | 108 | 2,881 |
Total available-for-sale securities, Gross Unrealized Gain | 7 | 5 |
Total available-for-sale securities, Gross Unrealized Loss | (8) | |
Fixed-maturity securities, Estimated Fair Value | 115 | 2,878 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 43,881 | 23,645 |
Total available-for-sale securities, Gross Unrealized Gain | 93 | 57 |
Total available-for-sale securities, Gross Unrealized Loss | (3,252) | (430) |
Fixed-maturity securities, Estimated Fair Value | 40,722 | 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 | 697 | |
Fixed-maturity securities, Estimated Fair Value | 697 | |
Fixed-Maturity Securities [Member] | Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 3,004 | |
Total available-for-sale securities, Gross Unrealized Gain | 8 | |
Total available-for-sale securities, Gross Unrealized Loss | (3) | |
Fixed-maturity securities, Estimated Fair Value | 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 | 75,269 | 56,336 |
Total available-for-sale securities, Gross Unrealized Gain | 1,076 | 1,205 |
Total available-for-sale securities, Gross Unrealized Loss | (309) | (38) |
Fixed-maturity securities, Estimated Fair Value | 76,036 | 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 | 10,249 | 9,433 |
Total available-for-sale securities, Gross Unrealized Gain | 254 | 178 |
Total available-for-sale securities, Gross Unrealized Loss | (272) | (54) |
Fixed-maturity securities, Estimated Fair Value | $ 10,231 | 9,557 |
Fixed-Maturity Securities [Member] | Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 167 | |
Total available-for-sale securities, Gross Unrealized Gain | 1 | |
Fixed-maturity securities, Estimated Fair Value | $ 168 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
U.S. Treasury and U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Statutory deposit held in trust with Treasurer of Alabama | $ 115 | $ 113 |
Investments - Scheduled Contrac
Investments - Scheduled Contractual Maturities of Fixed-Maturity Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-sale | ||
Due in one year or less, Amortized Cost | $ 4,490 | $ 715 |
Due after one year through five years, Amortized Cost | 30,955 | 25,973 |
Due after five years through ten years, Amortized Cost | 73,942 | 56,448 |
Due after ten years, Amortized Cost | 20,120 | 10,023 |
Mortgage-backed securities, Amortized Cost | 3,004 | |
Fixed-maturity securities, Cost or Amortized Cost | 129,507 | 96,163 |
Due in one year or less, Fair Value | 4,493 | 721 |
Due after one year through five years, Fair Value | 30,991 | 26,093 |
Due after five years through ten years, Fair Value | 71,210 | 56,847 |
Due after ten years, Fair Value | 20,410 | 10,414 |
Mortgage-backed securities, Fair Value | 3,009 | |
Fair Value Total | $ 127,104 | $ 97,084 |
Investments - Summary of Procee
Investments - Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available for Sale Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fixed-Maturity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds | $ 48,225 | $ 47,557 | $ 51,510 | $ 67,519 |
Gross Realized Gains | 31 | 2,759 | 90 | 3,623 |
Gross Realized Losses | (436) | (466) | (9) | |
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds | 6,117 | 3,302 | 14,111 | 9,232 |
Gross Realized Gains | 515 | 623 | 844 | 1,131 |
Gross Realized Losses | $ (406) | $ (88) | $ (1,031) | $ (280) |
Investments (Other-than-tempora
Investments (Other-than-temporary Impairment) - Additional Information (Detail) | Sep. 30, 2015USD ($)Securities | Sep. 30, 2015USD ($)Securities | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Securities | Sep. 30, 2014USD ($) | Dec. 31, 2014Securities |
Schedule of Investments [Line Items] | ||||||
Other-than-temporary impairment losses | $ 1,886,000 | $ 0 | $ 3,869,000 | $ 0 | ||
Other-than-temporary impairment losses related to non-credit factors | $ 596,000 | $ 596,000 | ||||
Number of securities in an unrealized loss position | Securities | 123 | 123 | 123 | 94 | ||
Number of securities had been in an unrealized loss position for 12 months or greater | Securities | 10 | 10 | 10 | 9 | ||
Fixed-Maturity Securities [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Other-than-temporary impairment losses, number of securities | Securities | 2 | |||||
Other-than-temporary impairment losses | $ 705,000 | $ 705,000 | ||||
Other-than-temporary impairment losses related to credit losses | 109,000 | 109,000 | ||||
Other-than-temporary impairment losses related to non-credit factors | $ 596,000 | $ 596,000 | ||||
Corporate Bonds [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Other-than-temporary impairment losses related to non-credit factors | $ 588,000 |
Investments - Rollforward of Cu
Investments - Rollforward of Cumulative Credit Losses in Other-Than-Temporary Impairments Recognized in Income for Available for Sale Fixed-Maturity Securities (Detail) - Fixed-Maturity Securities [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Credit impairments on securities during the period | $ 109 | $ 109 |
Available-for-Sale Securities [Member] | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Beginning Balance | 0 | |
Credit impairments on securities during the period | 109 | |
Ending Balance | $ 109 | $ 109 |
Investments - Summary of Securi
Investments - Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | $ (5,327) | $ (1,961) |
Fair Value, Less than Twelve Months | 75,494 | 41,010 |
Gross Unrealized Loss, Twelve Months or Greater | (1,018) | (103) |
Fair Value, Twelve Months or Greater | 5,306 | 5,819 |
Gross Unrealized Loss, Total | (6,345) | (2,064) |
Fair Value, Total | 80,800 | 46,829 |
Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (2,982) | (512) |
Fair Value, Less than Twelve Months | 46,898 | 22,162 |
Gross Unrealized Loss, Twelve Months or Greater | (851) | (21) |
Fair Value, Twelve Months or Greater | 2,656 | 1,200 |
Gross Unrealized Loss, Total | (3,833) | (533) |
Fair Value, Total | 49,554 | 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 | (8) | |
Fair Value, Less than Twelve Months | 2,485 | |
Gross Unrealized Loss, Total | (8) | |
Fair Value, Total | 2,485 | |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (2,423) | (428) |
Fair Value, Less than Twelve Months | 25,437 | 12,720 |
Gross Unrealized Loss, Twelve Months or Greater | (829) | (2) |
Fair Value, Twelve Months or Greater | 2,242 | 998 |
Gross Unrealized Loss, Total | (3,252) | (430) |
Fair Value, Total | 27,679 | 13,718 |
Fixed-Maturity Securities [Member] | Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than Twelve Months | 209 | |
Fair Value, Total | 209 | |
Fixed-Maturity Securities [Member] | Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (3) | |
Fair Value, Less than Twelve Months | 1,018 | |
Gross Unrealized Loss, Total | (3) | |
Fair Value, Total | 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 | (287) | (19) |
Fair Value, Less than Twelve Months | 18,552 | 3,144 |
Gross Unrealized Loss, Twelve Months or Greater | (22) | (19) |
Fair Value, Twelve Months or Greater | 414 | 202 |
Gross Unrealized Loss, Total | (309) | (38) |
Fair Value, Total | 18,966 | 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 | (272) | (54) |
Fair Value, Less than Twelve Months | 2,909 | 2,586 |
Gross Unrealized Loss, Total | (272) | (54) |
Fair Value, Total | 2,909 | 2,586 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (2,345) | (1,449) |
Fair Value, Less than Twelve Months | 28,596 | 18,848 |
Gross Unrealized Loss, Twelve Months or Greater | (167) | (82) |
Fair Value, Twelve Months or Greater | 2,650 | 4,619 |
Gross Unrealized Loss, Total | (2,512) | (1,531) |
Fair Value, Total | $ 31,246 | $ 23,467 |
Investments - Schedule of Compa
Investments - Schedule of Company's Investments in Limited Partnerships (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Investment Securities [Line Items] | ||
Carrying Value | $ 22,162 | $ 2,550 |
Unfunded Balance | 20,373 | 9,860 |
Private US Lower Middle Market Companies [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | 4,621 | 2,550 |
Unfunded Balance | $ 7,888 | $ 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 | $ 3,605 | |
Unfunded Balance | $ 4,320 | |
Percentage investment held by the entity | 0.65% | |
Equity and Debt Securities Publicly Traded US and Non US Issuers [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 12,222 | |
Percentage investment held by the entity | 65.82% | |
Power Utility and Energy Industries and Infrastructure [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 1,714 | |
Unfunded Balance | $ 8,165 |
Investments - Schedule of Com39
Investments - Schedule of Company's Investments in Limited Partnerships (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
Investment Securities [Line Items] | |
Number of days lag on reporting quarterly information | 45 days |
Private US Lower Middle Market Companies [Member] | |
Investment Securities [Line Items] | |
Expected term | 10 years |
Expiration date of capital commitment | Sep. 3, 2019 |
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 | Mar. 31, 2018 |
Investment additional maturity term | 2 years |
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 |
Power Utility and Energy Industries and Infrastructure [Member] | |
Investment Securities [Line Items] | |
Expected term | 10 years |
Expiration date of capital commitment | Jun. 30, 2020 |
Investment additional maturity term | 3 years |
Investments - Summary of Unaudi
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Limited Partnerships (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Operating results: | |||||
Total income (loss) | $ 61,262 | $ 66,955 | $ 222,540 | $ 201,356 | |
Total expenses | 49,324 | $ 44,180 | 133,973 | $ 123,888 | |
Limited Partnership [Member] | |||||
Operating results: | |||||
Total income (loss) | 82 | (4,756) | |||
Total expenses | 386 | 1,343 | |||
Net income (loss) | (304) | (6,099) | |||
Balance Sheet: | |||||
Total assets | 250,353 | 250,353 | $ 15,940 | ||
Total liabilities | $ 19,280 | $ 19,280 | $ 513 |
Investments (Limited Partnershi
Investments (Limited Partnership Investments) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Schedule of Investments [Line Items] | |||
Recognized investment loss | $ (2,862) | ||
Maximum exposure loss relating to VIE | $ 4,751 | 4,751 | $ 4,477 |
Limited Partnership [Member] | |||
Schedule of Investments [Line Items] | |||
Recognized investment loss | 2,400 | 2,862 | |
Company's contributed capital to the partnership | 25,126 | 25,126 | 2,640 |
Maximum exposure loss relating to VIE | $ 22,162 | $ 22,162 | $ 2,550 |
Investments (Investment in Join
Investments (Investment in Joint Venture) - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Schedule of Investments [Line Items] | |||
Maximum exposure loss relating to VIE | $ 4,751,000 | $ 4,477,000 | |
Undistributed loss from equity method investment | (19,000) | $ (23,000) | |
Distribution | $ 0 | ||
FMKT Mel JV, LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Equity interest percentage | 90.00% | ||
Additional cash contribution to joint venture | $ 270,000 |
Investments - Summary of Unau43
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Joint Venture (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Operating results: | |||||
Total expenses | $ (49,324) | $ (44,180) | $ (133,973) | $ (123,888) | |
The Company's share of net income | 5 | 4 | $ (22) | ||
Balance Sheet: | |||||
Other | 38,440 | 38,440 | $ 35,587 | ||
Total assets | 702,862 | 702,862 | 602,210 | ||
Other liabilities | 22,208 | 22,208 | 17,683 | ||
Total liabilities and stockholders' equity | 702,862 | 702,862 | 602,210 | ||
Investment in joint venture, at equity | 4,751 | 4,751 | 4,477 | ||
Joint Venture [Member] | |||||
Operating results: | |||||
Total revenues | 17 | 17 | |||
Total expenses | (11) | (12) | |||
Net income (loss) | 6 | 5 | |||
Balance Sheet: | |||||
Construction in progress - real estate | 9,959 | 9,959 | 3,612 | ||
Building | 1,730 | 1,730 | |||
Cash | 502 | 502 | 1,323 | ||
Accounts receivable | 18 | 18 | |||
Other | 368 | 368 | 40 | ||
Total assets | 12,577 | 12,577 | 4,975 | ||
Accounts payable | 87 | 87 | |||
Construction loan | 7,176 | 7,176 | |||
Other liabilities | 35 | 35 | |||
Members' capital | 5,279 | 5,279 | 4,975 | ||
Total liabilities and stockholders' equity | $ 12,577 | $ 12,577 | $ 4,975 |
Investments (Real Estate Invest
Investments (Real Estate Investments) - Additional Information (Detail) $ in Thousands | Dec. 31, 2014USD ($)Restaurant | Oct. 31, 2015USD ($)a | Sep. 30, 2015USD ($)Restaurant | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Restaurant | Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($) |
Schedule of Investments [Line Items] | ||||||||
Bridge loan | $ 550 | $ 550 | ||||||
Maximum exposure loss relating to VIE | $ 4,477 | $ 4,751 | $ 4,751 | |||||
Bridge Loan [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Bridge loan, interest rate | 11.00% | 11.00% | ||||||
Bridge loan, maturity date | Jan. 31, 2016 | |||||||
Real Estate Development [Member] | Subsequent Event [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Total purchase price of property | $ 2,747 | |||||||
Area of land | a | 2.32 | |||||||
Real Estate Development [Member] | Riverview, Florida [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Deposit paid to secure right to purchase | $ 70 | |||||||
ADC Arrangement [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Loan amount | 9,785 | $ 10,200 | ||||||
Maximum exposure loss relating to VIE | $ 2,888 | $ 9,392 | $ 9,392 | |||||
Real Estate Investments [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Number of restaurants | Restaurant | 1 | 1 | 1 | |||||
Depreciation and amortization expenses under real estate investments | $ 87 | $ 100 | $ 280 | $ 298 |
Investments - Summary of Real E
Investments - Summary of Real Estate Investment (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Real Estate [Abstract] | ||
Land | $ 11,476 | $ 11,476 |
Land improvements | 1,504 | 1,425 |
Buildings | 3,116 | 3,097 |
Other | 1,515 | 1,359 |
Total, at cost | 17,611 | 17,357 |
Less: accumulated depreciation and amortization | (1,340) | (1,107) |
Real estate, net | 16,271 | 16,250 |
ADC Arrangement classified as real estate investment | 9,392 | 2,888 |
Real estate investments | $ 25,663 | $ 19,138 |
Investments - Investment (Loss)
Investments - Investment (Loss) Income Summarized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment income | $ (2,862) | |||
Net investment (loss) income | $ (519) | $ 1,213 | 2,685 | $ 3,753 |
Limited Partnership Investment [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment income | (2,400) | (2,862) | ||
Real Estate Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment expense | (130) | (253) | (151) | (656) |
Cash and Cash Equivalents [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment income | 158 | 219 | 455 | 578 |
Other [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment income | 15 | 44 | ||
Available-for-Sale Securities [Member] | Fixed-Maturity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment income | 1,123 | 697 | 3,000 | 2,749 |
Available-for-Sale Securities [Member] | Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment income | 914 | 670 | 2,710 | 1,411 |
Available-for-Sale Securities [Member] | Investment Expense [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment expense | $ (199) | $ (120) | $ (511) | $ (329) |
Fair Value Measurements - Avail
Fair Value Measurements - Available-for-Sale Securities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Assets: | ||
Total fixed-maturity securities | $ 127,104 | $ 97,084 |
Equity securities | 53,536 | 45,550 |
Total available-for-sale securities | 180,640 | 142,634 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 331,542 | 314,416 |
Total fixed-maturity securities | 127,104 | 97,084 |
Equity securities | 53,536 | 45,550 |
Total available-for-sale securities | 180,640 | 142,634 |
Total financial assets | 512,182 | 457,050 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 331,542 | 314,416 |
Total fixed-maturity securities | 50,086 | 32,900 |
Equity securities | 53,536 | 45,550 |
Total available-for-sale securities | 103,622 | 78,450 |
Total financial assets | 435,164 | 392,866 |
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 77,018 | 64,184 |
Total available-for-sale securities | 77,018 | 64,184 |
Total financial assets | 77,018 | 64,184 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 115 | 2,878 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 40,722 | 23,272 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Asset-backed Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 697 | |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Mortgage-Backed Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 3,009 | |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 76,036 | 57,503 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 10,231 | 9,557 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Other [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 168 | |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | (Level 1) [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 115 | 1,069 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | (Level 1) [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 39,740 | 22,274 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | (Level 1) [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 10,231 | 9,557 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | (Level 2) [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 1,809 | |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | (Level 2) [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 982 | 998 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | (Level 2) [Member] | Asset-backed Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 697 | |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | (Level 2) [Member] | Mortgage-Backed Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 3,009 | |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | (Level 2) [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | $ 76,036 | 57,503 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | (Level 2) [Member] | Other [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | $ 168 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Balance Sheet (Detail) - Portion at Other than Fair Value Measurement [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Assets: | ||
Limited partnership investments | $ 22,162 | |
ADC Arrangement classified as real estate investment | 8,995 | $ 2,835 |
Financial Liabilities: | ||
Total long-term debt | 133,445 | 136,322 |
Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 41,232 | 42,955 |
Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 92,213 | 93,367 |
(Level 2) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 41,232 | 42,955 |
(Level 2) [Member] | Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 41,232 | 42,955 |
(Level 3) [Member] | ||
Financial Assets: | ||
Limited partnership investments | 22,162 | |
ADC Arrangement classified as real estate investment | 8,995 | 2,835 |
Financial Liabilities: | ||
Total long-term debt | 92,213 | 93,367 |
(Level 3) [Member] | Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | $ 92,213 | $ 93,367 |
Fair Value Measurements - Sch49
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Balance Sheet (Parenthetical) (Detail) | Sep. 30, 2015 | Dec. 31, 2014 |
Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed annual rate of interest | 8.00% | |
Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.875% | |
Portion at Other than Fair Value Measurement [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed annual rate of interest | 8.00% | 8.00% |
Portion at Other than Fair Value Measurement [Member] | Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.875% | 3.875% |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Benefits receivable related to retrospective reinsurance contracts | $ 31,101 | $ 28,123 |
Deferred costs related to retrospective reinsurance contracts | 735 | 473 |
Deferred offering costs on senior notes | 3,131 | 3,653 |
Prepaid expenses | 1,791 | 1,444 |
Restricted cash | 300 | 300 |
Other | 1,382 | 1,594 |
Total other assets | $ 38,440 | $ 35,587 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) $ in Thousands | 1 Months Ended |
Jul. 31, 2015USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Amount received from retrospective reinsurance contracts | $ 14,100 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 131,647 | $ 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 | $ 91,397 | $ 89,289 |
Long-Term Debt - Summary of L53
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Fixed annual rate of interest | 8.00% |
Debt instrument, maturity date | Jan. 30, 2020 |
Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 3.875% |
Debt instrument, maturity date | Mar. 15, 2019 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)$ / shares | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)$ / shares | Sep. 30, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Convertible debt, conversion ratio | 16.0356 | |||
Convertible debt, conversion price | $ / shares | $ 62.36 | $ 62.36 | ||
Interest expense | $ 2,698 | $ 2,626 | $ 8,038 | $ 7,809 |
Non-cash interest expense | $ 896 | $ 823 | $ 2,630 | $ 2,411 |
Debt discount, remaining amortization period | 3 years 6 months | |||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Cash dividends on common stock | $ / shares | $ 0.275 |
Reinsurance - Impact of Catastr
Reinsurance - Impact of Catastrophe Excess of Loss Reinsurance Treaties and One Quota Share Arrangement on Premiums Written and Earned (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Premiums Written: | ||||
Direct | $ 105,787 | $ 86,257 | $ 343,927 | $ 307,199 |
Assumed | (416) | (172) | (1,792) | (1,255) |
Gross written | 105,371 | 86,085 | 342,135 | 305,944 |
Ceded | (41,077) | (27,684) | (100,294) | (83,764) |
Net premiums written | 64,294 | 58,401 | 241,841 | 222,180 |
Premiums Earned: | ||||
Direct | 93,012 | 85,357 | 263,814 | 245,638 |
Assumed | 10,830 | 3,587 | 57,360 | 28,415 |
Gross earned | 103,842 | 88,944 | 321,174 | 274,053 |
Ceded | (41,077) | (27,684) | (100,294) | (83,764) |
Net premiums earned | $ 62,765 | $ 61,260 | $ 220,880 | $ 190,289 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)Reinsurers | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Reinsurers | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)Reinsurers | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Number of reinsurers | Reinsurers | 21 | 21 | 28 | ||
Reinsurance recoverable | $ 0 | $ 0 | $ 0 | ||
Credit risk associated with reinsurance receivables | 0 | 0 | 0 | ||
Recoveries pertaining to reinsurance contracts | 0 | $ 0 | 0 | $ 0 | |
Net reduction in ceded premiums | 2,901,000 | $ 6,512,000 | 15,515,000 | $ 17,052,000 | |
Other assets | 38,440,000 | 38,440,000 | 35,587,000 | ||
Prepaid reinsurance premiums | 26,590,000 | 26,590,000 | 34,096,000 | ||
Reinsurance [Member] | |||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||
Other assets | 31,836,000 | 31,836,000 | 28,596,000 | ||
Prepaid reinsurance premiums | $ 4,158,000 | $ 4,158,000 | $ 5,983,000 |
Losses and Loss Adjustment Ex57
Losses and Loss Adjustment Expenses - Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Balance, beginning of period | $ 54,329 | $ 43,044 | $ 48,908 | $ 43,686 |
Incurred related to: | ||||
Current period | 24,419 | 21,643 | 63,473 | 59,205 |
Prior period | 1,781 | 348 | 2,331 | (266) |
Total incurred | 26,200 | 21,991 | 65,804 | 58,939 |
Paid related to: | ||||
Current period | (16,059) | (3,461) | (31,111) | (22,296) |
Prior period | (7,253) | (13,920) | (26,384) | (32,675) |
Total paid | (23,312) | (17,381) | (57,495) | (54,971) |
Balance, end of period | $ 57,217 | $ 47,654 | $ 57,217 | $ 47,654 |
Losses and Loss Adjustment Ex58
Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Unpaid claims and claim adjustment expenses overall development | $ 1,781 | $ 348 | $ 2,331 | $ (266) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 4,567 | $ 8,723 | $ 33,796 | $ 29,366 |
Effective tax rates | 38.30% | 38.30% | 38.20% | 37.90% |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Numerator and Denominator of Basic and Fully Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 7,371 | $ 14,052 | $ 54,771 | $ 48,102 |
Less: Preferred stock dividends | 4 | |||
Less: Income attributable to participating securities | (437) | (1,024) | (3,182) | (3,415) |
Basic Earnings Per Share: | ||||
Income allocated to common stockholders, Income (Numerator) | $ 6,934 | $ 13,028 | $ 51,589 | $ 44,691 |
Income allocated to common stockholders, Shares (Denominator) | 9,635 | 9,736 | 9,585 | 9,972 |
Income allocated to common stockholders, Per Share Amount | $ 0.72 | $ 1.34 | $ 5.38 | $ 4.48 |
Diluted Earnings Per Share: | ||||
Income available to common stockholders and assumed conversions, Income (Numerator) | $ 8,066 | $ 14,118 | $ 54,952 | $ 47,929 |
Income available to common stockholders and assumed conversions, Shares (Denominator) | 11,371 | 11,518 | 11,347 | 11,787 |
Income available to common stockholders and assumed conversions, Per Share Amount | $ 0.71 | $ 1.23 | $ 4.84 | $ 4.07 |
Convertible Senior Notes [Member] | ||||
Effect of Dilutive Securities: | ||||
Dilutive Securities, Income (Numerator) | $ 1,132 | $ 1,090 | $ 3,363 | $ 3,242 |
Dilutive Securities, Shares (Denominator) | 1,651 | 1,649 | 1,650 | 1,649 |
Convertible Preferred Stock [Member] | ||||
Effect of Dilutive Securities: | ||||
Dilutive Securities, Income (Numerator) | $ (4) | |||
Dilutive Securities, Shares (Denominator) | 27 | |||
Stock Options [Member] | ||||
Effect of Dilutive Securities: | ||||
Dilutive Securities, Shares (Denominator) | 85 | 133 | 112 | 139 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Oct. 16, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||||
Stock repurchased and retired, total costs | $ 792,000 | $ 616,000 | ||||
Dividends per common share | $ 0.30 | $ 0.28 | $ 0.90 | $ 0.83 | ||
Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Repurchase and retirement of common stock, shares | 17,493 | 14,070 | ||||
Share Repurchase Plan [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock repurchase authorized amount | $ 40,000,000 | |||||
Common stock repurchased and retired, weighted average price | $ 40.56 | $ 42.49 | $ 37.83 | |||
Stock repurchased and retired, total costs | $ 10,005,000 | $ 1,610,000 | $ 27,815,000 | |||
Fees and commissions average price repurchase common stock | $ 40.58 | $ 42.51 | $ 37.85 | |||
Time through the company is allowed to repurchase shares | Mar. 31, 2015 | |||||
Share Repurchase Plan [Member] | Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Repurchase and retirement of common stock, shares | 0 | 246,578 | 37,869 | 734,924 | ||
Share Repurchase Plan [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends per common share | $ 0.30 | |||||
Date of dividend payable | Dec. 18, 2015 | |||||
Record date of dividend payable | Nov. 20, 2015 |
Stock-Based Compensation (Incen
Stock-Based Compensation (Incentive Plans) - Additional Information (Detail) | Sep. 30, 2015shares |
Omnibus Incentive Plan New Plan 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common shares available for grant | 4,201,966 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - Stock Options [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option contractual term | 10 years | ||
Recognized compensation expenses | $ 0 | $ 6 | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options maximum vesting period | 5 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Company's Stock Option Plan Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 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 | 150,000 | 230,000 | 230,000 | 230,000 | 230,000 | 280,000 | 230,000 | 280,000 | 280,000 | |
Outstanding, Weighted-Average Remaining Contractual Term | 2 years 4 months 24 days | 2 years 10 months 24 days | 2 years 9 months 18 days | 3 years 3 months 18 days | 3 years 6 months | 3 years 9 months 18 days | 3 years | 3 years 10 months 24 days | ||
Exercised, Number of Options | (10,000) | (80,000) | (50,000) | (90,000) | (50,000) | |||||
Exercisable Ending, Weighted-Average Remaining Contractual Term | 2 years 4 months 24 days | 3 years 3 months 18 days | ||||||||
Outstanding Ending, Number of Options | 140,000 | 150,000 | 230,000 | 230,000 | 230,000 | 230,000 | 140,000 | 230,000 | 230,000 | 280,000 |
Outstanding Beginning, Weighted Average Exercise Price | $ 3.26 | $ 3 | $ 3 | $ 3 | $ 3 | $ 2.91 | $ 3 | $ 2.91 | $ 2.91 | |
Exercisable Ending, Number of Options | 140,000 | 230,000 | 140,000 | 230,000 | ||||||
Exercised, Weighted-Average Exercise Price | $ 6.30 | 2.50 | 2.50 | |||||||
Outstanding Ending, Weighted-Average Exercise Price | $ 3.04 | $ 3.26 | $ 3 | $ 3 | $ 3 | $ 3 | $ 3.04 | $ 3 | $ 3 | $ 2.91 |
Outstanding Beginning, Aggregate Intrinsic Value | $ 6,142 | $ 9,861 | $ 9,256 | $ 8,649 | $ 7,683 | $ 14,166 | $ 9,256 | $ 14,166 | $ 14,166 | |
Exercisable Ending , Weighted-Average Exercise Price | $ 3.04 | $ 3 | $ 3.04 | $ 3 | ||||||
Outstanding Ending, Aggregate Intrinsic Value | $ 5,002 | $ 6,142 | $ 9,861 | $ 7,589 | $ 8,649 | $ 7,683 | $ 5,002 | $ 7,589 | $ 9,256 | $ 14,166 |
Exercisable Ending, Aggregate Intrinsic Value | $ 5,002 | $ 7,589 | $ 5,002 | $ 7,589 |
Stock-Based Compensation - Info
Stock-Based Compensation - Information about Options Exercised (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Activity [Abstract] | |||||
Options exercised | 10,000 | 80,000 | 50,000 | 90,000 | 50,000 |
Total intrinsic value of exercised options | $ 320 | $ 3,508 | $ 1,970 | ||
Fair value of vested stock options | 17 | ||||
Tax benefits realized | $ 117 | $ 1,309 | $ 603 |
Stock Based Compensation - Info
Stock Based Compensation - Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan (Detail) - Restricted Stock [Member] - $ / shares | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Beginning balance, shares | 630,858 | 596,922 | 639,705 | 777,215 | 812,040 | 735,650 | 639,705 |
Granted, Number of Restricted Stock Awards | 83,260 | 10,000 | 98,720 | ||||
Vested, Number of Restricted Stock Awards | (2,000) | (16,000) | (41,695) | (2,000) | (32,000) | (21,825) | |
Forfeited, Number of Restricted Stock Awards | (4,344) | (33,324) | (1,088) | (5,155) | (2,825) | (505) | |
Ending balance, shares | 624,514 | 630,858 | 596,922 | 780,060 | 777,215 | 812,040 | 624,514 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $ 30.55 | $ 27.75 | $ 28.33 | $ 28.95 | $ 28.37 | $ 25.48 | $ 28.33 |
Granted, Weighted-Average Grant Date Fair Value | 44.46 | 37.28 | 48.42 | ||||
Vested, Weighted-Average Grant Date Fair Value | 37.68 | 13.48 | 36.15 | 37.68 | 12.95 | 21.56 | |
Forfeited, Weighted-Average Grant Date Fair Value | 45.52 | 23.20 | 48.42 | 39.85 | 43.43 | 32.20 | |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $ 30.43 | $ 30.55 | $ 27.75 | $ 28.96 | $ 28.95 | $ 28.37 | $ 30.43 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Awards) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Recognized compensation expenses | $ 1,258 | $ 2,267 | $ 4,047 | $ 6,594 | ||
Total unrecognized compensation expense, Nonvested restricted stock arrangements granted | $ 8,986 | $ 11,947 | $ 8,986 | $ 11,947 | ||
Recognition of remaining compensation expense over a weighted-average period | 24 months | |||||
Performance-based awards issued | 83,260 | 10,000 | 98,720 | |||
Performance-Based Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance-based awards issued | 0 | 0 |
Stock-Based Compensation - In68
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 ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred tax benefits recognized | $ 485 | $ 875 | $ 1,561 | $ 2,544 |
Tax benefits realized for restricted stock and paid dividends | 28 | 80 | 527 | 781 |
Fair value of vested restricted stock | $ 75 | $ 75 | $ 1,798 | $ 960 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Sep. 10, 2013USD ($) | Sep. 30, 2015USD ($)ft² | Sep. 30, 2015USD ($)ft² | Dec. 31, 2014USD ($) |
Commitment And Contingencies [Line Items] | ||||
Company agreement to lease | ft² | 2,819 | 2,819 | ||
Minimum future rental payments due in 2015/2016 | $ 68 | $ 68 | ||
Minimum future rental payments due in 2016/2017 | 70 | 70 | ||
Minimum future rental payments due in 2017/2018 | 17 | 17 | ||
Commitment remained available to developer | 1,120 | 1,120 | ||
Unfunded Balance | 20,373 | 20,373 | $ 9,860 | |
Lease Commitments [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Operating lease monthly rental payment for five years | 5 | |||
Reinsurance Contracts [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Minimum future rental payments due in 2015/2016 | 32,990 | $ 32,990 | ||
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. | |||
Contingency accruals reversed during the period | $ 140 | |||
Accrued amount | $ 140 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Thousands | Jun. 27, 2013USD ($) | Sep. 30, 2015USD ($)Directors |
Oxbridge [Member] | ||
Related Party Transaction [Line Items] | ||
Number of non-employee directors | Directors | 3 | |
Moksha [Member] | ||
Related Party Transaction [Line Items] | ||
Number of non-employee directors | Directors | 1 | |
Payment for related party transaction | $ 4,300 | |
Period from June 1, 2014 through May 31, 2015 [Member] | Oxbridge [Member] | ||
Related Party Transaction [Line Items] | ||
Assumed total covered exposure | $ 17,800 | |
Transaction amount | 4,935 | |
Period from June 1, 2015 through May 31, 2016 [Member] | Oxbridge [Member] | ||
Related Party Transaction [Line Items] | ||
Assumed total covered exposure | 11,600 | |
Transaction amount | 3,340 | |
Period from June 1, 2013 through May 31, 2014 [Member] | Moksha [Member] | ||
Related Party Transaction [Line Items] | ||
Assumed total covered exposure | 15,400 | |
Transaction amount | $ 4,300 |