Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 27, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | HCI | |
Entity Registrant Name | HCI Group, Inc. | |
Entity Central Index Key | 1,400,810 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,388,360 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Fixed-maturity securities, available for sale, at fair value (amortized cost: $133,322 and $128,614, respectively) | $ 135,707 | $ 125,009 |
Equity securities, available for sale, at fair value (cost: $46,045 and $47,548, respectively) | 49,712 | 48,237 |
Limited partnership investments, at equity | 25,269 | 23,930 |
Investment in unconsolidated joint venture, at equity | 5,015 | 4,787 |
Real estate investments (Note 3 - Variable Interest Entity) | 31,661 | 30,954 |
Total investments | 247,364 | 232,917 |
Cash and cash equivalents (Note 3 - Variable Interest Entity) | 309,274 | 267,738 |
Accrued interest and dividends receivable | 1,389 | 1,390 |
Income taxes receivable | 4,837 | 1,858 |
Premiums receivable | 27,228 | 19,631 |
Prepaid reinsurance premiums | 35,793 | 40,747 |
Deferred policy acquisition costs | 21,091 | 18,602 |
Property and equipment, net | 11,598 | 11,786 |
Deferred income taxes, net | 1,117 | 3,189 |
Other assets (Note 3 - Variable Interest Entity) | 10,780 | 39,128 |
Total assets | 670,471 | 636,986 |
Liabilities and Stockholders' Equity | ||
Losses and loss adjustment expenses | 54,727 | 51,690 |
Unearned premiums | 208,600 | 187,290 |
Advance premiums | 13,824 | 4,983 |
Assumed reinsurance balances payable | 1,084 | |
Accrued expenses (Note 3 - Variable Interest Entity) | 11,330 | 6,316 |
Long-term debt | 128,123 | 129,429 |
Other liabilities (Note 3 - Variable Interest Entity) | 14,110 | 18,472 |
Total liabilities | 430,714 | 399,264 |
Commitments and contingencies ( Note 13) | ||
Stockholders' equity: | ||
Preferred stock | ||
Common stock, (no par value, 40,000,000 shares authorized, 9,837,603 and 10,292,256 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively) | 0 | 0 |
Additional paid-in capital | 13,262 | 23,879 |
Retained income | 222,778 | 215,634 |
Accumulated other comprehensive income (loss), net of taxes | 3,717 | (1,791) |
Total stockholders' equity | 239,757 | 237,722 |
Total liabilities and stockholders' equity (or members' capital) | 670,471 | 636,986 |
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 | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Debt securities, Amortized cost | $ 133,322 | $ 128,614 |
Available-for-sale Equity securities, Amortized cost | $ 46,045 | $ 47,548 |
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 | 9,837,603 | 10,292,256 |
Common stock, outstanding | 9,837,603 | 10,292,256 |
7% Series A Cumulative Convertible Preferred Stock [Member] | ||
Preferred stock, no par value | ||
Preferred stock, authorized | 1,500,000 | 1,500,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, no par value | ||
Preferred stock, authorized | 400,000 | 400,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue | ||||
Gross premiums earned | $ 94,912 | $ 107,765 | $ 193,731 | $ 217,332 |
Premiums ceded | (36,384) | (31,378) | (76,756) | (59,217) |
Net premiums earned | 58,528 | 76,387 | 116,975 | 158,115 |
Net investment income | 1,725 | 1,795 | 3,215 | 3,204 |
Net realized investment gains (losses) | 391 | (74) | 316 | (267) |
Net other-than-temporary impairment losses recognized in income: | ||||
Total other-than-temporary impairment losses | (228) | (293) | (636) | (1,983) |
Portion of loss recognized in other comprehensive income, before taxes | (314) | (581) | ||
Net other-than-temporary impairment losses | (542) | (293) | (1,217) | (1,983) |
Policy fee income | 988 | 942 | 1,995 | 1,483 |
Gain on repurchases of convertible senior notes | 153 | |||
Other | 430 | 311 | 830 | 726 |
Total revenue | 61,520 | 79,068 | 122,267 | 161,278 |
Expenses | ||||
Losses and loss adjustment expenses | 26,272 | 20,565 | 53,352 | 39,604 |
Policy acquisition and other underwriting expenses | 10,879 | 10,443 | 21,989 | 20,242 |
Salaries and wages | 5,680 | 5,236 | 11,064 | 10,134 |
Interest expense | 2,611 | 2,679 | 5,440 | 5,340 |
Other operating expenses | 4,849 | 4,562 | 9,496 | 9,329 |
Total operating expenses | 50,291 | 43,485 | 101,341 | 84,649 |
Income before income taxes | 11,229 | 35,583 | 20,926 | 76,629 |
Income tax expense | 4,205 | 13,561 | 7,846 | 29,229 |
Net income | $ 7,024 | $ 22,022 | $ 13,080 | $ 47,400 |
Basic earnings per share | $ 0.71 | $ 2.17 | $ 1.31 | $ 4.67 |
Diluted earnings per share | 0.71 | 1.93 | 1.31 | 4.14 |
Dividends per share | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 7,024 | $ 22,022 | $ 13,080 | $ 47,400 |
Change in unrealized gain (loss) on investments: | ||||
Net unrealized gain (loss) arising during the period | 5,893 | (3,912) | 8,056 | (3,175) |
Other-than-temporary impairment loss charged to income | 542 | 293 | 1,217 | 1,983 |
Call and repayment losses charged to investment income | 10 | 19 | 11 | 55 |
Reclassification adjustment for net realized (gains) losses | (391) | 74 | (316) | 267 |
Net change in unrealized gain (loss) | 6,054 | (3,526) | 8,968 | (870) |
Deferred income taxes on above change | (2,336) | 1,360 | (3,460) | 335 |
Total other comprehensive income (loss), net of income taxes | 3,718 | (2,166) | 5,508 | (535) |
Comprehensive income | $ 10,742 | $ 19,856 | $ 18,588 | $ 46,865 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 13,080 | $ 47,400 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 1,948 | 2,789 |
Net amortization of premiums on investments in fixed-maturity securities | 255 | 530 |
Depreciation and amortization | 2,656 | 2,589 |
Deferred income tax benefits | (1,388) | (1,188) |
Net realized investment (gains) losses | (316) | 267 |
Other-than-temporary impairment losses | 1,217 | 1,983 |
Income from real estate investments | (112) | |
Gain on repurchases of convertible senior notes | (153) | |
(Income) loss from unconsolidated joint venture | (228) | 1 |
Net loss from limited partnership interests | 1,065 | 462 |
Net loss on disposal or sale of real estate investments | 26 | |
Foreign currency remeasurement loss | 19 | 17 |
Changes in operating assets and liabilities: | ||
Premiums receivable | (7,597) | (14,337) |
Advance premiums | 8,841 | 11,025 |
Prepaid reinsurance premiums | 4,954 | 678 |
Accrued interest and dividends receivable | 1 | (515) |
Other assets | 28,442 | (12,942) |
Assumed reinsurance balances payable | (1,084) | 637 |
Deferred policy acquisition costs | (2,489) | (6,979) |
Losses and loss adjustment expenses | 3,037 | 5,421 |
Unearned premiums | 21,310 | 19,432 |
Income taxes | (3,213) | 8,571 |
Accrued expenses and other liabilities | 34 | 12,020 |
Net cash provided by operating activities | 70,391 | 77,775 |
Cash flows from investing activities: | ||
Investment in real estate under acquisition, development, and construction arrangement | (3,285) | |
Investments in limited partnership interests | (2,448) | (20,628) |
Investment in unconsolidated joint venture | (270) | |
Purchase of property and equipment | (485) | (376) |
Purchase of real estate investments | (878) | (128) |
Purchase of fixed-maturity securities | (39,673) | (77,251) |
Purchase of equity securities | (8,410) | (24,505) |
Distribution from limited partnership interests | 44 | |
Proceeds from sales of fixed-maturity securities | 33,524 | 3,285 |
Proceeds from calls, repayments and maturities of fixed-maturity securities | 1,074 | 4,205 |
Proceeds from sales of equity securities | 9,155 | 7,994 |
Proceeds from sales of real estate investments | 5 | |
Net cash used in investing activities | (8,097) | (110,954) |
Cash flows from financing activities: | ||
Proceeds from the exercise of common stock options | 200 | |
Cash dividends paid | (6,310) | (6,375) |
Cash dividends received under share repurchase forward contract | 374 | 374 |
Proceeds from issuance of long-term debt | 9,200 | |
Repurchases of convertible senior notes | (11,347) | |
Repayment of debt | (150) | |
Repurchases of common stock | (447) | (772) |
Repurchases of common stock under share repurchase plan | (12,015) | (1,610) |
Debt issuance costs | (177) | |
Tax benefits on stock-based compensation | 131 | 1,691 |
Net cash used in financing activities | (20,741) | (6,492) |
Effect of exchange rate changes on cash | (17) | (16) |
Net increase (decrease) in cash and cash equivalents | 41,536 | (39,687) |
Cash and cash equivalents at beginning of period | 267,738 | 314,416 |
Cash and cash equivalents at end of period | 309,274 | 274,729 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 12,315 | 20,154 |
Cash paid for interest | 3,746 | 3,606 |
Non-cash investing and financing activities: | ||
Unrealized gain (loss) on investments in available-for-sale securities, net of tax | $ 5,508 | $ (535) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - 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, 2014 | $ 182,585 | $ 20,465 | $ 161,454 | $ 666 | |||||
Beginning Balance, shares at Dec. 31, 2014 | 10,189,128 | ||||||||
Net income | 47,400 | 47,400 | |||||||
Total other comprehensive income (loss), net of income taxes | (535) | (535) | |||||||
Issuance of restricted stock | 0 | $ 0 | 0 | 0 | 0 | $ 0 | |||
Issuance of restricted stock, shares | 83,260 | ||||||||
Exercise of common stock options, value | $ 200 | 200 | |||||||
Exercise of common stock options, shares | 80,000 | 80,000 | |||||||
Forfeiture of restricted stock, value | $ 0 | $ 0 | 0 | 0 | 0 | 0 | |||
Forfeiture of restricted stock, shares | (34,412) | ||||||||
Repurchase and retirement of common stock, value | (772) | $ (1,610) | (772) | $ (1,610) | |||||
Repurchase and retirement of common stock, shares | (16,958) | (37,869) | |||||||
Common stock dividends | (6,001) | (6,001) | |||||||
Tax benefits on stock-based compensation | 1,691 | 1,691 | |||||||
Stock-based compensation | 2,789 | 2,789 | |||||||
Ending Balance at Jun. 30, 2015 | 225,747 | 22,763 | 202,853 | 131 | |||||
Ending Balance, shares at Jun. 30, 2015 | 10,263,149 | ||||||||
Beginning Balance at Dec. 31, 2015 | 237,722 | 23,879 | 215,634 | (1,791) | |||||
Beginning Balance, shares at Dec. 31, 2015 | 10,292,256 | ||||||||
Net income | 13,080 | 13,080 | |||||||
Total other comprehensive income (loss), net of income taxes | 5,508 | 5,508 | |||||||
Issuance of restricted stock | 0 | $ 0 | 0 | 0 | 0 | 0 | |||
Issuance of restricted stock, shares | 102,440 | ||||||||
Forfeiture of restricted stock, value | 0 | $ 0 | 0 | 0 | 0 | $ 0 | |||
Forfeiture of restricted stock, shares | (5,897) | ||||||||
Cancellation of restricted stock | (160,000) | ||||||||
Repurchase and retirement of common stock, value | (447) | $ (12,015) | (447) | $ (12,015) | |||||
Repurchase and retirement of common stock, shares | (14,400) | (376,796) | |||||||
Common stock dividends | (5,936) | (5,936) | |||||||
Tax benefits on stock-based compensation | 131 | 131 | |||||||
Tax shortfalls on stock-based compensation | (234) | (234) | |||||||
Stock-based compensation | 1,948 | 1,948 | |||||||
Ending Balance at Jun. 30, 2016 | $ 239,757 | $ 13,262 | $ 222,778 | $ 3,717 | |||||
Ending Balance, shares at Jun. 30, 2016 | 9,837,603 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 — Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited, consolidated financial statements for HCI Group, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of June 30, 2016 and the results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2016. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2015 included in the Company’s Form 10-K, which was filed with the SEC on March 4, 2016. In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies for reinsurance contracts with retrospective provisions, deferred income taxes, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements. All significant intercompany balances and transactions have been eliminated. Reclassifications. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 2 — Recent Accounting Pronouncements Accounting Standards Update No. 2016-13. Accounting Standards Update No. 2016-12. Accounting Standards Update No. 2016-10. Accounting Standards Update No. 2016-09. Accounting Standards Update No. 2016-02. Accounting Standards Update No. 2016-01. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 3 — Investments Available-for-Sale Securities The Company holds investments in fixed-maturity securities and equity securities that are classified as available-for-sale. At June 30, 2016 and December 31, 2015, 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 Value As of June 30, 2016 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ 969 $ 39 $ — $ 1,008 Corporate bonds 43,807 915 (1,957 ) 42,765 State, municipalities, and political subdivisions 76,882 3,387 (137 ) 80,132 Exchange-traded debt 11,297 349 (228 ) 11,418 Redeemable preferred stock 367 17 — 384 Total 133,322 4,707 (2,322 ) 135,707 Equity securities 46,045 4,507 (840 ) 49,712 Total available-for-sale securities $ 179,367 $ 9,214 $ (3,162 ) $ 185,419 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 Exchange-traded debt 9,817 177 (565 ) 9,429 Redeemable preferred stock 317 8 (1 ) 324 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 June 30, 2016 and December 31, 2015, $119 and $113, respectively, of U.S. Treasury securities relate to a statutory deposit held in trust for the Treasurer of Alabama. Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities as of June 30, 2016 and December 31, 2015 are as follows: Amortized Estimated As of June 30, 2016 Available-for-sale Due in one year or less $ 4,119 $ 4,093 Due after one year through five years 37,183 37,714 Due after five years through ten years 68,543 68,782 Due after ten years 23,477 25,118 $ 133,322 $ 135,707 Amortized Estimated As of December 31, 2015 Available-for-sale Due in one year or less $ 3,282 $ 3,292 Due after one year through five years 32,833 32,651 Due after five years through ten years 71,120 67,113 Due after ten years 21,379 21,953 $ 128,614 $ 125,009 Sales of Available-for-Sale Securities Proceeds received, and the gross realized gains and losses from sales of available-for-sale securities, for the three and six months ended June 30, 2016 and 2015 were as follows: Proceeds Gross Gross Three months ended June 30, 2016 Fixed-maturity securities $ 32,424 $ 376 $ — Equity securities $ 4,801 $ 220 $ (205 ) Three months ended June 30, 2015 Fixed-maturity securities $ 1,051 $ 1 $ (24 ) Equity securities $ 3,239 $ 121 $ (172 ) Six months ended June 30, 2016 Fixed-maturity securities $ 33,524 $ 383 $ — Equity securities $ 9,155 $ 359 $ (426 ) Six months ended June 30, 2015 Fixed-maturity securities $ 3,285 $ 59 $ (30 ) Equity securities $ 7,994 $ 329 $ (625 ) Other-than-temporary Impairment The Company regularly reviews its individual investment securities for other-than-temporary impairment. The Company considers various factors in determining whether each individual security is other-than-temporarily impaired, including- • the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings; • the length of time and the extent to which the market value of the security has been below its cost or amortized cost; • general market conditions, industry or sector specific factors and other qualitative 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. At December 31, 2015, the Company had two fixed-maturity securities that were other-than-temporarily impaired. In June 2016, the Company sold one other-than-temporarily impaired fixed-maturity security due to uncertainties surrounding the issuer’s recently announced restructuring plan. Prior to the sale, this security’s remaining $202 of impairment loss was reclassified from comprehensive income and recognized in total other-than-temporary impairment losses in the Company’s consolidated statement of income for the three months ended June 30, 2016. For the six months ended June 30, 2016, the Company recognized $495 of additional impairment loss in the consolidated statement of income, representing $26 of additional loss recorded during the period and the reclassification of $469 previously recorded in other comprehensive income. For the three and six months ended June 30, 2015, there was no other-than-temporary loss related to fixed-maturity securities. The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairment losses recognized in income from available for sale fixed-maturity securities: 2016 2015 Balance at January 1 $ 111 $ — Additional credit impairments on previously impaired securities 293 — Balance at March 31 404 — Credit impaired security fully disposed of for which there was no prior intent or requirement to sell (385 ) — Reduction due to increase in expected cash flows recognized over the remaining life of the previously impaired security (19 ) Balance at June 30 $ — $ — 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 June 30, 2016 and December 31, 2015, the Company had 15 and 17 equity securities, respectively, that were other-than-temporarily impaired. The Company recognized impairment losses of $340 and $293, respectively, for the three months ended June 30, 2016 and 2015. For the six months ended June 30, 2016 and 2015, the Company recognized impairment losses of $722 and $1,983, respectively. Securities with gross unrealized loss positions at June 30, 2016 and December 31, 2015, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Twelve Months or Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair Loss Value Loss Value Loss Value As of June 30, 2016 Fixed-maturity securities Corporate bonds $ (440 ) $ 8,210 $ (1,517 ) $ 14,312 $ (1,957 ) $ 22,522 State, municipalities, and political subdivisions (88 ) 5,385 (49 ) 1,366 (137 ) 6,751 Exchange-traded debt (188 ) 3,823 (40 ) 1,960 (228 ) 5,783 Total fixed-maturity securities (716 ) 17,418 (1,606 ) 17,638 (2,322 ) 35,056 Equity securities (689 ) 8,083 (151 ) 2,848 (840 ) 10,931 Total available-for-sale securities $ (1,405 ) $ 25,501 $ (1,757 ) $ 20,486 $ (3,162 ) $ 45,987 At June 30, 2016, there were 78 securities in an unrealized loss position. Of these securities, 24 securities had been in an unrealized loss position for 12 months or greater. Less Than Twelve 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 Exchange-traded debt (565 ) 5,559 — — (565 ) 5,559 Redeemable preferred stock (1 ) 129 — — (1 ) 129 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 more. 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. Limited Partnership Investments The Company has interests in limited partnerships that are not registered or readily tradeable on a securities exchange. These partnerships are private equity funds managed by general partners who make all 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. June 30, 2016 December 31, 2015 Carrying Unfunded Carrying Unfunded Value Balance (%) Value Balance (%) Investment Strategy 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) $ 5,005 $ 7,888 16.50 $ 4,774 $ 7,888 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) 6,377 1,360 1.76 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) 10,714 — 65.74 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) 3,173 6,528 0.18 2,754 7,016 0.18 Total $ 25,269 $ 15,776 $ 23,930 $ 18,224 (a) Represents the Company’s percentage investment in the fund at each 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. (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 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 each general partner. The financial statements of these limited partnerships are audited annually. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Operating results: Total income $ (6,987 ) $ (4,577 ) $ (23,069 ) $ (4,838 ) Total expenses (27,401 ) (254 ) (130,022 ) (957 ) Net loss $ (34,388 ) $ (4,831 ) $ (153,091 ) $ (5,795 ) June 30, December 31, 2016 2015 Balance Sheet: Total assets $ 2,738,232 $ 288,351 Total liabilities $ 526,467 $ 28,105 For the three and six months ended June 30, 2016, the Company recognized net investment losses of $196 and $1,065, respectively, for these investments. For the three and six months ended June 30, 2015, the Company recognized net investment losses of $197 and $462, respectively. At June 30, 2016 and December 31, 2015, the Company’s cumulative contributed capital to the partnerships totaled $29,724 and $27,276, respectively, and the Company’s maximum exposure to loss aggregated $25,269 and $23,930, respectively. During the three and six months ended June 30, 2016, the Company received one cash distribution of $44. There were no cash distributions received by the Company during the three and six months ended June 30, 2015. Investment in Unconsolidated Joint Venture The Company has an equity investment in one real estate development project, FMKT Mel JV, which is a limited liability company treated as a joint venture under U.S. GAAP. In January 2016, FMKT Mel JV sold a portion of its outparcel land for gross proceeds of $829, of which $515 was used to repay a portion of the construction loan obtained for this project. FMKT Mel JV recognized a $404 gain on the outparcel sale of which $383 was allocated to the Company in accordance with the profit allocation specified in the operating agreement. At June 30, 2016 and December 31, 2015, the Company’s maximum exposure to loss relating to the variable interest entity was $5,015 and $4,787, respectively, representing the carrying value of the investment. At June 30, 2016, there was an undistributed gain of $228 compared with an undistributed loss of $148 at December 31, 2015 from this equity method investment, the amounts of which were included in the Company’s consolidated retained income. FMKT Mel JV’s partners received no cash distributions during the six months ended June 30, 2016 and 2015. The following tables provide FMKT Mel JV’s summarized unaudited financial results for the three and six months ended June 30, 2016 and 2015 and its unaudited financial positions at June 30, 2016 and December 31, 2015: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Operating results: Total revenues and gain $ 181 $ — $ 714 $ — Total expenses (247 ) — (483 ) (1 ) Net (loss) income $ (66 ) $ — $ 231 $ (1 ) The Company’s share of net (loss) income* $ (59 ) $ (1 ) $ 228 $ (1 ) * Included in net investment income in the Company’s consolidated statements of income. June 30, December 31, 2016 2015 Balance Sheet: Construction in progress - real estate $ 318 $ 277 Property and equipment, net 11,702 11,806 Cash 910 570 Accounts receivable 63 3 Other 998 1,008 Total assets $ 13,991 $ 13,664 Accounts payable $ 83 $ 125 Construction loan 8,086 8,063 Other liabilities 267 157 Members’ capital 5,555 5,319 Total liabilities and members’ capital $ 13,991 $ 13,664 Investment in unconsolidated joint venture, at equity $ 5,015 $ 4,787 Real Estate Investments Real estate investments include one Acquisition, Development and Construction Loan Arrangement (“ADC Arrangement”), office and retail space that is leased to tenants, wet and dry boat storage, one restaurant, and fuel services with respect to marina clients and recreational boaters. Real estate investments consist of the following as of June 30, 2016 and December 31, 2015. June 30, December 31, 2016 2015 Land $ 13,134 $ 13,134 Land improvements 1,516 1,505 Buildings 3,131 3,116 Other 5,298 4,429 Total, at cost 23,079 22,184 Less: accumulated depreciation and amortization (1,618 ) (1,430 ) Real estate, net 21,461 20,754 ADC Arrangement classified as real estate investment 10,200 10,200 Real estate investments $ 31,661 $ 30,954 Depreciation and amortization expense related to real estate investments was $95 and $90 for the three months ended June 30, 2016 and 2015, respectively, and $188 and $193 for the six months ended June 30, 2016 and 2015, respectively. ADC Arrangement At June 30, 2016 and December 31, 2015, the Company’s maximum exposure to loss relating to this variable interest was $10,200, representing the carrying value of the ADC Arrangement. Management believes the credit risk associated with the ADC Arrangement is mitigated by the collateral used to secure the loan. As such, there were no credit loss allowances established as of June 30, 2016 and December 31, 2015. Variable Interest Entity The Company has an ongoing development project in Riverview, Florida through a joint venture in which the Company’s subsidiary has a controlling financial interest and, as a result, it is the primary beneficiary. The following table summarizes the assets and liabilities related to the Company’s consolidated variable interest entity which are included in the accompanying consolidated balance sheets. June 30, December 31, 2016 2015 Cash and cash equivalents $ 25 $ 57 Real estate investments $ 2,958 $ 2,906 Other assets $ 3 $ — Accrued expenses $ 25 $ 21 Other liabilities $ 1,158 $ 1,108 Net Investment Income Net investment income (loss), by source, is summarized as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Available-for-sale securities: Fixed-maturity securities $ 1,142 $ 1,051 $ 2,258 $ 1,877 Equity securities 784 869 1,735 1,796 Investment expense (161 ) (167 ) (323 ) (312 ) Limited partnership investments (196 ) (197 ) (1,065 ) (462 ) Real estate investments (112 ) 62 145 (21 ) Cash and cash equivalents 257 162 442 297 Other 11 15 23 29 Net investment income $ 1,725 $ 1,795 $ 3,215 $ 3,204 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4 — Fair Value Measurements The Company records and discloses certain financial assets at their estimated fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets; Level 2 - Other inputs that are observable for the asset and the liability, either directly or indirectly such as quoted prices for identical assets and liabilities that are not observable throughout the full term; and 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 3 — “Investments” under ADC Arrangement Limited Partnership Investments As described in Note 3 — “Investments” under Limited Partnership Investments Long-term debt Long-term debt includes the Company’s 8% senior notes due 2020, 3.875% convertible senior notes due 2019 and 4% promissory note due through 2031. 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 at each balance sheet date. The 3.875% convertible senior notes were sold in a private offering. The fair values of the 3.875% convertible senior notes and the 4% promissory note are 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 table presents information about the Company’s financial assets measured at estimated fair value on a recurring basis. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of June 30, 2016 and December 31, 2015: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of June 30, 2016 Financial Assets: Cash and cash equivalents $ 309,274 $ — $ — $ 309,274 Fixed-maturity securities: U.S. Treasury and U.S. government agencies 1,008 — — 1,008 Corporate bonds 41,781 984 — 42,765 State, municipalities, and political subdivisions — 80,132 — 80,132 Exchange-traded debt 11,418 — — 11,418 Redeemable preferred stock 384 — — 384 Total fixed-maturity securities 54,591 81,116 — 135,707 Equity securities 49,712 — — 49,712 Total available-for-sale securities 104,303 81,116 — 185,419 Total $ 413,577 $ 81,116 $ — $ 494,693 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 Exchange-traded debt 9,429 — — 9,429 Redeemable preferred stock 324 — — 324 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 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 June 30, 2016 and December 31, 2015. Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of June 30, 2016 Financial Assets: Limited partnership investments $ 25,269 $ — $ — $ 25,269 $ 25,269 ADC Arrangement classified as real estate investment $ 10,200 $ — $ — $ 10,187 $ 10,187 Financial Liabilities: Long-term debt: 8% Senior notes $ 39,337 $ — $ 41,818 $ — $ 41,818 3.875% Convertible senior notes 80,368 — — 83,616 83,616 4% Promissory note 8,418 — — 9,083 9,083 Total long-term debt $ 128,123 $ — $ 41,818 $ 92,699 $ 134,517 Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of December 31, 2015 Financial Assets: Limited partnership investments $ 23,930 $ — $ — $ 23,930 $ 23,930 ADC Arrangement classified as real estate investment $ 10,200 $ — $ — $ 10,140 $ 10,140 Financial Liabilities: Long-term debt: 8% Senior notes $ 39,231 $ — $ 41,103 $ — $ 41,103 3.875% Convertible senior notes 90,198 — — 92,782 92,782 Total long-term debt $ 129,429 $ — $ 41,103 $ 92,782 $ 133,885 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Note 5 — Other Assets The following table summarizes the Company’s other assets: June 30, 2016 December 31, 2015 Benefits receivable related to retrospective reinsurance contracts $ 6,546 $ 35,716 Deferred costs related to retrospective reinsurance contracts — 460 Prepaid expenses 2,140 904 Restricted cash 600 300 Other 1,494 1,748 Total other assets $ 10,780 $ 39,128 In June 2016, the Company received cash payments totaling $37,800 under the terms of the retrospective reinsurance contracts which terminated May 31, 2016. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6 — Long-Term Debt The following table summarizes the Company’s long-term debt: June 30, December 31, 8% Senior Notes, due January 30, 2020 $ 40,250 $ 40,250 3.875% Convertible Senior Notes, due March 15, 2019 89,990 103,000 4% Promissory note, due through February 1, 2031 9,050 — Total principal amount 139,290 143,250 Less: unamortized discount and issuance costs (10,704 ) (13,821 ) Total $ 128,586 $ 129,429 Less: current portion* (463 ) — Total long-term debt $ 128,123 $ 129,429 * Included in other liabilities. As of June 30, 2016, future maturities of long-term debt are as follows: Due in 12 months following June 30, 2016 $ 463 2017 482 2018 90,492 2019 40,772 2020 543 Thereafter 6,538 Total $ 139,290 For the three months ended June 30, 2016 and 2015, interest expense included the contractual interest coupon, discount amortization and amortization of issuance costs aggregating $2,611 and $2,679, respectively, the amounts of which included non-cash interest expense of $844 and $876, respectively. For the six months ended June 30, 2016 and 2015, interest expense of $5,440 and $5,340, respectively, included non-cash interest expense of $1,784 and $1,734, respectively. As of June 30, 2016, the remaining amortization period of the debt discount was 2.7 years. 4% Promissory Note 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 is collateralized by the Company’s Tampa, Florida real estate, which is owned by HCPCI Holdings, and the lease agreements associated with this property. The loan bears a fixed annual interest rate of 4%. Approximately $68 of principal and interest is payable in 180 monthly installments beginning March 1, 2016. The promissory note may be repaid in full after February 1, 2017 as long as the Company provides at least 60 days’ written notice and pays a prepayment premium as specified in the loan agreement. The proceeds will be used for real estate development projects or other general business purposes. 3.875% Convertible Senior Notes Conversion Rate 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 June 30, 2016, each $1 of the Company’s convertible notes would have been convertible into 16.0705 shares of common stock, which was the equivalent of approximately $62.23 per share. Repurchases of Convertible Senior Notes During the first quarter of 2016, the Company repurchased an aggregate of $13,010 in principal of its 3.875% convertible senior notes in privately negotiated transactions for cash in the amount of $11,347, inclusive of $81 in commissions. As a result, the Company recognized a $153 gain on extinguishment net of $1,591 in unamortized debt discount and issuance costs and commissions associated with the notes that were repurchased during the first quarter of 2016. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2016 | |
Insurance [Abstract] | |
Reinsurance | Note 7 — Reinsurance The Company cedes a portion of its homeowners’ insurance exposure to other entities under catastrophe excess of loss reinsurance treaties and one quota share agreement. 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 enters into reinsurance treaties with highly rated and reputable reinsurers and it evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1st each year. The Company purchases reinsurance each year taking into consideration probable maximum losses and reinsurance market conditions. The impact of the reinsurance treaties on premiums written and earned is as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Premiums Written: Direct $ 139,761 $ 156,151 $ 215,400 $ 238,140 Assumed (280 ) (841 ) (359 ) (1,376 ) Gross written 139,481 155,310 215,041 236,764 Ceded (36,384 ) (31,378 ) (76,756 ) (59,217 ) Net premiums written $ 103,097 $ 123,932 $ 138,285 $ 177,547 Premiums Earned: Direct $ 94,046 $ 87,196 $ 190,899 $ 170,802 Assumed 866 20,569 2,832 46,530 Gross earned 94,912 107,765 193,731 217,332 Ceded (36,384 ) (31,378 ) (76,756 ) (59,217 ) Net premiums earned $ 58,528 $ 76,387 $ 116,975 $ 158,115 During the three and six months ended June 30, 2016 and 2015, there were no recoveries pertaining to reinsurance contracts that were deducted from losses incurred. At June 30, 2016 and December 31, 2015, there were 35 and 21 reinsurers, respectively, participating in the Company’s reinsurance program. There were no amounts receivable with respect to reinsurers at June 30, 2016 and December 31, 2015. Thus, there were no concentrations of credit risk associated with reinsurance receivables as of June 30, 2016 and December 31, 2015. In addition, based on the insurance ratings and the financial strength of the reinsurers, management believes there was no credit risk associated with its reinsurers’ obligations to perform on any prepaid reinsurance contract as of June 30, 2016 and December 31, 2015. Certain of the reinsurance contracts include retrospective provisions that adjust premiums or increase the amount of future coverage in the event losses are minimal or zero. Effective June 1, 2016, retrospective provisions include premium adjustments only. These adjustments are reflected in the consolidated statements of income as net reductions in ceded premiums of $3,001 and $6,241 for the three months ended June 30, 2016 and 2015, respectively, of which $413 and $1,520 relates to the Company’s contract with Oxbridge Reinsurance Limited (see Note 14 — Related Party Transactions). For the six months ended June 30, 2016 and 2015, these adjustments were $5,822 and $12,614, respectively, of which $740 and $2,125 relates to the Company’s contract with Oxbridge. In June 2016, the Company received a total of $37,800 in cash benefits related to two retrospective reinsurance contracts that terminated May 31, 2016 of which $7,560 was received from Oxbridge. At June 30, 2016 and December 31, 2015, other assets included $6,546 and $36,176, respectively, and prepaid reinsurance premiums included $277 and $2,625, respectively, which are related to these adjustments. Management believes the credit risk associated with the collectability of these accrued benefits is minimal as the amount receivable is concentrated with one reinsurer and the Company monitors the creditworthiness of this reinsurer based on available information about the reinsurer’s financial position. |
Losses and Loss Adjustment Expe
Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2016 | |
Insurance [Abstract] | |
Losses and Loss Adjustment Expenses | Note 8 — Losses and Loss Adjustment Expenses The liability for losses and loss adjustment expenses is determined on an individual case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claim development and losses incurred, but not reported. Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Balance, beginning of period $ 53,271 $ 51,177 $ 51,690 $ 48,908 Incurred related to: Current period 20,803 20,222 47,420 39,054 Prior period 5,469 343 5,932 550 Total incurred 26,272 20,565 53,352 39,604 Paid related to: Current period (14,239 ) (10,256 ) (22,596 ) (15,052 ) Prior period (10,577 ) (7,157 ) (27,719 ) (19,131 ) Total paid (24,816 ) (17,413 ) (50,315 ) (34,183 ) Balance, end of period $ 54,727 $ 54,329 $ 54,727 $ 54,329 The establishment of loss reserves is an inherently uncertain process and changes in loss reserve estimates are expected as these estimates are subject to the outcome of future events. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such estimates are adjusted. During the three and six months ended June 30, 2016, the Company experienced unfavorable development of $5,469 and $5,932, respectively, attributable to the settlement and further development of older claims and an increase in late reported claims, primarily claims related to the 2015 loss year. 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 quarterly results and cause a temporary disruption of the normal operations of the Company. However, the Company is unable to predict the frequency or severity of any such events that |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 — Income Taxes During the three months ended June 30, 2016 and 2015, the Company recorded approximately $4,205 and $13,561, respectively, of income taxes, which resulted in effective tax rates of 37.4% and 38.1%, respectively. During the six months ended June 30, 2016 and 2015, the Company recorded approximately $7,846 and $29,229, respectively, of income taxes, which resulted in estimated annual effective tax rates of 37.5% and 38.1%, respectively. The decrease in the 2016 effective tax rate was primarily attributable to an increase in interest income earned from tax-exempt securities relative to overall book income. The Company’s estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes as well as certain nondeductible and tax-exempt items. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 10 — Earnings Per Share U.S. GAAP requires the Company to use the two-class method in computing basic earnings per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities affect the computation of both basic and diluted earnings per share during periods of net income. A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below. Three Months Ended Three Months Ended June 30, 2016 June 30, 2015 Income Shares Per Share Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net income $ 7,024 $ 22,022 Less: Income attributable to participating securities (306 ) (1,231 ) Basic Earnings Per Share: Income allocated to common stockholders 6,718 9,399 $ 0.71 20,791 9,580 $ 2.17 Effect of Dilutive Securities: Stock options — 62 — 115 Convertible senior notes 1,018 1,446 1,121 1,650 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 7,736 10,907 $ 0.71 $ 21,912 11,345 $ 1.93 Net income $ 13,080 $ 47,400 Less: Income attributable to participating securities (608 ) (2,730 ) Basic Earnings Per Share: Income allocated to common stockholders 12,472 9,489 $ 1.31 44,670 9,560 $ 4.67 Effect of Dilutive Securities: Stock options — 62 — 125 Convertible senior notes* — — 2,231 1,649 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 12,472 9,551 $ 1.31 $ 46,901 11,334 $ 4.14 * Excluded in 2016 due to anti-dilutive effect. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Note 11 — Stockholders’ Equity Common Stock In December 2015, the Company’s Board of Directors authorized a one-year plan to repurchase up to $20,000 of the Company’s common shares before commissions and fees. During the three months ended June 30, 2016, the Company repurchased and retired a total of 189,938 shares at a weighted average price per share of $31.59 under this authorized repurchase plan. The total cost of shares repurchased, inclusive of fees and commissions, during the three months ended June 30, 2016 was $6,008, or $31.63 per share. During the six months ended June 30, 2016, the Company repurchased and retired a total of 376,796 shares at a weighted average price per share of $31.85. The total cost of shares repurchased, inclusive of fees and commissions, during the six months ended June 30, 2016 was $12,015, or $31.89 per share. In 2014, the Company’s Board of Directors authorized a plan to repurchase up to $40,000 of the Company’s common shares before commissions and fees. This one-year repurchase plan expired March 31, 2015; therefore, there were no shares repurchased during the three months ended June 30, 2015. During the six months ended June 30, 2015, the Company repurchased and retired a total of 37,869 shares at a weighted average price per share of $42.49. The total cost of shares repurchased, inclusive of fees and commissions, during the six months ended June 30, 2015 was $1,610, or $42.51 per share. On July 8, 2016, the Company’s Board of Directors declared a quarterly dividend of $0.30 per common share. The dividends are payable on September 16, 2016 to shareholders of record on August 19, 2016. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note 12 — Stock-Based Compensation Incentive Plans The Company currently has outstanding stock-based awards granted under the 2007 Stock Option and Incentive Plan and the 2012 Omnibus Incentive Plan. Only the 2012 Plan is active and available for future grants. At June 30, 2016, there were 4,269,424 shares available for grant. Stock Options Stock options granted and outstanding under the incentive plans vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years. A summary of the stock option activity for the three and six months ended June 30, 2016 and 2015 is as follows (option amounts not in thousands): Number of Weighted Weighted Aggregate Outstanding at January 1, 2016 110,000 $ 3.19 2.3 years $ 3,482 Outstanding at March 31, 2016 110,000 $ 3.19 2.1 years $ 3,312 Outstanding at June 30, 2016 110,000 $ 3.19 1.8 years $ 2,650 Exercisable at June 30, 2016 110,000 $ 3.19 1.8 years $ 2,650 Outstanding at January 1, 2015 230,000 $ 3.00 3.0 years $ 9,256 Outstanding at March 31, 2015 230,000 $ 3.00 2.8 years $ 9,861 Exercised (80,000 ) $ 2.50 Outstanding at June 30, 2015 150,000 $ 3.26 2.9 years $ 6,142 Exercisable at June 30, 2015 150,000 $ 3.26 2.9 years $ 6,142 There were no options exercised during the three and six months ended June 30, 2016. For the three and six months ended June 30, 2015, the Company recognized aggregate tax benefits of $1,192 for 80,000 options exercised of which the aggregate intrinsic value was $3,188. Restricted Stock Awards From time to time, the Company has granted and may grant restricted stock awards to its 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 concerning only performance or service-based conditions is based on the market value of the Company’s common stock on the grant date. Information with respect to the activity of unvested restricted stock awards during the three and six months ended June 30, 2016 and 2015 is as follows: Number of Weighted Fair Value Nonvested at January 1, 2016 620,513 $ 30.33 Vested (20,917 ) $ 48.42 Cancelled (160,000 ) $ 26.27 Forfeited (750 ) $ 45.25 Nonvested at March 31, 2016 438,846 $ 30.93 Granted 102,440 $ 32.21 Vested (24,235 ) $ 37.34 Forfeited (5,147 ) $ 42.20 Nonvested at June 30, 2016 511,904 $ 30.77 Nonvested at January 1, 2015 639,705 $ 28.33 Vested (41,695 ) $ 36.15 Forfeited (1,088 ) $ 48.42 Nonvested at March 31, 2015 596,922 $ 27.75 Granted 83,260 $ 44.46 Vested (16,000 ) $ 13.48 Forfeited (33,324 ) $ 23.20 Nonvested at June 30, 2015 630,858 $ 30.55 The Company recognized compensation expense related to restricted stock, which is included in other operating expenses, of $967 and $1,381 for the three months ended June 30, 2016 and 2015, respectively, and $1,948 and $2,789 for the six months ended June 30, 2016 and 2015, respectively. At June 30, 2016 and 2015, there was approximately $8,741 and $10,442, 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 and paid dividends, and the fair value of vested restricted stock for the three and six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Deferred tax benefits recognized $ 372 $ 532 $ 751 $ 1,076 Tax benefits realized for restricted stock and paid dividends $ 81 $ 240 $ 131 $ 499 Fair value of vested restricted stock $ 905 $ 216 $ 1,918 $ 1,723 During the three and six months ended June 30, 2016, no awards were issued with other than time-based vesting conditions. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 — Commitments and Contingencies Obligations under Multi-Year Reinsurance Contracts As of June 30, 2016, the Company has contractual obligations related to multi-year reinsurance contracts. These contracts were effective June 1, 2016 and may be cancelled only with the other party’s consent. The future minimum aggregate premiums payable to these reinsurers is $19,400 due in each of the twelve-month periods following June 30, 2016 and 2017. Capital Commitment As described in Note 3 — “Investments” under Limited Partnership Investments Premium Tax In September 2013, the Company received a notice of intent to make audit adjustments from the Florida Department of Revenue in connection with the Department’s audit of the Company’s premium tax returns for the three-year period ended December 31, 2012. The auditor’s proposed adjustments primarily 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. Such filings were expected to yield a refund of reemployment taxes paid by the Company. In December 2015, the Department issued its Notice of Decision indicating the Company owed approximately $38 in full settlement of the premium tax and related interest, which the Company paid in February 2016. The Company received refunds totaling $57 related to its reemployment tax filings specific to the period for which the Company was required to file and pay the subsidiary reemployment tax returns as part of the negotiated settlement. As a result, the Company realized a net benefit of $19. Management believes this matter is fully resolved. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14 — Related Party Transactions Claddaugh Casualty Insurance Company, Ltd., the Company’s Bermuda domiciled reinsurance subsidiary has a reinsurance agreement with Oxbridge Reinsurance Limited whereby a portion of the business assumed from the Company’s insurance subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., is ceded by Claddaugh to Oxbridge. 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. With respect to the period from June 1, 2016 through May 31, 2017, Oxbridge assumed $6,000 of the total covered exposure for approximately $3,400 in premiums. See Note 7 — Reinsurance – which includes the amounts due from and paid by Oxbridge during the six months ended June 30, 2016 and 2015 with respect to benefits accrued in connection with the Oxbridge agreements. The premiums charged by Oxbridge are at rates which management believes to be competitive with market rates available to Claddaugh. Oxbridge has deposited funds into a trust account to satisfy certain collateral requirements under its reinsurance contract with Claddaugh. Trust assets may be withdrawn by Claddaugh, the trust beneficiary, in the event amounts are due under the Oxbridge reinsurance agreements. Among the Oxbridge shareholders are Paresh Patel, the Company’s chief executive officer, who is also chairman of the board of directors for Oxbridge, and members of his immediate family and three of the Company’s non-employee directors including Sanjay Madhu who serves as Oxbridge’s president and chief executive officer. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited, consolidated financial statements for HCI Group, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of June 30, 2016 and the results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2016. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2015 included in the Company’s Form 10-K, which was filed with the SEC on March 4, 2016. In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies for reinsurance contracts with retrospective provisions, deferred income taxes, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements. All significant intercompany balances and transactions have been eliminated. |
Reclassifications | Reclassifications. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities | At June 30, 2016 and December 31, 2015, 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 Value As of June 30, 2016 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ 969 $ 39 $ — $ 1,008 Corporate bonds 43,807 915 (1,957 ) 42,765 State, municipalities, and political subdivisions 76,882 3,387 (137 ) 80,132 Exchange-traded debt 11,297 349 (228 ) 11,418 Redeemable preferred stock 367 17 — 384 Total 133,322 4,707 (2,322 ) 135,707 Equity securities 46,045 4,507 (840 ) 49,712 Total available-for-sale securities $ 179,367 $ 9,214 $ (3,162 ) $ 185,419 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 Exchange-traded debt 9,817 177 (565 ) 9,429 Redeemable preferred stock 317 8 (1 ) 324 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 |
Scheduled Contractual Maturities of Fixed-Maturity Securities | The scheduled contractual maturities of fixed-maturity securities as of June 30, 2016 and December 31, 2015 are as follows: Amortized Estimated As of June 30, 2016 Available-for-sale Due in one year or less $ 4,119 $ 4,093 Due after one year through five years 37,183 37,714 Due after five years through ten years 68,543 68,782 Due after ten years 23,477 25,118 $ 133,322 $ 135,707 Amortized Estimated As of December 31, 2015 Available-for-sale Due in one year or less $ 3,282 $ 3,292 Due after one year through five years 32,833 32,651 Due after five years through ten years 71,120 67,113 Due after ten years 21,379 21,953 $ 128,614 $ 125,009 |
Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available for Sale Securities | Sales of Available-for-Sale Securities Proceeds received, and the gross realized gains and losses from sales of available-for-sale securities, for the three and six months ended June 30, 2016 and 2015 were as follows: Proceeds Gross Gross Three months ended June 30, 2016 Fixed-maturity securities $ 32,424 $ 376 $ — Equity securities $ 4,801 $ 220 $ (205 ) Three months ended June 30, 2015 Fixed-maturity securities $ 1,051 $ 1 $ (24 ) Equity securities $ 3,239 $ 121 $ (172 ) Six months ended June 30, 2016 Fixed-maturity securities $ 33,524 $ 383 $ — Equity securities $ 9,155 $ 359 $ (426 ) Six months ended June 30, 2015 Fixed-maturity securities $ 3,285 $ 59 $ (30 ) Equity securities $ 7,994 $ 329 $ (625 ) |
Rollforward of Cumulative Credit Losses in Other-Than-Temporary Impairment Losses Recognized in Income from Available for Sale Fixed-Maturity Securities | The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairment losses recognized in income from available for sale fixed-maturity securities: 2016 2015 Balance at January 1 $ 111 $ — Additional credit impairments on previously impaired securities 293 — Balance at March 31 404 — Credit impaired security fully disposed of for which there was no prior intent or requirement to sell (385 ) — Reduction due to increase in expected cash flows recognized over the remaining life of the previously impaired security (19 ) Balance at June 30 $ — $ — |
Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category | Securities with gross unrealized loss positions at June 30, 2016 and December 31, 2015, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Twelve Months or Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair Loss Value Loss Value Loss Value As of June 30, 2016 Fixed-maturity securities Corporate bonds $ (440 ) $ 8,210 $ (1,517 ) $ 14,312 $ (1,957 ) $ 22,522 State, municipalities, and political subdivisions (88 ) 5,385 (49 ) 1,366 (137 ) 6,751 Exchange-traded debt (188 ) 3,823 (40 ) 1,960 (228 ) 5,783 Total fixed-maturity securities (716 ) 17,418 (1,606 ) 17,638 (2,322 ) 35,056 Equity securities (689 ) 8,083 (151 ) 2,848 (840 ) 10,931 Total available-for-sale securities $ (1,405 ) $ 25,501 $ (1,757 ) $ 20,486 $ (3,162 ) $ 45,987 At June 30, 2016, there were 78 securities in an unrealized loss position. Of these securities, 24 securities had been in an unrealized loss position for 12 months or greater. Less Than Twelve 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 Exchange-traded debt (565 ) 5,559 — — (565 ) 5,559 Redeemable preferred stock (1 ) 129 — — (1 ) 129 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 |
Schedule of Company's Investments in Limited Partnerships | The following table provides information related to the Company’s investments in limited partnerships. June 30, 2016 December 31, 2015 Carrying Unfunded Carrying Unfunded Value Balance (%) Value Balance (%) Investment Strategy 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) $ 5,005 $ 7,888 16.50 $ 4,774 $ 7,888 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) 6,377 1,360 1.76 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) 10,714 — 65.74 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) 3,173 6,528 0.18 2,754 7,016 0.18 Total $ 25,269 $ 15,776 $ 23,930 $ 18,224 (a) Represents the Company’s percentage investment in the fund at each 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. (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 following tables provide FMKT Mel JV’s summarized unaudited financial results for the three and six months ended June 30, 2016 and 2015 and its unaudited financial positions at June 30, 2016 and December 31, 2015: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Operating results: Total revenues and gain $ 181 $ — $ 714 $ — Total expenses (247 ) — (483 ) (1 ) Net (loss) income $ (66 ) $ — $ 231 $ (1 ) The Company’s share of net (loss) income* $ (59 ) $ (1 ) $ 228 $ (1 ) * Included in net investment income in the Company’s consolidated statements of income. June 30, December 31, 2016 2015 Balance Sheet: Construction in progress - real estate $ 318 $ 277 Property and equipment, net 11,702 11,806 Cash 910 570 Accounts receivable 63 3 Other 998 1,008 Total assets $ 13,991 $ 13,664 Accounts payable $ 83 $ 125 Construction loan 8,086 8,063 Other liabilities 267 157 Members’ capital 5,555 5,319 Total liabilities and members’ capital $ 13,991 $ 13,664 Investment in unconsolidated joint venture, at equity $ 5,015 $ 4,787 |
Summary of Real Estate Investment | Real estate investments consist of the following as of June 30, 2016 and December 31, 2015. June 30, December 31, 2016 2015 Land $ 13,134 $ 13,134 Land improvements 1,516 1,505 Buildings 3,131 3,116 Other 5,298 4,429 Total, at cost 23,079 22,184 Less: accumulated depreciation and amortization (1,618 ) (1,430 ) Real estate, net 21,461 20,754 ADC Arrangement classified as real estate investment 10,200 10,200 Real estate investments $ 31,661 $ 30,954 |
Investment (Loss) Income Summarized | Net investment income (loss), by source, is summarized as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Available-for-sale securities: Fixed-maturity securities $ 1,142 $ 1,051 $ 2,258 $ 1,877 Equity securities 784 869 1,735 1,796 Investment expense (161 ) (167 ) (323 ) (312 ) Limited partnership investments (196 ) (197 ) (1,065 ) (462 ) Real estate investments (112 ) 62 145 (21 ) Cash and cash equivalents 257 162 442 297 Other 11 15 23 29 Net investment income $ 1,725 $ 1,795 $ 3,215 $ 3,204 |
Variable Interest Entity [Member] | |
Summary of Unaudited Financial Information and Unaudited Financial Position | The following table summarizes the assets and liabilities related to the Company’s consolidated variable interest entity which are included in the accompanying consolidated balance sheets. June 30, December 31, 2016 2015 Cash and cash equivalents $ 25 $ 57 Real estate investments $ 2,958 $ 2,906 Other assets $ 3 $ — Accrued expenses $ 25 $ 21 Other liabilities $ 1,158 $ 1,108 |
Limited Partnership [Member] | |
Summary of Unaudited Financial Information and Unaudited Financial Position | The following is the aggregated summarized unaudited financial information of limited partnerships, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. In applying the equity method of accounting, the Company uses the most recently available financial information provided by each general partner. The financial statements of these limited partnerships are audited annually. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Operating results: Total income $ (6,987 ) $ (4,577 ) $ (23,069 ) $ (4,838 ) Total expenses (27,401 ) (254 ) (130,022 ) (957 ) Net loss $ (34,388 ) $ (4,831 ) $ (153,091 ) $ (5,795 ) June 30, December 31, 2016 2015 Balance Sheet: Total assets $ 2,738,232 $ 288,351 Total liabilities $ 526,467 $ 28,105 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Estimated Fair Value on a Recurring Basis | The following table presents information about the Company’s financial assets measured at estimated fair value on a recurring basis. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of June 30, 2016 and December 31, 2015: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of June 30, 2016 Financial Assets: Cash and cash equivalents $ 309,274 $ — $ — $ 309,274 Fixed-maturity securities: U.S. Treasury and U.S. government agencies 1,008 — — 1,008 Corporate bonds 41,781 984 — 42,765 State, municipalities, and political subdivisions — 80,132 — 80,132 Exchange-traded debt 11,418 — — 11,418 Redeemable preferred stock 384 — — 384 Total fixed-maturity securities 54,591 81,116 — 135,707 Equity securities 49,712 — — 49,712 Total available-for-sale securities 104,303 81,116 — 185,419 Total $ 413,577 $ 81,116 $ — $ 494,693 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 Exchange-traded debt 9,429 — — 9,429 Redeemable preferred stock 324 — — 324 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 |
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 June 30, 2016 and December 31, 2015. Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of June 30, 2016 Financial Assets: Limited partnership investments $ 25,269 $ — $ — $ 25,269 $ 25,269 ADC Arrangement classified as real estate investment $ 10,200 $ — $ — $ 10,187 $ 10,187 Financial Liabilities: Long-term debt: 8% Senior notes $ 39,337 $ — $ 41,818 $ — $ 41,818 3.875% Convertible senior notes 80,368 — — 83,616 83,616 4% Promissory note 8,418 — — 9,083 9,083 Total long-term debt $ 128,123 $ — $ 41,818 $ 92,699 $ 134,517 Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of December 31, 2015 Financial Assets: Limited partnership investments $ 23,930 $ — $ — $ 23,930 $ 23,930 ADC Arrangement classified as real estate investment $ 10,200 $ — $ — $ 10,140 $ 10,140 Financial Liabilities: Long-term debt: 8% Senior notes $ 39,231 $ — $ 41,103 $ — $ 41,103 3.875% Convertible senior notes 90,198 — — 92,782 92,782 Total long-term debt $ 129,429 $ — $ 41,103 $ 92,782 $ 133,885 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | The following table summarizes the Company’s other assets: June 30, 2016 December 31, 2015 Benefits receivable related to retrospective reinsurance contracts $ 6,546 $ 35,716 Deferred costs related to retrospective reinsurance contracts — 460 Prepaid expenses 2,140 904 Restricted cash 600 300 Other 1,494 1,748 Total other assets $ 10,780 $ 39,128 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | The following table summarizes the Company’s long-term debt: June 30, December 31, 8% Senior Notes, due January 30, 2020 $ 40,250 $ 40,250 3.875% Convertible Senior Notes, due March 15, 2019 89,990 103,000 4% Promissory note, due through February 1, 2031 9,050 — Total principal amount 139,290 143,250 Less: unamortized discount and issuance costs (10,704 ) (13,821 ) Total $ 128,586 $ 129,429 Less: current portion* (463 ) — Total long-term debt $ 128,123 $ 129,429 * Included in other liabilities. |
Summary of Future Maturities of Long-Term Debt | As of June 30, 2016, future maturities of long-term debt are as follows: Due in 12 months following June 30, 2016 $ 463 2017 482 2018 90,492 2019 40,772 2020 543 Thereafter 6,538 Total $ 139,290 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Insurance [Abstract] | |
Impact of the Reinsurance Treaties on Premiums Written and Earned | The impact of the reinsurance treaties on premiums written and earned is as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Premiums Written: Direct $ 139,761 $ 156,151 $ 215,400 $ 238,140 Assumed (280 ) (841 ) (359 ) (1,376 ) Gross written 139,481 155,310 215,041 236,764 Ceded (36,384 ) (31,378 ) (76,756 ) (59,217 ) Net premiums written $ 103,097 $ 123,932 $ 138,285 $ 177,547 Premiums Earned: Direct $ 94,046 $ 87,196 $ 190,899 $ 170,802 Assumed 866 20,569 2,832 46,530 Gross earned 94,912 107,765 193,731 217,332 Ceded (36,384 ) (31,378 ) (76,756 ) (59,217 ) Net premiums earned $ 58,528 $ 76,387 $ 116,975 $ 158,115 |
Losses and Loss Adjustment Ex28
Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Balance, beginning of period $ 53,271 $ 51,177 $ 51,690 $ 48,908 Incurred related to: Current period 20,803 20,222 47,420 39,054 Prior period 5,469 343 5,932 550 Total incurred 26,272 20,565 53,352 39,604 Paid related to: Current period (14,239 ) (10,256 ) (22,596 ) (15,052 ) Prior period (10,577 ) (7,157 ) (27,719 ) (19,131 ) Total paid (24,816 ) (17,413 ) (50,315 ) (34,183 ) Balance, end of period $ 54,727 $ 54,329 $ 54,727 $ 54,329 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Summary of Numerator and Denominator of Basic and Diluted Earnings Per Common Share | A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below. Three Months Ended Three Months Ended June 30, 2016 June 30, 2015 Income Shares Per Share Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net income $ 7,024 $ 22,022 Less: Income attributable to participating securities (306 ) (1,231 ) Basic Earnings Per Share: Income allocated to common stockholders 6,718 9,399 $ 0.71 20,791 9,580 $ 2.17 Effect of Dilutive Securities: Stock options — 62 — 115 Convertible senior notes 1,018 1,446 1,121 1,650 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 7,736 10,907 $ 0.71 $ 21,912 11,345 $ 1.93 Net income $ 13,080 $ 47,400 Less: Income attributable to participating securities (608 ) (2,730 ) Basic Earnings Per Share: Income allocated to common stockholders 12,472 9,489 $ 1.31 44,670 9,560 $ 4.67 Effect of Dilutive Securities: Stock options — 62 — 125 Convertible senior notes* — — 2,231 1,649 Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 12,472 9,551 $ 1.31 $ 46,901 11,334 $ 4.14 * Excluded in 2016 due to anti-dilutive effect. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Company's Stock Option Plan Activity | A summary of the stock option activity for the three and six months ended June 30, 2016 and 2015 is as follows (option amounts not in thousands): Number of Weighted Weighted Aggregate Outstanding at January 1, 2016 110,000 $ 3.19 2.3 years $ 3,482 Outstanding at March 31, 2016 110,000 $ 3.19 2.1 years $ 3,312 Outstanding at June 30, 2016 110,000 $ 3.19 1.8 years $ 2,650 Exercisable at June 30, 2016 110,000 $ 3.19 1.8 years $ 2,650 Outstanding at January 1, 2015 230,000 $ 3.00 3.0 years $ 9,256 Outstanding at March 31, 2015 230,000 $ 3.00 2.8 years $ 9,861 Exercised (80,000 ) $ 2.50 Outstanding at June 30, 2015 150,000 $ 3.26 2.9 years $ 6,142 Exercisable at June 30, 2015 150,000 $ 3.26 2.9 years $ 6,142 |
Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan | Information with respect to the activity of unvested restricted stock awards during the three and six months ended June 30, 2016 and 2015 is as follows: Number of Weighted Fair Value Nonvested at January 1, 2016 620,513 $ 30.33 Vested (20,917 ) $ 48.42 Cancelled (160,000 ) $ 26.27 Forfeited (750 ) $ 45.25 Nonvested at March 31, 2016 438,846 $ 30.93 Granted 102,440 $ 32.21 Vested (24,235 ) $ 37.34 Forfeited (5,147 ) $ 42.20 Nonvested at June 30, 2016 511,904 $ 30.77 Nonvested at January 1, 2015 639,705 $ 28.33 Vested (41,695 ) $ 36.15 Forfeited (1,088 ) $ 48.42 Nonvested at March 31, 2015 596,922 $ 27.75 Granted 83,260 $ 44.46 Vested (16,000 ) $ 13.48 Forfeited (33,324 ) $ 23.20 Nonvested at June 30, 2015 630,858 $ 30.55 |
Information about Deferred Tax Benefits Recognized Related to Restricted Stock Awards, Paid Dividends and the Fair Value of Vested Restricted Stock | The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the three and six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Deferred tax benefits recognized $ 372 $ 532 $ 751 $ 1,076 Tax benefits realized for restricted stock and paid dividends $ 81 $ 240 $ 131 $ 499 Fair value of vested restricted stock $ 905 $ 216 $ 1,918 $ 1,723 |
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 | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | $ 133,322 | $ 128,614 |
Equity securities, Cost or Amortized Cost | 46,045 | 47,548 |
Total available-for-sale securities, Cost or Amortized Cost | 179,367 | 176,162 |
Total available-for-sale securities, Gross Unrealized Gain | 4,707 | 1,896 |
Total available-for-sale securities, Gross Unrealized Gain | 4,507 | 2,139 |
Total available-for-sale securities, Gross Unrealized Gain | 9,214 | 4,035 |
Total available-for-sale securities, Gross Unrealized Loss | (2,322) | (5,501) |
Total available-for-sale securities, Gross Unrealized Loss | (840) | (1,450) |
Total available-for-sale securities, Gross Unrealized Loss | (3,162) | (6,951) |
Fixed-maturity securities, Estimated Fair Value | 135,707 | 125,009 |
Equity securities, Estimated Fair Value | 49,712 | 48,237 |
Total available-for-sale securities, Estimated Fair Value | 185,419 | 173,246 |
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 | 969 | 108 |
Total available-for-sale securities, Gross Unrealized Gain | 39 | 5 |
Fixed-maturity securities, Estimated Fair Value | 1,008 | 113 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 43,807 | 42,560 |
Total available-for-sale securities, Gross Unrealized Gain | 915 | 74 |
Total available-for-sale securities, Gross Unrealized Loss | (1,957) | (4,815) |
Fixed-maturity securities, Estimated Fair Value | 42,765 | 37,819 |
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 | 76,882 | 75,812 |
Total available-for-sale securities, Gross Unrealized Gain | 3,387 | 1,632 |
Total available-for-sale securities, Gross Unrealized Loss | (137) | (120) |
Fixed-maturity securities, Estimated Fair Value | 80,132 | 77,324 |
Fixed-Maturity Securities [Member] | Exchange-Traded Debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 11,297 | 9,817 |
Total available-for-sale securities, Gross Unrealized Gain | 349 | 177 |
Total available-for-sale securities, Gross Unrealized Loss | (228) | (565) |
Fixed-maturity securities, Estimated Fair Value | 11,418 | 9,429 |
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 367 | 317 |
Total available-for-sale securities, Gross Unrealized Gain | 17 | 8 |
Total available-for-sale securities, Gross Unrealized Loss | (1) | |
Fixed-maturity securities, Estimated Fair Value | $ 384 | $ 324 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ALABAMA | ||
Schedule of Investments [Line Items] | ||
Statutory deposit held in trust | $ 119 | $ 113 |
Investments - Scheduled Contrac
Investments - Scheduled Contractual Maturities of Fixed-Maturity Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale | ||
Due in one year or less, Amortized Cost | $ 4,119 | $ 3,282 |
Due after one year through five years, Amortized Cost | 37,183 | 32,833 |
Due after five years through ten years, Amortized Cost | 68,543 | 71,120 |
Due after ten years, Amortized Cost | 23,477 | 21,379 |
Fixed-maturity securities, Cost or Amortized Cost | 133,322 | 128,614 |
Due in one year or less, Fair Value | 4,093 | 3,292 |
Due after one year through five years, Fair Value | 37,714 | 32,651 |
Due after five years through ten years, Fair Value | 68,782 | 67,113 |
Due after ten years, Fair Value | 25,118 | 21,953 |
Fair Value Total | $ 135,707 | $ 125,009 |
Investments - Summary of Procee
Investments - Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available for Sale Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fixed-Maturity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds | $ 32,424 | $ 1,051 | $ 33,524 | $ 3,285 |
Gross Realized Gains | 376 | 1 | 383 | 59 |
Gross Realized Losses | (24) | (30) | ||
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds | 4,801 | 3,239 | 9,155 | 7,994 |
Gross Realized Gains | 220 | 121 | 359 | 329 |
Gross Realized Losses | $ (205) | $ (172) | $ (426) | $ (625) |
Investments (Other-than-tempora
Investments (Other-than-temporary Impairment) - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016Securities | Jun. 30, 2016USD ($)Securities | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Securities | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)Securities | |
Schedule of Investments [Line Items] | ||||||
Other-than-temporary impairment losses related to additional loss | $ 228,000 | $ 293,000 | $ 636,000 | $ 1,983,000 | ||
Other-than-temporary impairment losses related to credit losses previously recorded | 314,000 | 581,000 | ||||
Other-than-temporary impairment losses | $ 542,000 | 293,000 | $ 1,217,000 | 1,983,000 | ||
Number of securities in an unrealized loss position | Securities | 78 | 78 | 78 | 101 | ||
Number of securities had been in an unrealized loss position for 12 months or greater | Securities | 24 | 24 | 24 | 10 | ||
Corporate Bonds [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Accumulated other-than-temporary impairment losses related to non-credit losses | $ 581,000 | |||||
Fixed-Maturity Securities [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Other-than-temporary impairment losses, number of securities | Securities | 2 | |||||
Other-than-temporary impairment losses, number of securities sold | Securities | 1 | |||||
Impairment loss recorded in other comprehensive income | $ 202,000 | |||||
Other-than-temporary impairment losses related to additional loss | $ 26,000 | |||||
Other-than-temporary impairment losses related to credit losses previously recorded | 469,000 | |||||
Other-than-temporary impairment losses | 0 | $ 495,000 | 0 | |||
Equity Securities [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Other-than-temporary impairment losses, number of securities | Securities | 15 | 17 | ||||
Other-than-temporary impairment losses related to additional loss | $ 340,000 | $ 293,000 | $ 722,000 | $ 1,983,000 |
Investments - Rollforward of Cu
Investments - Rollforward of Cumulative Credit Losses in Other-Than-Temporary Impairment Losses Recognized in Income from Available for Sale Fixed-Maturity Securities (Detail) - Available-for-Sale Securities [Member] - Fixed-Maturity Securities [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Beginning Balance | $ 404 | $ 111 |
Credit impaired security fully disposed of for which there was no prior intent or requirement to sell | (385) | |
Additional credit impairments on previously impaired securities | 293 | |
Reduction due to increase in expected cash flows recognized over the remaining life of the previously impaired security | $ (19) | |
Ending Balance | $ 404 |
Investments - Summary of Securi
Investments - Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | $ (1,405) | $ (5,690) |
Fair Value, Less than Twelve Months | 25,501 | 52,219 |
Gross Unrealized Loss, Twelve Months or Greater | (1,757) | (1,261) |
Fair Value, Twelve Months or Greater | 20,486 | 4,922 |
Gross Unrealized Loss, Total | (3,162) | (6,951) |
Fair Value, Total | 45,987 | 57,141 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (689) | (1,350) |
Fair Value, Less than Twelve Months | 8,083 | 15,748 |
Gross Unrealized Loss, Twelve Months or Greater | (151) | (100) |
Fair Value, Twelve Months or Greater | 2,848 | 1,460 |
Gross Unrealized Loss, Total | (840) | (1,450) |
Fair Value, Total | 10,931 | 17,208 |
Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (716) | (4,340) |
Fair Value, Less than Twelve Months | 17,418 | 36,471 |
Gross Unrealized Loss, Twelve Months or Greater | (1,606) | (1,161) |
Fair Value, Twelve Months or Greater | 17,638 | 3,462 |
Gross Unrealized Loss, Total | (2,322) | (5,501) |
Fair Value, Total | 35,056 | 39,933 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (440) | (3,667) |
Fair Value, Less than Twelve Months | 8,210 | 24,196 |
Gross Unrealized Loss, Twelve Months or Greater | (1,517) | (1,148) |
Fair Value, Twelve Months or Greater | 14,312 | 3,278 |
Gross Unrealized Loss, Total | (1,957) | (4,815) |
Fair Value, Total | 22,522 | 27,474 |
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 | (88) | (107) |
Fair Value, Less than Twelve Months | 5,385 | 6,587 |
Gross Unrealized Loss, Twelve Months or Greater | (49) | (13) |
Fair Value, Twelve Months or Greater | 1,366 | 184 |
Gross Unrealized Loss, Total | (137) | (120) |
Fair Value, Total | 6,751 | 6,771 |
Fixed-Maturity Securities [Member] | Exchange-Traded Debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (188) | (565) |
Fair Value, Less than Twelve Months | 3,823 | 5,559 |
Gross Unrealized Loss, Twelve Months or Greater | (40) | |
Fair Value, Twelve Months or Greater | 1,960 | |
Gross Unrealized Loss, Total | (228) | (565) |
Fair Value, Total | $ 5,783 | 5,559 |
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (1) | |
Fair Value, Less than Twelve Months | 129 | |
Gross Unrealized Loss, Total | (1) | |
Fair Value, Total | $ 129 |
Investments - Schedule of Compa
Investments - Schedule of Company's Investments in Limited Partnerships (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Investment Securities [Line Items] | ||
Carrying Value | $ 25,269 | $ 23,930 |
Unfunded Balance | 15,776 | 18,224 |
Private US Lower Middle Market Companies [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | 5,005 | 4,774 |
Unfunded Balance | $ 7,888 | $ 7,888 |
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 | $ 6,377 | $ 4,713 |
Unfunded Balance | $ 1,360 | $ 3,320 |
Percentage investment held by the entity | 1.76% | 1.76% |
Equity and Debt Securities Publicly Traded US and Non US Issuers [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 10,714 | $ 11,689 |
Percentage investment held by the entity | 65.74% | 65.79% |
Power Utility and Energy Industries and Infrastructure [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 3,173 | $ 2,754 |
Unfunded Balance | $ 6,528 | $ 7,016 |
Percentage investment held by the entity | 0.18% | 0.18% |
Investments - Schedule of Com39
Investments - Schedule of Company's Investments in Limited Partnerships (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2016 | |
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 |
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 | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Operating results: | |||||
Total income | $ 61,520 | $ 79,068 | $ 122,267 | $ 161,278 | |
Limited Partnership [Member] | |||||
Operating results: | |||||
Total income | (6,987) | (4,577) | (23,069) | (4,838) | |
Total expenses | (27,401) | (254) | (130,022) | (957) | |
Net (loss) income | (34,388) | $ (4,831) | (153,091) | $ (5,795) | |
Balance Sheet: | |||||
Total assets | 2,738,232 | 2,738,232 | $ 288,351 | ||
Total liabilities | $ 526,467 | $ 526,467 | $ 28,105 |
Investments (Limited Partnershi
Investments (Limited Partnership Investments) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Schedule of Investments [Line Items] | |||||
Recognized investment loss | $ (1,065) | $ (462) | |||
Maximum exposure loss relating to VIE | $ 5,015 | 5,015 | $ 4,787 | ||
Limited Partnership [Member] | |||||
Schedule of Investments [Line Items] | |||||
Recognized investment loss | (196) | $ (197) | (1,065) | $ (462) | |
Company's contributed capital to the partnership | 29,724 | 29,724 | 27,276 | ||
Maximum exposure loss relating to VIE | $ 25,269 | $ 25,269 | $ 23,930 |
Investments (Investment in Unco
Investments (Investment in Unconsolidated Joint Venture) - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Schedule of Investments [Line Items] | ||||
Amount of gains (losses) on sale of investment to company | $ 383,000 | |||
Maximum exposure loss relating to VIE | $ 5,015,000 | $ 4,787,000 | ||
Undistributed gain (loss) from equity method investment | 228,000 | $ (148,000) | ||
Cash distribution | $ 0 | $ 0 | ||
FMKT Mel JV, LLC [Member] | ||||
Schedule of Investments [Line Items] | ||||
Gross proceeds from outparcel land | 829,000 | |||
Repayment of construction loan | 515,000 | |||
Gain on sale of land | $ 404,000 |
Investments - Summary of Unau43
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Joint Venture (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Operating results: | |||||
The Company's share of net (loss) income | $ 228 | $ (1) | |||
Balance Sheet: | |||||
Other | $ 10,780 | 10,780 | $ 39,128 | ||
Total assets | 670,471 | 670,471 | 636,986 | ||
Other liabilities | 14,110 | 14,110 | 18,472 | ||
Total liabilities and stockholders' equity (or members' capital) | 670,471 | 670,471 | 636,986 | ||
Investment in unconsolidated joint venture, at equity | 5,015 | 5,015 | 4,787 | ||
Unconsolidated Joint Venture [Member] | |||||
Operating results: | |||||
Total revenues and gain | 181 | 714 | |||
Total expenses | (247) | (483) | (1) | ||
Net (loss) income | (66) | 231 | (1) | ||
Balance Sheet: | |||||
Construction in progress - real estate | 318 | 318 | 277 | ||
Property and equipment, net | 11,702 | 11,702 | 11,806 | ||
Cash | 910 | 910 | 570 | ||
Accounts receivable | 63 | 63 | 3 | ||
Other | 998 | 998 | 1,008 | ||
Total assets | 13,991 | 13,991 | 13,664 | ||
Accounts payable | 83 | 83 | 125 | ||
Construction loan | 8,086 | 8,086 | 8,063 | ||
Other liabilities | 267 | 267 | 157 | ||
Members' capital | 5,555 | 5,555 | 5,319 | ||
Total liabilities and stockholders' equity (or members' capital) | 13,991 | 13,991 | $ 13,664 | ||
Operating Expense [Member] | |||||
Operating results: | |||||
The Company's share of net (loss) income | $ (59) | $ (1) | $ 228 | $ (1) |
Investments (Real Estate Invest
Investments (Real Estate Investments) - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)Restaurant | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Restaurant | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)Restaurant | |
Schedule of Investments [Line Items] | |||||
Maximum exposure loss relating to VIE | $ 5,015,000 | $ 5,015,000 | $ 4,787,000 | ||
ADC Arrangement [Member] | |||||
Schedule of Investments [Line Items] | |||||
Maximum exposure loss relating to VIE | 10,200,000 | 10,200,000 | 10,200,000 | ||
Credit loss allowances | $ 0 | $ 0 | $ 0 | ||
Real Estate Investments [Member] | |||||
Schedule of Investments [Line Items] | |||||
Number of restaurants | Restaurant | 1 | 1 | 1 | ||
Depreciation and amortization expenses under real estate investments | $ 95,000 | $ 90,000 | $ 188,000 | $ 193,000 |
Investments - Summary of Real E
Investments - Summary of Real Estate Investment (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Real Estate [Abstract] | ||
Land | $ 13,134 | $ 13,134 |
Land improvements | 1,516 | 1,505 |
Buildings | 3,131 | 3,116 |
Other | 5,298 | 4,429 |
Total, at cost | 23,079 | 22,184 |
Less: accumulated depreciation and amortization | (1,618) | (1,430) |
Real estate, net | 21,461 | 20,754 |
ADC Arrangement classified as real estate investment | 10,200 | 10,200 |
Real estate investments | $ 31,661 | $ 30,954 |
Investments - Summary of Assets
Investments - Summary of Assets and Liabilities Related to Company's Consolidated Variable Interest Entity (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 309,274 | $ 267,738 | $ 274,729 | $ 314,416 |
Real estate investments | 31,661 | 30,954 | ||
Other assets | 10,780 | 39,128 | ||
Other liabilities | 14,110 | 18,472 | ||
Variable Interest Entity [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 25 | 57 | ||
Real estate investments | 2,958 | 2,906 | ||
Other assets | 3 | |||
Accrued expenses | 25 | 21 | ||
Other liabilities | $ 1,158 | $ 1,108 |
Investments - Investment (Loss)
Investments - Investment (Loss) Income Summarized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment income | $ (1,065) | $ (462) | ||
Net investment income | $ 1,725 | $ 1,795 | 3,215 | 3,204 |
Other [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment income | 11 | 15 | 23 | 29 |
Limited Partnership Investment [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment income | (196) | (197) | (1,065) | (462) |
Real Estate Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Net investment income (loss) from real estate investments | (112) | 62 | 145 | (21) |
Cash and Cash Equivalents [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment income | 257 | 162 | 442 | 297 |
Available-for-Sale Securities [Member] | Fixed-Maturity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment income | 1,142 | 1,051 | 2,258 | 1,877 |
Available-for-Sale Securities [Member] | Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment income | 784 | 869 | 1,735 | 1,796 |
Available-for-Sale Securities [Member] | Investment Expense [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment expense | $ (161) | $ (167) | $ (323) | $ (312) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016 | |
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 | Jun. 30, 2016 | Dec. 31, 2015 |
Financial Assets: | ||
Total fixed-maturity securities | $ 135,707 | $ 125,009 |
Equity securities | 49,712 | 48,237 |
Total available-for-sale securities | 185,419 | 173,246 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 309,274 | 267,738 |
Total fixed-maturity securities | 135,707 | 125,009 |
Equity securities | 49,712 | 48,237 |
Total available-for-sale securities | 185,419 | 173,246 |
Total financial assets | 494,693 | 440,984 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 1,008 | 113 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 42,765 | 37,819 |
Fair Value, Measurements, Recurring [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 80,132 | 77,324 |
Fair Value, Measurements, Recurring [Member] | Exchange-Traded Debt [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 11,418 | 9,429 |
Fair Value, Measurements, Recurring [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 384 | 324 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 309,274 | 267,738 |
Total fixed-maturity securities | 54,591 | 46,702 |
Equity securities | 49,712 | 48,237 |
Total available-for-sale securities | 104,303 | 94,939 |
Total financial assets | 413,577 | 362,677 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 1,008 | 113 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 41,781 | 36,836 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | Exchange-Traded Debt [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 11,418 | 9,429 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 384 | 324 |
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 81,116 | 78,307 |
Total available-for-sale securities | 81,116 | 78,307 |
Total financial assets | 81,116 | 78,307 |
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 984 | 983 |
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | $ 80,132 | $ 77,324 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial Assets: | ||
Limited partnership investments | $ 25,269 | $ 23,930 |
ADC Arrangement classified as real estate investment | 10,200 | 10,200 |
Financial Liabilities: | ||
Total long-term debt | 128,123 | 129,429 |
Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 39,337 | 39,231 |
Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 80,368 | 90,198 |
Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 8,418 | |
Portion at Other than Fair Value Measurement [Member] | ||
Financial Assets: | ||
Limited partnership investments | 25,269 | 23,930 |
ADC Arrangement classified as real estate investment | 10,187 | 10,140 |
Financial Liabilities: | ||
3.875% Convertible senior notes | 134,517 | 133,885 |
Portion at Other than Fair Value Measurement [Member] | Senior Notes [Member] | ||
Financial Liabilities: | ||
3.875% Convertible senior notes | 41,818 | 41,103 |
Portion at Other than Fair Value Measurement [Member] | Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
3.875% Convertible senior notes | 83,616 | 92,782 |
Portion at Other than Fair Value Measurement [Member] | Promissory Note [Member] | ||
Financial Liabilities: | ||
3.875% Convertible senior notes | 9,083 | |
Portion at Other than Fair Value Measurement [Member] | (Level 2) [Member] | ||
Financial Liabilities: | ||
3.875% Convertible senior notes | 41,818 | 41,103 |
Portion at Other than Fair Value Measurement [Member] | (Level 2) [Member] | Senior Notes [Member] | ||
Financial Liabilities: | ||
3.875% Convertible senior notes | 41,818 | 41,103 |
Portion at Other than Fair Value Measurement [Member] | (Level 3) [Member] | ||
Financial Assets: | ||
Limited partnership investments | 25,269 | 23,930 |
ADC Arrangement classified as real estate investment | 10,187 | 10,140 |
Financial Liabilities: | ||
3.875% Convertible senior notes | 92,699 | 92,782 |
Portion at Other than Fair Value Measurement [Member] | (Level 3) [Member] | Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
3.875% Convertible senior notes | 83,616 | $ 92,782 |
Portion at Other than Fair Value Measurement [Member] | (Level 3) [Member] | Promissory Note [Member] | ||
Financial Liabilities: | ||
3.875% Convertible senior notes | $ 9,083 |
Fair Value Measurements - Sch51
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Balance Sheet (Parenthetical) (Detail) | Jun. 30, 2016 | Jan. 14, 2016 | Dec. 31, 2015 |
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% | ||
Promissory Note [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.00% | 4.00% | |
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% | |
Portion at Other than Fair Value Measurement [Member] | Promissory Note [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.00% |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Benefits receivable related to retrospective reinsurance contracts | $ 6,546 | $ 35,716 |
Deferred costs related to retrospective reinsurance contracts | 460 | |
Prepaid expenses | 2,140 | 904 |
Restricted cash | 600 | 300 |
Other | 1,494 | 1,748 |
Total other assets | $ 10,780 | $ 39,128 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) $ in Thousands | 1 Months Ended |
Jun. 30, 2016USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Cash payments received from retrospective reinsurance contracts | $ 37,800 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Total principal amount | $ 139,290 | $ 143,250 | |
Less: unamortized discount and issuance costs | (10,704) | (13,821) | |
Total | 128,123 | 129,429 | |
Less: current portion | (463) | ||
Total long-term debt | 128,123 | 129,429 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Total principal amount | 40,250 | 40,250 | |
Total | 39,337 | 39,231 | |
Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Total principal amount | 89,990 | 103,000 | |
Less: unamortized discount and issuance costs | $ 1,591 | ||
Total | 80,368 | $ 90,198 | |
Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Total principal amount | 9,050 | ||
Total | $ 8,418 |
Long-Term Debt - Summary of L55
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | 6 Months Ended | |
Jun. 30, 2016 | Jan. 14, 2016 | |
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 | |
Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.00% | 4.00% |
Debt instrument, maturity date | Feb. 1, 2031 |
Long-Term Debt - Summary of Fut
Long-Term Debt - Summary of Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Long-term Debt, Rolling Maturity [Abstract] | ||
2,016 | $ 463 | |
2,017 | 482 | |
2,018 | 90,492 | |
2,019 | 40,772 | |
2,020 | 543 | |
Thereafter | 6,538 | |
Total | $ 139,290 | $ 143,250 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Long-term Debt, Unclassified [Abstract] | ||||
Interest expense | $ 2,611 | $ 2,679 | $ 5,440 | $ 5,340 |
Non-cash interest expense | $ 844 | $ 876 | $ 1,784 | $ 1,734 |
Debt discount, remaining amortization period | 2 years 8 months 12 days |
Long-Term Debt (4% Promissory N
Long-Term Debt (4% Promissory Note) - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 14, 2016 | Jun. 30, 2016 |
Debt Instrument [Line Items] | ||
Proceeds from the issuance of long-term debt | $ 9,200 | |
Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Secured loan agreement period | 15 years | |
Proceeds from the issuance of long-term debt | $ 9,200 | |
Fixed annual interest rate | 4.00% | 4.00% |
Principal and interest payable term | 180 monthly | |
Debt instrument periodic payment | $ 68 | |
Date of initial payment | Mar. 1, 2016 | |
Debt instruments maturity date description | The promissory note may be repaid in full after February 1, 2017 as long as the Company provides at least 60 days' written notice and pays a prepayment premium as specified in the loan agreement. |
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 | 6 Months Ended | |
Jan. 31, 2015$ / shares | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||||
Repurchase of convertible senior notes | $ 11,347 | |||
Unamortized debt discount and issuance costs | $ (10,704) | $ (13,821) | ||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, conversion price | $ / shares | $ 62.23 | |||
Convertible debt, conversion ratio | 16.0705 | |||
Aggregate amount of debt repurchased | $ 13,010 | |||
Repurchase of convertible senior notes | 11,347 | |||
Commission related to repurchases of convertible senior notes | 81 | |||
Gain on extinguishment of debt | 153 | |||
Unamortized debt discount and issuance costs | $ 1,591 | |||
Convertible Senior Notes [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Cash dividends on common stock | $ / shares | $ 0.275 |
Reinsurance - Impact of the Rei
Reinsurance - Impact of the Reinsurance Treaties on Premiums Written and Earned (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Premiums Written: | ||||
Direct | $ 139,761 | $ 156,151 | $ 215,400 | $ 238,140 |
Assumed | (280) | (841) | (359) | (1,376) |
Gross written | 139,481 | 155,310 | 215,041 | 236,764 |
Ceded | (36,384) | (31,378) | (76,756) | (59,217) |
Net premiums written | 103,097 | 123,932 | 138,285 | 177,547 |
Premiums Earned: | ||||
Direct | 94,046 | 87,196 | 190,899 | 170,802 |
Assumed | 866 | 20,569 | 2,832 | 46,530 |
Gross earned | 94,912 | 107,765 | 193,731 | 217,332 |
Ceded | (36,384) | (31,378) | (76,756) | (59,217) |
Net premiums earned | $ 58,528 | $ 76,387 | $ 116,975 | $ 158,115 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($)Reinsurers | Jun. 30, 2016USD ($)Reinsurers | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Reinsurers | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)Reinsurers | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||
Number of reinsurers | Reinsurers | 35 | 35 | 35 | 21 | ||
Reinsurance recoverable | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
Credit risk associated with reinsurance receivables | 0 | 0 | 0 | $ 0 | ||
Recoveries pertaining to reinsurance contracts | 0 | 0 | ||||
Net reduction in ceded premiums | 3,001,000 | 6,241,000 | 5,822,000 | 12,614,000 | ||
Amount received from retrospective reinsurance contracts | 37,800,000 | |||||
Other assets | 10,780,000 | 10,780,000 | 10,780,000 | 39,128,000 | ||
Prepaid reinsurance premiums | 35,793,000 | 35,793,000 | 35,793,000 | 40,747,000 | ||
Oxbridge [Member] | ||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||
Net reduction in ceded premiums | 413,000 | $ 1,520,000 | 740,000 | $ 2,125,000 | ||
Amount received from retrospective reinsurance contracts | 7,560,000 | |||||
Reinsurance [Member] | ||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||
Other assets | 6,546,000 | 6,546,000 | 6,546,000 | 36,176,000 | ||
Prepaid reinsurance premiums | $ 277,000 | $ 277,000 | $ 277,000 | $ 2,625,000 |
Losses and Loss Adjustment Ex62
Losses and Loss Adjustment Expenses - Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Balance, beginning of period | $ 53,271 | $ 51,177 | $ 51,690 | $ 48,908 |
Incurred related to: | ||||
Current period | 20,803 | 20,222 | 47,420 | 39,054 |
Prior period | 5,469 | 343 | 5,932 | 550 |
Total incurred | 26,272 | 20,565 | 53,352 | 39,604 |
Paid related to: | ||||
Current period | (14,239) | (10,256) | (22,596) | (15,052) |
Prior period | (10,577) | (7,157) | (27,719) | (19,131) |
Total paid | (24,816) | (17,413) | (50,315) | (34,183) |
Balance, end of period | $ 54,727 | $ 54,329 | $ 54,727 | $ 54,329 |
Losses and Loss Adjustment Ex63
Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Unpaid claims and claim adjustment expenses overall development | $ 5,469 | $ 343 | $ 5,932 | $ 550 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 4,205 | $ 13,561 | $ 7,846 | $ 29,229 |
Effective tax rates | 37.40% | 38.10% | 37.50% | 38.10% |
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 7,024 | $ 22,022 | $ 13,080 | $ 47,400 |
Less: Income attributable to participating securities | (306) | (1,231) | (608) | (2,730) |
Basic Earnings Per Share: | ||||
Income allocated to common stockholders, Income (Numerator) | $ 6,718 | $ 20,791 | $ 12,472 | $ 44,670 |
Income allocated to common stockholders, Shares (Denominator) | 9,399 | 9,580 | 9,489 | 9,560 |
Income allocated to common stockholders, Per Share Amount | $ 0.71 | $ 2.17 | $ 1.31 | $ 4.67 |
Diluted Earnings Per Share: | ||||
Income available to common stockholders and assumed conversions, Income (Numerator) | $ 7,736 | $ 21,912 | $ 12,472 | $ 46,901 |
Income available to common stockholders and assumed conversions, Shares (Denominator) | 10,907 | 11,345 | 9,551 | 11,334 |
Income available to common stockholders and assumed conversions, Per Share Amount | $ 0.71 | $ 1.93 | $ 1.31 | $ 4.14 |
Convertible Senior Notes [Member] | ||||
Effect of Dilutive Securities: | ||||
Dilutive Securities, Income (Numerator) | $ 1,018 | $ 1,121 | $ 2,231 | |
Dilutive Securities, Shares (Denominator) | 1,446 | 1,650 | 1,649 | |
Stock Options [Member] | ||||
Effect of Dilutive Securities: | ||||
Dilutive Securities, Income (Numerator) | $ 0 | $ 0 | $ 0 | $ 0 |
Dilutive Securities, Shares (Denominator) | 62 | 115 | 62 | 125 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Jul. 08, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | |||||||
Stock repurchased and retired, total costs | $ 447,000 | $ 772,000 | |||||
Dividends per common share | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 | |||
Common Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Repurchase and retirement of common stock, shares | 14,400 | 16,958 | |||||
Share Repurchase Plan [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Stock repurchased and retired, total costs | $ 12,015,000 | $ 1,610,000 | |||||
Share Repurchase Plan [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Dividends per common share | $ 0.30 | ||||||
Date of dividend payable | Sep. 16, 2016 | ||||||
Record date of dividend payable | Aug. 19, 2016 | ||||||
Share Repurchase Plan [Member] | Common Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Repurchase and retirement of common stock, shares | 376,796 | 37,869 | |||||
Share Repurchase Plan [Member] | 2015 Plan [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Common stock repurchase authorized amount | $ 20,000,000 | ||||||
Common stock repurchased and retired, weighted average price | $ 31.59 | $ 31.85 | |||||
Stock repurchased and retired, total costs | $ 6,008,000 | $ 12,015,000 | |||||
Fees and commissions average price repurchase common stock | $ 31.63 | $ 31.89 | |||||
Share Repurchase Plan [Member] | 2015 Plan [Member] | Common Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Repurchase and retirement of common stock, shares | 189,938 | 376,796 | |||||
Share Repurchase Plan [Member] | 2014 Plan [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Common stock repurchase authorized amount | $ 40,000,000 | ||||||
Common stock repurchased and retired, weighted average price | $ 42.49 | ||||||
Stock repurchased and retired, total costs | $ 1,610,000 | ||||||
Fees and commissions average price repurchase common stock | $ 42.51 | ||||||
Time through the company is allowed to repurchase shares | Mar. 31, 2015 | ||||||
Share Repurchase Plan [Member] | 2014 Plan [Member] | Common Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Repurchase and retirement of common stock, shares | 0 | 37,869 |
Stock-Based Compensation (Incen
Stock-Based Compensation (Incentive Plans) - Additional Information (Detail) | Jun. 30, 2016shares |
Omnibus Incentive Plan New Plan 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common shares available for grant | 4,269,424 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise of common stock options, shares | 80,000 | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option contractual term | 10 years | |||
Tax benefit realized from stock option exercises | $ 1,192 | $ 1,192 | ||
Aggregate intrinsic value of options exercised | $ 3,188 | $ 3,188 | ||
Exercise of common stock options, shares | 0 | 80,000 | 0 | 80,000 |
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 | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Exercised, Number of Options | (80,000) | |||||
Outstanding, Number of Options | 110,000 | 230,000 | 110,000 | 150,000 | 110,000 | 230,000 |
Exercisable, Number of Options | 110,000 | 150,000 | ||||
Exercised, Weighted-Average Exercise Price | $ 2.50 | |||||
Outstanding, Weighted Average Exercise Price | $ 3.19 | $ 3 | $ 3.19 | 3.26 | $ 3.19 | $ 3 |
Exercisable, Weighted-Average Exercise Price | $ 3.19 | $ 3.26 | ||||
Outstanding, Weighted-Average Remaining Contractual Term | 2 years 1 month 6 days | 2 years 9 months 18 days | 1 year 9 months 18 days | 2 years 10 months 24 days | 2 years 3 months 18 days | 3 years |
Exercisable, Weighted-Average Remaining Contractual Term | 1 year 9 months 18 days | 2 years 10 months 24 days | ||||
Outstanding, Aggregate Intrinsic Value | $ 3,312 | $ 9,861 | $ 2,650 | $ 6,142 | $ 3,482 | $ 9,256 |
Exercisable, Aggregate Intrinsic Value | $ 2,650 | $ 6,142 |
Stock Based Compensation - Info
Stock Based Compensation - Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan (Detail) - Restricted Stock [Member] - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Beginning balance, shares | 438,846 | 620,513 | 596,922 | 639,705 | 620,513 |
Granted, Number of Restricted Stock Awards | 102,440 | 83,260 | |||
Granted, Weighted-Average Grant Date Fair Value | $ 32.21 | $ 44.46 | |||
Vested, Number of Restricted Stock Awards | (24,235) | (20,917) | (16,000) | (41,695) | |
Cancelled, Number of Restricted Stock Awards | (160,000) | ||||
Forfeited, Number of Restricted Stock Awards | (5,147) | (750) | (33,324) | (1,088) | |
Ending balance, shares | 511,904 | 438,846 | 630,858 | 596,922 | 511,904 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $ 30.93 | $ 30.33 | $ 27.75 | $ 28.33 | $ 30.33 |
Vested, Weighted-Average Grant Date Fair Value | 37.34 | 48.42 | 13.48 | 36.15 | |
Cancelled, Weighted-Average Grant Date Fair Value | 26.27 | ||||
Forfeited, Weighted-Average Grant Date Fair Value | 42.20 | 45.25 | 23.20 | 48.42 | |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $ 30.77 | $ 30.93 | $ 30.55 | $ 27.75 | $ 30.77 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Awards) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation expenses | $ 967 | $ 1,381 | $ 1,948 | $ 2,789 |
Total unrecognized compensation expense, Nonvested restricted stock arrangements granted | $ 8,741 | $ 10,442 | $ 8,741 | $ 10,442 |
Recognition of remaining compensation expense over a weighted-average period | 21 months | |||
Awards issued during the period | 102,440 | 83,260 | ||
Time-based Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards issued during the period | 0 | 0 |
Stock-Based Compensation - Info
Stock-Based Compensation - Information about Deferred Tax Benefits Recognized Related to Restricted Stock Awards, Paid Dividends and the Fair Value of Vested Restricted Stock (Detail) - Restricted Stock [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred tax benefits recognized | $ 372 | $ 532 | $ 751 | $ 1,076 |
Tax benefits realized for restricted stock and paid dividends | 81 | 240 | 131 | 499 |
Fair value of vested restricted stock | $ 905 | $ 216 | $ 1,918 | $ 1,723 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Sep. 10, 2013USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2016USD ($)Partnership |
Commitment And Contingencies [Line Items] | |||
Future minimum aggregate amounts payable to the reinsurers for one year | $ 19,400 | ||
Future minimum aggregate amounts payable to the reinsurers for two year | 19,400 | ||
Unfunded Balance | $ 18,224 | $ 15,776 | |
Capital Commitment [Member] | |||
Commitment And Contingencies [Line Items] | |||
Number of limited partnership interests received capital contribution | Partnership | 3 | ||
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. | ||
Settlement of premium tax and interest | 38 | ||
Reemployment tax filing refunds | 57 | ||
Net benefit realized from litigation settlement | $ 19 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Oxbridge [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($)Directors | |
Related Party Transaction [Line Items] | |
Number of non-employee directors | Directors | 3 |
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 |
Claddaugh [Member] | |
Related Party Transaction [Line Items] | |
Assumed total covered exposure | 6,000 |
Premiums paid | $ 3,400 |