Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 23, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HCI | ||
Entity Registrant Name | HCI Group, Inc. | ||
Entity Central Index Key | 1,400,810 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 10,783,747 | ||
Entity Public Float | $ 394,402,494 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Fixed-maturity securities, available for sale, at fair value (amortized cost: $128,614 and $96,163, respectively) | $ 125,009 | $ 97,084 |
Equity securities, available for sale, at fair value (cost: $47,548 and $45,387, respectively) | 48,237 | 45,550 |
Limited partnership investments, at equity | 23,930 | 2,550 |
Investment in unconsolidated joint venture, at equity | 4,787 | 4,477 |
Real estate investments (inclusive of $2,906 and $0 of consolidated variable interest entities, respectively) | 30,954 | 19,138 |
Total investments | 232,917 | 168,799 |
Cash and cash equivalents (inclusive of $57 and $0 of consolidated variable interest entities, respectively) | 267,738 | 314,416 |
Accrued interest and dividends receivable | 1,390 | 1,059 |
Income taxes receivable | 1,858 | 2,624 |
Premiums receivable | 19,631 | 15,824 |
Prepaid reinsurance premiums | 40,747 | 34,096 |
Deferred policy acquisition costs | 18,602 | 15,014 |
Property and equipment, net | 11,786 | 12,292 |
Deferred income taxes, net | 3,189 | 2,499 |
Other assets | 39,128 | 31,934 |
Total assets | 636,986 | 598,557 |
Liabilities and Stockholders' Equity | ||
Losses and loss adjustment expenses | 51,690 | 48,908 |
Unearned premiums | 187,290 | 214,071 |
Advance premiums | 4,983 | 4,380 |
Assumed reinsurance balances payable | 1,084 | 218 |
Accrued expenses (inclusive of $21 and $0 of consolidated variable interest entities, respectively) | 6,316 | 4,826 |
Long-term debt | 129,429 | 125,886 |
Other liabilities (inclusive of $1,108 and $0 of consolidated variable interest entities, respectively) | 18,472 | 17,683 |
Total liabilities | $ 399,264 | $ 415,972 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Preferred stock | ||
Common stock (no par value, 40,000,000 shares authorized, 10,292,256 and 10,189,128 shares issued and outstanding in 2015 and 2014, respectively) | $ 0 | $ 0 |
Additional paid-in capital | 23,879 | 20,465 |
Retained income | 215,634 | 161,454 |
Accumulated other comprehensive (loss) income, net of taxes | (1,791) | 666 |
Total stockholders' equity | 237,722 | 182,585 |
Total liabilities and stockholders' equity (or members' capital) | $ 636,986 | $ 598,557 |
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 | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Debt securities, Amortized cost | $ 128,614 | $ 96,163 |
Available-for-sale Equity securities, Amortized cost | 47,548 | 45,387 |
Real estate investments | 30,954 | 19,138 |
Cash and cash equivalents | 267,738 | 314,416 |
Accrued expenses | 6,316 | 4,826 |
Other liabilities | $ 18,472 | $ 17,683 |
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 | 10,292,256 | 10,189,128 |
Common stock, outstanding | 10,292,256 | 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 | $ 2,906 | $ 0 |
Cash and cash equivalents | 57 | 0 |
Accrued expenses | 21 | 0 |
Other liabilities | $ 1,108 | $ 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue | |||
Gross premiums earned | $ 423,120,000 | $ 365,488,000 | $ 337,113,000 |
Premiums ceded | (140,614,000) | (113,423,000) | (102,865,000) |
Net premiums earned | 282,506,000 | 252,065,000 | 234,248,000 |
Net investment income | 3,978,000 | 4,888,000 | 1,469,000 |
Net realized investment (losses) gains | (608,000) | 4,735,000 | 80,000 |
Net other-than-temporary impairment losses recognized in income: | |||
Total other-than-temporary impairment losses | (5,275,000) | (107,000) | |
Portion of loss recognized in other comprehensive income, before taxes | 594,000 | ||
Net other-than-temporary impairment losses | (4,681,000) | (107,000) | 0 |
Policy fee income | 3,496,000 | 2,820,000 | 3,098,000 |
Other | 1,261,000 | 1,707,000 | 2,193,000 |
Total revenue | 285,952,000 | 266,108,000 | 241,088,000 |
Expenses | |||
Losses and loss adjustment expenses | 87,224,000 | 79,468,000 | 65,123,000 |
Policy acquisition and other underwriting expenses | 41,984,000 | 37,952,000 | 31,619,000 |
Salaries and wages | 20,140,000 | 16,483,000 | 14,714,000 |
Interest expense | 10,754,000 | 10,453,000 | 3,607,000 |
Other operating expenses | 19,658,000 | 20,790,000 | 19,572,000 |
Total expenses | 179,760,000 | 165,146,000 | 134,635,000 |
Income before income taxes | 106,192,000 | 100,962,000 | 106,453,000 |
Income tax expense | 40,331,000 | 38,298,000 | 40,891,000 |
Net income | 65,861,000 | 62,664,000 | 65,562,000 |
Preferred stock dividends | 4,000 | (104,000) | |
Income available to common stockholders | $ 65,861,000 | $ 62,668,000 | $ 65,458,000 |
Basic earnings per common share | $ 6.51 | $ 5.90 | $ 5.82 |
Diluted earnings per common share | 5.90 | 5.36 | 5.63 |
Dividends per common share | $ 1.20 | $ 1.10 | $ 0.95 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 65,861,000 | $ 62,664,000 | $ 65,562,000 |
Change in unrealized (loss) gain on investments: | |||
Net unrealized (loss) gain arising during the period | (9,366,000) | 3,870,000 | (767,000) |
Other-than-temporary impairment loss charged to investment income | 4,681,000 | 107,000 | 0 |
Call and repayment losses charged to investment income | 77,000 | 28,000 | 24,000 |
Reclassification adjustment for net realized loss (gain) | 608,000 | (4,735,000) | (80,000) |
Net change in unrealized loss | (4,000,000) | (730,000) | (823,000) |
Deferred income taxes on above change | 1,543,000 | 282,000 | 317,000 |
Total other comprehensive loss, net of income taxes | (2,457,000) | (448,000) | (506,000) |
Comprehensive income | $ 63,404,000 | $ 62,216,000 | $ 65,056,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Share Repurchase Plan [Member] | Common Stock [Member] | Common Stock [Member]Share Repurchase Plan [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Share Repurchase Plan [Member] | Retained Income [Member] | Accumulated Other Comprehensive (Loss) Income, Net of Tax [Member] | Series A Preferred Stock [Member] |
Beginning Balance at Dec. 31, 2012 | $ 121,253 | $ 63,875 | $ 55,758 | $ 1,620 | |||||
Beginning Balance, shares at Dec. 31, 2012 | 10,877,537 | 241,182 | |||||||
Net income | 65,562 | 65,562 | |||||||
Total other comprehensive loss, net of income taxes | (506) | (506) | |||||||
Conversion of preferred stock to common stock, shares | 130,498 | (130,498) | |||||||
Issuance of restricted stock | 0 | $ 0 | 0 | 0 | 0 | $ 0 | |||
Issuance of restricted stock, shares | 612,000 | ||||||||
Forfeiture of restricted stock, value | 0 | $ 0 | 0 | 0 | 0 | $ 0 | |||
Forfeiture of restricted stock, shares | (29,670) | ||||||||
Repurchase and retirement of common stock, value | (963) | (963) | |||||||
Repurchase and retirement of common stock, shares | (28,346) | ||||||||
Repurchase of common stock under prepaid forward contract, shares | (622,751) | ||||||||
Equity component on 3.875% convertible senior notes (net of offering costs of $557) | 15,900 | 15,900 | |||||||
Deferred taxes on debt discount | (6,348) | (6,348) | |||||||
Common stock dividends | (10,775) | (10,775) | |||||||
Preferred stock dividends | (104) | (104) | |||||||
Tax benefits on stock-based compensation | 1,060 | 1,060 | |||||||
Stock-based compensation | 5,365 | 5,365 | |||||||
Ending Balance at Dec. 31, 2013 | 160,521 | 48,966 | 110,441 | 1,114 | |||||
Ending Balance, shares at Dec. 31, 2013 | 10,939,268 | 110,684 | |||||||
Net income | 62,664 | 62,664 | |||||||
Total other comprehensive loss, net of income taxes | (448) | (448) | |||||||
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 | (10,840) | ||||||||
Repurchase and retirement of common stock, value | (643) | $ (38,354) | (643) | $ (38,354) | |||||
Repurchase and retirement of common stock, shares | (14,617) | (990,701) | |||||||
Redemption of Series A preferred stock | (34) | (34) | |||||||
Redemption of Series A preferred stock, shares | (3,386) | ||||||||
Deferred taxes on debt discount | 215 | 215 | |||||||
Common stock dividends | (11,655) | (11,655) | |||||||
Derecognition of preferred stock dividends payable | 4 | 4 | |||||||
Tax benefits on stock-based compensation | 2,080 | 2,080 | |||||||
Stock-based compensation | 8,110 | 8,110 | |||||||
Ending Balance at Dec. 31, 2014 | 182,585 | 20,465 | 161,454 | 666 | |||||
Ending Balance, shares at Dec. 31, 2014 | 10,189,128 | ||||||||
Net income | 65,861 | 65,861 | |||||||
Total other comprehensive loss, net of income taxes | (2,457) | (2,457) | |||||||
Issuance of restricted stock, shares | 83,260 | ||||||||
Exercise of common stock options, value | $ 263 | 263 | |||||||
Exercise of common stock options, shares | 120,000 | 120,000 | |||||||
Shares surrendered upon exercising common stock options | (2,013) | ||||||||
Forfeiture of restricted stock, shares | (42,757) | ||||||||
Repurchase and retirement of common stock, value | $ (792) | $ (1,610) | (792) | $ (1,610) | |||||
Repurchase and retirement of common stock, shares | (17,493) | (37,869) | |||||||
Common stock dividends | (11,681) | (11,681) | |||||||
Tax benefits on stock-based compensation | 2,295 | 2,295 | |||||||
Tax shortfalls on stock-based compensation | (1,954) | (1,954) | |||||||
Stock-based compensation | 5,212 | 5,212 | |||||||
Ending Balance at Dec. 31, 2015 | $ 237,722 | $ 23,879 | $ 215,634 | $ (1,791) | |||||
Ending Balance, shares at Dec. 31, 2015 | 10,292,256 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Stated interest rate on convertible senior notes | 3.875% |
Offering costs for convertible senior notes | $ 557 |
Additional Paid-In Capital [Member] | |
Stated interest rate on convertible senior notes | 3.875% |
Offering costs for convertible senior notes | $ 557 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 65,861,000 | $ 62,664,000 | $ 65,562,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation | 5,212,000 | 8,110,000 | 5,365,000 |
Net amortization of discounts and premiums on investments in fixed-maturity securities | 855,000 | 782,000 | 336,000 |
Depreciation and amortization | 5,251,000 | 4,958,000 | 2,103,000 |
Deferred income tax (benefit) expense | (1,101,000) | (4,742,000) | 557,000 |
Net realized investment losses (gains) | 608,000 | (4,735,000) | (80,000) |
Other-than-temporary impairment losses | 4,681,000 | 107,000 | 0 |
Income from real estate investments | (344,000) | (85,000) | |
Loss from joint venture | 125,000 | 23,000 | |
Net loss from limited partnership interests | 3,244,000 | 90,000 | |
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) | 26,000 |
Foreign currency remeasurement loss | 66,000 | 29,000 | 69,000 |
Changes in operating assets and liabilities: | |||
Premiums receivable | (3,807,000) | (1,150,000) | (4,032,000) |
Advance premiums | 603,000 | (124,000) | 475,000 |
Prepaid reinsurance premiums | (6,651,000) | (6,030,000) | (18,954,000) |
Accrued interest and dividends receivable | (331,000) | 74,000 | (758,000) |
Other assets | (7,230,000) | (20,086,000) | (9,579,000) |
Assumed reinsurance balances payable | 866,000 | (4,442,000) | 3,283,000 |
Deferred policy acquisition costs | (3,588,000) | (943,000) | (4,039,000) |
Losses and loss adjustment expenses | 2,782,000 | 5,222,000 | 2,518,000 |
Unearned premiums | (26,781,000) | 42,164,000 | 17,658,000 |
Income taxes | 766,000 | (3,167,000) | (8,270,000) |
Accrued expenses and other liabilities | 4,157,000 | 10,011,000 | 3,232,000 |
Net cash provided by operating activities | 45,270,000 | 88,729,000 | 55,472,000 |
Cash flows from investing activities: | |||
Investment in real estate under acquisition, development, and construction arrangement | (6,968,000) | (2,803,000) | |
Investment in limited partnership interests | (24,636,000) | (2,640,000) | |
Investment in unconsolidated joint venture | (435,000) | (4,500,000) | |
Purchase of property and equipment, net | (840,000) | (453,000) | (3,433,000) |
Purchase of real estate investments | (4,871,000) | (413,000) | (565,000) |
Purchase of fixed-maturity securities | (98,501,000) | (83,365,000) | (82,907,000) |
Purchase of equity securities | (32,878,000) | (44,257,000) | (11,308,000) |
Distribution from limited partnership interests | 12,000 | ||
Proceeds from sales of fixed-maturity securities | 53,711,000 | 98,365,000 | 1,749,000 |
Proceeds from calls, repayments and maturities of fixed-maturity securities | 9,344,000 | 4,603,000 | 3,607,000 |
Proceeds from sales of equity securities | 25,695,000 | 16,810,000 | 2,809,000 |
Proceeds from sales of property and equipment | 1,000 | ||
Proceeds from sales of real estate investments | 5,000 | 1,000 | 7,000 |
Net cash used in investing activities | (80,362,000) | (18,652,000) | (90,040,000) |
Cash flows from financing activities: | |||
Proceeds from the exercise of common stock options | 263,000 | 125,000 | |
Proceeds from the issuance of long-term debt | 143,250,000 | ||
Cash dividends paid | (12,428,000) | (12,355,000) | (10,902,000) |
Cash dividends received under share repurchase forward contract | 747,000 | 685,000 | |
Repurchases of common stock | (792,000) | (643,000) | (30,886,000) |
Repurchases of common stock under share repurchase plan | (1,610,000) | (38,354,000) | |
Redemption of Series A preferred stock | (34,000) | ||
Debt issuance costs | (234,000) | (4,770,000) | |
Tax benefits on stock-based compensation | 2,295,000 | 2,080,000 | 1,060,000 |
Net cash (used) provided by financing activities | (11,525,000) | (48,730,000) | 97,752,000 |
Effect of exchange rate changes on cash | (61,000) | (29,000) | |
Net (decrease) increase in cash and cash equivalents | (46,678,000) | 21,318,000 | 63,184,000 |
Cash and cash equivalents at beginning of year | 314,416,000 | 293,098,000 | 229,914,000 |
Cash and cash equivalents at end of year | 267,738,000 | 314,416,000 | 293,098,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 38,371,000 | 43,902,000 | 47,435,000 |
Cash paid for interest | 7,211,000 | 6,258,000 | 2,531,000 |
Non-cash investing and financing activities: | |||
Unrealized loss on investments in available-for-sale securities, net of tax | $ (2,457,000) | (448,000) | (506,000) |
Series A Preferred Stock [Member] | |||
Non-cash investing and financing activities: | |||
Conversion of Series A preferred stock to common stock | $ 972,000 | $ 1,170,000 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Note 1 — Nature of Operations HCI Group, Inc., together with its subsidiaries (“HCI” or the “Company”), is primarily engaged in the property and casualty insurance business through Homeowners Choice Property & Casualty Insurance Company, Inc. (“HCPCI”), its principal operating subsidiary. HCPCI is authorized to underwrite various homeowners’ property and casualty insurance products and allied lines business in the state of Florida. HCPCI has been approved to underwrite excess and surplus lines insurance products in Maryland, New Jersey, South Carolina, and Virginia. HCPCI had not written any excess and surplus lines policies in these states as of December 31, 2015. HCPCI’s operations are supported by the following HCI subsidiaries: • Homeowners Choice Managers, Inc. – acts as managing general agent and provides marketing, underwriting, claims settlement, accounting and financial services to HCPCI; • Southern Administration, Inc. – provides policy administration services to HCPCI; and • Claddaugh Casualty Insurance Company, Ltd. – participates in the reinsurance program to HCPCI. The Company’s insurance subsidiaries also include Alabama domiciled Homeowners Choice Assurance Company, Inc. and TypTap Insurance Company, a Florida insurance company approved by the Florida Office of Insurance Regulation (“FLOIR”) in January 2016. In addition, HCI includes various subsidiaries predominantly engaged in the businesses of owning and leasing real estate, operating marina facilities and one restaurant, and developing software products for licensing to third parties. The Company reports its operations under one business segment. The Company obtained a majority of its policies through participation in a “take-out program” with Citizens Property Insurance Corporation (“Citizens”), a Florida state supported insurer. Policies were obtained in separate assumption transactions with Citizens that took place from July 2007 through October 2015. The Company is required to offer renewals on the policies acquired for a period of three years subsequent to the initial expiration of the assumed policies. During the first full year after assumption, such renewals are required to have rates that are equivalent to or less than the rates charged by Citizens. The Company’s premium revenue since inception comes from these assumptions and one additional assumption from HomeWise Insurance Company (“HomeWise”) in November 2011 through which the Company acquired the Florida policies of HomeWise. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Basis of Presentation. Adoption of New Accounting Standard. September 30, June 30, March 31, December 31, Other assets: Previously reported $ 38,440 $ 48,151 $ 41,195 $ 35,587 Adjusted $ 35,309 $ 44,842 $ 37,712 $ 31,934 Total assets: Previously reported $ 702,862 $ 701,730 $ 642,344 $ 602,210 Adjusted $ 699,731 $ 698,421 $ 638,861 $ 598,557 Long-term debt: Previously reported $ 131,647 $ 130,929 $ 130,227 $ 129,539 Adjusted $ 128,516 $ 127,620 $ 126,744 $ 125,886 Total liabilities: Previously reported $ 473,722 $ 475,983 $ 436,328 $ 419,625 Adjusted $ 470,591 $ 472,674 $ 432,845 $ 415,972 The adoption of this standard had no effect on the prior consolidated results of the Company’s operations, comprehensive income and cash flows. Principles of Consolidation. The Company has a 100% equity interest in one joint venture that owns land on which a retail center will be constructed for lease or for sale. The Company consolidates this joint venture as its primary beneficiary (see Note 4 — “Investments” under Real Estate Development in Progress Use of Estimates. Cash and Cash Equivalents. Investments in Available-for-Sale Securities The Company reviews all securities for other-than-temporary impairment on a monthly basis. When the fair value of any investment is lower than its cost, an assessment is made to determine whether the decline is temporary or other-than-temporary. If the decline is determined to be other-than-temporary, the investment is written down to fair value and an impairment loss is recognized in income in the period in which the Company makes such determination. When reviewing 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 is incurred when the present value of the expected cash flows is less than the security’s amortized cost. The Company considers various factors in determining whether an individual security is other-than-temporarily impaired (see Note 4 — “Investments”). Limited Partnership Investments. Pursuant to U.S. GAAP, these limited partnerships which are private equity funds must measure their investments at fair value and reflect the unrealized gains or losses in the fair value of their investments on their statement of income. As a result, the carrying value of limited partnership investments at each reporting date approximates their estimated fair value. Investment in Unconsolidated Joint Venture. In addition, the joint venture agreement contains an embedded purchase option the Company can exercise to purchase the entire interest of the other party to the joint venture after the expiration of a restricted period. The Company determined the embedded purchase option is not required to be bifurcated and fair value accounting at each reporting date is not applicable. Due to the lack of a controlling financial interest and until the embedded purchase option becomes exercisable, the Company uses the equity method rather than consolidation to account for its investment in the joint venture. When evidence indicates an impairment may occur, the Company evaluates whether a decline in value is other than temporary. Evidence may include continuing operating losses of the joint venture, a declining occupancy rate, a decrease in real estate value, and an oversupply of rental property in close vicinity to the investment property. Should available evidence indicate the recovery of the initial investment is less likely, the Company would compare the carrying value of the investment with its expected residual value and recognize an impairment loss in earnings. Real Estate Investments Under the ADC Arrangement, the Company provides financing to a property developer for the acquisition, development, and construction of a retail shopping center. The Company also expects to participate in the residual profit resulting from the ultimate sale or other use of the property. Classification and accounting for the ADC Arrangement as a loan, an investment in real estate, or a joint venture is determined by the Company’s evaluation of the characteristics and the risks and rewards of the ADC Arrangement. If the Company expects to receive more than 50% of the residual profit from the ADC Arrangement and it has characteristics similar to a real estate investment, the costs of the real estate project will be capitalized and interest will be recognized in net investment income. In addition, the Company considers any rights or features embedded in the ADC Arrangement that may require bifurcation and derivative accounting. Due to its participation in the expected residual profit, which is deemed a variable interest, the Company evaluates if the Company has the power to direct the activities that significantly impact the economic performance of the entity to which the Company provides financing for possible consolidation as the primary beneficiary under the Variable Interest Model. Any subsequent changes in terms, rights or the developer’s equity interest that may result in a reclassification or a change in the accounting treatment of the ADC Arrangement will be evaluated. The Company will continually assess the collectability of principal, accrued interest and fees. Real estate and the related depreciable assets are carried at cost, net of accumulated depreciation, which is included in net investment income and allocated over the estimated useful life of the asset using the straight-line method of depreciation. Real estate is evaluated for impairment when events or circumstances indicate the carrying value of the real estate may not be recoverable. Deferred policy acquisition costs. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value, which gives effect to the gross premium earned, related investment income, unpaid losses and LAE and certain other costs expected to be incurred as the premium is earned. DAC is reviewed to determine if it is recoverable from future premium income, including investment income. If such costs are determined to be unrecoverable, they are expensed at the time of determination. The amount of DAC considered recoverable could be reduced in the near term if the estimates of total revenues discussed above are reduced or permanently impaired as a result of the disposition of a line of business. The amount of amortization of DAC could be revised in the near term if any of the estimates discussed above are revised. Property and Equipment. Impairment of Long-Lived Assets. Long-Term Debt. To determine the carrying values of the liability and equity components at issuance, the Company measures the fair value of a similar liability, including any embedded features other than the conversion option, and assigns such value to the liability component. The liability component’s fair value is then subtracted from the initial proceeds to determine the carrying value of the debt instrument’s equity component, which is included in additional paid-in capital. Any embedded feature other than the conversion option is evaluated at issuance to determine if it is probable that such embedded feature will be exercised. If the Company concludes that the exercisability of that embedded feature is not probable, the embedded feature is considered to be nonsubstantive and would not impact the initial measurement and expected life of the debt instrument’s liability component. Transaction costs related to issuing a debt instrument that embodies both liability and equity components are allocated to the liability and equity components in proportion to the allocation of the proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. Debt issuance costs are recognized and presented as a deduction from the carrying value of the debt. Prior to adopting Accounting Standards Update No. 2015-03 in December 2015, debt issuance costs were recognized in other assets. Both debt discount and deferred debt issuance costs are amortized to interest expense over the expected life of the debt instrument using the effective interest method. Equity issuance costs are a reduction to the proceeds allocated to the equity component. Prepaid Share Repurchase Forward Contract. Losses and Loss Adjustment Expenses. The estimates of unpaid losses and LAE are subject to trends in claim severity and frequency and are continually reviewed. As part of the process, the Company reviews historical data and considers various factors, including known and anticipated regulatory and legal developments, changes in social attitudes, inflation and economic conditions. As experience develops and other data becomes available, these estimates are revised, as required, resulting in increases or decreases to the existing unpaid losses and LAE. Adjustments are reflected in the results of operations in the period in which they are made and the liabilities may deviate substantially from prior estimates. Advance Premiums Premium Revenue Reinsurance . st Certain of the Company’s current reinsurance contracts contain retrospective provisions including terms and conditions that adjust premiums, increase the amount of future coverage, or result in profit commissions based on the loss experience under the contracts. In such cases, a with-and-without method is used to estimate the asset or liability amount to be recognized at each reporting date. The amount of the estimate is the difference between the net contract costs before and after the loss experience under the contract. Estimates related to premium adjustments, profit commissions and coverage changes are recognized in ceded premiums earned. These estimates are reviewed monthly based on the loss experience to date and as adjustments become necessary. Such adjustments are reflected in the Company’s current operations and recorded in other assets until received upon the expiration of the contracts. Premium Revenue. Policy Fees. Florida Insurance Guaranty Association Assessments. Foreign Currency. Income Taxes. The Company accounts for income taxes in accordance with U.S. GAAP, resulting in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term “more likely than not” means a likelihood of more than fifty percent; the terms “examined” and “upon examination” also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. As of December 31, 2015, management is not aware of any uncertain tax positions that would have a material effect on the Company’s consolidated financial statements. Fair Value of Financial Instruments. Stock-Based Compensation. Basic and diluted earnings per common share. Statutory Accounting Practices. Reclassifications. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 3 — Recent Accounting Pronouncements Accounting Standards Update No. 2015-14. 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 | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 4 — Investments The Company holds investments in fixed-maturity securities and equity securities that are classified as available-for-sale. At December 31, 2015 and 2014, the cost or amortized cost, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows: Cost or Gross Gross Estimated Cost Gain Loss Value As of December 31, 2015 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ 108 $ 5 $ — $ 113 Corporate bonds 42,560 74 (4,815 ) 37,819 State, municipalities, and political subdivisions 75,812 1,632 (120 ) 77,324 Redeemable preferred stock 10,134 185 (566 ) 9,753 Total 128,614 1,896 (5,501 ) 125,009 Equity securities 47,548 2,139 (1,450 ) 48,237 Total available-for-sale securities $ 176,162 $ 4,035 $ (6,951 ) $ 173,246 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 At December 31, 2015 and 2014, fixed-maturity securities include $113 of U.S. Treasury securities related to a statutory deposit held in trust for the Treasurer of Alabama. Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities at December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value Available-for-sale Due in one year or less $ 3,282 $ 3,292 $ 715 $ 721 Due after one year through five years 32,833 32,651 25,973 26,093 Due after five years through ten years 71,120 67,113 56,448 56,847 Due after ten years 21,379 21,953 10,023 10,414 Mortgage-backed securities — — 3,004 3,009 $ 128,614 $ 125,009 $ 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 years ended December 31, 2015, 2014 and 2013 were as follows: Gross Gross Proceeds Gains Losses Year ended December 31, 2015 Fixed-maturity securities $ 53,711 $ 253 $ (470 ) Equity securities $ 25,695 $ 1,327 $ (1,718 ) Year ended December 31, 2014 Fixed-maturity securities $ 98,365 $ 4,096 $ (98 ) Equity securities $ 16,810 $ 1,372 $ (635 ) Year ended December 31, 2013 Fixed-maturity securities $ 1,749 $ 92 $ (4 ) Equity securities $ 2,809 $ 155 $ (163 ) Other-than-temporary Impairment The Company regularly reviews its 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. During the year ended December 31, 2015, the Company determined that two fixed-maturity securities the Company intends to hold until maturity had credit related losses. For the year ended December 31, 2015, the Company recorded $705 of impairment losses on these fixed-maturity securities, of which $111 was considered other-than-temporary impaired due to credit related losses and recorded in the consolidated statement of income, with the remaining amount of $594 related to non-credit factors and recorded in other comprehensive income. For the years ended December 31, 2014 and 2013, there was no other-than-temporary loss related to fixed-maturity securities. 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 January 1, 2015 $ — Credit impairments on securities during the period 111 Balance at December 31, 2015 $ 111 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, the length of time each security has been in an unrealized loss position, the extent of the decline and the near term prospect for recovery. At December 31, 2015, the Company had 17 equity securities that were other-than-temporarily impaired. This compares to one equity security that was other-than-temporarily impaired at December 31, 2014 and no securities that were other-than-temporarily impaired at December 31, 2013. As a result, the Company recognized impairment losses of $4,570, $107 and $0 in the consolidated statement of income for the years ended December 31, 2015, 2014 and 2013, respectively. Securities with gross unrealized loss positions at December 31, 2015 and 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 Months Twelve Months or Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair Loss Value Loss Value Loss Value As of December 31, 2015 Fixed-maturity securities Corporate bonds $ (3,667 ) $ 24,196 $ (1,148 ) $ 3,278 $ (4,815 ) $ 27,474 State, municipalities, and political subdivisions (107 ) 6,587 (13 ) 184 (120 ) 6,771 Redeemable preferred stock (566 ) 5,688 — — (566 ) 5,688 Total fixed-maturity securities (4,340 ) 36,471 (1,161 ) 3,462 (5,501 ) 39,933 Equity securities (1,350 ) 15,748 (100 ) 1,460 (1,450 ) 17,208 Total available-for-sale securities $ (5,690 ) $ 52,219 $ (1,261 ) $ 4,922 $ (6,951 ) $ 57,141 At December 31, 2015, there were 101 securities in an unrealized loss position. Of these securities, 10 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 $581 of other-than-temporary impairment losses related to non-credit factors. Less Than Twelve Months Twelve Months or Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair Loss Value Loss Value Loss Value As of December 31, 2014 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ (8 ) $ 2,485 $ — $ — $ (8 ) $ 2,485 Corporate bonds (428 ) 12,720 (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: December 31, 2015 December 31, 2014 Carrying Unfunded Carrying Unfunded Investment Strategy Value Balance (%)(a) Value 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) $ 4,774 $ 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) 4,713 3,320 1.76 — — — 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) 11,689 — 65.79 — — — High returns and long-term capital appreciation through investments in the power, utility and energy industries, and in the infrastructure sector. (b)(g)(h) 2,754 7,016 0.18 — — — Total $ 23,930 $ 18,224 $ 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. The following is the aggregated summarized unaudited financial information of the 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. Year Ended December 31, 2015 Operating results: Total income $ 4,350 Total expenses 77,508 Net loss $ (73,158 ) December 31, 2015 2014 Balance Sheet: Total assets $ 288,351 $ 15,940 Total liabilities $ 28,105 $ 513 For the years ended December 31, 2015 and 2014, the Company recognized net investment losses of $3,244 and $90, respectively, for these investments. At December 31, 2015 and 2014, the Company’s cumulative contributed capital to the partnerships totaled $27,276 and $2,640, respectively, and the Company’s maximum exposure to loss aggregated $23,930 and $2,550, respectively. The limited partners received no income distributions during the years ended December 31, 2015 and 2014. For the years ended December 31, 2015 and 2014, the Company recognized its share of earnings or losses based on the partnership’s statement of income The carrying value of these investments approximates the amount the Company expected to recover at December 31, 2015 and 2014. Investment in Unconsolidated Joint Venture In September 2014, Melbourne FMA, LLC, a wholly owned subsidiary, entered into a joint venture agreement with FMKT Sponsor, LLC to organize FMKT Mel JV, LLC (“FMJV”), a Florida limited liability company. Melbourne FMA and FMKT Sponsor initially contributed cash of $4,500 and $500, respectively, for equity interests in FMJV of 90% and 10%, respectively. FMJV currently owns land on which a retail shopping center is being constructed for lease or for sale in Melbourne, Florida. During 2015, the Company contributed additional cash of $435 to FMJV. FMJV used the additional funds to survey additional land for development. In September 2015, part of the construction project was completed and leased to a regional supermarket chain. FMJV is deemed a variable interest entity due to its lack of sufficient equity to finance its operations without direct or indirect additional financial support from parties to the joint venture. Although Melbourne FMA holds a majority interest in FMJV, certain major economic decisions specified in the agreement are not under Melbourne FMA’s control. As a result, Melbourne FMA is not the primary beneficiary and is not required to consolidate FMJV. In addition, FMJV is contractually required to engage affiliates of FMKT Sponsor to manage and develop the project, and also operate the property while the joint venture agreement is in effect. The agreement includes FMKT Sponsor’s right of sale and first offer as well as an embedded option under which Melbourne FMA can purchase the entire interest of FMKT Sponsor. Under the right of sale and first offer, Melbourne FMA can either choose to purchase the interest of FMKT Sponsor in the developed property or approve the sale of the developed property to a third party buyer. Either party can initiate these provisions after the expiration of a restricted period. At December 31, 2015 and 2014, the Company’s maximum exposure to loss relating to the variable interest entity was $4,787 and $4,477, respectively, representing the carrying value of the investment. At December 31, 2015 and 2014, undistributed losses of $148 and $23, respectively, from this equity method investment were included in the Company’s consolidated retained income. The joint venture partners received no distributions during 2015 and 2014. The following tables provide summarized unaudited financial results and the unaudited financial positions of FMJV: Years Ended December 31, 2015 2014 Operating results: Total revenues $ 118 $ — Total expenses 257 25 Net loss $ (139 ) $ (25 ) Melbourne FMA’s share of net loss* $ (125 ) $ (23 ) * Included in net investment income in the Company’s consolidated statements of income. December 31, 2015 2014 Balance Sheet: Construction in progress - real estate $ 277 $ 3,612 Property and equipment, net 11,806 — Cash 570 1,323 Accounts receivable 3 — Other 1,008 40 Total assets $ 13,664 $ 4,975 Accounts payable $ 125 $ — Construction loan 8,063 — Other liabilities 157 — Members’ capital 5,319 4,975 Total liabilities and members’ capital $ 13,664 $ 4,975 Investment in unconsolidated joint venture, at equity $ 4,787 $ 4,477 The 2014 and 2015 results reflect expenses incurred during the initial development stage. Because the Company expects to incur such expenses during this time when lessees under contract have not yet occupied the property, the Company determined there was no impairment loss for the years ended December 31, 2015 and 2014. Real Estate Investments The Company’s real estate investments include the 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 consist of the following as of December 31, 2015 and 2014: December 31, 2015 2014 Land $ 13,134 $ 11,476 Land improvements 1,505 1,425 Building 3,116 3,097 Other 4,429 1,359 Total, at cost 22,184 17,357 Less: accumulated depreciation and amortization (1,430 ) (1,107 ) Real estate, net 20,754 16,250 ADC Arrangement classified as real estate investment 10,200 2,888 Real estate investments $ 30,954 $ 19,138 In December 2015, the Company acquired 5.42 acres of outparcel land in Sorrento, Florida for a total purchase price of $1,650. The land is intended for ground lease or resale in the future. Depreciation and amortization expense related to real estate investments was $370, $402 and $388, respectively, for the years ended December 31, 2015, 2014 and 2013. ADC Arrangement In June 2014, the Company’s wholly owned subsidiary, Greenleaf Capital, LLC, entered into the ADC Arrangement under which it agreed to provide financing up to a maximum of $9,785 for the acquisition, development and construction of a retail shopping center and appurtenant facilities. During the first quarter of 2015, the Company amended the maximum loan amount from $9,785 to $10,200. The increased financing was used to acquire additional land. Greenleaf Capital has an option to purchase the property when the construction project is completed contingent upon tenant rental commitments for at least 90% of the rentable space being secured by the developer. The purchase price is calculated at maturity of the loan using a predetermined capitalization rate and the projected net operating income of the developed property. The loan has an initial term of 24 months and can be extended for an additional 12 months if the purchase option is not exercised by Greenleaf Capital. Prepayment is not permitted while the ADC Arrangement is in effect. The loan bears a fixed annual interest rate of 6% due monthly in arrears. The interest on the loan during the construction is paid out of an interest reserve, which is funded out of the proceeds of the loan. After the interest reserve is exhausted, interest payments are payable in cash. The loan agreement is secured by a) a first mortgage on the land and improvements, b) assignment of all leases, rents, issues, and profits from the land and improvements, and c) personal guarantees. Under this ADC Arrangement, Greenleaf Capital will provide substantially all necessary funds to complete the development and Greenleaf Capital will receive the entire residual profit of the developed property if it exercises the purchase option. The developer had reached the maximum amount of the credit facility, and as a result, there was no financing commitment unused by the property developer as of December 31, 2015. Based on the characteristics of this ADC Arrangement, which are similar to those of an investment, combined with the expected residual profit being greater than 50%, the arrangement is accounted for and reported in the balance sheet as a real estate investment. All project costs associated with the ADC Arrangement are capitalized. The loan commitment fee received by Greenleaf Capital is deferred and recognized in investment income on a straight-line basis over the term of the loan agreement. Because of the purchase option and the substantial financial support provided by Greenleaf Capital, the developer, who has no equity interest in the property is a variable interest entity. However, Greenleaf Capital’s involvement is solely as the lender on the mortgage loan with protective rights as the lender. Greenleaf Capital does not have power to direct the activities that most significantly impact economic performance of the variable interest entity. As a result, Greenleaf Capital is not the primary beneficiary and is not required to consolidate the variable interest entity. At December 31, 2015 and 2014, the Company’s maximum exposure to loss relating to the variable interest entity was $10,200 and $2,888, respectively, representing the carrying value of the ADC Arrangement. In addition, Greenleaf Capital determined that the option to purchase the entire developed property is not a derivative financial instrument pursuant to U.S. GAAP. As such, the embedded feature is not required to be bifurcated and the fair value accounting for the embedded feature at each reporting date is not applicable. In September 2015, the Company agreed to loan the property developer up to a maximum of $550, in addition to the ADC Arrangement, at an annual interest rate of 11% to finance its operations. The principal and interest of this short-term loan was paid in full on December 30, 2015. Management believes the credit risk associated with the ADC Arrangement is mitigated by the aforementioned collateral items used to secure the loan. As such, there were no credit loss allowances established as of December 31, 2015 and 2014. Real Estate Development in Progress In October 2015, the Company completed the acquisition of 2.32 acres of land in Riverview, Florida for a total purchase price of $2,747. It is expected that a retail center will be constructed on the land for lease or for sale. The land acquisition and the development project is 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. Net Investment Income Net investment income (loss), by source, is summarized as follows: Years Ended December 31, 2015 2014 2013 Available-for-sale securities: Fixed-maturity securities $ 3,946 $ 3,343 $ 1,868 Equity securities 3,710 2,364 499 Investment expense (673 ) (436 ) (210 ) Limited partnership investments (3,244 ) (90 ) — Real estate investments (468 ) (955 ) (1,045 ) Cash and cash equivalents 650 662 357 Other 57 — — Net investment income $ 3,978 $ 4,888 $ 1,469 At December 31, 2015, $150,048 or 56.0% of the Company’s cash and cash equivalents were deposited at three national banks and included $65,291 in three custodial accounts. At December 31, 2014, $234,025 or 74.4% of the Company’s cash and cash equivalents were deposited at three national banks and included $48,674 in three custodial accounts. At December 31, 2015 and 2014, the Company’s cash deposits at any one bank generally exceed the Federal Deposit Insurance Corporation’s $250 coverage limit for insured deposit accounts. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5 — Fair Value Measurements The Company records and discloses certain financial assets at their estimated fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 – Unadjusted quoted prices in active markets for identical assets. Level 2 – Other inputs that are observable for the asset, either directly or indirectly such as quoted prices for identical assets that are not observable throughout the full term of the asset. Level 3 – Inputs that are unobservable. Valuation Methodology Cash and cash equivalents Cash and cash equivalents primarily consist of money-market funds. Their carrying value approximates fair value due to the short maturity and high liquidity of these funds. Available-for-sale securities Estimated fair values of the Company’s available-for-sale securities are determined in accordance with U.S. GAAP, using valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair values are generally measured using quoted prices in active markets for identical securities or other inputs that are observable either directly or indirectly, such as quoted prices for similar securities. In those instances where observable inputs are not available, fair values are measured using unobservable inputs. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the security and are developed based on the best information available in the circumstances. Fair value estimates derived from unobservable inputs are significantly affected by the assumptions used, including the discount rates and the estimated amounts and timing of future cash flows. The derived fair value estimates cannot be substantiated by comparison to independent markets and are not necessarily indicative of the amounts that would be realized in a current market exchange. The estimated fair values for securities that do not trade on a daily basis are determined by management, utilizing prices obtained from an independent pricing service and information provided by brokers. Management reviews the assumptions and methods utilized by the pricing service and then compares the relevant data and pricing to broker-provided data. The Company gains assurance of the overall reasonableness and consistent application of the assumptions and methodologies and compliance with accounting standards for fair value determination through ongoing monitoring of the reported fair values. ADC Arrangement Classified as Real Estate Investment As described in Note 4 — “Investments” under ADC Arrangement Limited Partnership Investments As described in Note 4 — “Investments” under Limited Partnership Investments Long-term debt Long-term debt includes the Company’s 8% senior notes due 2020 and 3.875% convertible senior notes due 2019. The 8% senior notes trade on the New York Stock Exchange. The estimated fair value of the 8% senior notes is based on the closing market price on December 31, 2015. The 3.875% convertible senior notes were sold in a private offering. The fair value of the 3.875% convertible senior notes is estimated using a discounted cash flow method that relies on Level 3 inputs. Assets Measured at Estimated Fair Value on a Recurring Basis: The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of December 31, 2015 and 2014: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2015 Financial Assets: Cash and cash equivalents $ 267,738 $ — $ — $ 267,738 Fixed-maturity securities: U.S. Treasury and U.S. government agencies 113 — — 113 Corporate bonds 36,836 983 — 37,819 State, municipalities, and political subdivisions — 77,324 — 77,324 Redeemable preferred stock 9,753 — — 9,753 Total fixed-maturity securities 46,702 78,307 — 125,009 Equity securities 48,237 — — 48,237 Total available-for-sale securities 94,939 78,307 — 173,246 Total $ 362,677 $ 78,307 $ — $ 440,984 Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total 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 There were no transfers between Level 1, 2 or 3 during the years ended December 31, 2015 and 2014. Assets and Liabilities Carried at Other Than Fair Value The following tables present fair value information for assets and liabilities that are carried on the balance sheet at amounts other than fair value as of December 31, 2015 and 2014: Fair Value Measurements Using (Level1) (Level 2) (Level 3) Total As of December 31, 2015 Financial Assets: Limited partnership investments $ — $ — $ 23,930 $ 23,930 ADC Arrangement classified as real estate investment $ — $ — $ 10,140 $ 10,140 Financial Liabilities: Long-term debt: 8% Senior notes $ — $ 41,103 $ — $ 41,103 3.875% Convertible senior notes — — 92,782 92,782 Total long-term debt $ — $ 41,103 $ 92,782 $ 133,885 Fair Value Measurements Using (Level1) (Level 2) (Level 3) Total As of December 31, 2014 Financial Assets: ADC Arrangement classified as real estate investment $ — $ — $ 2,835 $ 2,835 Financial Liabilities: Long-term debt: 8% Senior notes $ — $ 42,955 $ — $ 42,955 3.875% Convertible senior notes — — 93,367 93,367 Total long-term debt $ — $ 42,955 $ 93,367 $ 136,322 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | Note 6 — Deferred Policy Acquisition Costs The following table summarizes the activity with respect to deferred policy acquisition costs: December 31, 2015 2014 Beginning balance $ 15,014 $ 14,071 Policy acquisition costs deferred 39,812 33,861 Amortization (36,224 ) (32,918 ) Ending balance $ 18,602 $ 15,014 The amount of policy acquisition costs amortized and included in policy acquisition and other underwriting expenses for the years ended December 31, 2015, 2014 and 2013 was $36,224, $32,918 and $27,058, respectively. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Note 7 — Property and Equipment, net Property and equipment, net consists of the following: December 31, 2015 2014 Land $ 1,642 $ 1,642 Building 7,804 7,622 Computer hardware and software 1,997 1,617 Office furniture and equipment 1,879 1,647 Tenant and leasehold improvements 3,144 3,093 Other 672 691 Total, at cost 17,138 16,312 Less:accumulated depreciation and amortization (5,352 ) (4,020 ) Property and equipment, net $ 11,786 $ 12,292 Depreciation and amortization expense under property and equipment was $1,338, $1,304 and $1,151, respectively, for the years ended December 31, 2015, 2014 and 2013. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Note 8 — Other Assets The following table summarizes the Company’s other assets: December 31, 2015 2014 Benefits receivable related to retrospective reinsurance contracts $ 35,716 $ 28,123 Deferred costs related to retrospective reinsurance contracts 460 473 Prepaid expenses 904 1,444 Restricted cash 300 300 Other 1,748 1,594 Total other assets $ 39,128 $ 31,934 In July 2015, the Company received $14,100 under the terms of one of the retrospective reinsurance contracts, which terminated May 31, 2015. In June 2014, the Company received $1,485 under the terms of a retrospective reinsurance contract, which terminated May 31, 2014. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 9 — Long-Term Debt The following table summarizes the Company’s long-term debt: December 31, 2015 2014 8% Senior Notes, due January 30, 2020 $ 40,250 $ 40,250 3.875% Convertible Senior Notes, due March 15, 2019 103,000 103,000 Total principal amount 143,250 143,250 Less: unamortized discount and issuance costs (13,821 ) (17,364 ) Total long-term debt $ 129,429 $ 125,886 8% Senior Notes The Company’s publicly traded, unsecured senior notes are currently outstanding in an aggregate amount of $40,250. The notes will mature on January 30, 2020 and bear interest at a fixed annual rate of 8% payable quarterly on January 30, April 30, July 30 and October 30, commencing on April 30, 2013. The notes may be redeemed, in whole or in part, at any time on and after January 30, 2016 upon not less than 30 or more than 60 days’ notice. The redemption price will be equal to 100% of the principal amount redeemed plus accrued and unpaid interest. Additionally, the Company may, at any time, repurchase the senior notes at any price in the open market and may hold, resell or surrender the notes for cancellation. The senior notes rank on parity with all of the Company’s other existing and future senior unsecured obligations. In addition, to the extent the senior notes are unsecured, they also rank junior in right of payment to any secured debt that the Company may have outstanding to the extent of the value of the assets securing such debt. The senior notes contain customary restrictive covenants relating to merger, modification of the indenture, subordination, issuance of debt securities and sale of assets, the most significant of which include limitations with respect to certain designated subsidiaries on the incurrence of additional indebtedness or guarantees secured by any security interest on any shares of their capital stock. The senior note covenants also limit the Company’s ability to sell or otherwise dispose of any shares of capital stock of such designated subsidiaries. The senior note covenants do not contain any restrictions on the Company’s payment or declaration of dividends nor require a sinking fund to be established for the purpose of redemption. The Company was in compliance with the senior note covenants during 2015 and 2014. Interest expense with respect to the senior notes was approximately $3,419, $3,403 and $3,228, respectively, for the years ended December 31, 2015, 2014 and 2013 and included amortization of debt issuance costs of approximately $199, $182 and $159, respectively. The effective interest rate, taking into account the stated interest expense and amortization of debt issuance costs, approximates 8.7%. 3.875% Convertible Senior Notes The Company’s Convertible Senior Notes (the “Convertible Notes”) were issued in a private offering for an aggregate principal amount of $103,000. The Convertible Notes rank equally in right of payment to the Company’s existing and future unsecured and unsubordinated obligations. The Convertible Notes bear interest at a rate of 3.875% per year, payable semiannually in arrears on March 15 and September 15 of each year. The Convertible Notes will mature on March 15, 2019 unless repurchased or converted prior to such date. The Company may not redeem the Convertible Notes prior to maturity unless requested by the note holders under certain events specified in the indenture. The Convertible Notes do not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. The Convertible Notes provide no protection to the note holders in the event of a fundamental change or other corporate transaction involving the Company except those described in the indenture to the Convertible Notes. The Convertible Notes do not require a sinking fund to be established for the purpose of redemption. In conjunction with the issuance of the Convertible Notes, the Company entered into a prepaid stock repurchase forward contract to repurchase the Company’s common stock. See Note 14 — “Stockholders’ Equity” for the effect of the repurchase forward contract on earnings per share. For the years ended December 31, 2015, 2014 and 2013, interest expense applicable to the Convertible Notes included the contractual interest coupon, discount amortization and amortization of allocated issuance costs aggregating $7,335, $7,050 and $379, respectively, the amounts of which included non-cash interest expense of $3,344, $3,070 and $164. The effective interest rate, taking into account both cash and non-cash components, approximates 8.3%. As of December 31, 2015, the remaining amortization period of the debt discount was expected to be 3.2 years. The following table summarizes information regarding the equity and liability components of the Convertible Notes: December 31, 2015 2014 Principal amount $ 103,000 $ 103,000 Unamortized discount (10,871 ) (13,711 ) Liability component – net carrying value before issuance costs $ 92,129 $ 89,289 Equity component – conversion, net of offering costs $ 15,900 $ 15,900 Embedded Conversion Feature Each $1 of principal of the Convertible Notes was initially convertible into 16.0090 shares of common stock, which is the equivalent of approximately $62.47 per share, subject to adjustment upon the occurrence of specified events, 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 dividends on common stock have exceeded $0.275 per share, resulting in adjustments to the conversion rate. As of December 31, 2015, each $1 of Convertible Notes would have been convertible into 16.0453 shares of common stock, which was the equivalent of approximately $62.32 per share. The note holders may convert all or a portion of their Convertible Notes during specified periods as follows: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2014, if the last reported sale price of the Company’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five business-day period after any ten consecutive trading-day period in which the trading price per $1 principal amount of the Convertible Notes is less than 98% of the product of the last reported sale price and the conversion rate on each such trading day; (3) if specified corporate events, including a change in control, occur; or (4) at any time on or after January 1, 2019. The note holders who elect to convert their Convertible Notes in connection with a fundamental change as described in the indenture will be entitled to a “make-whole” adjustment in the form of an increase in the conversion rate. Upon conversion, the Company has options to satisfy its conversion obligation by paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock. As of December 31, 2015, none of the conditions allowing the note holders to convert had been met. The Company determined that the embedded conversion feature is not a derivative financial instrument but rather is required to be separately accounted for in equity because the Company may elect to settle the conversion option entirely or partially in cash. At issuance, the Company accounted for the equity component of the embedded conversion feature as a reduction in the carrying amount of the debt and an increase in additional paid-in capital. Embedded Redemption Feature The note holders also have the right to require the Company to repurchase for cash all or any portion of the Convertible Notes at par prior to the maturity date should any of the fundamental change events described in the indenture occur. The Company concluded that the embedded redemption feature is not a derivative financial instrument and that it is not probable at issuance that any of the specified fundamental change events will occur. Therefore, the embedded redemption feature is not substantive and will not affect the expected life of the liability component. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Reinsurance | Note 10 — Reinsurance The Company cedes a portion of its homeowners’ insurance exposure to other entities under catastrophe excess of loss reinsurance treaties 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 1 st The impact of the catastrophe excess of loss reinsurance treaties and one quota share arrangement on premiums written and earned is as follows: Years Ended December 31, 2015 2014 2013 Premiums Written: Direct $ 393,009 $ 341,685 $ 315,695 Assumed 3,329 65,968 39,076 Gross written 396,338 407,653 354,771 Ceded (140,614 ) (113,423 ) (102,865 ) Net premiums written $ 255,724 $ 294,230 $ 251,906 Premiums Earned: Direct $ 360,878 $ 332,175 $ 273,037 Assumed 62,242 33,313 64,076 Gross earned 423,120 365,488 337,113 Ceded (140,614 ) (113,423 ) (102,865 ) Net premiums earned $ 282,506 $ 252,065 $ 234,248 During the years ended December 31, 2015, 2014 and 2013, there were no recoveries pertaining to reinsurance contracts that were deducted from losses incurred. At December 31, 2015 and 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 December 31, 2015 and 2014. Thus, there were no concentrations of credit risk associated with reinsurance receivables as of December 31, 2015 and 2014. The ratio of assumed premiums earned to net premiums earned for the years ended December 31, 2015, 2014 and 2013 was 22.0%, 13.2%, and 27.4%, respectively. Certain of the reinsurance contracts are multi-year contracts that include retrospective provisions that adjust premiums, increase the amount of future coverage, or result in profit commissions in the event losses are minimal or zero. These adjustments are reflected in the statements of income as net reductions in ceded premiums of $18,322, $23,543 and $12,521, respectively, for the years ended December 31, 2015, 2014 and 2013. At December 31, 2015 and 2014, other assets included $36,176 and $28,596, respectively, and prepaid reinsurance premiums included $2,625 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 | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Losses and Loss Adjustment Expenses | Note 11 — Losses and Loss Adjustment Expenses The liability for losses and loss adjustment expenses (“LAE”) is determined on an individual case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claim development and losses incurred, but not reported. Activity in the liability for losses and LAE is summarized as follows: Years Ended December 31, 2015 2014 2013 Balance, beginning of year $ 48,908 $ 43,686 $ 41,168 Incurred related to: Current year 78,325 75,810 67,579 Prior years 8,899 3,658 (2,456 ) Total incurred 87,224 79,468 65,123 Paid related to: Current year (51,095 ) (47,650 ) (40,240 ) Prior years (33,347 ) (26,596 ) (22,365 ) Total paid (84,442 ) (74,246 ) (62,605 ) Balance, end of year $ 51,690 $ 48,908 $ 43,686 The establishment of loss reserves is an inherently uncertain process and changes in loss reserve estimates are expected as such estimates are subject to the outcome of future events. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such adjustments are made. During the year ended December 31, 2015, the Company experienced unfavorable development of $8,899 attributable to the settlement and further development of older claims and an increase in late reported claims, primarily claims related to 2012 and 2014 loss years. The Company writes insurance in the state of Florida, which could be exposed to hurricanes or other natural catastrophes. The occurrence of a major catastrophe could have a significant effect on the Company’s yearly results and cause a temporary disruption of the normal operations of the Company. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12 — Income Taxes A summary of income tax expense is as follows: Years Ended December 31, 2015 2014 2013 Current: Federal $ 34,768 $ 36,651 $ 34,372 State 5,856 6,222 5,844 Foreign 68 167 118 Total current taxes 40,692 43,040 40,334 Deferred: Federal (275 ) (4,060 ) 514 State (46 ) (678 ) 43 Foreign (40 ) (4 ) — Total deferred taxes (361 ) (4,742 ) 557 Income tax expense $ 40,331 $ 38,298 $ 40,891 The reasons for the differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows: Years Ended December 31, 2015 2014 2013 Amount % Amount % Amount % Income taxes at statutory rate $ 37,167 35.0 $ 35,337 35.0 $ 37,258 35.0 Increase (decrease) in income taxes resulting from : State income taxes, net of federal tax benefits 3,783 3.6 3,601 3.6 3,802 3.6 Other (619 ) (0.6 ) (640 ) (0.7 ) (169 ) (0.2 ) Income tax expense $ 40,331 38.0 $ 38,298 37.9 $ 40,891 38.4 The Company has no uncertain tax positions or unrecognized tax benefits that, if recognized, would impact the effective income tax rate. The tax returns filed for the years ending December 31, 2014, 2013, and 2012 remain subject to examination by the Company’s major taxing jurisdictions. The Company elected to classify, if any, interest and penalties arising from uncertain tax positions as income tax expense as permitted by current accounting standards. There have been no material amounts of interest or penalties for the years ended December 31, 2015 and 2014. Effective October 20, 2014, the Internal Revenue Service notified the Company that the examination of the Company’s 2011 federal income tax return was completed with no change to the Company’s reported tax. In addition, as of April 18, 2014, the Florida Department of Revenue completed an audit of the state income tax returns filed for 2010, 2011, and 2012. The audit resulted in no material changes to the state income taxes originally reported. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred income tax assets are as follows: December 31, 2015 2014 Deferred tax assets: Unearned premiums $ 8,794 $ 11,718 Other-than-temporary impairment losses 1,839 41 Unrealized net losses on available-for-sale securities 1,125 — Basis difference related to partnership investments 662 — Losses and loss adjustment expenses 825 866 Organizational costs 72 83 Stock-based compensation 2,597 3,081 Accrued expenses 317 175 Unearned revenue 503 381 Bad debt reserve 1 10 Total deferred tax assets 16,735 16,355 Deferred tax liabilities: Property and equipment (1,437 ) (1,604 ) Deferred policy acquisition costs (7,371 ) (5,959 ) Unrealized net gain on available-for-sale securities — (418 ) Basis difference related to partnership investments — (38 ) Basis difference related to convertible senior notes (4,052 ) (5,110 ) Prepaid expenses (347 ) (464 ) Other (339 ) (263 ) Total deferred tax liabilities (13,546 ) (13,856 ) Net deferred tax assets $ 3,189 $ 2,499 A valuation allowance is established if, based upon the relevant facts and circumstances, management believes any portion of the deferred tax assets will not be realized. Although realization of deferred income tax assets is not certain, management believes it is more likely than not that deferred tax assets will be realized. As a result, the Company did not have a valuation allowance established as of December 31, 2015 or 2014. A provision for income taxes has not been recorded for U.S. or additional foreign earnings related to the Company’s foreign affiliates as these earnings were and are expected to continue to be permanently reinvested. The aggregate undistributed earnings of the Company’s foreign subsidiaries for which no deferred tax liability has been recorded was $572 as of December 31, 2015. The estimated unrecognized deferred tax liability related to these undistributed earnings is approximately $222 as of December 31, 2015. If the Company identifies an exception to its reinvestment policy of undistributed earnings, additional tax liabilities will be recorded. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 13 — Earnings Per Share U.S. GAAP requires the Company to use the two-class method in computing basic earnings per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities 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 fully diluted earnings per common share is presented below: Income Shares Per Share (Numerator) (Denominator) Amount Year Ended December 31, 2015 Net income $ 65,861 Less: Income attributable to participating securities (3,398 ) Basic Earnings Per Share: Income allocated to common stockholders 62,463 9,602 $ 6.51 Effect of Dilutive Securities: Stock options — 102 Convertible senior notes 4,505 1,651 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 66,968 11,355 $ 5.90 Year Ended December 31, 2014 Net income $ 62,664 Less: Preferred stock dividends 4 Less: Income attributable to participating securities (4,318 ) Basic Earnings Per Share: Income allocated to common stockholders 58,350 9,888 $ 5.90 Effect of Dilutive Securities: Stock options — 137 Convertible preferred stock (4 ) 20 Convertible senior notes 4,343 1,649 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 62,689 11,694 $ 5.36 Year Ended December 31, 2013 Net income $ 65,562 Less: Preferred stock dividends (104 ) Less: Income attributable to participating securities (3,213 ) Basic Earnings Per Share: Income allocated to common stockholders 62,245 10,691 $ 5.82 Effect of Dilutive Securities: Stock options — 163 Convertible preferred stock 104 178 Convertible senior notes 237 90 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 62,586 11,122 $ 5.63 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Note 14 — Stockholders’ Equity Common Stock Effective December 15, 2015, the Company’s Board of Directors authorized a plan to repurchase up to $20,000 of the Company’s common shares before commissions and fees. The repurchase plan allows the Company to repurchase shares from time to time through December 31, 2016. The shares may be purchased for cash in open market purchases, block transactions and privately negotiated transactions in accordance with applicable federal securities laws. The share repurchase plan may be modified, suspended, terminated or extended by the Company any time without prior notice. At December 31, 2015, a total of $20,000 was available in connection with this plan. In March 2014, the Company’s Board of Directors authorized a one-year plan to repurchase up to $40,000 of the Company’s common shares before commissions and fees. This repurchase plan expired March 31, 2015. During the years ended December 31, 2015 and 2014, the Company repurchased and retired a total of 37,869 and 990,701 shares, respectively, at a weighted average price per share of $42.49 and $38.69, respectively. The total costs of shares repurchased, inclusive of fees and commissions, during the years ended December 31, 2015 and 2014 were $1,610, or $42.51 per share, and $38,354, or $38.71 per share, respectively. Series B Junior Participating Preferred Share Purchase Right In October 2013, the Company’s Board of Directors declared a dividend of one preferred share purchase right (“Right”) for each outstanding share of the Company’s common stock to shareholders of record at the close of business on November 15, 2013. Each Right entitles the common shareholder to purchase from the Company one one-hundredth of a share of Series B Junior Participating Preferred Stock, no par value, at a price of $125.00 per one one-hundredth of such preferred share, subject to adjustment for certain events. The Right is intended to prevent any unsolicited takeover attempt that is unfair and unfavorable to the Company’s shareholders. The Right will not interfere with any merger approved by the Company’s Board of Directors. The Right will not be exercisable until ten days following a public announcement that a person or group has acquired beneficial ownership of 10% or more of the Company’s common stock or until ten business days after a person or group begins a tender or exchange offer that would result in beneficial ownership of 10% or more of the Company’s common stock. The Right may be redeemed or exchanged by the Company for $0.001 per Right at any time until the Right’s expiration date on October 18, 2018. Prepaid Share Repurchase Forward Contract In conjunction with the issuance of the Convertible Notes, the Company entered into a prepaid share repurchase forward contract (the “forward contract”) with Deutsche Bank AG, London Branch (the “forward counterparty”). Pursuant to the forward contract, the Company prepaid $29,923 of the net proceeds of the offering to repurchase 622,751 shares of the Company’s common stock, which shares will be delivered over a settlement period in 2019. The forward contract is subject to early settlement, in whole or in part, at any time prior to the final settlement date at the option of the forward counterparty, as well as early settlement or settlement with alternative consideration in the event of certain corporate transactions. In the event the Company pays any cash dividends on its common shares, the forward counterparty will pay an equivalent amount to the Company. The shares to be purchased under the prepaid forward contract will be treated as retired as of the effective date of the forward contract, but will remain outstanding for corporate law purposes, including for purposes of any future stockholders votes. The Company determined that the forward contract does not meet the characteristics of a derivative instrument and, as such, the transaction resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for both basic and diluted earnings per share. Preferred Stock Series A Cumulative Convertible Preferred Stock (“Series A Preferred”) On February 4, 2014, the Company announced its Board of Directors fixed April 1, 2014 as the cancellation date for the conversion rights on its 7% Series A cumulative convertible preferred stock. The Company later extended the conversion privilege in April 2014. On June 2, 2014, 3,386 shares of Series A Preferred were redeemed at $10 per share, resulting in the derecognition of $4 in dividends payable. During the year ended December 31, 2014, holders of 107,298 shares of Series A Preferred converted their Series A Preferred shares to 107,298 shares of common stock. No shares of Series A Preferred have been outstanding since June 2, 2014. Series B Junior Participating Preferred Stock (“Series B Preferred”) In connection with the declaration of the Right dividends in 2013, the Company’s Board of Directors established and fixed the rights and preferences of the Series B Preferred. Of the authorized shares, the Company designated 400,000 shares as Series B Preferred. Each Series B Preferred will be entitled to a minimum preferential quarterly dividend payment of $1.00 per share but will be entitled to an aggregate dividend of 100 times the dividend declared per common share of the Company. In the event of liquidation, the holders of the Series B Preferred will be entitled to a minimum preferential liquidation payment of $100 per share but will be entitled to an aggregate payment of 100 times the payment made per common share. Each Series B Preferred will have 100 votes per share, voting together as one class on all matters submitted to a vote of shareholders of the Company. Finally, in the event of any merger, consolidation or other transaction in which common shares are exchanged, each Series B Preferred will be entitled to receive 100 times the amount received per common share. The aforementioned rights of Series B Preferred are protected by customary anti-dilution provisions. As of December 31, 2015 and 2014, there were no Series B Preferred issued or outstanding. Undesignated Preferred Stock The Company is authorized to issue up to an additional 18,100,000 shares of preferred stock, no par value. The authorized but unissued and undesignated preferred stock may be issued in one or more series and the shares of each series shall have such rights as determined by the Company’s Board of Directors subject to the rights of the holders of the Series A Preferred and Series B Preferred. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note 15 — Stock-Based Compensation Incentive Plan The Company currently has outstanding stock-based awards granted under the 2007 Stock Option and Incentive Plan and the 2012 Omnibus Incentive Plan. Only the 2012 Plan is active and available for future grants. With respect to the 2012 Plan, the Company may grant stock-based awards to employees, directors, consultants, and advisors of the Company. At December 31, 2015, there were 4,205,967 shares available for grant. Stock Options Stock options granted and outstanding under the incentive plan vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years. A summary of the stock option activity for the years ended December 31, 2015, 2014 and 2013 is as follows (option amounts not in thousands): Number of Weighted Weighted Aggregate Outstanding at January 1, 2013 280,000 $ 2.91 4.9 years $ 5,007 Outstanding at December 31, 2013 280,000 $ 2.91 3.9 years $ 14,166 Exercised (50,000 ) $ 2.50 Outstanding at December 31, 2014 230,000 $ 3.00 3.0 years $ 9,256 Exercised (120,000 ) $ 2.82 Outstanding at December 31, 2015 110,000 $ 3.19 2.3 years $ 3,482 Exercisable at December 31, 2015 110,000 $ 3.19 2.3 years $ 3,482 The following table summarizes information about options exercised, and the fair value of vested options for the years ended December 31, 2015, 2014 and 2013 (option amounts not in thousands): 2015 2014 2013 Options exercised 120,000 50,000 — Total intrinsic value of exercised options $ 4,551 $ 1,970 $ — Fair value of vested stock options $ — $ 17 $ 17 Tax benefits realized $ 1,697 $ 603 $ — During the year ended December 31, 2015, a total of 120,000 options were exercised, of which 30,000 options were net settled by surrender of 2,013 shares. All outstanding stock options vested and their related compensation expense had been fully recognized prior to 2015. Compensation expense recognized for the years ended December 31, 2014 and 2013 totaled approximately $6 and $19, respectively, and is included in other operating expenses. Deferred tax benefits related to stock options for the years ended December 31, 2014 and 2013 were immaterial. Restricted Stock Awards From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance and market-based conditions. The fair value of the awards with market-based conditions is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome. The determination of fair value with respect to the awards with only performance or service-based conditions is based on the market value of the Company’s common stock on the grant date. Information with respect to the activity of unvested restricted stock awards during the years ended December 31, 2015, 2014 and 2013 is as follows (share amounts not in thousands): Number of Weighted Nonvested at January 1, 2013 246,320 $ 14.54 Granted 612,000 $ 27.36 Vested (93,000 ) $ 12.18 Forfeited (29,670 ) $ 15.03 Nonvested at December 31, 2013 735,650 $ 25.48 Granted 108,720 $ 47.40 Vested (193,825 ) $ 27.48 Forfeited (10,840 ) $ 41.53 Nonvested at December 31, 2014 639,705 $ 28.33 Granted 83,260 $ 44.46 Vested (59,695 ) $ 30.13 Forfeited (42,757 ) $ 28.15 Nonvested at December 31, 2015 620,513 $ 30.33 The Company recognized compensation expense related to restricted stock, which is included in other operating expenses, of $5,212, $8,104 and $5,346 for the years ended December 31, 2015, 2014 and 2013, respectively. At December 31, 2015 and 2014, there was approximately $7,641 and $10,355, 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 21 months. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards as well as related paid dividends, and the fair value of vested restricted stock for the years ended December 31, 2015, 2014 and 2013. 2015 2014 2013 Deferred tax benefits recognized $ 1,453 $ 3,126 $ 2,062 Tax benefits realized for restricted stock and paid dividends $ 598 $ 1,477 $ 1,060 Fair value of vested restricted stock $ 1,798 $ 5,326 $ 1,133 The following presents assumptions used in a Monte Carlo simulation model to determine the fair value of the awards with market-based conditions: 2014 2013 Expected dividends per share $ 1.10 $ 0.90 Expected volatility 42.1 – 46.6 % 41.5 – 51.6 % Risk-free interest rate 0.1 – 1.5 % 0.0 – 1.9 % Estimated cost of capital 11.5 % 9.3 – 10.3 % Expected life (in years) 4.00 4.00 – 6.00 During the year ended December 31, 2015, no awards were issued with other than time-based vesting conditions. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Note 16 — Employee Benefit Plan The Company has a 401(k) Safe Harbor Profit Sharing Plan (“401(k) Plan”) that qualifies as a defined contribution plan under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees are eligible for company matching and discretionary profit sharing contributions. Plan participants may elect to defer up to one hundred percent of their pre-tax gross wages, subject to annual limitations. The Company matching contribution is limited to a maximum of four percent of the employee’s annual salary or wage and is fully vested when contributed. Eligibility and vesting of the Company’s discretionary profit sharing contribution is subject to the plan participant’s years of service. During the years ended December 31, 2015, 2014 and 2013, the Company contributed approximately $371, $311 and $183, respectively, in matching contributions, which are included in other operating expenses. There has been no discretionary profit sharing contribution since the plan’s inception. The Company also maintains benefit plans for its employees in India including a statutory post-employment benefit plan, or gratuity plan, providing defined, lump-sum benefits. The Company’s liability for the gratuity plan reflects the undiscounted benefit obligation payable as of the balance sheet date, which was based upon the employees’ salary and years of service. As of December 31, 2015 and 2014, the amounts accrued under the gratuity plan were $28 and $19, respectively. In addition, the Company provides matching contributions with respect to two defined contribution plans; the Provident Fund and the Employees State Insurance Fund, both of which are available to qualifying employees in India. Expense recognized by the Company for all benefit plans in India was $9, $13 and $6, respectively, for the years ended December 31, 2015, 2014 and 2013. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 17 — Commitments and Contingencies Obligations under Multi-Year Reinsurance Contracts As of December 31, 2015, the Company had contractual obligations related to multi-year reinsurance contracts. These contracts have effective dates of June 1, 2014 and may be cancelable only with the other party’s consent. The future minimum aggregate amount payable to the reinsurers for 2016 is $22,989. Lease Commitments The Company currently leases 15,000 square feet of office space in Noida, India. The lease commenced January 15, 2013 and has an initial term of nine years with monthly rental payments of approximately $10 plus applicable service tax for the first year. Thereafter the monthly rental payment will increase by five percent every year. The Company is entitled to terminate the lease 36 months after the commencement date by providing 3 months’ written notice to the landlord. In addition, the Company has a three-year lease for 2,819 square feet of office space in Miami, Florida. The lease commenced February 15, 2015 with monthly rental payments of approximately $5 plus applicable sales tax. Provided the leases are not early terminated, minimum future rental payments under operating leases after December 31, 2015 are as follows: Year Amount 2016 $ 186 2017 194 2018 130 2019 137 2020 143 Thereafter 151 Total minimum future payments $ 941 Rental expense under all facility leases was $304, $222 and $248, respectively, during the years ended December 31, 2015, 2014 and 2013. Service Agreement In connection with the lease for office space in India as described in the “ Lease Commitments” Provided the agreement is not early terminated, minimum future payments under the service agreement after December 31, 2015 are as follows: Year Amount 2016 $ 21 2017 22 2018 24 2019 24 2020 26 Thereafter 27 Total minimum future payments $ 144 Rental Income The Company’s headquarters is located on real estate that consists of 3.5 acres of land, a three-story building with gross area of 122,000 square feet, and a four-level parking garage. This facility is used by the Company and its subsidiaries. The Company leases available space at the Company’s headquarters and at one of its investment properties to non-affiliates at various terms. Expected annual rental income due under non-cancellable operating leases for all properties and other investments owned at December 31, 2015 are as follows: Year Amount 2016 $ 774 2017 398 2018 220 2019 164 2020 65 Thereafter 23 Total $ 1,644 Insurance Assessments and Surcharges As a direct premium writer in the state of Florida, the Company is subject to mandatory assessments by Citizens and the Florida Hurricane Catastrophe Fund (“FHCF”). These assessments are paid based on a percentage of the Company’s direct written premium by line of business. Effective January 1, 2015, the FHCF assessment imposed on all property insurance policies was removed. For the years ended December 31, 2014 and 2013, HCPCI paid assessments to FHCF amounting to $4,481 and $4,103, respectively. In addition, the Citizens assessment was eliminated effective July 1, 2015. HCPCI paid assessments to Citizens of $2,756, $3,447 and $3,156, respectively, for the years ended December 31, 2015, 2014 and 2013. These assessments are recorded as a surcharge in premium billings to insureds. The Citizens surcharge rate in effect during the first five-months of 2015 was 1.0%. As of December 31, 2014 and 2013, the surcharge rates in effect for FHCF and Citizens were 1.3% and 1.0%, respectively, for each of these years. Capital Commitment As described in Note 4 — “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 related 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 included interest through September 10, 2013, approximated $1,913. To resolve the matter, the Company entered into negotiations with the Department and reached an agreement in principle whereby certain of the Company’s subsidiaries would individually file and pay state reemployment taxes plus interest covering the periods under audit through the second quarter of 2014. The payroll of certain of these subsidiaries would then continue to qualify for substantially all of the salary tax credits claimed by the Company. Any incremental reemployment taxes due as a result of the subsidiaries’ separate reemployment tax filings would 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. During the quarter ended September 30, 2015, the Department’s review of the reemployment matter was substantially complete and the Department indicated a net refund of reemployment tax was due to the Company. As such, and based on the 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. In December 2015, the Department issued its Notice of Decision indicating the Company owes approximately $38 in full settlement of the premium tax and interest. The Company is awaiting a final decision with respect to the state reemployment taxes due to the Company. The ultimate amount payable or refundable is not anticipated to be material. Litigation In December 2014, the company received two nearly identical letters from a single law firm representing two individual shareholders demanding the Company take action against its directors to remedy alleged damages to the Company. The Company, each of the directors and the two shareholders have agreed to a settlement. The directors agreed to cancel portions of their restricted stock awards aggregating 160,000 restricted shares, including 100,000 restricted shares issued to the Company’s chief executive officer. Those restricted shares were cancelled March 2, 2016. As a result, the Company’s results of operations for the year ended December 31, 2015 included $936 of expense related to this settlement, primarily expense related to the reclassification from retained earnings of dividends paid through December 2015 and expense related to the acceleration and recognition of the unamortized portion of accounting expense determined at the grant date. The board members and the Company also agreed to implement certain non-financial corporate governance changes. The board expects to revisit the chief executive’s equity based compensation during 2016. The Company is not aware of any other pending shareholder demands. |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | Note 18 — Quarterly Results of Operations (Unaudited) The tables below summarize unaudited quarterly results of operations for 2015, 2014 and 2013. Three Months Ended 03/31/15 06/30/15 09/30/15 12/31/15 Net premiums earned $ 81,728 $ 76,387 $ 62,765 $ 61,626 Total revenue 82,210 79,068 61,262 63,412 Losses and loss adjustment expenses 19,039 20,565 26,200 21,420 Policy acquisition and other underwriting expenses 9,799 10,443 10,675 11,067 Interest expense 2,661 2,679 2,698 2,716 Total expenses 41,164 43,485 49,324 45,787 Income before income taxes 41,046 35,583 11,938 17,625 Net income 25,378 22,022 7,371 11,090 Comprehensive income 27,009 19,856 5,023 11,516 Net income available to common stockholders 25,378 22,022 7,371 11,090 Earnings per share: Basic $ 2.50 $ 2.17 $ 0.72 $ 1.12 Diluted $ 2.21 $ 1.93 $ 0.71 $ 1.05 Three Months Ended 03/31/14 06/30/14 09/30/14 12/31/14 Net premiums earned $ 66,380 $ 62,649 $ 61,260 $ 61,776 Total revenue 68,117 66,284 66,955 64,752 Losses and loss adjustment expenses 18,565 18,383 21,991 20,529 Policy acquisition and other underwriting expenses 9,129 9,559 9,986 9,278 Interest expense 2,574 2,609 2,626 2,644 Total expenses 39,807 39,901 44,180 41,258 Income before income taxes 28,310 26,383 22,775 23,494 Net income 17,620 16,430 14,052 14,562 Comprehensive income 19,044 17,889 11,084 14,199 Net income available to common stockholders 17,623 16,431 14,052 14,562 Earnings per share: Basic $ 1.60 $ 1.53 $ 1.34 $ 1.43 Diluted $ 1.44 $ 1.39 $ 1.23 $ 1.30 Three Months Ended 03/31/13 06/30/13 09/30/13 12/31/13 Net premiums earned $ 60,551 $ 57,335 $ 52,934 $ 63,428 Total revenue 61,811 59,333 54,692 65,252 Losses and loss adjustment expenses 15,872 17,414 14,489 17,348 Policy acquisition and other underwriting expenses 5,968 7,308 8,887 9,456 Interest expense 686 846 847 1,228 Total expenses 28,641 32,926 33,048 40,020 Income before income taxes 33,170 26,407 21,644 25,232 Net income 20,387 16,235 13,378 15,562 Comprehensive income 20,552 15,347 13,652 15,505 Net income available to common stockholders 20,353 16,203 13,356 15,546 Earnings per share: Basic $ 1.87 $ 1.44 $ 1.17 $ 1.36 Diluted $ 1.81 $ 1.40 $ 1.13 $ 1.31 |
Regulatory Requirements and Res
Regulatory Requirements and Restrictions | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Regulatory Requirements and Restrictions | Note 19 — Regulatory Requirements and Restrictions The Company has no restrictions on the payment of dividends to its shareholders except those restrictions imposed by the Florida Business Corporation Act and those restrictions imposed by insurance statutes and regulations applicable to the Company’s insurance subsidiaries. As of December 2015, without prior regulatory approval, $81,146 of the Company’s consolidated retained earnings was free from restriction under the insurance statutes and regulations and available for the payment of dividends in 2016. The following briefly describes certain related and other requirements and restrictions imposed by the states or jurisdiction in which the Company’s insurance subsidiaries are incorporated. Florida HCPCI, which is domiciled in Florida, prepares its statutory financial statements in accordance with accounting principles and practices prescribed or permitted by the Florida Department of Financial Services, Office of Insurance Regulation, which Florida utilizes for determining solvency under the Florida Insurance Code (the “Code”). The commissioner of the FLOIR has the right to permit other practices that may deviate from prescribed practices. Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance enterprises domiciled in Florida. Permitted statutory accounting practices encompass all accounting practices that are not prescribed; such practices differ from state to state, may differ from entity to entity within a state, and may change in the future. The Code requires HCPCI to maintain capital and surplus equal to the greater of 10% of its liabilities or a statutory minimum as defined in the Code. At December 31, 2015 and 2014, HCPCI was required to maintain minimum capital and surplus of $20,662 and $24,757, respectively. U.S. GAAP differs in certain respects from the accounting practices prescribed or permitted by insurance regulatory authorities (statutory-basis). These entities’ statutory-basis financial statements are presented on the basis of accounting practices prescribed or permitted by the FLOIR. The FLOIR has adopted the National Association of Insurance Commissioner’s (“NAIC”) Accounting Practices and Procedures Manual Since inception, HCPCI has maintained a cash deposit with the Insurance Commissioner of the state of Florida, in the amount of $300, to meet regulatory requirements. Under Florida law, a domestic insurer may not pay any dividend or distribute cash or other property to its stockholders except out of that part of its available and accumulated capital and surplus funds which is derived from realized net operating profits on its business and net realized capital gains. A Florida domestic insurer may not make dividend payments or distributions to stockholders without prior approval of the FLOIR if the dividend or distribution would exceed the larger of (1) the lesser of (a) 10.0% of its capital surplus or (b) net income, not including realized capital gains, plus a two year carry forward, (2) 10.0% of capital surplus with dividends payable constrained to unassigned funds minus 25% of unrealized capital gains or (3) the lesser of (a) 10.0% of capital surplus or (b) net investment income plus a three year carry forward with dividends payable constrained to unassigned funds minus 25% of unrealized capital gains. Alternatively, a Florida domestic insurer may pay a dividend or distribution without the prior written approval of the FLOIR if (1) the dividend is equal to or less than the greater of (a) 10.0% of the insurer’s capital surplus as regards to policyholders derived from realized net operating profits on its business and net realized capital gains or (b) the insurer’s entire net operating profits and realized net capital gains derived during the immediately preceding calendar year, (2) the insurer will have policy holder capital surplus equal to or exceeding 115.0% of the minimum required statutory capital surplus after the dividend or distribution, (3) the insurer files a notice of the dividend or distribution with the FLOIR at least ten business days prior to the dividend payment or distribution and (4) the notice includes a certification by an officer of the insurer attesting that, after the payment of the dividend or distribution, the insurer will have at least 115% of required statutory capital surplus as to policyholders. Except as provided above, a Florida domiciled insurer may only pay a dividend or make a distribution (1) subject to prior approval by the FLOIR or (2) 30 days after the FLOIR has received notice of such dividend or distribution and has not disapproved it within such time. As a result, HCPCI was qualified to make dividend payments at December 31, 2015, 2014 and 2013. In addition, Florida property and casualty insurance companies are required to adhere to prescribed premium-to-capital surplus ratios. Florida state law requires that the ratio of 90% of written premiums divided by surplus as to policyholders does not exceed 10 to 1 for gross written premiums or 4 to 1 for net written premiums. The ratio of gross and net written premium to surplus for the year ended December 31, 2015, was 1.85 to 1, and 1.00 to 1, respectively. The ratio of gross and net written premium to surplus for the year ended December 31, 2014, was 2.21 to 1, and 1.50 to 1, respectively. The ratio of gross and net written premium to surplus for the year ended December 31, 2013, was 2.76 to 1, and 1.68 to 1, respectively. Alabama Homeowners Choice Assurance Company, Inc. (“HCA”) is domiciled in Alabama and was organized in 2013. HCA is required to maintain minimum paid-in capital of $500. In addition, HCA must maintain a minimum deposit in trust of $100 with the Treasurer of Alabama. At December 31, 2015 and 2014, HCA’s statutory capital and surplus was $1,917 and $1,926, respectively. Similar to the Company’s insurance subsidiaries in Florida, HCA is required to file statutory-basis financial statements with the Alabama Department of Insurance, which has also adopted the NAIC Accounting Practices and Procedures Manual Bermuda The Bermuda Monetary Authority requires Claddaugh to maintain minimum capital and surplus of $2,000. At December 31, 2015 and 2014, Claddaugh’s statutory capital and surplus was $74,171 and $21,307, respectively. Claddaugh’s statutory net profit was $9,883, $1,980 and $4,164, respectively, for the years ended December 31, 2015, 2014 and 2013. There were no cash dividends paid by Claddaugh during 2015 and 2014. During the year ended December 31, 2013, Claddaugh paid its parent, HCI, cash dividends of $4,000. HCPCI and HCA are subject to risk-based capital (“RBC”) requirements as specified by the NAIC. Under those requirements, the amount of minimum capital and surplus maintained by a property and casualty insurance company is to be determined based on the various risks related to it. Pursuant to the RBC requirements, insurers having less statutory capital than required by the RBC calculation will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. At December 31, 2015 and 2014, the Company’s insurance subsidiaries individually exceeded any applicable minimum risk-based capital requirements and no corrective actions have been required. As of December 31, 2015, the combined statutory capital and surplus, minimum RBC requirement, and minimum capital and surplus of the Company’s U.S. insurance subsidiaries were approximately $196,810, $106,469, and $21,162, respectively. As of December 31, 2015 and 2014, restricted net assets represented by the Company’s insurance subsidiaries amounted to $130,458 and $115,139, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 20 — Related Party Transactions Claddaugh Casualty Insurance Company, Ltd. (“Claddaugh”), the Company’s Bermuda domiciled captive reinsurer, has reinsurance treaties with Oxbridge Reinsurance Limited (“Oxbridge”) whereby a portion of the business assumed from the Company’s insurance subsidiary, HCPCI, is ceded by Claddaugh to Oxbridge. With respect to the period from June 1, 2013 through May 31, 2014, Oxbridge assumed $10,100 of the total covered exposure for approximately $4,900 in premiums. With respect to the period from June 1, 2014 through May 31, 2015, Oxbridge assumed $8,800 of the total covered exposure for approximately $3,720 in premiums. 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. In addition, HCPCI had a reinsurance treaty with Oxbridge for the period from June 1, 2014 through May 31, 2015 under which Oxbridge assumed $9,000 of the total covered exposure for approximately $1,215 in premiums. The premiums charged by Oxbridge are at rates which management believes to be competitive with market rates available to Claddaugh. Oxbridge has deposited funds into trust accounts to satisfy certain collateral requirements under its reinsurance contracts with HCPCI and Claddaugh. Trust assets may be withdrawn by the trust beneficiary, which is either HCPCI or Claddaugh, in the event amounts are due under the Oxbridge reinsurance agreements. Among the Oxbridge shareholders are Paresh Patel, the Company’s chief executive officer, who is also chairman of the board of directors for Oxbridge, and members of his immediate family and three of the Company’s non-employee directors including Sanjay Madhu who serves as Oxbridge’s president and chief executive officer. Prior to June 1, 2014, Claddaugh also had one reinsurance treaty with Moksha Re SPC Ltd. and multiple capital partners whereby a portion of the business assumed from HCPCI was ceded by Claddaugh to Moksha. With respect to the period from June 1, 2013 through May 31, 2014, Moksha assumed approximately $15,400 of the total covered exposure for approximately $4,300 in premiums, a rate which management believes to be competitive with market rates available to Claddaugh. The $4,300 premium was fully paid by Claddaugh on June 27, 2013. Moksha deposited funds into a trust account to satisfy certain collateral requirements under its reinsurance contract with Claddaugh. This contract also contained retrospective provisions resulting in a profit commission of $1,485, which was received by the Company in June 2014. Among the Moksha capital partner participants are the Company’s chief executive officer, Paresh Patel, and certain of his immediate family members and Sanjay Madhu, one of the Company’s non-employee One of the Company’s directors is a partner at a law firm that performs certain of the Company’s corporate legal matters. Fees incurred with respect to this law firm for the years ended December 31, 2015, 2014 and 2013 were approximately $50, $47 and $450, respectively. |
Condensed Financial Information
Condensed Financial Information of HCI Group, Inc. | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of HCI Group, Inc. | Note 21 — Condensed Financial Information of HCI Group, Inc. Condensed financial information of HCI Group, Inc. is as follows: Balance Sheets December 31, 2015 2014 Assets Cash and cash equivalents $ 2,282 $ 32,082 Fixed-maturity securities, available for sale, at fair value 4,307 4,652 Equity securities, available for sale, at fair value 6,598 8,802 Limited partnership investments, at equity 19,217 2,550 Investment in subsidiaries 361,664 298,726 Property and equipment, net 860 946 Income tax receivable — 2,596 Other assets 784 1,046 Total assets $ 395,712 $ 351,400 Liabilities and Stockholders’ Equity Accrued expenses and other liabilities $ 3,674 $ 3,085 Income tax payable 1,279 — Deferred income taxes, net 2,226 3,631 Long-term debt 129,429 125,886 Due to related parties 21,382 36,213 Total liabilities 157,990 168,815 Total stockholders’ equity 237,722 182,585 Total liabilities and stockholders’ equity $ 395,712 $ 351,400 Statements of Income Years Ended December 31, 2015 2014 2013 Net investment (loss) income $ (2,401 ) $ 739 $ 84 Net realized gain (loss) on investments 108 309 (2 ) Other-than-temporary impairment losses (75 ) — — Other income 30 120 864 Interest expense (10,754 ) (10,453 ) (3,607 ) Operating expenses (7,346 ) (7,745 ) (4,865 ) Loss before income tax benefit and equity in income of subsidiaries (20,438 ) (17,030 ) (7,526 ) Income tax benefit 7,835 6,462 2,863 Net loss before equity in income of subsidiaries (12,603 ) (10,568 ) (4,663 ) Equity in income of subsidiaries 78,464 73,232 70,225 Net income $ 65,861 $ 62,664 $ 65,562 Statements of Cash Flows Years Ended December 31, 2015 2014 2013 Cash flows from operating activities: Net income $ 65,861 $ 62,664 $ 65,562 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Stock-based compensation 4,341 5,502 2,362 Net realized investment (gain) loss (108 ) (309 ) 2 Amortization of premiums on investments in fixed-maturity securities 1 — — Depreciation and amortization 3,996 3,712 1,000 Loss from limited partnership investment 3,277 90 — Other-than-temporary impairment losses 75 — — Equity in income of subsidiaries (78,464 ) (73,232 ) (70,225 ) Deferred income taxes (3,218 ) (2,058 ) (914 ) Changes in operating assets and liabilities: Income taxes receivable 2,596 (814 ) 597 Other assets 228 629 (1,001 ) Accrued expenses and other liabilities 689 1,116 1,136 Income taxes payable 1,279 — — Due to related parties (14,831 ) 11,520 (6,338 ) Net cash (used in) provided by operating activities (14,278 ) 8,820 (7,819 ) Cash flows from investing activities: Investment in limited partnership interest (19,956 ) (2,640 ) — Purchase of fixed-maturity securities (384 ) (2,616 ) (64 ) Purchase of equity securities (3,196 ) (7,000 ) (6,835 ) Purchases of property and equipment (371 ) (277 ) (262 ) Proceeds from sales of fixed-maturity securities 259 — — Proceeds from sales of equity securities 5,475 5,212 361 Distribution from limited partnership interests 12 — — Dividends received from subsidiary 92,700 — 4,000 Investment in subsidiaries (78,536 ) (8,402 ) (5,735 ) Net cash used in investing activities (3,997 ) (15,723 ) (8,535 ) Years Ended December 31, 2015 2014 2013 Cash flows from financing activities: Repurchases of common stock (792 ) (643 ) (30,886 ) Repurchases of common stock under share repurchase plan (1,610 ) (38,354 ) — Cash dividends paid to stockholders (12,428 ) (12,355 ) (10,902 ) Cash dividends received under share repurchase forward contract 747 685 — Proceeds from exercise of stock options 263 125 — Proceeds from issuance of long-term debt — — 143,250 Redemption of Series A preferred stock — (34 ) — Debt issuance costs paid — (234 ) (4,770 ) Tax benefits on stock-based compensation 2,295 2,080 1,060 Net cash (used in) provided by financing activities (11,525 ) (48,730 ) 97,752 Net (decrease) increase in cash and cash equivalents (29,800 ) (55,633 ) 81,398 Cash and cash equivalents at beginning of year 32,082 87,715 6,317 Cash and cash equivalents at end of year $ 2,282 $ 32,082 $ 87,715 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22 — Subsequent Events On January 8, 2016, the Company’s Board of Directors declared a quarterly dividend of $0.30 per common share. The dividends are scheduled for payment on March 18, 2016 to stockholders of record on February 19, 2016. On January 14, 2016, HCPCI Holdings, LLC, a subsidiary of the Company, entered into a 15-year secured loan agreement for proceeds of $9,200. The loan bears a fixed annual interest rate of 4%. Principal and interest are payable in 180 monthly installments. The loan is intended to be used for real estate development projects or other general business purposes. On January 15, 2016, TypTap Insurance Company, the Company’s new Florida insurance subsidiary, was authorized by the Florida Office of Insurance Regulation to transact insurance in the state of Florida as a property and casualty insurer. TypTap is required to maintain minimum capital and surplus of $20,000. In January 2016, the Company contributed capital in the amount of $25,000 to TypTap of which $300 was allocated to meet TypTap’s statutory deposit requirement. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. |
Adoption of New Accounting Standard | Adoption of New Accounting Standard. September 30, June 30, March 31, December 31, Other assets: Previously reported $ 38,440 $ 48,151 $ 41,195 $ 35,587 Adjusted $ 35,309 $ 44,842 $ 37,712 $ 31,934 Total assets: Previously reported $ 702,862 $ 701,730 $ 642,344 $ 602,210 Adjusted $ 699,731 $ 698,421 $ 638,861 $ 598,557 Long-term debt: Previously reported $ 131,647 $ 130,929 $ 130,227 $ 129,539 Adjusted $ 128,516 $ 127,620 $ 126,744 $ 125,886 Total liabilities: Previously reported $ 473,722 $ 475,983 $ 436,328 $ 419,625 Adjusted $ 470,591 $ 472,674 $ 432,845 $ 415,972 The adoption of this standard had no effect on the prior consolidated results of the Company’s operations, comprehensive income and cash flows. |
Principles of Consolidation | Principles of Consolidation. The Company has a 100% equity interest in one joint venture that owns land on which a retail center will be constructed for lease or for sale. The Company consolidates this joint venture as its primary beneficiary (see Note 4 — “Investments” under Real Estate Development in Progress |
Use of Estimates | Use of Estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents. |
Investments in Available-for-Sale Securities | Investments in Available-for-Sale Securities The Company reviews all securities for other-than-temporary impairment on a monthly basis. When the fair value of any investment is lower than its cost, an assessment is made to determine whether the decline is temporary or other-than-temporary. If the decline is determined to be other-than-temporary, the investment is written down to fair value and an impairment loss is recognized in income in the period in which the Company makes such determination. When reviewing 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 is incurred when the present value of the expected cash flows is less than the security’s amortized cost. The Company considers various factors in determining whether an individual security is other-than-temporarily impaired (see Note 4 — “Investments”). |
Limited Partnership Investments | Limited Partnership Investments. Pursuant to U.S. GAAP, these limited partnerships which are private equity funds must measure their investments at fair value and reflect the unrealized gains or losses in the fair value of their investments on their statement of income. As a result, the carrying value of limited partnership investments at each reporting date approximates their estimated fair value. |
Investment in Unconsolidated Joint Venture | Investment in Unconsolidated Joint Venture. In addition, the joint venture agreement contains an embedded purchase option the Company can exercise to purchase the entire interest of the other party to the joint venture after the expiration of a restricted period. The Company determined the embedded purchase option is not required to be bifurcated and fair value accounting at each reporting date is not applicable. Due to the lack of a controlling financial interest and until the embedded purchase option becomes exercisable, the Company uses the equity method rather than consolidation to account for its investment in the joint venture. When evidence indicates an impairment may occur, the Company evaluates whether a decline in value is other than temporary. Evidence may include continuing operating losses of the joint venture, a declining occupancy rate, a decrease in real estate value, and an oversupply of rental property in close vicinity to the investment property. Should available evidence indicate the recovery of the initial investment is less likely, the Company would compare the carrying value of the investment with its expected residual value and recognize an impairment loss in earnings. |
Real Estate Investments | Real Estate Investments Under the ADC Arrangement, the Company provides financing to a property developer for the acquisition, development, and construction of a retail shopping center. The Company also expects to participate in the residual profit resulting from the ultimate sale or other use of the property. Classification and accounting for the ADC Arrangement as a loan, an investment in real estate, or a joint venture is determined by the Company’s evaluation of the characteristics and the risks and rewards of the ADC Arrangement. If the Company expects to receive more than 50% of the residual profit from the ADC Arrangement and it has characteristics similar to a real estate investment, the costs of the real estate project will be capitalized and interest will be recognized in net investment income. In addition, the Company considers any rights or features embedded in the ADC Arrangement that may require bifurcation and derivative accounting. Due to its participation in the expected residual profit, which is deemed a variable interest, the Company evaluates if the Company has the power to direct the activities that significantly impact the economic performance of the entity to which the Company provides financing for possible consolidation as the primary beneficiary under the Variable Interest Model. Any subsequent changes in terms, rights or the developer’s equity interest that may result in a reclassification or a change in the accounting treatment of the ADC Arrangement will be evaluated. The Company will continually assess the collectability of principal, accrued interest and fees. Real estate and the related depreciable assets are carried at cost, net of accumulated depreciation, which is included in net investment income and allocated over the estimated useful life of the asset using the straight-line method of depreciation. Real estate is evaluated for impairment when events or circumstances indicate the carrying value of the real estate may not be recoverable. |
Deferred Policy Acquisition Costs | Deferred policy acquisition costs. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value, which gives effect to the gross premium earned, related investment income, unpaid losses and LAE and certain other costs expected to be incurred as the premium is earned. DAC is reviewed to determine if it is recoverable from future premium income, including investment income. If such costs are determined to be unrecoverable, they are expensed at the time of determination. The amount of DAC considered recoverable could be reduced in the near term if the estimates of total revenues discussed above are reduced or permanently impaired as a result of the disposition of a line of business. The amount of amortization of DAC could be revised in the near term if any of the estimates discussed above are revised. |
Property and Equipment | Property and Equipment. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. |
Long-Term Debt | Long-Term Debt. To determine the carrying values of the liability and equity components at issuance, the Company measures the fair value of a similar liability, including any embedded features other than the conversion option, and assigns such value to the liability component. The liability component’s fair value is then subtracted from the initial proceeds to determine the carrying value of the debt instrument’s equity component, which is included in additional paid-in capital. Any embedded feature other than the conversion option is evaluated at issuance to determine if it is probable that such embedded feature will be exercised. If the Company concludes that the exercisability of that embedded feature is not probable, the embedded feature is considered to be nonsubstantive and would not impact the initial measurement and expected life of the debt instrument’s liability component. Transaction costs related to issuing a debt instrument that embodies both liability and equity components are allocated to the liability and equity components in proportion to the allocation of the proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. Debt issuance costs are recognized and presented as a deduction from the carrying value of the debt. Prior to adopting Accounting Standards Update No. 2015-03 in December 2015, debt issuance costs were recognized in other assets. Both debt discount and deferred debt issuance costs are amortized to interest expense over the expected life of the debt instrument using the effective interest method. Equity issuance costs are a reduction to the proceeds allocated to the equity component. |
Prepaid Share Repurchase Forward Contract | Prepaid Share Repurchase Forward Contract. |
Losses and Loss Adjustment Expenses | Losses and Loss Adjustment Expenses. The estimates of unpaid losses and LAE are subject to trends in claim severity and frequency and are continually reviewed. As part of the process, the Company reviews historical data and considers various factors, including known and anticipated regulatory and legal developments, changes in social attitudes, inflation and economic conditions. As experience develops and other data becomes available, these estimates are revised, as required, resulting in increases or decreases to the existing unpaid losses and LAE. Adjustments are reflected in the results of operations in the period in which they are made and the liabilities may deviate substantially from prior estimates. |
Advance Premiums | Advance Premiums Premium Revenue |
Reinsurance | Reinsurance . st Certain of the Company’s current reinsurance contracts contain retrospective provisions including terms and conditions that adjust premiums, increase the amount of future coverage, or result in profit commissions based on the loss experience under the contracts. In such cases, a with-and-without method is used to estimate the asset or liability amount to be recognized at each reporting date. The amount of the estimate is the difference between the net contract costs before and after the loss experience under the contract. Estimates related to premium adjustments, profit commissions and coverage changes are recognized in ceded premiums earned. These estimates are reviewed monthly based on the loss experience to date and as adjustments become necessary. Such adjustments are reflected in the Company’s current operations and recorded in other assets until received upon the expiration of the contracts. |
Premium Revenue | Premium Revenue. |
Policy Fees | Policy Fees. |
Florida Insurance Guaranty Association Assessments | Florida Insurance Guaranty Association Assessments. |
Foreign Currency | Foreign Currency. |
Income Taxes | Income Taxes. The Company accounts for income taxes in accordance with U.S. GAAP, resulting in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term “more likely than not” means a likelihood of more than fifty percent; the terms “examined” and “upon examination” also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. As of December 31, 2015, management is not aware of any uncertain tax positions that would have a material effect on the Company’s consolidated financial statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. |
Stock-Based Compensation | Stock-Based Compensation. |
Basic and Diluted Earnings Per Common Share | Basic and diluted earnings per common share. |
Statutory Accounting Practices | Statutory Accounting Practices. |
Reclassifications | Reclassifications. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Adoption of New Accounting Standard | The following table shows the Company’s other assets, total assets, long-term debt and total liabilities at each reporting date had the change been applied retrospectively as of December 31, 2014 and in all periods thereafter. September 30, June 30, March 31, December 31, Other assets: Previously reported $ 38,440 $ 48,151 $ 41,195 $ 35,587 Adjusted $ 35,309 $ 44,842 $ 37,712 $ 31,934 Total assets: Previously reported $ 702,862 $ 701,730 $ 642,344 $ 602,210 Adjusted $ 699,731 $ 698,421 $ 638,861 $ 598,557 Long-term debt: Previously reported $ 131,647 $ 130,929 $ 130,227 $ 129,539 Adjusted $ 128,516 $ 127,620 $ 126,744 $ 125,886 Total liabilities: Previously reported $ 473,722 $ 475,983 $ 436,328 $ 419,625 Adjusted $ 470,591 $ 472,674 $ 432,845 $ 415,972 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities | At December 31, 2015 and 2014, the cost or amortized cost, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows: Cost or Gross Gross Estimated Cost Gain Loss Value As of December 31, 2015 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ 108 $ 5 $ — $ 113 Corporate bonds 42,560 74 (4,815 ) 37,819 State, municipalities, and political subdivisions 75,812 1,632 (120 ) 77,324 Redeemable preferred stock 10,134 185 (566 ) 9,753 Total 128,614 1,896 (5,501 ) 125,009 Equity securities 47,548 2,139 (1,450 ) 48,237 Total available-for-sale securities $ 176,162 $ 4,035 $ (6,951 ) $ 173,246 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 at December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value Available-for-sale Due in one year or less $ 3,282 $ 3,292 $ 715 $ 721 Due after one year through five years 32,833 32,651 25,973 26,093 Due after five years through ten years 71,120 67,113 56,448 56,847 Due after ten years 21,379 21,953 10,023 10,414 Mortgage-backed securities — — 3,004 3,009 $ 128,614 $ 125,009 $ 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 years ended December 31, 2015, 2014 and 2013 were as follows: Gross Gross Proceeds Gains Losses Year ended December 31, 2015 Fixed-maturity securities $ 53,711 $ 253 $ (470 ) Equity securities $ 25,695 $ 1,327 $ (1,718 ) Year ended December 31, 2014 Fixed-maturity securities $ 98,365 $ 4,096 $ (98 ) Equity securities $ 16,810 $ 1,372 $ (635 ) Year ended December 31, 2013 Fixed-maturity securities $ 1,749 $ 92 $ (4 ) Equity securities $ 2,809 $ 155 $ (163 ) |
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 January 1, 2015 $ — Credit impairments on securities during the period 111 Balance at December 31, 2015 $ 111 |
Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category | Securities with gross unrealized loss positions at December 31, 2015 and 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 Months Twelve Months or Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair Loss Value Loss Value Loss Value As of December 31, 2015 Fixed-maturity securities Corporate bonds $ (3,667 ) $ 24,196 $ (1,148 ) $ 3,278 $ (4,815 ) $ 27,474 State, municipalities, and political subdivisions (107 ) 6,587 (13 ) 184 (120 ) 6,771 Redeemable preferred stock (566 ) 5,688 — — (566 ) 5,688 Total fixed-maturity securities (4,340 ) 36,471 (1,161 ) 3,462 (5,501 ) 39,933 Equity securities (1,350 ) 15,748 (100 ) 1,460 (1,450 ) 17,208 Total available-for-sale securities $ (5,690 ) $ 52,219 $ (1,261 ) $ 4,922 $ (6,951 ) $ 57,141 At December 31, 2015, there were 101 securities in an unrealized loss position. Of these securities, 10 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 $581 of other-than-temporary impairment losses related to non-credit factors. Less Than Twelve Months Twelve Months or Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair Loss Value Loss Value Loss Value As of December 31, 2014 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ (8 ) $ 2,485 $ — $ — $ (8 ) $ 2,485 Corporate bonds (428 ) 12,720 (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: December 31, 2015 December 31, 2014 Carrying Unfunded Carrying Unfunded Investment Strategy Value Balance (%)(a) Value 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) $ 4,774 $ 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) 4,713 3,320 1.76 — — — 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) 11,689 — 65.79 — — — High returns and long-term capital appreciation through investments in the power, utility and energy industries, and in the infrastructure sector. (b)(g)(h) 2,754 7,016 0.18 — — — Total $ 23,930 $ 18,224 $ 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. |
Summary of Unaudited Financial Information and Unaudited Financial Position | The joint venture partners received no distributions during 2015 and 2014. The following tables provide summarized unaudited financial results and the unaudited financial positions of FMJV: Years Ended December 31, 2015 2014 Operating results: Total revenues $ 118 $ — Total expenses 257 25 Net loss $ (139 ) $ (25 ) Melbourne FMA’s share of net loss* $ (125 ) $ (23 ) * Included in net investment income in the Company’s consolidated statements of income. December 31, 2015 2014 Balance Sheet: Construction in progress - real estate $ 277 $ 3,612 Property and equipment, net 11,806 — Cash 570 1,323 Accounts receivable 3 — Other 1,008 40 Total assets $ 13,664 $ 4,975 Accounts payable $ 125 $ — Construction loan 8,063 — Other liabilities 157 — Members’ capital 5,319 4,975 Total liabilities and members’ capital $ 13,664 $ 4,975 Investment in unconsolidated joint venture, at equity $ 4,787 $ 4,477 |
Summary of Real Estate Investment | Real estate investments consist of the following as of December 31, 2015 and 2014: December 31, 2015 2014 Land $ 13,134 $ 11,476 Land improvements 1,505 1,425 Building 3,116 3,097 Other 4,429 1,359 Total, at cost 22,184 17,357 Less: accumulated depreciation and amortization (1,430 ) (1,107 ) Real estate, net 20,754 16,250 ADC Arrangement classified as real estate investment 10,200 2,888 Real estate investments $ 30,954 $ 19,138 |
Investment (Loss) Income Summarized | Net investment income (loss), by source, is summarized as follows: Years Ended December 31, 2015 2014 2013 Available-for-sale securities: Fixed-maturity securities $ 3,946 $ 3,343 $ 1,868 Equity securities 3,710 2,364 499 Investment expense (673 ) (436 ) (210 ) Limited partnership investments (3,244 ) (90 ) — Real estate investments (468 ) (955 ) (1,045 ) Cash and cash equivalents 650 662 357 Other 57 — — Net investment income $ 3,978 $ 4,888 $ 1,469 |
Limited Partnership [Member] | |
Summary of Unaudited Financial Information and Unaudited Financial Position | The following is the aggregated summarized unaudited financial information of the 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. Year Ended December 31, 2015 Operating results: Total income $ 4,350 Total expenses 77,508 Net loss $ (73,158 ) December 31, 2015 2014 Balance Sheet: Total assets $ 288,351 $ 15,940 Total liabilities $ 28,105 $ 513 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Estimated Fair Value on a Recurring Basis | The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of December 31, 2015 and 2014: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2015 Financial Assets: Cash and cash equivalents $ 267,738 $ — $ — $ 267,738 Fixed-maturity securities: U.S. Treasury and U.S. government agencies 113 — — 113 Corporate bonds 36,836 983 — 37,819 State, municipalities, and political subdivisions — 77,324 — 77,324 Redeemable preferred stock 9,753 — — 9,753 Total fixed-maturity securities 46,702 78,307 — 125,009 Equity securities 48,237 — — 48,237 Total available-for-sale securities 94,939 78,307 — 173,246 Total $ 362,677 $ 78,307 $ — $ 440,984 Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total 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 December 31, 2015 and 2014: Fair Value Measurements Using (Level1) (Level 2) (Level 3) Total As of December 31, 2015 Financial Assets: Limited partnership investments $ — $ — $ 23,930 $ 23,930 ADC Arrangement classified as real estate investment $ — $ — $ 10,140 $ 10,140 Financial Liabilities: Long-term debt: 8% Senior notes $ — $ 41,103 $ — $ 41,103 3.875% Convertible senior notes — — 92,782 92,782 Total long-term debt $ — $ 41,103 $ 92,782 $ 133,885 Fair Value Measurements Using (Level1) (Level 2) (Level 3) Total As of December 31, 2014 Financial Assets: ADC Arrangement classified as real estate investment $ — $ — $ 2,835 $ 2,835 Financial Liabilities: Long-term debt: 8% Senior notes $ — $ 42,955 $ — $ 42,955 3.875% Convertible senior notes — — 93,367 93,367 Total long-term debt $ — $ 42,955 $ 93,367 $ 136,322 |
Deferred Policy Acquisition C35
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Summary of Activity with Respect to Deferred Policy Acquisition Costs | The following table summarizes the activity with respect to deferred policy acquisition costs: December 31, 2015 2014 Beginning balance $ 15,014 $ 14,071 Policy acquisition costs deferred 39,812 33,861 Amortization (36,224 ) (32,918 ) Ending balance $ 18,602 $ 15,014 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net consists of the following: December 31, 2015 2014 Land $ 1,642 $ 1,642 Building 7,804 7,622 Computer hardware and software 1,997 1,617 Office furniture and equipment 1,879 1,647 Tenant and leasehold improvements 3,144 3,093 Other 672 691 Total, at cost 17,138 16,312 Less:accumulated depreciation and amortization (5,352 ) (4,020 ) Property and equipment, net $ 11,786 $ 12,292 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | The following table summarizes the Company’s other assets: December 31, 2015 2014 Benefits receivable related to retrospective reinsurance contracts $ 35,716 $ 28,123 Deferred costs related to retrospective reinsurance contracts 460 473 Prepaid expenses 904 1,444 Restricted cash 300 300 Other 1,748 1,594 Total other assets $ 39,128 $ 31,934 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | The following table summarizes the Company’s long-term debt: December 31, 2015 2014 8% Senior Notes, due January 30, 2020 $ 40,250 $ 40,250 3.875% Convertible Senior Notes, due March 15, 2019 103,000 103,000 Total principal amount 143,250 143,250 Less: unamortized discount and issuance costs (13,821 ) (17,364 ) Total long-term debt $ 129,429 $ 125,886 |
Summary of Equity and Liability Components of the Convertible Notes | The following table summarizes information regarding the equity and liability components of the Convertible Notes: December 31, 2015 2014 Principal amount $ 103,000 $ 103,000 Unamortized discount (10,871 ) (13,711 ) Liability component – net carrying value before issuance costs $ 92,129 $ 89,289 Equity component – conversion, net of offering costs $ 15,900 $ 15,900 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, 2015 2014 2013 Premiums Written: Direct $ 393,009 $ 341,685 $ 315,695 Assumed 3,329 65,968 39,076 Gross written 396,338 407,653 354,771 Ceded (140,614 ) (113,423 ) (102,865 ) Net premiums written $ 255,724 $ 294,230 $ 251,906 Premiums Earned: Direct $ 360,878 $ 332,175 $ 273,037 Assumed 62,242 33,313 64,076 Gross earned 423,120 365,488 337,113 Ceded (140,614 ) (113,423 ) (102,865 ) Net premiums earned $ 282,506 $ 252,065 $ 234,248 |
Losses and Loss Adjustment Ex40
Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Liability for Losses and Loss Adjustment Expenses | Activity in the liability for losses and LAE is summarized as follows: Years Ended December 31, 2015 2014 2013 Balance, beginning of year $ 48,908 $ 43,686 $ 41,168 Incurred related to: Current year 78,325 75,810 67,579 Prior years 8,899 3,658 (2,456 ) Total incurred 87,224 79,468 65,123 Paid related to: Current year (51,095 ) (47,650 ) (40,240 ) Prior years (33,347 ) (26,596 ) (22,365 ) Total paid (84,442 ) (74,246 ) (62,605 ) Balance, end of year $ 51,690 $ 48,908 $ 43,686 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | A summary of income tax expense is as follows: Years Ended December 31, 2015 2014 2013 Current: Federal $ 34,768 $ 36,651 $ 34,372 State 5,856 6,222 5,844 Foreign 68 167 118 Total current taxes 40,692 43,040 40,334 Deferred: Federal (275 ) (4,060 ) 514 State (46 ) (678 ) 43 Foreign (40 ) (4 ) — Total deferred taxes (361 ) (4,742 ) 557 Income tax expense $ 40,331 $ 38,298 $ 40,891 |
Summary of the Differences Between the Statutory Federal Income Tax Rate and the Effective Tax Rate | The reasons for the differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows: Years Ended December 31, 2015 2014 2013 Amount % Amount % Amount % Income taxes at statutory rate $ 37,167 35.0 $ 35,337 35.0 $ 37,258 35.0 Increase (decrease) in income taxes resulting from : State income taxes, net of federal tax benefits 3,783 3.6 3,601 3.6 3,802 3.6 Other (619 ) (0.6 ) (640 ) (0.7 ) (169 ) (0.2 ) Income tax expense $ 40,331 38.0 $ 38,298 37.9 $ 40,891 38.4 |
Significant Components of Net Deferred Income Tax Asset | Significant components of the Company’s net deferred income tax assets are as follows: December 31, 2015 2014 Deferred tax assets: Unearned premiums $ 8,794 $ 11,718 Other-than-temporary impairment losses 1,839 41 Unrealized net losses on available-for-sale securities 1,125 — Basis difference related to partnership investments 662 — Losses and loss adjustment expenses 825 866 Organizational costs 72 83 Stock-based compensation 2,597 3,081 Accrued expenses 317 175 Unearned revenue 503 381 Bad debt reserve 1 10 Total deferred tax assets 16,735 16,355 Deferred tax liabilities: Property and equipment (1,437 ) (1,604 ) Deferred policy acquisition costs (7,371 ) (5,959 ) Unrealized net gain on available-for-sale securities — (418 ) Basis difference related to partnership investments — (38 ) Basis difference related to convertible senior notes (4,052 ) (5,110 ) Prepaid expenses (347 ) (464 ) Other (339 ) (263 ) Total deferred tax liabilities (13,546 ) (13,856 ) Net deferred tax assets $ 3,189 $ 2,499 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Numerator and Denominator of Basic and Fully Diluted Earnings Per Common Share | A summary of the numerator and denominator of the basic and fully diluted earnings per common share is presented below: Income Shares Per Share (Numerator) (Denominator) Amount Year Ended December 31, 2015 Net income $ 65,861 Less: Income attributable to participating securities (3,398 ) Basic Earnings Per Share: Income allocated to common stockholders 62,463 9,602 $ 6.51 Effect of Dilutive Securities: Stock options — 102 Convertible senior notes 4,505 1,651 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 66,968 11,355 $ 5.90 Year Ended December 31, 2014 Net income $ 62,664 Less: Preferred stock dividends 4 Less: Income attributable to participating securities (4,318 ) Basic Earnings Per Share: Income allocated to common stockholders 58,350 9,888 $ 5.90 Effect of Dilutive Securities: Stock options — 137 Convertible preferred stock (4 ) 20 Convertible senior notes 4,343 1,649 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 62,689 11,694 $ 5.36 Year Ended December 31, 2013 Net income $ 65,562 Less: Preferred stock dividends (104 ) Less: Income attributable to participating securities (3,213 ) Basic Earnings Per Share: Income allocated to common stockholders 62,245 10,691 $ 5.82 Effect of Dilutive Securities: Stock options — 163 Convertible preferred stock 104 178 Convertible senior notes 237 90 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 62,586 11,122 $ 5.63 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Company's Stock Option Plan Activity | A summary of the stock option activity for the years ended December 31, 2015, 2014 and 2013 is as follows (option amounts not in thousands): Number of Weighted Weighted Aggregate Outstanding at January 1, 2013 280,000 $ 2.91 4.9 years $ 5,007 Outstanding at December 31, 2013 280,000 $ 2.91 3.9 years $ 14,166 Exercised (50,000 ) $ 2.50 Outstanding at December 31, 2014 230,000 $ 3.00 3.0 years $ 9,256 Exercised (120,000 ) $ 2.82 Outstanding at December 31, 2015 110,000 $ 3.19 2.3 years $ 3,482 Exercisable at December 31, 2015 110,000 $ 3.19 2.3 years $ 3,482 |
Information about Options Exercised | The following table summarizes information about options exercised, and the fair value of vested options for the years ended December 31, 2015, 2014 and 2013 (option amounts not in thousands): 2015 2014 2013 Options exercised 120,000 50,000 — Total intrinsic value of exercised options $ 4,551 $ 1,970 $ — Fair value of vested stock options $ — $ 17 $ 17 Tax benefits realized $ 1,697 $ 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 years ended December 31, 2015, 2014 and 2013 is as follows (share amounts not in thousands): Number of Weighted Nonvested at January 1, 2013 246,320 $ 14.54 Granted 612,000 $ 27.36 Vested (93,000 ) $ 12.18 Forfeited (29,670 ) $ 15.03 Nonvested at December 31, 2013 735,650 $ 25.48 Granted 108,720 $ 47.40 Vested (193,825 ) $ 27.48 Forfeited (10,840 ) $ 41.53 Nonvested at December 31, 2014 639,705 $ 28.33 Granted 83,260 $ 44.46 Vested (59,695 ) $ 30.13 Forfeited (42,757 ) $ 28.15 Nonvested at December 31, 2015 620,513 $ 30.33 |
Information about Deferred Tax Benefits Recognized Related to Restricted Stock Awards, Paid Dividends and the Fair Value of Vested Restricted Stock | The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards as well as related paid dividends, and the fair value of vested restricted stock for the years ended December 31, 2015, 2014 and 2013. 2015 2014 2013 Deferred tax benefits recognized $ 1,453 $ 3,126 $ 2,062 Tax benefits realized for restricted stock and paid dividends $ 598 $ 1,477 $ 1,060 Fair value of vested restricted stock $ 1,798 $ 5,326 $ 1,133 |
Assumptions Used to Determine the Fair Value of the Awards with Market-Based | The following presents assumptions used in a Monte Carlo simulation model to determine the fair value of the awards with market-based conditions: 2014 2013 Expected dividends per share $ 1.10 $ 0.90 Expected volatility 42.1 – 46.6 % 41.5 – 51.6 % Risk-free interest rate 0.1 – 1.5 % 0.0 – 1.9 % Estimated cost of capital 11.5 % 9.3 – 10.3 % Expected life (in years) 4.00 4.00 – 6.00 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Future Rental Payments Under Operating Leases | Provided the leases are not early terminated, minimum future rental payments under operating leases after December 31, 2015 are as follows: Year Amount 2016 $ 186 2017 194 2018 130 2019 137 2020 143 Thereafter 151 Total minimum future payments $ 941 |
Minimum Future Payments Under the Service Agreements | Provided the agreement is not early terminated, minimum future payments under the service agreement after December 31, 2015 are as follows: Year Amount 2016 $ 21 2017 22 2018 24 2019 24 2020 26 Thereafter 27 Total minimum future payments $ 144 |
Rental Income Due Under Non-Cancellable Operating Leases | Expected annual rental income due under non-cancellable operating leases for all properties and other investments owned at December 31, 2015 are as follows: Year Amount 2016 $ 774 2017 398 2018 220 2019 164 2020 65 Thereafter 23 Total $ 1,644 |
Quarterly Results of Operatio45
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Results of Operations | The tables below summarize unaudited quarterly results of operations for 2015, 2014 and 2013. Three Months Ended 03/31/15 06/30/15 09/30/15 12/31/15 Net premiums earned $ 81,728 $ 76,387 $ 62,765 $ 61,626 Total revenue 82,210 79,068 61,262 63,412 Losses and loss adjustment expenses 19,039 20,565 26,200 21,420 Policy acquisition and other underwriting expenses 9,799 10,443 10,675 11,067 Interest expense 2,661 2,679 2,698 2,716 Total expenses 41,164 43,485 49,324 45,787 Income before income taxes 41,046 35,583 11,938 17,625 Net income 25,378 22,022 7,371 11,090 Comprehensive income 27,009 19,856 5,023 11,516 Net income available to common stockholders 25,378 22,022 7,371 11,090 Earnings per share: Basic $ 2.50 $ 2.17 $ 0.72 $ 1.12 Diluted $ 2.21 $ 1.93 $ 0.71 $ 1.05 Three Months Ended 03/31/14 06/30/14 09/30/14 12/31/14 Net premiums earned $ 66,380 $ 62,649 $ 61,260 $ 61,776 Total revenue 68,117 66,284 66,955 64,752 Losses and loss adjustment expenses 18,565 18,383 21,991 20,529 Policy acquisition and other underwriting expenses 9,129 9,559 9,986 9,278 Interest expense 2,574 2,609 2,626 2,644 Total expenses 39,807 39,901 44,180 41,258 Income before income taxes 28,310 26,383 22,775 23,494 Net income 17,620 16,430 14,052 14,562 Comprehensive income 19,044 17,889 11,084 14,199 Net income available to common stockholders 17,623 16,431 14,052 14,562 Earnings per share: Basic $ 1.60 $ 1.53 $ 1.34 $ 1.43 Diluted $ 1.44 $ 1.39 $ 1.23 $ 1.30 Three Months Ended 03/31/13 06/30/13 09/30/13 12/31/13 Net premiums earned $ 60,551 $ 57,335 $ 52,934 $ 63,428 Total revenue 61,811 59,333 54,692 65,252 Losses and loss adjustment expenses 15,872 17,414 14,489 17,348 Policy acquisition and other underwriting expenses 5,968 7,308 8,887 9,456 Interest expense 686 846 847 1,228 Total expenses 28,641 32,926 33,048 40,020 Income before income taxes 33,170 26,407 21,644 25,232 Net income 20,387 16,235 13,378 15,562 Comprehensive income 20,552 15,347 13,652 15,505 Net income available to common stockholders 20,353 16,203 13,356 15,546 Earnings per share: Basic $ 1.87 $ 1.44 $ 1.17 $ 1.36 Diluted $ 1.81 $ 1.40 $ 1.13 $ 1.31 |
Condensed Financial Informati46
Condensed Financial Information of HCI Group, Inc. (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Balance Sheets | Balance Sheets December 31, 2015 2014 Assets Cash and cash equivalents $ 2,282 $ 32,082 Fixed-maturity securities, available for sale, at fair value 4,307 4,652 Equity securities, available for sale, at fair value 6,598 8,802 Limited partnership investments, at equity 19,217 2,550 Investment in subsidiaries 361,664 298,726 Property and equipment, net 860 946 Income tax receivable — 2,596 Other assets 784 1,046 Total assets $ 395,712 $ 351,400 Liabilities and Stockholders’ Equity Accrued expenses and other liabilities $ 3,674 $ 3,085 Income tax payable 1,279 — Deferred income taxes, net 2,226 3,631 Long-term debt 129,429 125,886 Due to related parties 21,382 36,213 Total liabilities 157,990 168,815 Total stockholders’ equity 237,722 182,585 Total liabilities and stockholders’ equity $ 395,712 $ 351,400 |
Statements of Income | Statements of Income Years Ended December 31, 2015 2014 2013 Net investment (loss) income $ (2,401 ) $ 739 $ 84 Net realized gain (loss) on investments 108 309 (2 ) Other-than-temporary impairment losses (75 ) — — Other income 30 120 864 Interest expense (10,754 ) (10,453 ) (3,607 ) Operating expenses (7,346 ) (7,745 ) (4,865 ) Loss before income tax benefit and equity in income of subsidiaries (20,438 ) (17,030 ) (7,526 ) Income tax benefit 7,835 6,462 2,863 Net loss before equity in income of subsidiaries (12,603 ) (10,568 ) (4,663 ) Equity in income of subsidiaries 78,464 73,232 70,225 Net income $ 65,861 $ 62,664 $ 65,562 |
Statements of Cash Flows | Statements of Cash Flows Years Ended December 31, 2015 2014 2013 Cash flows from operating activities: Net income $ 65,861 $ 62,664 $ 65,562 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Stock-based compensation 4,341 5,502 2,362 Net realized investment (gain) loss (108 ) (309 ) 2 Amortization of premiums on investments in fixed-maturity securities 1 — — Depreciation and amortization 3,996 3,712 1,000 Loss from limited partnership investment 3,277 90 — Other-than-temporary impairment losses 75 — — Equity in income of subsidiaries (78,464 ) (73,232 ) (70,225 ) Deferred income taxes (3,218 ) (2,058 ) (914 ) Changes in operating assets and liabilities: Income taxes receivable 2,596 (814 ) 597 Other assets 228 629 (1,001 ) Accrued expenses and other liabilities 689 1,116 1,136 Income taxes payable 1,279 — — Due to related parties (14,831 ) 11,520 (6,338 ) Net cash (used in) provided by operating activities (14,278 ) 8,820 (7,819 ) Cash flows from investing activities: Investment in limited partnership interest (19,956 ) (2,640 ) — Purchase of fixed-maturity securities (384 ) (2,616 ) (64 ) Purchase of equity securities (3,196 ) (7,000 ) (6,835 ) Purchases of property and equipment (371 ) (277 ) (262 ) Proceeds from sales of fixed-maturity securities 259 — — Proceeds from sales of equity securities 5,475 5,212 361 Distribution from limited partnership interests 12 — — Dividends received from subsidiary 92,700 — 4,000 Investment in subsidiaries (78,536 ) (8,402 ) (5,735 ) Net cash used in investing activities (3,997 ) (15,723 ) (8,535 ) Years Ended December 31, 2015 2014 2013 Cash flows from financing activities: Repurchases of common stock (792 ) (643 ) (30,886 ) Repurchases of common stock under share repurchase plan (1,610 ) (38,354 ) — Cash dividends paid to stockholders (12,428 ) (12,355 ) (10,902 ) Cash dividends received under share repurchase forward contract 747 685 — Proceeds from exercise of stock options 263 125 — Proceeds from issuance of long-term debt — — 143,250 Redemption of Series A preferred stock — (34 ) — Debt issuance costs paid — (234 ) (4,770 ) Tax benefits on stock-based compensation 2,295 2,080 1,060 Net cash (used in) provided by financing activities (11,525 ) (48,730 ) 97,752 Net (decrease) increase in cash and cash equivalents (29,800 ) (55,633 ) 81,398 Cash and cash equivalents at beginning of year 32,082 87,715 6,317 Cash and cash equivalents at end of year $ 2,282 $ 32,082 $ 87,715 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015SegmentRestaurants | |
Collaboration Arrangement Disclosure [Abstract] | |
Number of restaurant owned | Restaurants | 1 |
Number of reportable business segment | Segment | 1 |
Offer renewals on the policies acquired | 3 years |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Schedule of Adoption of New Accounting Standard (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | $ 39,128 | $ 31,934 | |||
Total assets | 636,986 | 598,557 | |||
Total liabilities | $ 399,264 | 415,972 | |||
Adjustments for New Accounting Principle, Early Adoption [Member] | Previously Reported [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | $ 38,440 | $ 48,151 | $ 41,195 | 35,587 | |
Total assets | 702,862 | 701,730 | 642,344 | 602,210 | |
Long-term debt | 131,647 | 130,929 | 130,227 | 129,539 | |
Total liabilities | 473,722 | 475,983 | 436,328 | 419,625 | |
Adjustments for New Accounting Principle, Early Adoption [Member] | Adjusted [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | 35,309 | 44,842 | 37,712 | 31,934 | |
Total assets | 699,731 | 698,421 | 638,861 | 598,557 | |
Long-term debt | 128,516 | 127,620 | 126,744 | 125,886 | |
Total liabilities | $ 470,591 | $ 472,674 | $ 432,845 | $ 415,972 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2015USD ($)RestaurantJointVenture | Dec. 31, 2014USD ($)Restaurant | |
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of investment in unconsolidated entities | 90.00% | ||
ADC Arrangement | Under the ADC Arrangement, the Company provides financing to a property developer for the acquisition, development, and construction of a retail shopping center. The Company also expects to participate in the residual profit resulting from the ultimate sale or other use of the property. Classification and accounting for the ADC Arrangement as a loan, an investment in real estate, or a joint venture is determined by the Company’s evaluation of the characteristics and the risks and rewards of the ADC Arrangement. If the Company expects to receive more than 50% of the residual profit from the ADC Arrangement and it has characteristics similar to a real estate investment, the costs of the real estate project will be capitalized and interest will be recognized in net investment income | ||
Period for establishing allowance on insurance premiums receivable | 90 days | ||
Allowance on insurance premiums receivable | $ | $ 0 | $ 0 | |
Percentage of minimum tax benefit realized upon settlement | 50.00% | ||
Likelihood of tax realization upon settlement | 50.00% | ||
Building [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful lives of Property and Equipment | 39 years | ||
Computer Hardware and Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful lives of Property and Equipment | 3 years | ||
Minimum [Member] | Office Furniture and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful lives of Property and Equipment | 3 years | ||
Maximum [Member] | Office Furniture and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful lives of Property and Equipment | 7 years | ||
Investment in Joint Venture [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of investment in unconsolidated entities | 90.00% | ||
Real Estate Investments [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of restaurants | Restaurant | 1 | 1 | |
Variable Interest Entities [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of investment in unconsolidated entities | 100.00% | ||
Number of joint venture | JointVenture | 1 |
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 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | $ 128,614 | $ 96,163 |
Equity securities, Cost or Amortized Cost | 47,548 | 45,387 |
Total available-for-sale securities, Cost or Amortized Cost | 176,162 | 141,550 |
Total available-for-sale securities, Gross Unrealized Gain | 1,896 | 1,454 |
Total available-for-sale securities, Gross Unrealized Gain | 2,139 | 1,694 |
Total available-for-sale securities, Gross Unrealized Gain | 4,035 | 3,148 |
Total available-for-sale securities, Gross Unrealized Loss | (5,501) | (533) |
Total available-for-sale securities, Gross Unrealized Loss | (1,450) | (1,531) |
Total available-for-sale securities, Gross Unrealized Loss | (6,951) | (2,064) |
Fixed-maturity securities, Estimated Fair Value | 125,009 | 97,084 |
Equity securities, Estimated Fair Value | 48,237 | 45,550 |
Total available-for-sale securities, Estimated Fair Value | 173,246 | 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 | 5 | 5 |
Total available-for-sale securities, Gross Unrealized Loss | (8) | |
Fixed-maturity securities, Estimated Fair Value | 113 | 2,878 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 42,560 | 23,645 |
Total available-for-sale securities, Gross Unrealized Gain | 74 | 57 |
Total available-for-sale securities, Gross Unrealized Loss | (4,815) | (430) |
Fixed-maturity securities, Estimated Fair Value | 37,819 | 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 | 75,812 | 56,336 |
Total available-for-sale securities, Gross Unrealized Gain | 1,632 | 1,205 |
Total available-for-sale securities, Gross Unrealized Loss | (120) | (38) |
Fixed-maturity securities, Estimated Fair Value | 77,324 | 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 | 10,134 | 9,433 |
Total available-for-sale securities, Gross Unrealized Gain | 185 | 178 |
Total available-for-sale securities, Gross Unrealized Loss | (566) | (54) |
Fixed-maturity securities, Estimated Fair Value | $ 9,753 | 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 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Investments [Line Items] | ||
Statutory deposit held in trust | $ 300 | |
ALABAMA | Fixed-Maturity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Statutory deposit held in trust | $ 113 | $ 113 |
Investments - Scheduled Contrac
Investments - Scheduled Contractual Maturities of Fixed-Maturity Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale | ||
Due in one year or less, Amortized Cost | $ 3,282 | $ 715 |
Due after one year through five years, Amortized Cost | 32,833 | 25,973 |
Due after five years through ten years, Amortized Cost | 71,120 | 56,448 |
Due after ten years, Amortized Cost | 21,379 | 10,023 |
Mortgage-backed securities, Amortized Cost | 3,004 | |
Fixed-maturity securities, Cost or Amortized Cost | 128,614 | 96,163 |
Due in one year or less, Fair Value | 3,292 | 721 |
Due after one year through five years, Fair Value | 32,651 | 26,093 |
Due after five years through ten years, Fair Value | 67,113 | 56,847 |
Due after ten years, Fair Value | 21,953 | 10,414 |
Mortgage-backed securities, Fair Value | 3,009 | |
Fair Value Total | $ 125,009 | $ 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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fixed-Maturity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds | $ 53,711 | $ 98,365 | $ 1,749 |
Gross Realized Gains | 253 | 4,096 | 92 |
Gross Realized Losses | (470) | (98) | (4) |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds | 25,695 | 16,810 | 2,809 |
Gross Realized Gains | 1,327 | 1,372 | 155 |
Gross Realized Losses | $ (1,718) | $ (635) | $ (163) |
Investments (Other-than-tempora
Investments (Other-than-temporary Impairment) - Additional Information (Detail) | Dec. 31, 2015USD ($)Securities | Dec. 31, 2015USD ($)Securities | Dec. 31, 2014USD ($)Securities | Dec. 31, 2013USD ($) |
Schedule of Investments [Line Items] | ||||
Other-than-temporary impairment losses | $ 4,681,000 | $ 107,000 | $ 0 | |
Other-than-temporary impairment losses related to non-credit factors | $ 594,000 | |||
Number of securities in an unrealized loss position | Securities | 101 | 101 | 94 | |
Number of securities had been in an unrealized loss position for 12 months or greater | Securities | 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 | |||
Other-than-temporary impairment losses related to credit losses | 111,000 | |||
Other-than-temporary impairment losses related to non-credit factors | $ 594,000 | |||
Corporate Bonds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Other-than-temporary impairment losses related to non-credit factors | $ 581,000 |
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] $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |
Credit impairments on securities during the period | $ 111 |
Available-for-Sale Securities [Member] | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |
Credit impairments on securities during the period | 111 |
Ending Balance | $ 111 |
Investments - Summary of Securi
Investments - Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | $ (5,690) | $ (1,961) |
Fair Value, Less than Twelve Months | 52,219 | 41,010 |
Gross Unrealized Loss, Twelve Months or Greater | (1,261) | (103) |
Fair Value, Twelve Months or Greater | 4,922 | 5,819 |
Gross Unrealized Loss, Total | (6,951) | (2,064) |
Fair Value, Total | 57,141 | 46,829 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (1,350) | (1,449) |
Fair Value, Less than Twelve Months | 15,748 | 18,848 |
Gross Unrealized Loss, Twelve Months or Greater | (100) | (82) |
Fair Value, Twelve Months or Greater | 1,460 | 4,619 |
Gross Unrealized Loss, Total | (1,450) | (1,531) |
Fair Value, Total | 17,208 | 23,467 |
Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (4,340) | (512) |
Fair Value, Less than Twelve Months | 36,471 | 22,162 |
Gross Unrealized Loss, Twelve Months or Greater | (1,161) | (21) |
Fair Value, Twelve Months or Greater | 3,462 | 1,200 |
Gross Unrealized Loss, Total | (5,501) | (533) |
Fair Value, Total | 39,933 | 23,362 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (3,667) | (428) |
Fair Value, Less than Twelve Months | 24,196 | 12,720 |
Gross Unrealized Loss, Twelve Months or Greater | (1,148) | (2) |
Fair Value, Twelve Months or Greater | 3,278 | 998 |
Gross Unrealized Loss, Total | (4,815) | (430) |
Fair Value, Total | 27,474 | 13,718 |
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 | (107) | (19) |
Fair Value, Less than Twelve Months | 6,587 | 3,144 |
Gross Unrealized Loss, Twelve Months or Greater | (13) | (19) |
Fair Value, Twelve Months or Greater | 184 | 202 |
Gross Unrealized Loss, Total | (120) | (38) |
Fair Value, Total | 6,771 | 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 | (566) | (54) |
Fair Value, Less than Twelve Months | 5,688 | 2,586 |
Gross Unrealized Loss, Total | (566) | (54) |
Fair Value, Total | $ 5,688 | 2,586 |
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] | 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 |
Investments - Schedule of Compa
Investments - Schedule of Company's Investments in Limited Partnerships (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investment Securities [Line Items] | ||
Carrying Value | $ 23,930 | $ 2,550 |
Unfunded Balance | 18,224 | 9,860 |
Private US Lower Middle Market Companies [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | 4,774 | 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 | $ 4,713 | |
Unfunded Balance | $ 3,320 | |
Percentage investment held by the entity | 1.76% | |
Equity and Debt Securities Publicly Traded US and Non US Issuers [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 11,689 | |
Percentage investment held by the entity | 65.79% | |
Power Utility and Energy Industries and Infrastructure [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 2,754 | |
Unfunded Balance | $ 7,016 | |
Percentage investment held by the entity | 0.18% |
Investments - Schedule of Com58
Investments - Schedule of Company's Investments in Limited Partnerships (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
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 | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating results: | |||||||||||||||
Total income | $ 63,412 | $ 61,262 | $ 79,068 | $ 82,210 | $ 64,752 | $ 66,955 | $ 66,284 | $ 68,117 | $ 65,252 | $ 54,692 | $ 59,333 | $ 61,811 | $ 285,952 | $ 266,108 | $ 241,088 |
Total expenses | 45,787 | $ 49,324 | $ 43,485 | $ 41,164 | 41,258 | $ 44,180 | $ 39,901 | $ 39,807 | $ 40,020 | $ 33,048 | $ 32,926 | $ 28,641 | 179,760 | 165,146 | $ 134,635 |
Limited Partnership [Member] | |||||||||||||||
Operating results: | |||||||||||||||
Total income | 4,350 | ||||||||||||||
Total expenses | 77,508 | ||||||||||||||
Net loss | (73,158) | ||||||||||||||
Balance Sheet: | |||||||||||||||
Total assets | 288,351 | 15,940 | 288,351 | 15,940 | |||||||||||
Total liabilities | $ 28,105 | $ 513 | $ 28,105 | $ 513 |
Investments (Limited Partnershi
Investments (Limited Partnership Investments) - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Investments [Line Items] | ||
Recognized investment loss | $ (3,244) | $ (90) |
Maximum exposure loss relating to VIE | 4,787 | 4,477 |
Limited Partnership [Member] | ||
Schedule of Investments [Line Items] | ||
Recognized investment loss | (3,244) | (90) |
Company's contributed capital to the partnership | 27,276 | 2,640 |
Maximum exposure loss relating to VIE | 23,930 | 2,550 |
Income distributions | $ 0 | $ 0 |
Investments (Investment in Unco
Investments (Investment in Unconsolidated Joint Venture) - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Investments [Line Items] | |||
Equity interest percentage | 90.00% | ||
Cash contribution | $ 4,500,000 | $ 435,000 | |
Maximum exposure loss relating to VIE | 4,787,000 | $ 4,477,000 | |
Undistributed loss from equity method investment | (148,000) | (23,000) | |
Distribution | 0 | 0 | |
Impairment loss | $ 0 | $ 0 | |
FMKT Sponsor, LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Equity interest percentage | 10.00% | ||
Cash contribution | $ 500,000 |
Investments - Summary of Unau62
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Joint Venture (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating results: | |||||||||||||||
Total expenses | $ 45,787 | $ 49,324 | $ 43,485 | $ 41,164 | $ 41,258 | $ 44,180 | $ 39,901 | $ 39,807 | $ 40,020 | $ 33,048 | $ 32,926 | $ 28,641 | $ 179,760 | $ 165,146 | $ 134,635 |
Net loss | (125) | (23) | |||||||||||||
Balance Sheet: | |||||||||||||||
Property and equipment, net | 11,786 | 12,292 | 11,786 | 12,292 | |||||||||||
Other | 39,128 | 31,934 | 39,128 | 31,934 | |||||||||||
Total assets | 636,986 | 598,557 | 636,986 | 598,557 | |||||||||||
Other liabilities | 18,472 | 17,683 | 18,472 | 17,683 | |||||||||||
Total liabilities and stockholders' equity (or members' capital) | 636,986 | 598,557 | 636,986 | 598,557 | |||||||||||
Investment in unconsolidated joint venture, at equity | 4,787 | 4,477 | 4,787 | 4,477 | |||||||||||
Joint Venture [Member] | |||||||||||||||
Operating results: | |||||||||||||||
Total revenues | 118 | ||||||||||||||
Total expenses | 257 | 25 | |||||||||||||
Net loss | (139) | (25) | |||||||||||||
Balance Sheet: | |||||||||||||||
Construction in progress - real estate | 277 | 3,612 | 277 | 3,612 | |||||||||||
Property and equipment, net | 11,806 | 11,806 | |||||||||||||
Cash | 570 | 1,323 | 570 | 1,323 | |||||||||||
Accounts receivable | 3 | 3 | |||||||||||||
Other | 1,008 | 40 | 1,008 | 40 | |||||||||||
Total assets | 13,664 | 4,975 | 13,664 | 4,975 | |||||||||||
Accounts payable | 125 | 125 | |||||||||||||
Construction loan | 8,063 | 8,063 | |||||||||||||
Other liabilities | 157 | 157 | |||||||||||||
Members' capital | 5,319 | 4,975 | 5,319 | 4,975 | |||||||||||
Total liabilities and stockholders' equity (or members' capital) | $ 13,664 | $ 4,975 | 13,664 | 4,975 | |||||||||||
Melbourne FMA [Member] | Operating Expense [Member] | |||||||||||||||
Operating results: | |||||||||||||||
Net loss | $ (125) | $ (23) |
Investments (Real Estate Invest
Investments (Real Estate Investments) - Additional Information (Detail) | Dec. 31, 2014USD ($)Restaurant | Oct. 31, 2015USD ($)a | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($)aRestaurant | Dec. 31, 2014USD ($)Restaurant | Dec. 31, 2013USD ($) |
Schedule of Investments [Line Items] | ||||||||
Area of land | a | 3.5 | |||||||
Maximum Amount of Loan Receivable | $ 9,785,000 | |||||||
ADC Arrangement | Under the ADC Arrangement, the Company provides financing to a property developer for the acquisition, development, and construction of a retail shopping center. The Company also expects to participate in the residual profit resulting from the ultimate sale or other use of the property. Classification and accounting for the ADC Arrangement as a loan, an investment in real estate, or a joint venture is determined by the Company’s evaluation of the characteristics and the risks and rewards of the ADC Arrangement. If the Company expects to receive more than 50% of the residual profit from the ADC Arrangement and it has characteristics similar to a real estate investment, the costs of the real estate project will be capitalized and interest will be recognized in net investment income | |||||||
Maximum exposure loss relating to VIE | $ 4,477,000 | $ 4,787,000 | $ 4,477,000 | |||||
Additional loan to property developer | $ 550,000 | |||||||
Loan, interest rate | 11.00% | 3.875% | ||||||
Loan paid date | Dec. 30, 2015 | |||||||
ADC Arrangement [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Loan amount | 9,785,000 | $ 10,200,000 | ||||||
Percentage of rentable space secured | 90.00% | |||||||
Interest Rate on Loan Receivable | 6.00% | |||||||
ADC Arrangement | Based on the characteristics of this ADC Arrangement which are similar to those of an investment, combined with the expected residual profit being greater than 50%, the arrangement is included in real estate investments at its carrying value in the balance sheet. | |||||||
Maximum exposure loss relating to VIE | 2,888,000 | $ 10,200,000 | 2,888,000 | |||||
Credit loss allowances | $ 0 | $ 0 | $ 0 | |||||
Minimum [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Term of Loan Receivable | 24 months | |||||||
Maximum [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Term of Loan Receivable | 36 months | |||||||
Real Estate Development [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Area of land | a | 2.32 | |||||||
Total purchase price of property | $ 2,747,000 | |||||||
Real Estate Investments [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Number of restaurants | Restaurant | 1 | 1 | 1 | |||||
Depreciation and amortization expenses under real estate investments | $ 370,000 | $ 402,000 | $ 388,000 | |||||
Real Estate Investments [Member] | Sorrento [Member] | ||||||||
Schedule of Investments [Line Items] | ||||||||
Area of land | a | 5.42 | |||||||
Total purchase price of property | $ 1,650,000 |
Investments - Summary of Real E
Investments - Summary of Real Estate Investment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Real Estate [Abstract] | ||
Land | $ 13,134 | $ 11,476 |
Land improvements | 1,505 | 1,425 |
Building | 3,116 | 3,097 |
Other | 4,429 | 1,359 |
Total, at cost | 22,184 | 17,357 |
Less: accumulated depreciation and amortization | (1,430) | (1,107) |
Real estate, net | 20,754 | 16,250 |
ADC Arrangement classified as real estate investment | 10,200 | 2,888 |
Real estate investments | $ 30,954 | $ 19,138 |
Investments - Investment (Loss)
Investments - Investment (Loss) Income Summarized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | $ (3,244) | $ (90) | |
Net investment income | 3,978 | 4,888 | $ 1,469 |
Limited Partnership Investment [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | (3,244) | (90) | |
Real Estate Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment expense | (468) | (955) | (1,045) |
Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | 650 | 662 | 357 |
Other [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | 57 | ||
Available-for-Sale Securities [Member] | Fixed-Maturity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | 3,946 | 3,343 | 1,868 |
Available-for-Sale Securities [Member] | Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | 3,710 | 2,364 | 499 |
Available-for-Sale Securities [Member] | Investment Expense [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment expense | $ (673) | $ (436) | $ (210) |
Investments (Net Investment Inc
Investments (Net Investment Income) - Additional Information (Detail) $ in Thousands | Dec. 31, 2015USD ($)AccountsBank | Dec. 31, 2014USD ($)AccountsBank | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Schedule of Investments [Line Items] | ||||
Cash and cash equivalents | $ 267,738 | $ 314,416 | $ 293,098 | $ 229,914 |
Deposits representing cash and cash equivalents in percentage | 56.00% | 74.40% | ||
Number of national banks | Bank | 3 | 3 | ||
Number of custodial accounts | Accounts | 3 | 3 | ||
Federal Deposit Insurance Corporation's coverage limit for insured deposit accounts | $ 250 | $ 250 | ||
Custodial Accounts [Member] | ||||
Schedule of Investments [Line Items] | ||||
Cash and cash equivalents | 65,291 | 48,674 | ||
Bank Deposits [Member] | ||||
Schedule of Investments [Line Items] | ||||
Cash and cash equivalents | $ 150,048 | $ 234,025 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
ADC Arrangement | Under the ADC Arrangement, the Company provides financing to a property developer for the acquisition, development, and construction of a retail shopping center. The Company also expects to participate in the residual profit resulting from the ultimate sale or other use of the property. Classification and accounting for the ADC Arrangement as a loan, an investment in real estate, or a joint venture is determined by the Company’s evaluation of the characteristics and the risks and rewards of the ADC Arrangement. If the Company expects to receive more than 50% of the residual profit from the ADC Arrangement and it has characteristics similar to a real estate investment, the costs of the real estate project will be capitalized and interest will be recognized in net investment income | |||
Debt instrument stated interest rate | 11.00% | 3.875% | ||
Fair value transfers between Level 1, 2 or 3 | $ 0 | $ 0 | ||
Senior Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed annual rate of interest | 8.00% | |||
Debt instrument, maturity year | 2,020 | |||
Convertible Senior Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt instrument stated interest rate | 3.875% | |||
Debt instrument, maturity year | 2,019 | |||
ADC Arrangement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
ADC Arrangement | Based on the characteristics of this ADC Arrangement which are similar to those of an investment, combined with the expected residual profit being greater than 50%, the arrangement is included in real estate investments at its carrying value in the balance sheet. |
Fair Value Measurements - Avail
Fair Value Measurements - Available-for-Sale Securities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Assets: | ||
Total fixed-maturity securities | $ 125,009 | $ 97,084 |
Equity securities | 48,237 | 45,550 |
Total available-for-sale securities | 173,246 | 142,634 |
Fixed-Maturity Securities [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 113 | 2,878 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 37,819 | 23,272 |
Fixed-Maturity Securities [Member] | Asset-backed Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 697 | |
Fixed-Maturity Securities [Member] | Mortgage-Backed Securities [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 3,009 | |
Fixed-Maturity Securities [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 77,324 | 57,503 |
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 9,753 | 9,557 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 267,738 | 314,416 |
Total fixed-maturity securities | 125,009 | 97,084 |
Equity securities | 48,237 | 45,550 |
Total available-for-sale securities | 173,246 | 142,634 |
Total financial assets | 440,984 | 457,050 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 267,738 | 314,416 |
Total fixed-maturity securities | 46,702 | 32,900 |
Equity securities | 48,237 | 45,550 |
Total available-for-sale securities | 94,939 | 78,450 |
Total financial assets | 362,677 | 392,866 |
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 78,307 | 64,184 |
Total available-for-sale securities | 78,307 | 64,184 |
Total financial assets | 78,307 | 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 | 113 | 2,878 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 37,819 | 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 | 77,324 | 57,503 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 9,753 | 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 | 113 | 1,069 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | (Level 1) [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 36,836 | 22,274 |
Fair Value, Measurements, Recurring [Member] | Fixed-Maturity Securities [Member] | (Level 1) [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 9,753 | 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 | 983 | 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 | $ 77,324 | 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 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Assets: | ||
Limited partnership investments | $ 23,930 | |
ADC Arrangement classified as real estate investment | 10,140 | $ 2,835 |
Financial Liabilities: | ||
Total long-term debt | 133,885 | 136,322 |
Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 41,103 | 42,955 |
Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 92,782 | 93,367 |
(Level 2) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 41,103 | 42,955 |
(Level 2) [Member] | Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 41,103 | 42,955 |
(Level 3) [Member] | ||
Financial Assets: | ||
Limited partnership investments | 23,930 | |
ADC Arrangement classified as real estate investment | 10,140 | 2,835 |
Financial Liabilities: | ||
Total long-term debt | 92,782 | 93,367 |
(Level 3) [Member] | Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | $ 92,782 | $ 93,367 |
Fair Value Measurements - Sch70
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Balance Sheet (Parenthetical) (Detail) | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt instrument stated interest rate | 11.00% | 3.875% | ||
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% |
Deferred Policy Acquisition C71
Deferred Policy Acquisition Costs - Summary of Activity with Respect to Deferred Policy Acquisition Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Beginning balance | $ 15,014 | $ 14,071 | |
Policy acquisition costs deferred | 39,812 | 33,861 | |
Amortization | (36,224) | (32,918) | $ (27,058) |
Ending balance | $ 18,602 | $ 15,014 | $ 14,071 |
Deferred Policy Acquisition C72
Deferred Policy Acquisition Costs - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Amortization | $ 36,224 | $ 32,918 | $ 27,058 |
Property and Equipment, net - S
Property and Equipment, net - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 17,138 | $ 16,312 |
Less:accumulated depreciation and amortization | (5,352) | (4,020) |
Property and equipment, net | 11,786 | 12,292 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 1,642 | 1,642 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 7,804 | 7,622 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 1,997 | 1,617 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 1,879 | 1,647 |
Tenant and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 3,144 | 3,093 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 672 | $ 691 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 1,338 | $ 1,304 | $ 1,151 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Benefits receivable related to retrospective reinsurance contracts | $ 35,716 | $ 28,123 |
Deferred costs related to retrospective reinsurance contracts | 460 | 473 |
Prepaid expenses | 904 | 1,444 |
Restricted cash | 300 | 300 |
Other | 1,748 | 1,594 |
Total other assets | $ 39,128 | $ 31,934 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Amount received from retrospective reinsurance contracts | $ 14,100 | $ 1,485 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total principal amount | $ 143,250 | $ 143,250 |
Less: unamortized discount and issuance costs | (13,821) | (17,364) |
Total long-term debt | 129,429 | 125,886 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | 40,250 | 40,250 |
Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 103,000 | $ 103,000 |
Long-Term Debt - Summary of L78
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 11.00% | 3.875% | |
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 (8% Senior Notes
Long-Term Debt (8% Senior Notes) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 143,250 | $ 143,250 | $ 143,250 | $ 143,250 | |||||||||||
Interest expense on debt | 2,716 | $ 2,698 | $ 2,679 | $ 2,661 | 2,644 | $ 2,626 | $ 2,609 | $ 2,574 | $ 1,228 | $ 847 | $ 846 | $ 686 | 10,754 | 10,453 | $ 3,607 |
Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 40,250 | $ 40,250 | $ 40,250 | 40,250 | |||||||||||
Debt instrument, maturity date | Jan. 30, 2020 | ||||||||||||||
Quarterly payments dates, one | --01-30 | ||||||||||||||
Quarterly payments dates, two | --04-30 | ||||||||||||||
Quarterly payments dates, three | --07-30 | ||||||||||||||
Quarterly payments dates, four | --10-30 | ||||||||||||||
Quarterly payment start date | Apr. 30, 2013 | ||||||||||||||
Notes redemption date | Jan. 30, 2016 | ||||||||||||||
Redemption price as percentage of principal amount redeemed | 100.00% | ||||||||||||||
Fixed annual rate of interest | 8.00% | 8.00% | |||||||||||||
Interest expense on debt | $ 3,419 | 3,403 | 3,228 | ||||||||||||
Amortization of debt issuance costs | $ 199 | $ 182 | $ 159 | ||||||||||||
Debt instrument, effective interest rate | 8.70% | 8.70% | |||||||||||||
Senior Notes [Member] | Maximum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notice period for redemption of notes | 60 days | ||||||||||||||
Senior Notes [Member] | Minimum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notice period for redemption of notes | 30 days |
Long-Term Debt (3.875% Converti
Long-Term Debt (3.875% Convertible Senior Notes) - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2015$ / shares | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)$ / shares | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2013USD ($) | Mar. 31, 2013USD ($) | Dec. 31, 2015USD ($)d$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 143,250 | $ 143,250 | $ 143,250 | $ 143,250 | ||||||||||||
Debt instrument, stated interest rate | 11.00% | 3.875% | 3.875% | |||||||||||||
Interest expense | 2,716 | $ 2,698 | $ 2,679 | $ 2,661 | 2,644 | $ 2,626 | $ 2,609 | $ 2,574 | $ 1,228 | $ 847 | $ 846 | $ 686 | 10,754 | 10,453 | $ 3,607 | |
Convertible Senior Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 103,000 | $ 103,000 | $ 103,000 | 103,000 | ||||||||||||
Debt instrument, stated interest rate | 3.875% | 3.875% | ||||||||||||||
Debt instrument, maturity date | Mar. 15, 2019 | |||||||||||||||
Interest expense | $ 7,335 | 7,050 | 379 | |||||||||||||
Non-cash interest expense | $ 3,344 | $ 3,070 | $ 164 | |||||||||||||
Debt discount, remaining amortization period | 3 years 2 months 12 days | |||||||||||||||
Debt instrument, effective interest rate | 8.30% | 8.30% | ||||||||||||||
Convertible debt, conversion price | $ / shares | $ 62.32 | $ 62.47 | $ 62.32 | $ 62.47 | ||||||||||||
Convertible debt, conversion ratio | 16.0453 | 16.0090 | ||||||||||||||
Convertible debt, conversion debt description | The note holders may convert all or a portion of their Convertible Notes during specified periods as follows: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2014, if the last reported sale price of the Company’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five business-day period after any ten consecutive trading-day period in which the trading price per $1 principal amount of the Convertible Notes is less than 98% of the product of the last reported sale price and the conversion rate on each such trading day; (3) if specified corporate events, including a change in control, occur; or (4) at any time on or after January 1, 2019. | |||||||||||||||
Convertible debt, threshold trading days | d | 20 | |||||||||||||||
Convertible debt, threshold consecutive trading days | 30 days | |||||||||||||||
Convertible debt, threshold percentage of stock trigger price | 130.00% | |||||||||||||||
Convertible Senior Notes [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Cash dividends on common stock | $ / shares | $ 0.275 | |||||||||||||||
Convertible Senior Notes [Member] | Convertible Debt Instrument Conversion Period Two [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Convertible debt, threshold trading days | 5 days | |||||||||||||||
Convertible debt, threshold consecutive trading days | 10 days | |||||||||||||||
Convertible debt, threshold percentage of stock trigger price | 98.00% | |||||||||||||||
Convertible Senior Notes [Member] | Convertible Debt Instrument Conversion Period Two [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Cash dividends on common stock | $ / shares | $ 0.275 |
Long-Term Debt - Summary of Equ
Long-Term Debt - Summary of Equity and Liability Components of the Convertible Notes (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Principal amount | $ 143,250 | $ 143,250 |
Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 103,000 | 103,000 |
Unamortized discount | (10,871) | (13,711) |
Liability component - net carrying value before issuance costs | 92,129 | 89,289 |
Equity component - conversion, net of offering costs | $ 15,900 | $ 15,900 |
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 | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premiums Written: | |||||||||||||||
Direct | $ 393,009 | $ 341,685 | $ 315,695 | ||||||||||||
Assumed | 3,329 | 65,968 | 39,076 | ||||||||||||
Gross written | 396,338 | 407,653 | 354,771 | ||||||||||||
Ceded | (140,614) | (113,423) | (102,865) | ||||||||||||
Net premiums written | 255,724 | 294,230 | 251,906 | ||||||||||||
Premiums Earned: | |||||||||||||||
Direct | 360,878 | 332,175 | 273,037 | ||||||||||||
Assumed | 62,242 | 33,313 | 64,076 | ||||||||||||
Gross earned | 423,120 | 365,488 | 337,113 | ||||||||||||
Ceded | (140,614) | (113,423) | (102,865) | ||||||||||||
Net premiums earned | $ 61,626 | $ 62,765 | $ 76,387 | $ 81,728 | $ 61,776 | $ 61,260 | $ 62,649 | $ 66,380 | $ 63,428 | $ 52,934 | $ 57,335 | $ 60,551 | $ 282,506 | $ 252,065 | $ 234,248 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Reinsurers | Dec. 31, 2014USD ($)Reinsurers | Dec. 31, 2013USD ($) | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Number of reinsurers | Reinsurers | 21 | 28 | |
Reinsurance recoverable | $ 0 | $ 0 | |
Credit risk associated with reinsurance receivables | 0 | 0 | |
Recoveries pertaining to reinsurance contracts | $ 0 | $ 0 | $ 0 |
Percentage of assumed premiums to net premium earned | 22.00% | 13.20% | 27.40% |
Net reduction in ceded premiums | $ 18,322,000 | $ 23,543,000 | $ 12,521,000 |
Other assets | 39,128,000 | 31,934,000 | |
Prepaid reinsurance premiums | 40,747,000 | 34,096,000 | |
Reinsurance [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Other assets | 36,176,000 | 28,596,000 | |
Prepaid reinsurance premiums | $ 2,625,000 | $ 5,983,000 |
Losses and Loss Adjustment Ex84
Losses and Loss Adjustment Expenses - Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Balance, beginning of year | $ 48,908 | $ 43,686 | $ 41,168 |
Incurred related to: | |||
Current year | 78,325 | 75,810 | 67,579 |
Prior years | 8,899 | 3,658 | (2,456) |
Total incurred | 87,224 | 79,468 | 65,123 |
Paid related to: | |||
Current year | (51,095) | (47,650) | (40,240) |
Prior years | (33,347) | (26,596) | (22,365) |
Total paid | (84,442) | (74,246) | (62,605) |
Balance, end of year | $ 51,690 | $ 48,908 | $ 43,686 |
Losses and Loss Adjustment Ex85
Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Unpaid claims and claim adjustment expenses overall development | $ 8,899 | $ 3,658 | $ (2,456) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 34,768 | $ 36,651 | $ 34,372 |
State | 5,856 | 6,222 | 5,844 |
Foreign | 68 | 167 | 118 |
Total current taxes | 40,692 | 43,040 | 40,334 |
Deferred: | |||
Federal | (275) | (4,060) | 514 |
State | (46) | (678) | 43 |
Foreign | (40) | (4) | |
Total deferred taxes | (1,101) | (4,742) | 557 |
Income tax expense | $ 40,331 | $ 38,298 | $ 40,891 |
Income Taxes - Summarized the D
Income Taxes - Summarized the Differences Between the Statutory Federal Income Tax Rate and the Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at statutory rate | $ 37,167 | $ 35,337 | $ 37,258 |
State income taxes, net of federal tax benefits | 3,783 | 3,601 | 3,802 |
Other | (619) | (640) | (169) |
Income tax expense | $ 40,331 | $ 38,298 | $ 40,891 |
Income taxes at statutory rate, percentage | 35.00% | 35.00% | 35.00% |
Increase (decrease) in income taxes resulting from: | |||
State income taxes, net of federal tax benefits, percentage | 3.60% | 3.60% | 3.60% |
Other, percentage | (0.60%) | (0.70%) | (0.20%) |
Income tax expense, percentage | 38.00% | 37.90% | 38.40% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Uncertain tax positions or unrecognized tax benefits | $ 0 | $ 0 | $ 0 | |
Accrued interest and penalty | $ 0 | 0 | ||
Valuation Allowance | 0 | 0 | ||
Undistributed earnings of foreign subsidiaries | $ 572,000 | |||
Unrecognized deferred tax liability from undistributed earnings of foreign subsidiaries | $ 222,000 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Net Deferred Income Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Total deferred tax assets | $ 16,735 | $ 16,355 |
Total deferred tax liabilities | (13,546) | (13,856) |
Net deferred tax assets | 3,189 | 2,499 |
Total deferred tax assets | 16,735 | 16,355 |
Total deferred tax liabilities | (13,546) | (13,856) |
Net deferred tax assets | $ 3,189 | $ 2,499 |
Income Taxes - Significant Co90
Income Taxes - Significant Components of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Unearned premiums | $ 8,794 | $ 11,718 |
Other-than-temporary impairment losses | 1,839 | 41 |
Unrealized net losses on available-for-sale securities | 1,125 | |
Basis difference related to partnership investments | 662 | |
Losses and loss adjustment expenses | 825 | 866 |
Organizational costs | 72 | 83 |
Stock-based compensation | 2,597 | 3,081 |
Accrued expenses | 317 | 175 |
Unearned revenue | 503 | 381 |
Bad debt reserve | 1 | 10 |
Total deferred tax assets | 16,735 | 16,355 |
Deferred tax liabilities: | ||
Property and equipment | (1,437) | (1,604) |
Deferred policy acquisition costs | (7,371) | (5,959) |
Unrealized net gain on available-for-sale securities | (418) | |
Basis difference related to partnership investments | (38) | |
Basis difference related to convertible senior notes | (4,052) | (5,110) |
Prepaid expenses | (347) | (464) |
Other | (339) | (263) |
Total deferred tax liabilities | $ (13,546) | $ (13,856) |
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 | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Net income | $ 11,090 | $ 7,371 | $ 22,022 | $ 25,378 | $ 14,562 | $ 14,052 | $ 16,430 | $ 17,620 | $ 15,562 | $ 13,378 | $ 16,235 | $ 20,387 | $ 65,861 | $ 62,664 | $ 65,562 |
Less: Preferred stock dividends | 4 | (104) | |||||||||||||
Less: Income attributable to participating securities | (3,398) | (4,318) | (3,213) | ||||||||||||
Basic Earnings Per Share: | |||||||||||||||
Income allocated to common stockholders, Income (Numerator) | $ 62,463 | $ 58,350 | $ 62,245 | ||||||||||||
Income allocated to common stockholders, Shares (Denominator) | 9,602 | 9,888 | 10,691 | ||||||||||||
Income allocated to common stockholders, Per Share Amount | $ 1.12 | $ 0.72 | $ 2.17 | $ 2.50 | $ 1.43 | $ 1.34 | $ 1.53 | $ 1.60 | $ 1.36 | $ 1.17 | $ 1.44 | $ 1.87 | $ 6.51 | $ 5.90 | $ 5.82 |
Diluted Earnings Per Share: | |||||||||||||||
Income available to common stockholders and assumed conversions, Income (Numerator) | $ 66,968 | $ 62,689 | $ 62,586 | ||||||||||||
Income available to common stockholders and assumed conversions, Shares (Denominator) | 11,355 | 11,694 | 11,122 | ||||||||||||
Income available to common stockholders and assumed conversions, Per Share Amount | $ 1.05 | $ 0.71 | $ 1.93 | $ 2.21 | $ 1.30 | $ 1.23 | $ 1.39 | $ 1.44 | $ 1.31 | $ 1.13 | $ 1.40 | $ 1.81 | $ 5.90 | $ 5.36 | $ 5.63 |
Convertible Senior Notes [Member] | |||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||
Dilutive Securities, Income (Numerator) | $ 4,505 | $ 4,343 | $ 237 | ||||||||||||
Dilutive Securities, Shares (Denominator) | 1,651 | 1,649 | 90 | ||||||||||||
Convertible Preferred Stock [Member] | |||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||
Dilutive Securities, Income (Numerator) | $ (4) | $ 104 | |||||||||||||
Dilutive Securities, Shares (Denominator) | 20 | 178 | |||||||||||||
Stock Options [Member] | |||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||
Dilutive Securities, Shares (Denominator) | 102 | 137 | 163 |
Stockholders' Equity (Common St
Stockholders' Equity (Common Stock) - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 15, 2015 | Mar. 31, 2014 | |
Subsequent Event [Line Items] | |||||
Stock repurchased and retired, total costs | $ 792,000 | $ 643,000 | $ 963,000 | ||
Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Repurchase and retirement of common stock, shares | 17,493 | 14,617 | 28,346 | ||
Share Repurchase Plan [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock repurchased and retired, total costs | $ 1,610,000 | $ 38,354,000 | |||
Share Repurchase Plan [Member] | Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Repurchase and retirement of common stock, shares | 37,869 | 990,701 | |||
Share Repurchase Plan [Member] | 2015 Plan [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock repurchase authorized amount | $ 20,000,000 | ||||
Time through the company is allowed to repurchase shares | Dec. 31, 2016 | ||||
Stock repurchase program available repurchase amount | $ 20,000,000 | ||||
Share Repurchase Plan [Member] | 2014 Plan [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock repurchase authorized amount | $ 40,000,000 | ||||
Time through the company is allowed to repurchase shares | Mar. 31, 2015 | ||||
Common stock repurchased and retired, weighted average price | $ 42.49 | $ 38.69 | |||
Stock repurchased and retired, total costs | $ 1,610 | $ 38,354 | |||
Fees and commissions average price repurchase common stock | $ 42.51 | $ 38.71 | |||
Share Repurchase Plan [Member] | 2014 Plan [Member] | Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Repurchase and retirement of common stock, shares | 37,869 | 990,701 |
Stockholders' Equity (Series B
Stockholders' Equity (Series B Junior Participating Preferred Share Purchase Right) - Additional Information (Detail) - Share Repurchase Plan [Member] - Series B Junior Participating Preferred Stock [Member] | 1 Months Ended | 12 Months Ended |
Oct. 31, 2013Right$ / shares | Dec. 31, 2015 | |
Subsequent Event [Line Items] | ||
Dividends Payable, Right Per Share | Right | 1 | |
Exercise price per one one-hundredth of each preferred share | $ 125 | |
Purchase right of common shareholder | One one-hundredth | |
Expiry of preferred stock purchase rights | Oct. 18, 2018 | |
Minimum percentage of ownership that triggers exercise rights | 10.00% | |
Number of days that must lapse after ownership percentage change | 10 days | |
Preferred stock purchase right exchange or redemption price | $ 0.001 |
Stockholders' Equity (Prepaid S
Stockholders' Equity (Prepaid Share Repurchase Forward Contract) - Additional Information (Detail) - Share Repurchase Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Subsequent Event [Line Items] | ||
Repurchase of common stock under prepaid forward contract | $ 29,923 | |
Repurchase of Common stock, shares | 622,751 | |
Prepaid stock repurchases forward contract settlement period | 2,019 |
Stockholders' Equity (Preferred
Stockholders' Equity (Preferred Stock) - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jun. 02, 2014USD ($)$ / sharesshares | Feb. 04, 2014 | Dec. 31, 2015shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013Vote$ / sharesshares |
Subsequent Event [Line Items] | |||||
Derecognition of preferred stock dividends payable | $ | $ 4 | ||||
Preferred shares outstanding | 0 | 0 | |||
Preferred shares Authorized | 18,100,000 | 18,100,000 | |||
Preferred shares issued | 0 | 0 | |||
Additional shares of preferred stock authorized to issue, no par value | 18,100,000 | ||||
Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Conversion of preferred stock to common stock, shares | 107,298 | 130,498 | |||
Series A Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Preferred stock conversion cancellation date | Apr. 1, 2014 | ||||
Preferred stock Dividends rate | 7.00% | ||||
Shares of Series A Preferred redeemed | 3,386 | 3,386 | |||
Shares of Series A Preferred redeemed, per share | $ / shares | $ 10 | ||||
Derecognition of preferred stock dividends payable | $ | $ 4 | ||||
Conversion of preferred stock to common stock, shares | (107,298) | (130,498) | |||
Preferred shares outstanding | 0 | ||||
Series B Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Preferred shares outstanding | 0 | 0 | |||
Preferred shares Authorized | 400,000 | 400,000 | 400,000 | ||
Minimum dividend payment per shares | $ / shares | $ 1 | ||||
Ratio of maximum aggregate preferred stock dividend to common stock dividend per share | 100 | ||||
Number of votes per shares | Vote | 100 | ||||
Ratio of maximum aggregate preferred stock liquidation payment to common stock liquidation payment | 100 | ||||
Preferred shares issued | 0 | 0 | |||
Series B Preferred Stock [Member] | Minimum [Member] | |||||
Subsequent Event [Line Items] | |||||
Preferred stock liquidation preference | $ / shares | $ 100 |
Stock-Based Compensation (Incen
Stock-Based Compensation (Incentive Plans) - Additional Information (Detail) | Dec. 31, 2015shares |
Omnibus Incentive Plan New Plan 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common shares available for grant | 4,205,967 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise of common stock options, shares | 120,000 | 50,000 | |
Recognized compensation expenses | $ 936 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option contractual term | 10 years | ||
Exercise of common stock options, shares | 120,000 | ||
Options were net settled | 30,000 | ||
Surrender of Shares | 2,013 | ||
Recognized compensation expenses | $ 6 | $ 19 | |
Stock Options [Member] | 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 | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding Beginning, Number of Options | 230,000 | 280,000 | 280,000 | |
Exercised, Number of Options | (120,000) | (50,000) | ||
Exercised, Weighted-Average Exercise Price | $ 2.82 | $ 2.50 | ||
Outstanding Ending, Number of Options | 110,000 | 230,000 | 280,000 | 280,000 |
Outstanding Beginning, Weighted Average Exercise Price | $ 3 | $ 2.91 | $ 2.91 | |
Exercisable Ending, Number of Options | 110,000 | |||
Outstanding Ending, Weighted-Average Exercise Price | $ 3.19 | $ 3 | $ 2.91 | $ 2.91 |
Outstanding Beginning, Aggregate Intrinsic Value | $ 9,256 | $ 14,166 | $ 5,007 | |
Exercisable Ending , Weighted-Average Exercise Price | $ 3.19 | |||
Outstanding Ending, Aggregate Intrinsic Value | $ 3,482 | $ 9,256 | $ 14,166 | $ 5,007 |
Outstanding, Weighted-Average Remaining Contractual Term | 2 years 3 months 18 days | 3 years | 3 years 10 months 24 days | 4 years 10 months 24 days |
Exercisable Ending, Aggregate Intrinsic Value | $ 3,482 | |||
Exercisable Ending, Weighted-Average Remaining Contractual Term | 2 years 3 months 18 days |
Stock-Based Compensation - Info
Stock-Based Compensation - Information about Options Exercised (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Activity [Abstract] | |||
Options exercised | 120,000 | 50,000 | |
Total intrinsic value of exercised options | $ 4,551 | $ 1,970 | |
Fair value of vested stock options | 17 | $ 17 | |
Tax benefits realized | $ 1,697 | $ 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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance, shares | 639,705 | 735,650 | 246,320 |
Granted, Number of Restricted Stock Awards | 83,260 | 108,720 | 612,000 |
Vested, Number of Restricted Stock Awards | (59,695) | (193,825) | (93,000) |
Forfeited, Number of Restricted Stock Awards | (42,757) | (10,840) | (29,670) |
Ending balance, shares | 620,513 | 639,705 | 735,650 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $ 28.33 | $ 25.48 | $ 14.54 |
Granted, Weighted-Average Grant Date Fair Value | 44.46 | 47.40 | 27.36 |
Vested, Weighted-Average Grant Date Fair Value | 30.13 | 27.48 | 12.18 |
Forfeited, Weighted-Average Grant Date Fair Value | 28.15 | 41.53 | 15.03 |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $ 30.33 | $ 28.33 | $ 25.48 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Awards) - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized compensation expenses | $ 936 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized compensation expenses | 5,212 | $ 8,104 | $ 5,346 |
Total unrecognized compensation expense, Nonvested restricted stock arrangements granted | $ 7,641 | $ 10,355 | |
Recognition of remaining compensation expense over a weighted-average period | 21 months | ||
Awards issued during the period | 83,260 | 108,720 | 612,000 |
Time-based Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards issued during the period | 0 |
Stock-Based Compensation - I102
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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred tax benefits recognized | $ 1,453 | $ 3,126 | $ 2,062 |
Tax benefits realized for restricted stock and paid dividends | 598 | 1,477 | 1,060 |
Fair value of vested restricted stock | $ 1,798 | $ 5,326 | $ 1,133 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Determine the Fair Value of the Awards with Market-Based (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions and Methodology [Line Items] | ||
Expected dividends per share | $ 1.10 | $ 0.90 |
Expected volatility, minimum | 42.10% | 41.50% |
Expected volatility, maximum | 46.60% | 51.60% |
Risk-free interest rate, minimum | 0.10% | 0.00% |
Risk-free interest rate, maximum | 1.50% | 1.90% |
Estimated cost of capital | 11.50% | |
Estimated cost of capital, minimum | 9.30% | |
Estimated cost of capital, maximum | 10.30% | |
Expected life (in years) | 4 years | |
Minimum [Member] | ||
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions and Methodology [Line Items] | ||
Expected life (in years) | 4 years | |
Maximum [Member] | ||
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions and Methodology [Line Items] | ||
Expected life (in years) | 6 years |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Plans | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
US Employees [Member] | |||
Employee Benefit Plan [Line Items] | |||
Maximum percentage of employee contribution | 100.00% | ||
Company contribution in the plan | $ 371,000 | $ 311,000 | $ 183,000 |
India Employees [Member] | |||
Employee Benefit Plan [Line Items] | |||
Employment benefit accrued | $ 28,000 | 19,000 | |
Matching contribution, number of defined contribution plans | Plans | 2 | ||
Defined benefit plan amount recognized | $ 9,000 | $ 13,000 | $ 6,000 |
Maximum [Member] | US Employees [Member] | |||
Employee Benefit Plan [Line Items] | |||
Maximum percentage of employer contribution | 4.00% | ||
Deferred Profit Sharing [Member] | US Employees [Member] | |||
Employee Benefit Plan [Line Items] | |||
Company contribution in the plan | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Sep. 10, 2013USD ($) | Dec. 31, 2015USD ($)aft² | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)aft²shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Commitment And Contingencies [Line Items] | ||||||
Future minimum aggregate amounts payable to the reinsurers for 2016 | $ 22,989 | $ 22,989 | ||||
Operating lease monthly rental payment for the first year | $ 10 | |||||
Percentage increase in monthly rental payment | 5.00% | |||||
Period of lease termination after the commencement date | 36 months | |||||
Number of months providing notice | 3 months | |||||
Rental expense under all facility leases | $ 304 | $ 222 | $ 248 | |||
Percentage increase in monthly service agreement payment | 5.00% | |||||
Number of months providing termination notice | 3 months | |||||
Period of agreement termination after the commencement date | 36 months | |||||
Area of land | a | 3.5 | 3.5 | ||||
Gross area of building | ft² | 122,000 | 122,000 | ||||
Surcharge rate | 1.00% | |||||
Unfunded Balance | $ 18,224 | $ 18,224 | 9,860 | |||
Compensation expense related to cancelled share | 936 | |||||
Fhch [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Assessments paid | 4,481 | $ 4,103 | ||||
Surcharge rate | 1.30% | |||||
Citizens [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Assessments paid | $ 2,756 | $ 3,447 | $ 3,156 | |||
Surcharge rate | 1.00% | 1.00% | 1.30% | 1.00% | ||
Director [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Number of restricted shares cancelled | shares | 160,000 | |||||
Chief Executive Officer [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Number of restricted shares cancelled | shares | 100,000 | |||||
Miami [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Company agreement to lease | ft² | 2,819 | 2,819 | ||||
Noida, India [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Company agreement to lease | ft² | 15,000 | 15,000 | ||||
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 related 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 | |||||
Settlement of premium tax and interest | $ 38 | |||||
Service Agreement [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Operating lease monthly rental payment for the first year | $ 2 | |||||
Lease Commitments [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Operating lease monthly rental payment for the first year | $ 5 |
Commitments and Contingencie106
Commitments and Contingencies - Minimum Future Rental Payments Under Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 186 |
2,017 | 194 |
2,018 | 130 |
2,019 | 137 |
2,020 | 143 |
Thereafter | 151 |
Total minimum future payments | $ 941 |
Commitments and Contingencie107
Commitments and Contingencies - Minimum Future Payments Under the Service Agreements (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 21 |
2,017 | 22 |
2,018 | 24 |
2,019 | 24 |
2,020 | 26 |
Thereafter | 27 |
Total minimum future payments | $ 144 |
Commitments and Contingencie108
Commitments and Contingencies - Rental Income Due Under Non-Cancellable Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 774 |
2,017 | 398 |
2,018 | 220 |
2,019 | 164 |
2,020 | 65 |
Thereafter | 23 |
Total | $ 1,644 |
Quarterly Results of Operati109
Quarterly Results of Operations - Summarize Unaudited Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Net premiums earned | $ 61,626 | $ 62,765 | $ 76,387 | $ 81,728 | $ 61,776 | $ 61,260 | $ 62,649 | $ 66,380 | $ 63,428 | $ 52,934 | $ 57,335 | $ 60,551 | $ 282,506 | $ 252,065 | $ 234,248 |
Total revenue | 63,412 | 61,262 | 79,068 | 82,210 | 64,752 | 66,955 | 66,284 | 68,117 | 65,252 | 54,692 | 59,333 | 61,811 | 285,952 | 266,108 | 241,088 |
Losses and loss adjustment expenses | 21,420 | 26,200 | 20,565 | 19,039 | 20,529 | 21,991 | 18,383 | 18,565 | 17,348 | 14,489 | 17,414 | 15,872 | 87,224 | 79,468 | 65,123 |
Policy acquisition and other underwriting expenses | 11,067 | 10,675 | 10,443 | 9,799 | 9,278 | 9,986 | 9,559 | 9,129 | 9,456 | 8,887 | 7,308 | 5,968 | 41,984 | 37,952 | 31,619 |
Interest expense | 2,716 | 2,698 | 2,679 | 2,661 | 2,644 | 2,626 | 2,609 | 2,574 | 1,228 | 847 | 846 | 686 | 10,754 | 10,453 | 3,607 |
Total expenses | 45,787 | 49,324 | 43,485 | 41,164 | 41,258 | 44,180 | 39,901 | 39,807 | 40,020 | 33,048 | 32,926 | 28,641 | 179,760 | 165,146 | 134,635 |
Income before income taxes | 17,625 | 11,938 | 35,583 | 41,046 | 23,494 | 22,775 | 26,383 | 28,310 | 25,232 | 21,644 | 26,407 | 33,170 | 106,192 | 100,962 | 106,453 |
Net income | 11,090 | 7,371 | 22,022 | 25,378 | 14,562 | 14,052 | 16,430 | 17,620 | 15,562 | 13,378 | 16,235 | 20,387 | 65,861 | 62,664 | 65,562 |
Comprehensive income | 11,516 | 5,023 | 19,856 | 27,009 | 14,199 | 11,084 | 17,889 | 19,044 | 15,505 | 13,652 | 15,347 | 20,552 | 63,404 | 62,216 | 65,056 |
Net income available to common stockholders | $ 11,090 | $ 7,371 | $ 22,022 | $ 25,378 | $ 14,562 | $ 14,052 | $ 16,431 | $ 17,623 | $ 15,546 | $ 13,356 | $ 16,203 | $ 20,353 | $ 65,861 | $ 62,668 | $ 65,458 |
Earnings per share: | |||||||||||||||
Basic | $ 1.12 | $ 0.72 | $ 2.17 | $ 2.50 | $ 1.43 | $ 1.34 | $ 1.53 | $ 1.60 | $ 1.36 | $ 1.17 | $ 1.44 | $ 1.87 | $ 6.51 | $ 5.90 | $ 5.82 |
Diluted | $ 1.05 | $ 0.71 | $ 1.93 | $ 2.21 | $ 1.30 | $ 1.23 | $ 1.39 | $ 1.44 | $ 1.31 | $ 1.13 | $ 1.40 | $ 1.81 | $ 5.90 | $ 5.36 | $ 5.63 |
Regulatory Requirements and 110
Regulatory Requirements and Restrictions - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Statutory Accounting Practices [Line Items] | |||
Payment of dividends | $ 81,146,000 | ||
Minimum percentage of capital and surplus requires to maintain by Company | 10.00% | ||
Statutory capital and surplus | $ 195,000,000 | $ 168,000,000 | $ 116,900,000 |
HCA's Deposit In Trust With The Treasurer Of Alabama | $ 300,000 | ||
Dividend distribution open capital surplus under condition 1 | 10.00% | ||
Dividend distribution open capital surplus under condition 2 | 10.00% | ||
Percentage of unrealized capital gain under condition 2 | 25.00% | ||
Dividend distribution open capital surplus under condition 3 | 10.00% | ||
Percentage of unrealized capital gain under condition 3 | 25.00% | ||
Restricted net assets of Company's insurance subsidiaries | $ 130,458,000 | 115,139,000 | |
HCPCI Domiciled in Florida [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) Amount | $ 57,400,000 | $ 48,900,000 | $ 45,700,000 |
Statutory accounting practices, Future dividend payments restrictions, Capital Surplus Percentage | 10.00% | ||
Statutory accounting practices, Future dividend payments restrictions, Statutory Capital surplus Percentage | 115.00% | ||
Statutory accounting practices, Future dividend payments restrictions, Notice Period | 30 days | ||
Premium to capital surplus ratios, percentage of written premiums | 90.00% | ||
Premium to capital surplus ratio for gross written premiums | 1.85 | 2.21 | 2.76 |
Premium to capital surplus ratio for net written premiums | 1 | 1.50 | 1.68 |
HCA Domiciled in Alabama [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Minimum amount of statutory capital and surplus required | $ 500,000 | ||
Statutory capital and surplus | 1,917,000 | $ 1,926,000 | |
HCA's Deposit In Trust With The Treasurer Of Alabama | 100,000 | ||
Claddaugh Domiciled in Bermuda [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Minimum amount of statutory capital and surplus required | 2,000,000 | ||
Statutory capital and surplus | 74,171,000 | 21,307,000 | |
Statutory net income (loss) Amount | 9,883,000 | 1,980,000 | $ 4,164,000 |
Payment of cash dividend to parent | 0 | 0 | $ 4,000,000 |
Us Insurance Subsidiaries [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | 196,810,000 | ||
Minimum RBC requirement | $ 106,469,000 | ||
Maximum [Member] | HCPCI Domiciled in Florida [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Premium to capital surplus ratio for gross written premiums | 10 | ||
Premium to capital surplus ratio for net written premiums | 4 | ||
Minimum [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Minimum amount of statutory capital and surplus required | $ 20,662,000 | $ 24,757,000 | |
Minimum [Member] | Us Insurance Subsidiaries [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Minimum amount of statutory capital and surplus required | $ 21,162,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Thousands | Jun. 27, 2013USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($)Directors | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Related Party Transaction [Line Items] | |||||
Amount received from retrospective reinsurance contracts | $ 14,100 | $ 1,485 | |||
Fees incurred with respect to law firm | $ 50 | $ 47 | $ 450 | ||
Oxbridge [Member] | |||||
Related Party Transaction [Line Items] | |||||
Number of non-employee directors | Directors | 3 | ||||
Oxbridge [Member] | Period from June 1, 2013 through May 31, 2014 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Assumed total covered exposure | $ 10,100 | ||||
Transaction amount | 4,900 | ||||
Oxbridge [Member] | Period from June 1, 2014 through May 31, 2015 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Assumed total covered exposure | 8,800 | ||||
Transaction amount | 3,720 | ||||
Oxbridge [Member] | Period from June 1, 2015 through May 31, 2016 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Assumed total covered exposure | 11,600 | ||||
Transaction amount | $ 3,340 | ||||
Moksha [Member] | |||||
Related Party Transaction [Line Items] | |||||
Number of non-employee directors | Directors | 1 | ||||
Payment for related party transaction | $ 4,300 | ||||
Amount received from retrospective reinsurance contracts | $ 1,485 | ||||
Moksha [Member] | Period from June 1, 2013 through May 31, 2014 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Assumed total covered exposure | $ 15,400 | ||||
Transaction amount | 4,300 | ||||
HCPCI [Member] | Oxbridge [Member] | |||||
Related Party Transaction [Line Items] | |||||
Assumed total covered exposure | 9,000 | ||||
Premiums paid | $ 1,215 |
Condensed Financial Informat112
Condensed Financial Information of HCI Group, Inc. - Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Cash and cash equivalents | $ 267,738 | $ 314,416 | $ 293,098 | $ 229,914 |
Fixed-maturity securities, available for sale, at fair value | 125,009 | 97,084 | ||
Equity securities, available for sale, at fair value | 48,237 | 45,550 | ||
Limited partnership investments, at equity | 4,787 | 4,477 | ||
Property and equipment, net | 11,786 | 12,292 | ||
Income tax receivable | 1,858 | 2,624 | ||
Other assets | 39,128 | 31,934 | ||
Total assets | 636,986 | 598,557 | ||
Liabilities and Stockholders' Equity | ||||
Long-term debt | 129,429 | 125,886 | ||
Total liabilities | 399,264 | 415,972 | ||
Total stockholders' equity | 237,722 | 182,585 | 160,521 | 121,253 |
Total liabilities and stockholders' equity (or members' capital) | 636,986 | 598,557 | ||
HCI Group [Member] | ||||
Assets | ||||
Cash and cash equivalents | 2,282 | 32,082 | $ 87,715 | $ 6,317 |
Fixed-maturity securities, available for sale, at fair value | 4,307 | 4,652 | ||
Equity securities, available for sale, at fair value | 6,598 | 8,802 | ||
Limited partnership investments, at equity | 19,217 | 2,550 | ||
Investment in subsidiaries | 361,664 | 298,726 | ||
Property and equipment, net | 860 | 946 | ||
Income tax receivable | 2,596 | |||
Other assets | 784 | 1,046 | ||
Total assets | 395,712 | 351,400 | ||
Liabilities and Stockholders' Equity | ||||
Accrued expenses and other liabilities | 3,674 | 3,085 | ||
Income tax payable | 1,279 | |||
Deferred income taxes, net | 2,226 | 3,631 | ||
Long-term debt | 129,429 | 125,886 | ||
Due to related parties | 21,382 | 36,213 | ||
Total liabilities | 157,990 | 168,815 | ||
Total stockholders' equity | 237,722 | 182,585 | ||
Total liabilities and stockholders' equity (or members' capital) | $ 395,712 | $ 351,400 |
Condensed Financial Informat113
Condensed Financial Information of HCI Group, Inc. - Statements of Income (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net investment (loss) income | $ 3,978,000 | $ 4,888,000 | $ 1,469,000 | ||||||||||||
Net realized gain (loss) on investments | (608,000) | 4,735,000 | 80,000 | ||||||||||||
Other-than-temporary impairment losses | (4,681,000) | (107,000) | 0 | ||||||||||||
Other income | 1,261,000 | 1,707,000 | 2,193,000 | ||||||||||||
Interest expense | $ (2,716,000) | $ (2,698,000) | $ (2,679,000) | $ (2,661,000) | $ (2,644,000) | $ (2,626,000) | $ (2,609,000) | $ (2,574,000) | $ (1,228,000) | $ (847,000) | $ (846,000) | $ (686,000) | (10,754,000) | (10,453,000) | (3,607,000) |
Operating expenses | (45,787,000) | (49,324,000) | (43,485,000) | (41,164,000) | (41,258,000) | (44,180,000) | (39,901,000) | (39,807,000) | (40,020,000) | (33,048,000) | (32,926,000) | (28,641,000) | (179,760,000) | (165,146,000) | (134,635,000) |
Income tax benefit | (40,331,000) | (38,298,000) | (40,891,000) | ||||||||||||
Net income | $ 11,090,000 | $ 7,371,000 | $ 22,022,000 | $ 25,378,000 | $ 14,562,000 | $ 14,052,000 | $ 16,430,000 | $ 17,620,000 | $ 15,562,000 | $ 13,378,000 | $ 16,235,000 | $ 20,387,000 | 65,861,000 | 62,664,000 | 65,562,000 |
HCI Group [Member] | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net investment (loss) income | (2,401,000) | 739,000 | 84,000 | ||||||||||||
Net realized gain (loss) on investments | 108,000 | 309,000 | (2,000) | ||||||||||||
Other-than-temporary impairment losses | (75,000) | ||||||||||||||
Other income | 30,000 | 120,000 | 864,000 | ||||||||||||
Interest expense | (10,754,000) | (10,453,000) | (3,607,000) | ||||||||||||
Operating expenses | (7,346,000) | (7,745,000) | (4,865,000) | ||||||||||||
Loss before income tax benefit and equity in income of subsidiaries | (20,438,000) | (17,030,000) | (7,526,000) | ||||||||||||
Income tax benefit | 7,835,000 | 6,462,000 | 2,863,000 | ||||||||||||
Net loss before equity in income of subsidiaries | (12,603,000) | (10,568,000) | (4,663,000) | ||||||||||||
Equity in income of subsidiaries | 78,464,000 | 73,232,000 | 70,225,000 | ||||||||||||
Net income | $ 65,861,000 | $ 62,664,000 | $ 65,562,000 |
Condensed Financial Informat114
Condensed Financial Information of HCI Group, Inc. - Statements of Cash Flows (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||||||||||||||
Net income | $ 11,090,000 | $ 7,371,000 | $ 22,022,000 | $ 25,378,000 | $ 14,562,000 | $ 14,052,000 | $ 16,430,000 | $ 17,620,000 | $ 15,562,000 | $ 13,378,000 | $ 16,235,000 | $ 20,387,000 | $ 65,861,000 | $ 62,664,000 | $ 65,562,000 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||||||
Stock-based compensation | 5,212,000 | 8,110,000 | 5,365,000 | ||||||||||||
Net realized investment (gain) loss | 608,000 | (4,735,000) | (80,000) | ||||||||||||
Amortization of premiums on investments in fixed-maturity securities | 855,000 | 782,000 | 336,000 | ||||||||||||
Depreciation and amortization | 5,251,000 | 4,958,000 | 2,103,000 | ||||||||||||
Loss from limited partnership investment | 3,244,000 | 90,000 | |||||||||||||
Other-than-temporary impairment losses | 4,681,000 | 107,000 | 0 | ||||||||||||
Deferred income taxes | (1,101,000) | (4,742,000) | 557,000 | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Other assets | (7,230,000) | (20,086,000) | (9,579,000) | ||||||||||||
Accrued expenses and other liabilities | 4,157,000 | 10,011,000 | 3,232,000 | ||||||||||||
Income taxes payable | 766,000 | (3,167,000) | (8,270,000) | ||||||||||||
Net cash provided by operating activities | 45,270,000 | 88,729,000 | 55,472,000 | ||||||||||||
Cash flows from investing activities: | |||||||||||||||
Investment in limited partnership interest | (24,636,000) | (2,640,000) | |||||||||||||
Purchase of fixed-maturity securities | (98,501,000) | (83,365,000) | (82,907,000) | ||||||||||||
Purchase of equity securities | (32,878,000) | (44,257,000) | (11,308,000) | ||||||||||||
Purchases of property and equipment | (840,000) | (453,000) | (3,433,000) | ||||||||||||
Proceeds from sales of fixed-maturity securities | 53,711,000 | 98,365,000 | 1,749,000 | ||||||||||||
Proceeds from sales of equity securities | 25,695,000 | 16,810,000 | 2,809,000 | ||||||||||||
Distribution from limited partnership interests | 12,000 | ||||||||||||||
Net cash used in investing activities | (80,362,000) | (18,652,000) | (90,040,000) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||
Repurchases of common stock | (792,000) | (643,000) | (30,886,000) | ||||||||||||
Repurchases of common stock under share repurchase plan | (1,610,000) | (38,354,000) | |||||||||||||
Cash dividends paid to stockholders | (12,428,000) | (12,355,000) | (10,902,000) | ||||||||||||
Cash dividends received under share repurchase forward contract | 747,000 | 685,000 | |||||||||||||
Proceeds from exercise of stock options | 263,000 | 125,000 | |||||||||||||
Proceeds from issuance of long-term debt | 143,250,000 | ||||||||||||||
Redemption of Series A preferred stock | (34,000) | ||||||||||||||
Debt issuance costs paid | (234,000) | (4,770,000) | |||||||||||||
Tax benefits on stock-based compensation | 2,295,000 | 2,080,000 | 1,060,000 | ||||||||||||
Net cash (used in) provided by financing activities | (11,525,000) | (48,730,000) | 97,752,000 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (46,678,000) | 21,318,000 | 63,184,000 | ||||||||||||
Cash and cash equivalents at beginning of year | 314,416,000 | 293,098,000 | 229,914,000 | 314,416,000 | 293,098,000 | 229,914,000 | |||||||||
Cash and cash equivalents at end of year | 267,738,000 | 314,416,000 | 293,098,000 | 267,738,000 | 314,416,000 | 293,098,000 | |||||||||
HCI Group [Member] | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | 65,861,000 | 62,664,000 | 65,562,000 | ||||||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||||||
Stock-based compensation | 4,341,000 | 5,502,000 | 2,362,000 | ||||||||||||
Net realized investment (gain) loss | (108,000) | (309,000) | 2,000 | ||||||||||||
Amortization of premiums on investments in fixed-maturity securities | 1,000 | ||||||||||||||
Depreciation and amortization | 3,996,000 | 3,712,000 | 1,000,000 | ||||||||||||
Loss from limited partnership investment | 3,277,000 | 90,000 | |||||||||||||
Other-than-temporary impairment losses | 75,000 | ||||||||||||||
Equity in income of subsidiaries | (78,464,000) | (73,232,000) | (70,225,000) | ||||||||||||
Deferred income taxes | (3,218,000) | (2,058,000) | (914,000) | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Income taxes receivable | 2,596,000 | (814,000) | 597,000 | ||||||||||||
Other assets | 228,000 | 629,000 | (1,001,000) | ||||||||||||
Accrued expenses and other liabilities | 689,000 | 1,116,000 | 1,136,000 | ||||||||||||
Income taxes payable | 1,279,000 | ||||||||||||||
Due to related parties | (14,831,000) | 11,520,000 | (6,338,000) | ||||||||||||
Net cash provided by operating activities | (14,278,000) | 8,820,000 | (7,819,000) | ||||||||||||
Cash flows from investing activities: | |||||||||||||||
Investment in limited partnership interest | (19,956,000) | (2,640,000) | |||||||||||||
Purchase of fixed-maturity securities | (384,000) | (2,616,000) | (64,000) | ||||||||||||
Purchase of equity securities | (3,196,000) | (7,000,000) | (6,835,000) | ||||||||||||
Purchases of property and equipment | (371,000) | (277,000) | (262,000) | ||||||||||||
Proceeds from sales of fixed-maturity securities | 259,000 | ||||||||||||||
Proceeds from sales of equity securities | 5,475,000 | 5,212,000 | 361,000 | ||||||||||||
Distribution from limited partnership interests | 12,000 | ||||||||||||||
Dividends received from subsidiary | 92,700,000 | 4,000,000 | |||||||||||||
Investment in subsidiaries | (78,536,000) | (8,402,000) | (5,735,000) | ||||||||||||
Net cash used in investing activities | (3,997,000) | (15,723,000) | (8,535,000) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||
Repurchases of common stock | (792,000) | (643,000) | (30,886,000) | ||||||||||||
Repurchases of common stock under share repurchase plan | (1,610,000) | (38,354,000) | |||||||||||||
Cash dividends paid to stockholders | (12,428,000) | (12,355,000) | (10,902,000) | ||||||||||||
Cash dividends received under share repurchase forward contract | 747,000 | 685,000 | |||||||||||||
Proceeds from exercise of stock options | 263,000 | 125,000 | |||||||||||||
Proceeds from issuance of long-term debt | 143,250,000 | ||||||||||||||
Redemption of Series A preferred stock | (34,000) | ||||||||||||||
Debt issuance costs paid | (234,000) | (4,770,000) | |||||||||||||
Tax benefits on stock-based compensation | 2,295,000 | 2,080,000 | 1,060,000 | ||||||||||||
Net cash (used in) provided by financing activities | (11,525,000) | (48,730,000) | 97,752,000 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (29,800,000) | (55,633,000) | 81,398,000 | ||||||||||||
Cash and cash equivalents at beginning of year | $ 32,082,000 | $ 87,715,000 | $ 6,317,000 | 32,082,000 | 87,715,000 | 6,317,000 | |||||||||
Cash and cash equivalents at end of year | $ 2,282,000 | $ 32,082,000 | $ 87,715,000 | $ 2,282,000 | $ 32,082,000 | $ 87,715,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Jan. 14, 2016 | Jan. 08, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2016 | Jan. 15, 2016 | Sep. 30, 2015 |
Subsequent Event [Line Items] | ||||||||
Dividends per common share | $ 1.20 | $ 1.10 | $ 0.95 | |||||
Proceeds from the issuance of long-term debt | $ 143,250,000 | |||||||
Fixed annual interest rate | 3.875% | 11.00% | ||||||
Statutory deposit requirement | $ 300,000 | |||||||
Minimum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Minimum amount of statutory capital and surplus required | $ 20,662,000 | $ 24,757,000 | ||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividends per common share | $ 0.30 | |||||||
Date of dividend payable | Mar. 18, 2016 | |||||||
Record date of dividend payable | Feb. 19, 2016 | |||||||
Subsequent Event [Member] | TypTap [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Capital contribution amount | $ 25,000,000 | |||||||
Statutory deposit requirement | $ 300,000 | |||||||
Subsequent Event [Member] | Minimum [Member] | TypTap [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Minimum amount of statutory capital and surplus required | $ 20,000,000 | |||||||
Subsequent Event [Member] | Secured Loan Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Secured loan agreement period | 15 years | |||||||
Proceeds from the issuance of long-term debt | $ 9,200,000 | |||||||
Fixed annual interest rate | 4.00% | |||||||
Principal and interest are payable term | 180 monthly |