Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 27, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 9,864,878 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Fixed-maturity securities, available for sale, at fair value (amortized cost: $172,476 and $167,231, respectively) | $ 172,774 | $ 166,248 |
Equity securities, available for sale, at fair value (cost: $51,948 and $47,750, respectively) | 57,464 | 53,035 |
Limited partnership investments, at equity | 20,351 | 29,263 |
Investment in unconsolidated joint venture, at equity | 1,710 | 2,102 |
Real estate investments (Note 3 - Consolidated Variable Interest Entity) | 48,725 | 48,086 |
Total investments | 301,024 | 298,734 |
Cash and cash equivalents (Note 3 - Consolidated Variable Interest Entity) | 407,937 | 280,531 |
Accrued interest and dividends receivable | 1,815 | 1,654 |
Income taxes receivable | 2,811 | |
Premiums receivable | 17,631 | 17,276 |
Prepaid reinsurance premiums | 12,393 | 24,554 |
Deferred policy acquisition costs | 15,372 | 16,639 |
Property and equipment, net | 11,715 | 11,374 |
Intangible assets, net | 4,777 | 4,899 |
Deferred income taxes, net | 250 | |
Other assets (Note 3 - Consolidated Variable Interest Entity) | 15,477 | 11,342 |
Total assets | 788,141 | 670,064 |
Liabilities and Stockholders' Equity | ||
Losses and loss adjustment expenses | 69,911 | 70,492 |
Unearned premiums | 155,538 | 175,803 |
Advance premiums | 17,065 | 4,651 |
Assumed reinsurance balances payable | 4,325 | 3,294 |
Accrued expenses (Note 3 - Consolidated Variable Interest Entity) | 8,986 | 6,513 |
Income taxes payable | 4,929 | |
Deferred income taxes, net | 5,532 | |
Long-term debt | 272,982 | 138,863 |
Other liabilities (Note 3 - Consolidated Variable Interest Entity) | 16,703 | 26,702 |
Total liabilities | 555,971 | 426,318 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity: | ||
Preferred stock | ||
Common stock (no par value, 40,000,000 shares authorized, 9,058,002 and 9,662,761 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively) | 0 | 0 |
Additional paid-in capital | 8,139 | |
Retained income | 228,598 | 232,964 |
Accumulated other comprehensive income, net of taxes | 3,572 | 2,643 |
Total stockholders' equity | 232,170 | 243,746 |
Total liabilities and stockholders' equity (or members' capital) | 788,141 | 670,064 |
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 | Mar. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Debt securities, Amortized cost | $ 172,476 | $ 167,231 |
Available-for-sale Equity securities, Amortized cost | $ 51,948 | $ 47,750 |
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 | 9,058,002 | 9,662,761 |
Common stock, outstanding | 9,058,002 | 9,662,761 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue | ||
Gross premiums earned | $ 91,619 | $ 98,819 |
Premiums ceded | (28,583) | (40,372) |
Net premiums earned | 63,036 | 58,447 |
Net investment income | 2,834 | 1,490 |
Net realized investment income (losses) | 715 | (75) |
Net other-than-temporary impairment losses recognized in income: | ||
Total other-than-temporary impairment losses | (213) | (408) |
Portion of loss recognized in other comprehensive income, before taxes | (267) | |
Net other-than-temporary impairment losses | (213) | (675) |
Policy fee income | 908 | 1,007 |
Gain on repurchases of convertible senior notes | 153 | |
Other | 433 | 400 |
Total revenue | 67,713 | 60,747 |
Expenses | ||
Losses and loss adjustment expenses | 25,529 | 27,080 |
Policy acquisition and other underwriting expenses | 9,649 | 11,110 |
Salaries and wages | 5,003 | 5,384 |
Interest expense | 3,542 | 2,829 |
Other operating expenses | 4,848 | 4,647 |
Total expenses | 48,571 | 51,050 |
Income before income taxes | 19,142 | 9,697 |
Income tax expense | 7,122 | 3,641 |
Net income | $ 12,020 | $ 6,056 |
Basic earnings per share | $ 1.27 | $ 0.60 |
Diluted earnings per share | 1.15 | 0.60 |
Dividends per share | $ 0.35 | $ 0.30 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 12,020 | $ 6,056 |
Change in unrealized gain on investments: | ||
Net unrealized gain arising during the period | 2,013 | 2,163 |
Other-than-temporary impairment loss charged to income | 213 | 675 |
Call and repayment losses charged to investment income | 1 | 1 |
Reclassification adjustment for net realized (gains) losses | (715) | 75 |
Net change in unrealized gain | 1,512 | 2,914 |
Deferred income taxes on above change | (583) | (1,124) |
Total other comprehensive income (loss), Net of Tax | 929 | 1,790 |
Comprehensive income | $ 12,949 | $ 7,846 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 12,020,000 | $ 6,056,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 1,102,000 | 981,000 |
Net amortization of premiums on investments in fixed-maturity securities | 230,000 | 102,000 |
Depreciation and amortization | 1,901,000 | 1,375,000 |
Deferred income tax benefit | (646,000) | (408,000) |
Net realized investment (gains) losses | (715,000) | 75,000 |
Other-than-temporary impairment losses | 213,000 | 675,000 |
Income from unconsolidated joint venture | (172,000) | (287,000) |
Distribution received from unconsolidated joint venture | 147,000 | |
Gain on repurchases of convertible senior notes | (153,000) | |
Net (income) loss from limited partnership interests | (772,000) | 869,000 |
Distributions received from limited partnership interests | 272,000 | |
Foreign currency remeasurement gain | (47,000) | (1,000) |
Other | 116,000 | |
Changes in operating assets and liabilities: | ||
Accrued interest and dividends receivable | (161,000) | (44,000) |
Income taxes | 7,740,000 | 3,975,000 |
Premiums receivable | (355,000) | 930,000 |
Prepaid reinsurance premiums | 12,161,000 | 23,824,000 |
Deferred policy acquisition costs | 1,267,000 | 2,149,000 |
Other assets | (4,483,000) | (5,592,000) |
Losses and loss adjustment expenses | (581,000) | 1,581,000 |
Unearned premiums | (20,265,000) | (23,259,000) |
Advance premiums | 12,414,000 | 11,871,000 |
Assumed reinsurance balances payable | 1,031,000 | 3,000 |
Accrued expenses and other liabilities | 1,839,000 | 2,569,000 |
Net cash provided by operating activities | 24,256,000 | 27,291,000 |
Cash flows from investing activities: | ||
Investments in limited partnership interests | (2,346,000) | (1,668,000) |
Distributions received from limited partnership interests | 11,758,000 | 0 |
Distribution from unconsolidated joint venture | 417,000 | |
Purchase of property and equipment | (640,000) | (272,000) |
Purchase of real estate investments | (1,119,000) | (138,000) |
Purchase of fixed-maturity securities | (10,336,000) | (4,930,000) |
Purchase of equity securities | (10,625,000) | (4,072,000) |
Proceeds from sales of fixed-maturity securities | 4,439,000 | 1,100,000 |
Proceeds from calls, repayments and maturities of fixed-maturity securities | 380,000 | 40,000 |
Proceeds from sales of equity securities | 7,271,000 | 4,354,000 |
Net cash used in investing activities | (801,000) | (5,586,000) |
Cash flows from financing activities: | ||
Cash dividends paid | (3,596,000) | (3,188,000) |
Cash dividends received under share repurchase forward contract | 218,000 | 187,000 |
Proceeds from issuance of long-term debt | 143,859,000 | 9,200,000 |
Repurchases of convertible senior notes | (11,347,000) | |
Repayment of debt | (215,000) | (37,000) |
Repurchases of common stock | (30,005,000) | (212,000) |
Repurchases of common stock under share repurchase plan | (1,550,000) | (6,007,000) |
Debt issuance costs | (4,806,000) | (177,000) |
Tax benefits on stock-based compensation | 50,000 | |
Net cash provided by (used in) financing activities | 103,905,000 | (11,531,000) |
Effect of exchange rate changes on cash | 46,000 | 1,000 |
Net increase in cash and cash equivalents | 127,406,000 | 10,175,000 |
Cash and cash equivalents at beginning of period | 280,531,000 | 267,738,000 |
Cash and cash equivalents at end of period | 407,937,000 | 277,913,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 29,000 | 23,000 |
Cash paid for interest | 2,829,000 | 2,850,000 |
Non-cash investing and financing activities: | ||
Unrealized gain on investments in available-for-sale securities, net of tax | 929,000 | 1,790,000 |
Conversion of revolving credit facility to long-term debt | $ 9,441,000 | |
Payable on purchases of available-for-sale securities | $ 2,000 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Income [Member] | Accumulated Other Comprehensive Income, Net of Tax [Member] |
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 | 6,056 | 6,056 | |||
Total other comprehensive income, net of income taxes | 1,790 | 1,790 | |||
Forfeiture of restricted stock, value | 0 | $ 0 | 0 | 0 | 0 |
Forfeiture of restricted stock, shares | (750) | ||||
Cancellation of restricted stock | (160,000) | ||||
Repurchase and retirement of common stock, value | (212) | (212) | |||
Repurchase and retirement of common stock, shares | (6,892) | ||||
Repurchase and retirement of common stock, value | (6,007) | (6,007) | |||
Repurchase and retirement of common stock, shares | (186,858) | ||||
Common stock dividends | (3,001) | (3,001) | |||
Tax benefits on stock-based compensation | 50 | 50 | |||
Tax shortfalls on stock-based compensation | (142) | (142) | |||
Stock-based compensation | 981 | 981 | |||
Ending Balance at Mar. 31, 2016 | 237,237 | 18,549 | 218,689 | (1) | |
Ending Balance, shares at Mar. 31, 2016 | 9,937,756 | ||||
Beginning Balance at Dec. 31, 2016 | 243,746 | 8,139 | 232,964 | 2,643 | |
Beginning Balance, shares at Dec. 31, 2016 | 9,662,761 | ||||
Net income | 12,020 | 12,020 | |||
Total other comprehensive income, net of income taxes | 929 | 929 | |||
Issuance of restricted stock | 0 | $ 0 | 0 | 0 | 0 |
Issuance of restricted stock, shares | 45,000 | ||||
Forfeiture of restricted stock, value | 0 | $ 0 | 0 | 0 | 0 |
Forfeiture of restricted stock, shares | (926) | ||||
Repurchase and retirement of common stock, value | (20,605) | (20,605) | |||
Repurchase and retirement of common stock, shares | (420,217) | ||||
Repurchase and retirement of common stock, value | (1,550) | (1,550) | |||
Repurchase and retirement of common stock, shares | (37,516) | ||||
Repurchase of common stock under prepaid forward contract, value | (9,400) | (9,400) | |||
Repurchase of common stock under prepaid forward contract, shares | (191,100) | ||||
Equity component on 4.25% convertible senior notes (net of offering costs of $543) | 15,151 | 15,151 | |||
Deferred taxes on debt discount | (5,845) | (5,845) | |||
Common stock dividends | (3,378) | (3,378) | |||
Stock-based compensation | 1,102 | 1,102 | |||
Additional paid-in capital shortfall charged to retained income | $ 13,008 | (13,008) | |||
Ending Balance at Mar. 31, 2017 | $ 232,170 | $ 228,598 | $ (3,572) | ||
Ending Balance, shares at Mar. 31, 2017 | 9,058,002 |
Consolidated Statement of Stoc8
Consolidated Statement of Stockholders' Equity (Unaudited) (Parenthetical) - Additional Paid-In Capital [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Stated interest rate on convertible senior notes | 4.25% |
Offering costs for convertible senior notes | $ 543 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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 majority-owned and controlled subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2017 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, 2017. 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, 2016 included in the Company’s Form 10-K, In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, deferred income taxes, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements. All significant intercompany balances and transactions have been eliminated. Adoption of New Accounting Standards Effective January 1, 2017, the Company adopted Accounting Standards Update No. 2016-09, Long-Term Debt Long-term debt is generally classified as a liability and carried at amortized cost, net of any discount and issuance costs. At issuance, a debt instrument with embedded features such as conversion and redemption options is evaluated to determine whether bifurcation and derivative accounting is applicable. If such instrument is not subject to derivative accounting, it is further evaluated to determine if the Company is required to separately account for the liability and equity components. To determine the carrying values of the liability and equity components at issuance, the Company measures the fair value of a similar liability, including any embedded features other than the conversion option, and assigns such value to the liability component. The liability component’s fair value is then subtracted from the initial proceeds to determine the carrying value of the debt instrument’s equity component, which is included in additional paid-in Any embedded feature other than the conversion option is evaluated at issuance to determine if it is probable that such embedded feature will be exercised. If the Company concludes that the exercisability of that embedded feature is not probable, the embedded feature is considered to be non-substantive Transaction costs related to issuing a debt instrument that embodies both liability and equity components are allocated to the liability and equity components in proportion to the allocation of the proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. Debt issuance costs are capitalized and presented as a deduction from the carrying value of the debt. Both debt discount and deferred debt issuance costs are amortized to interest expense over the expected life of the debt instrument using the effective interest method. Equity issuance costs are a reduction to the proceeds allocated to the equity component. Common Share Repurchases The Company primarily repurchases its common stock in the open market through share repurchase programs and from institutional investors in private transactions such as prepaid share repurchase forward contracts and share repurchase agreements. A prepaid share repurchase forward contract is generally a contract that allows a party to buy from the counterparty a specified number of common shares at a specific time at a given forward price. The Company entered into such a contract and evaluated the characteristics of the forward contract to determine whether it met the definition of a derivative financial instrument pursuant to U.S. GAAP. The Company determined the forward contract is an equity contract on the Company’s common shares requiring physical settlement in common shares of the Company. As such, the transaction is recognized as a component of stockholders’ equity and there will be no recognition in earnings for changes in fair value in subsequent periods. In general, the Company first charges the purchase price or the prepayment amount to additional paid-in paid-in Reclassifications Certain reclassifications of prior year amounts have been made to conform to the current year presentation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 2 — Recent Accounting Pronouncements Accounting Standards Update No. 2017-08. No. 2017-08 2017-08”), 310-20): 2017-08 Accounting Standards Update No. 2017-05. No. 2017-05 2017-05”), 610-20), 2017-15 2017-05 Accounting Standards Update No. 2017-03. No. 2017-03 2017-03”), 2014-09, 2016-02, 2016-13, Accounting Standards Update No. 2017-01. No. 2017-01 2017-01”), 2017-01 Accounting Standard to be Adopted in Fiscal Year 2018 In May 2014, the FASB issued Accounting Standards Update No. 2014-09 2014-09”), 2014-09 2014-09 2014-09 2014-09 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 3 — Investments Available-for-Sale The Company holds investments in fixed-maturity securities and equity securities that are classified as available-for-sale. available-for-sale Cost or Gross Gross Estimated Value As of March 31, 2017 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ 4,568 $ — $ (37 ) $ 4,531 Corporate bonds 79,780 853 (1,263 ) 79,370 State, municipalities, and political subdivisions 76,566 1,020 (375 ) 77,211 Exchange-traded debt 11,325 177 (87 ) 11,415 Redeemable preferred stock 237 10 — 247 Total 172,476 2,060 (1,762 ) 172,774 Equity securities 51,948 5,898 (382 ) 57,464 Total available-for-sale $ 224,424 $ 7,958 $ (2,144 ) $ 230,238 As of December 31, 2016 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ 1,975 $ — $ (36 ) $ 1,939 Corporate bonds 75,538 607 (1,641 ) 74,504 State, municipalities, and political subdivisions 78,018 776 (488 ) 78,306 Exchange-traded debt 11,463 36 (237 ) 11,262 Redeemable preferred stock 237 3 (3 ) 237 Total 167,231 1,422 (2,405 ) 166,248 Equity securities 47,750 5,769 (484 ) 53,035 Total available-for-sale $ 214,981 $ 7,191 $ (2,889 ) $ 219,283 Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities as of March 31, 2017 and December 31, 2016 are as follows: Amortized Estimated As of March 31, 2017 Available-for-sale Due in one year or less $ 8,184 $ 8,215 Due after one year through five years 54,202 54,390 Due after five years through ten years 87,114 87,068 Due after ten years 22,976 23,101 $ 172,476 $ 172,774 Amortized Estimated As of December 31, 2016 Available-for-sale Due in one year or less $ 2,656 $ 2,662 Due after one year through five years 49,915 50,023 Due after five years through ten years 90,360 89,332 Due after ten years 24,300 24,231 $ 167,231 $ 166,248 Sales of Available-for-Sale Proceeds received, and the gross realized gains and losses from sales of available-for-sale Gross Realized Gross Realized Proceeds Gains Losses Three months ended March 31, 2017 Fixed-maturity securities $ 4,439 $ 23 $ (4 ) Equity securities $ 7,271 $ 745 $ (49 ) Three months ended March 31, 2016 Fixed-maturity securities $ 1,100 $ 7 $ — Equity securities $ 4,354 $ 139 $ (221 ) Other-than-temporary Impairment The Company regularly reviews its individual investment securities for other-than-temporary impairment. The Company considers various factors in determining whether each individual security is other-than-temporarily impaired, including- • the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings; • the length of time and the extent to which the market value of the security has been below its cost or amortized cost; • general market conditions and industry or sector specific factors 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. Fixed-maturity Securities At March 31, 2017, two fixed-maturity securities were considered other-than-temporarily impaired due to their credit risk. The Company intends to hold until maturity these two fixed-maturity securities. Prior to the sale of one intent-to-sell At March 31, 2016, there were two previously impaired fixed-maturity securities the Company intended to hold until maturity. During the first quarter of 2016, one previously impaired fixed-maturity security the Company intended to hold until maturity was considered to have additional credit related loss. For the three months ended March 31, 2016, the Company recognized $293 of additional credit related loss in the consolidated statement of income, representing $26 of additional loss recorded during the period and the reclassification of $267 previously recorded in other comprehensive income. The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in income from available for sale fixed-maturity securities. 2017 2016 Balance at January 1 $ 475 $ 111 Additional credit impairments on previously impaired securities — 293 Balance at March 31 $ 475 $ 404 Equity Securities 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 March 31, 2017, the Company had three equity securities that were other-than-temporarily impaired. This compares with 11 equity securities that were other-than-temporarily impaired at March 31, 2016. The Company recognized impairment losses of $151 and $382 in the consolidated statement of income for the three months ended March 31, 2017 and 2016, respectively. Securities with gross unrealized loss positions at March 31, 2017 and December 31, 2016, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair Loss Value Loss Value Loss Value As of March 31, 2017 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ (37 ) $ 3,135 $ — $ — $ (37 ) $ 3,135 Corporate bonds (1,229 ) 44,090 (34 ) 966 (1,263 ) 45,056 State, municipalities, and political subdivisions (336 ) 13,604 (39 ) 3,042 (375 ) 16,646 Exchange-traded debt (87 ) 4,157 — — (87 ) 4,157 Total fixed-maturity securities (1,689 ) 64,986 (73 ) 4,008 (1,762 ) 68,994 Equity securities (303 ) 8,027 (79 ) 1,791 (382 ) 9,818 Total available-for-sale $ (1,992 ) $ 73,013 $ (152 ) $ 5,799 $ (2,144 ) $ 78,812 At March 31, 2017, there were 112 securities in an unrealized loss position. Of these securities, 13 securities had been in an unrealized loss position for 12 months or longer. The gross unrealized loss of corporate bonds in an unrealized loss position for twelve months or more included $83 of other-than-temporary impairment losses related to non-credit Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair Loss Value Loss Value Loss Value As of December 31, 2016 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ (36 ) $ 1,939 $ — $ — $ (36 ) $ 1,939 Corporate bonds (1,546 ) 43,859 (95 ) 2,814 (1,641 ) 46,673 State, municipalities, and political subdivisions (441 ) 26,029 (47 ) 3,036 (488 ) 29,065 Exchange-traded debt (191 ) 4,980 (46 ) 1,954 (237 ) 6,934 Redeemable preferred stock (3 ) 47 — — (3 ) 47 Total fixed-maturity securities (2,217 ) 76,854 (188 ) 7,804 (2,405 ) 84,658 Equity securities (293 ) 10,042 (191 ) 3,209 (484 ) 13,251 Total available-for-sale $ (2,510 ) $ 86,896 $ (379 ) $ 11,013 $ (2,889 ) $ 97,909 At December 31, 2016, there were 134 securities in an unrealized loss position. Of these securities, 20 securities had been in an unrealized loss position for 12 months or longer. The gross unrealized loss of corporate bonds in an unrealized loss position for twelve months or more included $76 of other-than-temporary impairment losses related to non-credit 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 decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships. The following table provides information related to the Company’s investments in limited partnerships. March 31, 2017 December 31, 2016 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) $ 7,146 $ 5,505 15.37 $ 6,246 $ 6,428 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) 7,666 1,360 1.76 7,358 1,360 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. — — — 11,333 — 66.58 High returns and long-term capital appreciation through investments in the power, utility and energy industries, and in the infrastructure sector. (b)(g)(h) 5,539 4,343 0.18 4,326 5,766 0.18 Total $ 20,351 $ 11,208 $ 29,263 $ 13,554 (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 (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 (f) The withdrawal was effective on February 15, 2017. As a result, the Company’s investment in this limited partnership was terminated. (g) Expected to have a 10-year (h) With the consent of a super majority, the term of the fund may be extended for up to three additional one-year The following is the aggregated summarized unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. In applying the equity method of accounting, the Company uses the most recently available financial information provided by the general partner of each of these partnerships. The financial statements of these limited partnerships are audited annually. Three Months Ended March 31, 2017 2016 Operating results: Total income $ 72,317 $ (16,082 ) Total expenses (27,642 ) (102,621 ) Net income (loss) $ 44,675 $ (118,703 ) March 31, December 31, 2017 2016 Balance Sheet: Total assets $ 3,513,683 $ 2,956,327 Total liabilities $ 594,711 $ 63,813 For the three months ended March 31, 2017, the Company recognized net investment income of $772 for these investments as compared with net investment loss of $869 for the three months ended March 31, 2016. During the first quarter of 2017, the Company received total cash distributions of $12,030, representing $11,758 of returned capital and $272 of return on investment. Included in the return of capital was $11,626 from one limited partnership the Company withdrew from in February 2017. At March 31, 2017 and December 31, 2016, the Company’s cumulative contributed capital to the partnerships existing at each respective balance sheet date totaled $19,292 and $31,946, respectively, and the Company’s maximum exposure to loss aggregated $20,351 and $29,263, respectively. There were no cash distributions received by the Company during the three months ended March 31, 2016. Investment in Unconsolidated Joint Venture The Company has an equity investment in FMKT Mel JV, which is a limited liability company treated as a joint venture under U.S. GAAP. In March 2017, FMKT Mel JV sold a portion of its outparcel land for gross proceeds of $825 and recognized a $331 gain on sale of which $199 was allocated to the Company in accordance with the profit allocation specified in the operating agreement. At March 31, 2017 and December 31, 2016, the Company’s maximum exposure to loss relating to the variable interest entity was $1,710 and $2,102, respectively, representing the carrying value of the investment. During the first quarter of 2017, the Company received a cash distribution of $564, representing a combined distribution of $147 in earnings and $417 in capital. At December 31, 2016, there was an undistributed loss of $25 after an equity distribution. The limited liability company members received no cash distribution during the first quarter of 2016. The following tables provide FMJV’s summarized unaudited financial results and the unaudited financial positions: Three Months Ended March 31, 2017 2016 Operating results: Total revenues and gain $ 331 $ 533 Total expenses (32 ) (236 ) Net income $ 299 $ 297 The Company’s share of net income* $ 172 $ 287 * Included in net investment income in the Company’s consolidated statements of income. March 31, December 31, 2017 2016 Balance Sheet: Construction in progress - real estate $ 318 $ 334 Property and equipment, net 1,240 1,654 Cash 171 179 Other 180 180 Total assets $ 1,909 $ 2,347 Accounts payable $ 4 $ 11 Other liabilities 5 — Members’ capital 1,900 2,336 Total liabilities and members’ capital $ 1,909 $ 2,347 Investment in unconsolidated joint venture, at equity* $ 1,710 $ 2,102 * Included the 90% share of FMKT Mel JV’s operating results. Real Estate Investments Real estate investments include 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 March 31, 2017 and December 31, 2016. March 31, December 31, 2017 2016 Land $ 17,592 $ 17,592 Land improvements 9,346 9,336 Buildings 16,601 16,154 Tenant and leasehold improvements 940 872 Construction in progress* 3,646 3,404 Other 2,892 2,683 Total, at cost 51,017 50,041 Less: accumulated depreciation and amortization (2,292 ) (1,955 ) Real estate investments $ 48,725 $ 48,086 * The project is being developed by the Company’s consolidated variable interest entity. Depreciation and amortization expense related to real estate investments was $337 and $93 for the three months ended March 31, 2017 and 2016, respectively. Consolidated Variable Interest Entity The Company has an ongoing development project in Riverview, Florida through a limited liability company treated under U.S. GAAP as a joint venture in which the Company’s subsidiary has a controlling financial interest and, as a result, it is the primary beneficiary. In addition, the Company is the sole source of funding for the development project. The following table summarizes the assets and liabilities related to this variable interest entity which are included in the accompanying consolidated balance sheets. March 31, December 31, 2017 2016 Cash and cash equivalents $ 60 $ 65 Construction in progress included in real estate investments $ 3,646 $ 3,404 Other assets $ 19 $ — Accrued expenses $ 14 $ 68 Other liabilities $ 17 $ 11 Net Investment Income Net investment income (loss), by source, is summarized as follows: Three Months Ended March 31, 2017 2016 Available-for-sale Fixed-maturity securities $ 1,237 $ 1,099 Equity securities 874 951 Investment expense (159 ) (162 ) Limited partnership investments 772 (869 ) Real estate investments (396 ) (30 ) Income from unconsolidated joint venture 172 287 Cash and cash equivalents 328 202 Other 6 12 Net investment income $ 2,834 $ 1,490 |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Note 4 — Comprehensive Income (Loss) Comprehensive income (loss) includes net income and other comprehensive income or loss, which for the Company includes changes in unrealized gains or losses of investments carried at fair value and changes in the unrealized other-than-temporary impairment losses related to these investments. Reclassification adjustments for realized (gains) losses are reflected in net realized investment gains (losses) on the consolidated statements of income. The components of other comprehensive income or loss and the related tax effects allocated to each component were as follows: Three Months Ended March 31, 2017 Income Tax Before Expense Net of Tax (Benefit) Tax Unrealized gain arising during the period $ 2,013 $ 777 $ 1,236 Other-than-temporary impairment loss 213 82 131 Call and repayment losses charged to investment income 1 — 1 Reclassification adjustment for realized gains (715 ) (276 ) (439 ) Total other comprehensive income $ 1,512 $ 583 $ 929 Three Months Ended March 31, 2016 Income Tax Before Expense Net of Tax (Benefit) Tax Unrealized gain arising during the period $ 2,163 $ 834 $ 1,329 Other-than-temporary impairment loss 675 261 414 Call and repayment losses charged to investment income 1 — 1 Reclassification adjustment for realized losses 75 29 46 Total other comprehensive income $ 2,914 $ 1,124 $ 1,790 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5 — Fair Value Measurements The Company records and discloses certain financial assets at their estimated fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Other inputs that are observable for the asset, either directly or indirectly such as quoted prices for identical assets that are not observable throughout the full term of the asset. Level 3 - Inputs that are unobservable. Valuation Methodology Cash and cash equivalents Cash and cash equivalents primarily consist of money-market funds. Their carrying value approximates fair value due to the short maturity and high liquidity of these funds. Available-for-sale Estimated fair values of the Company’s available-for-sale 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, which are level 2 inputs. 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. Limited Partnership Investments As described in Note 3 — “Investments” under Limited Partnership Investments Revolving Credit Facility The interest rate on the Company’s revolving credit facility was periodically adjusted based on the LIBOR rate plus a spread. As a result, its carrying value at December 31, 2016 approximated fair value. In February 2017, this credit facility was converted into a 3.95% three-year promissory note. See Note 7 — “Long-Term Debt” under 3.95% Promissory Note. Long-term debt The following table summarizes components of the Company’s long-term debt and methods used in estimating their fair values: Maturity Date Valuation Methodology 8% Senior Notes 2020 Closing price listed on the New York Stock Exchange 3.875% Convertible Senior Notes 2019 Discounted cash flow method/Level 3 inputs 4.25% Convertible Senior Notes 2037 Discounted cash flow method/Level 3 inputs 3.95% Promissory Note 2020 Discounted cash flow method/Level 3 inputs 4% Promissory Note 2031 Discounted cash flow method/Level 3 inputs 3.75% Promissory Note 2036 Discounted cash flow method/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 March 31, 2017 and December 31, 2016: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of March 31, 2017 Financial Assets: Cash and cash equivalents $ 407,937 $ — $ — $ 407,937 Fixed-maturity securities: U.S. Treasury and U.S. government agencies 4,033 498 — 4,531 Corporate bonds 78,404 966 — 79,370 State, municipalities, and political subdivisions — 77,211 — 77,211 Exchange-traded debt 11,415 — — 11,415 Redeemable preferred stock 247 — — 247 Total fixed-maturity securities 94,099 78,675 — 172,774 Equity securities 57,464 — — 57,464 Total available-for-sale 151,563 78,675 — 230,238 Total $ 559,500 $ 78,675 $ — $ 638,175 Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2016 Financial Assets: Cash and cash equivalents $ 280,531 $ — $ — $ 280,531 Fixed-maturity securities: U.S. Treasury and U.S. government agencies 1,939 — — 1,939 Corporate bonds 73,519 985 — 74,504 State, municipalities, and political subdivisions — 78,306 — 78,306 Exchange-traded debt 11,262 — — 11,262 Redeemable preferred stock 237 — — 237 Total fixed-maturity securities 86,957 79,291 — 166,248 Equity securities 53,035 — — 53,035 Total available-for-sale 139,992 79,291 — 219,283 Total $ 420,523 $ 79,291 $ — $ 499,814 Assets and Liabilities Carried at Other Than Fair Value The following tables present fair value information for assets and liabilities that are carried on the balance sheet at amounts other than fair value as of March 31, 2017 and December 31, 2016: Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of March 31, 2017 Financial Assets: Limited partnership investments $ 20,351 $ — $ — $ 20,351 $ 20,351 Long-term debt: 8% Senior notes $ 39,505 $ — $ 40,765 $ — $ 40,765 3.875% Convertible senior notes 82,823 — — 84,096 84,096 4.25% Convertible senior notes 123,883 — — 124,825 124,825 3.95% Promissory note 9,528 — — 9,466 9,466 4% Promissory note 8,549 — — 8,226 8,226 3.75% Promissory note 8,694 — — 8,029 8,029 Total long-term debt $ 272,982 $ — $ 40,765 $ 234,642 $ 275,407 Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of December 31, 2016 Financial Assets: Limited partnership investments $ 29,263 $ — $ — $ 29,263 $ 29,263 Financial Liabilities: Revolving credit facility $ 9,463 $ — $ — $ 9,463 $ 9,463 Long-term debt: 8% Senior notes $ 39,448 $ — $ 41,618 $ — $ 41,618 3.875% Convertible senior notes 81,988 — — 84,696 84,696 4% Promissory note 8,660 — — 8,664 8,664 3.75% Promissory note 8,767 — — 8,506 8,506 Total long-term debt $ 138,863 $ — $ 41,618 $ 101,866 $ 143,484 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Note 6 — Other Assets The following table summarizes the Company’s other assets. March 31, December 31, 2017 2016 Benefits receivable related to retrospective reinsurance contracts $ 8,302 $ 5,810 Prepaid expenses 2,106 1,581 Lease acquisition costs, net 610 615 Restricted cash 709 600 Other 3,750 2,736 Total other assets $ 15,477 $ 11,342 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7 — Long-Term Debt The following table summarizes the Company’s long-term debt. March 31, December 31, 2017 2016 8% Senior Notes, due January 30, 2020 $ 40,250 $ 40,250 3.875% Convertible Senior Notes, due March 15, 2019 89,990 89,990 4.25% Convertible Senior Notes, due March 1, 2037 143,750 — 3.95% Promissory note, due through February 17, 2020 9,529 — 4% Promissory note, due through February 1, 2031 8,704 8,821 3.75% Promissory note, due through September 1, 2036 8,847 8,924 Total principal amount 301,070 147,985 Less: unamortized discount and issuance costs (28,088 ) (9,122 ) Total long-term debt $ 272,982 $ 138,863 The following table summarizes future maturities of long-term debt as of March 31, 2017, which takes into consideration the early redemption of the 8% Senior Notes (see Note 16 — “Subsequent Event”) and the assumption that the 4.25% Convertible Senior Notes are repurchased at the earliest call date. Due in 12 months following March 31, 2017 $ 41,269 2018 91,049 2019 9,919 2020 889 2021 144,674 Thereafter 13,270 Total $ 301,070 Information with respect to interest expense related to long-term debt is as follows: Three Months Ended March 31, 2017 2016 Interest Expense: Contractual interest $ 2,424 $ 1,889 Non-cash 1,159 940 Capitalized interest (b) (41 ) — $ 3,542 $ 2,829 (a) Includes amortization of debt discount and issuance costs. (b) Interest was capitalized for a construction project in Riverview, Florida which is intended for lease. Convertible Senior Notes The Company’s Convertible Senior Notes consist of 3.875% Convertible Senior Notes due 2019 (“3.875% Convertible Notes”) and 4.25% Convertible Senior Notes due 2037 (“4.25% Convertible Notes”). The 3.875% Convertible Notes were issued in late 2013 in a private offering for an aggregate principal amount of $103,000. During the first quarter of 2016, the Company repurchased an aggregate of $13,010 in principal, thereby decreasing the aggregate principal balance of its 3.875% Convertible Notes to $89,990. On March 3, 2017, the Company issued 4.25% Convertible Notes in a private offering for an aggregate principal amount of $143,750. The net proceeds of the 4.25% Convertible Notes were $138,775 after $4,975 in related issuance and transaction costs, of which $4,806 was paid during the first quarter of 2017. The following table summarizes the principal and interest payment terms of these Convertible Senior Notes: Convertible Senior Notes Interest Payment Terms 3.875% Convertible Notes, due March 15, 2019 Semiannually in arrears: March 15 and September 15 4.25% Convertible Notes, due March 1, 2037 Semiannually in arrears: March 1 and September 1 The Convertible Senior Notes rank equally in right of payment to the Company’s existing and future unsecured and unsubordinated obligations. These Convertible Senior Notes do not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. The Convertible Senior Notes provide no protection to the note holders in the event of a fundamental change or other corporate transaction involving the Company except those described in each respective indenture. These Convertible Senior Notes do not require a sinking fund to be established for the purpose of redemption. In conjunction with the issuances of the Convertible Senior Notes, the Company entered into prepaid share repurchase forward contracts and share repurchase agreements providing for the repurchase of shares of the Company’s common stock. See Note 13 — “Stockholders’ Equity” under Share Repurchase Agreements Prepaid Share Repurchase Forward Contracts The following table summarizes information regarding the equity and liability components of the Convertible Senior Notes: March 31, December 31 Principal amount $ 233,740 $ 89,990 Unamortized discount (21,578 ) (6,795 ) Liability component – net carrying value before issuance costs $ 212,162 $ 83,195 Equity component – conversion, net of offering costs $ 31,051 $ 15,900 Embedded Conversion Feature The conversion feature of these Convertible Senior Notes is subject to conversion rate adjustments upon the occurrence of specified events (including payment of dividends above a specified amount) but will not be adjusted for any accrued and unpaid interest. 3.875% Convertible Notes 4.25% Convertible Notes The holders of the Convertible Senior Notes may convert all or a portion of their Convertible Senior Notes during specified periods as follows: (1) during any calendar quarter commencing after the calendar quarter ending on the dates specified in each respective indenture, if the last reported sale price of the Company’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five business-day trading-day The note holders who elect to convert their Convertible Senior Notes in connection with a fundamental change as described in the indentures will be entitled to a “make-whole” adjustment in the form of an increase in the conversion rate. Upon conversion, the Company has options to satisfy its conversion obligation by paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock. As of March 31, 2017, none of the conditions allowing the holders of either class of the Convertible Senior Notes to convert had been met. The Company determined that the Convertible Senior Notes’ embedded conversion feature is not a derivative financial instrument but rather is required to be separately accounted for in equity because the Company may elect to settle the conversion option entirely or partially in cash. At issuance, the Company accounted for the equity component of the embedded conversion feature as a reduction in the carrying amount of the debt and an increase in additional paid-in Embedded Redemption Feature – Fundamental Change The note holders have the right to require the Company to repurchase for cash all or any portion of the Convertible Senior Notes at par prior to the maturity date should any of the fundamental change events described in the indentures occur. The Company concluded that this embedded redemption feature is not a derivative financial instrument and that it is not probable at issuance that any of the specified fundamental change events will occur. Therefore, this embedded redemption feature is not substantive and will not affect the expected life of the liability component. Embedded Redemption Feature – Put Option of the Note Holder At the option of the holders of the 4.25% Convertible Notes, the Company is required to repurchase for cash all or any portion of the 4.25% Convertible Notes at par on March 1, 2022, March 1, 2027 or March 1, 2032. The Company concluded that this embedded feature is not a derivative financial instrument. In addition, based on economic factors at the time when the 4.25% Convertible Notes were issued, the Company determined it is probable that the note holders will exercise this option. Thus, the Company amortizes the liability component and related issuance costs associated with the 4.25% Convertible Notes over the period from March 3, 2017 to March 1, 2022. Had a 20-year The effective interest rates for the 3.875% Convertible Notes and the 4.25% Convertible Notes, taking into account both cash and non-cash 3.95% Promissory Note On February 27, 2017, the Company converted its outstanding revolving credit facility of $9,441 into a three-year mortgage loan primarily collateralized by a retail shopping center in Melbourne, Florida. Shortly after the loan conversion, the Company withdrew an additional amount of $109, thereby increasing the loan amount to $9,550. The loan bears a fixed annual interest rate of 3.95%. Approximately $50 of principal and interest is payable in 35 monthly installments beginning March 17, 2017 plus a final balloon payment of $8,891 including principal and unpaid interest payable on February 17, 2020. The promissory note may be repaid in part or in full at any time without penalty. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2017 | |
Insurance [Abstract] | |
Reinsurance | Note 8 — Reinsurance The Company cedes a portion of its homeowners’ insurance exposure to other entities under catastrophe excess of loss reinsurance treaties and two quota share reinsurance agreements, one of which was terminated effective May 31, 2016. Under the terms of the remaining quota share reinsurance agreement effective January 1, 2017, the Company is entitled to a 30% ceding commission on ceded premiums written. The Company remains liable for claims payments in the event that any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1st each year. The Company purchases reinsurance each year taking into consideration probable maximum losses and reinsurance market conditions. The impact of the catastrophe excess of loss reinsurance treaties and two quota share reinsurance arrangements on premiums written and earned is as follows: Three Months Ended 2017 2016 Premiums Written: Direct $ 72,386 $ 75,639 Assumed (961 ) (79 ) Gross written 71,425 75,560 Ceded (28,583 ) (40,372 ) Net premiums written $ 42,842 $ 35,188 Premiums Earned: Direct $ 86,272 $ 96,853 Assumed 5,347 1,966 Gross earned 91,619 98,819 Ceded (28,583 ) (40,372 ) Net premiums earned $ 63,036 $ 58,447 During the three months ended March 31, 2017 and 2016, there were no recoveries pertaining to reinsurance contracts that were deducted from losses incurred. At March 31, 2017 and December 31, 2016, there were 36 and 35 reinsurers, respectively, participating in the Company’s reinsurance program. There were no amounts receivable with respect to reinsurers at March 31, 2017 and December 31, 2016. Thus, there were no concentrations of credit risk associated with reinsurance receivables as of March 31, 2017 and December 31, 2016. 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 March 31, 2017 and December 31, 2016. Certain of the reinsurance contracts include retrospective provisions that adjust premiums, increase the amount of future coverage, or result in a profit commission in the event losses are minimal or zero. These adjustments are reflected in the consolidated statements of income as net reductions in ceded premiums of $3,322 and $2,821 for the three months ended March 31, 2017 and 2016, respectively, of which $576 and $327 related to the Company’s contract with Oxbridge Reinsurance Limited, a related party. |
Losses and Loss Adjustment Expe
Losses and Loss Adjustment Expenses | 3 Months Ended |
Mar. 31, 2017 | |
Insurance [Abstract] | |
Losses and Loss Adjustment Expenses | Note 9 — 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 2017 2016 Balance, beginning of period $ 70,492 $ 51,690 Incurred related to: Current period 23,208 26,617 Prior period 2,321 463 Total incurred 25,529 27,080 Paid related to: Current period (6,645 ) (8,357 ) Prior period (19,465 ) (17,142 ) Total paid (26,110 ) (25,499 ) Balance, end of period $ 69,911 $ 53,271 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 months ended March 31, 2017, the Company experienced net loss development related to prior years of $2,312, of which $2,491 pertains to claims in the 2016 loss year. The 2016 development is attributable to the continuing trend in the assignment of benefits litigation. 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 may occur in the near term or thereafter. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Note 10 — Segment Information The Company’s businesses consist of four operating divisions: property and casualty insurance, reinsurance, investment real estate and information technology. The Company’s chief executive officer, who serves as the Company’s chief operating decision maker, evaluates each division’s financial and operating performances based on revenue and operating income. The Company aggregates its operating divisions into segments based on organizational structure and revenue source. Due to their economic characteristics, the Company’s property and casualty insurance division and reinsurance division are grouped together into one reportable segment under insurance operations. For the three months ended March 31, 2017 and 2016, revenues from the Company’s insurance operations before intracompany elimination represented 96.5% and 97.1%, respectively, of total revenues of all operating segments. At March 31, 2017 and December 31, 2016, insurance operations’ total assets represented 87.1% and 87.9%, respectively, of the combined assets of all operating segments. There was no other operating division representing ten percent or more of the Company’s total revenues or combined assets. In addition, there was no other operating division representing ten percent or more of the greater, in absolute amount, of the combined profits of all operating divisions reporting a profit or the combined losses of all operating divisions reporting a loss. The following tables present segment information reconciled to the Company’s consolidated statements of income. Other non-reportable Insurance Corporate/ Reclassification/ Consolidated Three Months Ended March 31, 2017 Revenue: Net premiums earned $ 63,036 $ — $ — $ 63,036 Net investment income (loss) 2,373 686 (225 ) 2,834 Net realized investment gains 606 109 — 715 Net other-than-temporary impairment losses (213 ) — — (213 ) Policy fee income 908 — — 908 Other 205 2,461 (2,233 ) 433 Total revenue 66,915 3,256 (2,458 ) 67,713 Expenses: Losses and loss adjustment expenses 25,529 — — 25,529 Amortization of deferred policy acquisition costs 8,852 — — 8,852 Interest expense — 3,542 — 3,542 Depreciation and amortization 28 714 (459 ) 283 Other 7,369 4,995 (1,999 ) 10,365 Total expenses 41,778 9,251 (2,458 ) 48,571 Income before income taxes $ 25,137 $ (5,995 ) $ — $ 19,142 Insurance Corporate/ Reclassification/ Operations Other(a) Elimination Consolidated Three Months Ended March 31, 2016 Revenue: Net premiums earned $ 58,447 $ — $ — $ 58,447 Net investment income (loss) 1,750 (363 ) 103 1,490 Net realized investment (losses) gains (58 ) (17 ) — (75 ) Net other-than-temporary impairment losses (661 ) (14 ) — (675 ) Policy fee income 1,007 — — 1,007 Gain on repurchases of convertible senior notes — 153 — 153 Other 226 1,651 (1,477 ) 400 Total revenue 60,711 1,410 (1,374 ) 60,747 Expenses: Losses and loss adjustment expenses 27,080 — — 27,080 Amortization of deferred policy acquisition costs 9,811 — — 9,811 Interest expense — 2,829 — 2,829 Depreciation and amortization 50 386 (93 ) 343 Other 8,188 4,080 (1,281 ) 10,987 Total expenses 45,129 7,295 (1,374 ) 51,050 Income before income taxes $ 15,582 $ (5,885 ) $ — $ 9,697 (a) Other revenue under corporate and other primarily consisted of rental income from investment properties and revenue from restaurant and marina businesses. The following table presents segment assets reconciled to the Company’s total assets in the consolidated balance sheets. March 31, December 31, 2017 2016 Segment: Insurance Operations $ 553,823 $ 651,927 Corporate and Other 251,298 116,849 Consolidation and Elimination (16,980 ) (98,712 ) Total assets $ 788,141 $ 670,064 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 — Income Taxes During the three months ended March 31, 2017 and 2016, the Company recorded approximately $7,122 and $3,641, respectively, of income taxes, which resulted in effective tax rates of 37.2% and 37.5%, respectively. 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 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 12 — Earnings Per Share U.S. GAAP requires the Company to use the two-class A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below. Three Months Ended Three Months Ended March 31, 2017 March 31, 2016 Income Shares Per Share Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net income $ 12,020 $ 6,056 Less:Income attributable to participating securities (708 ) (297 ) Basic Earnings Per Share: Income allocated to common stockholders 11,312 8,918 $ 1.27 5,759 9,578 $ 0.60 Effect of Dilutive Securities: Stock options — 45 — 63 Convertible senior notes* 1,499 2,177 — — Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 12,811 11,140 $ 1.15 $ 5,759 9,641 $ 0.60 * Excluded in 2016 due to anti-dilutive effect. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Note 13 — Stockholders’ Equity Common Stock In December 2016, the Company’s Board of Directors authorized a plan to repurchase up to $20,000 of the Company’s common shares before commissions and fees. During the three months ended March 31, 2017, the Company repurchased and retired a total of 37,516 shares at a weighted average price per share of $41.29 under this authorized repurchase plan. The total cost of shares repurchased, inclusive of fees and commissions, during the three months ended March 31, 2017 was $1,550, or $41.33 per share. In December 2015, the Company’s Board of Directors authorized a one-year On January 16, 2017, the Company’s Board of Directors declared a quarterly dividend of $0.35 per common share. The dividends were paid on March 17, 2017 to stockholders of record on February 17, 2017. On April 17, 2017, the Company’s Board of Directors declared a quarterly dividend of $0.35 per common share. The dividends are payable on June 16, 2017 to stockholders of record on May 19, 2017. Share Repurchase Agreements In conjunction with the issuance of the 4.25% Convertible Notes as described in Note 7 — “Long-Term Debt” under Convertible Senior Notes Prepaid Share Repurchase Forward Contracts The Company has two outstanding prepaid share repurchase forward contracts, one of which was entered into with Deutsche Bank AG, London Branch in conjunction with the issuance of the 3.875% Convertible Notes. The other was entered into with Societe Generale in conjunction with the recent issuance of the 4.25% Convertible Notes as described in Note 7 — “Long-Term Debt” under Convertible Senior Notes Each forward contract is subject to early settlement, in whole or in part, at any time prior to the final settlement date at the option of each forward counterparty, as well as early settlement or settlement with alternative consideration in the event of certain corporate transactions. In the event the Company pays any cash dividends on its common shares, each forward counterparty will pay an equivalent amount to the Company. The shares to be purchased under the forward contracts will be treated as retired for financial statement purposes as of the effective date of each forward contract, but will remain outstanding for corporate law purposes, including for purposes of any future stockholders votes. The Company determined that each forward contract does not meet the characteristics of a derivative instrument and, as such, the transaction resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for both basic and diluted earnings per share. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note 14 — 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. On March 17, 2017, the Company’s board of directors amended the 2012 Omnibus Incentive Plan and reduced the number of shares reserved under the plan from 5,000,000 shares to 3,000,000 shares. At March 31, 2017, there were 2,082,751 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 months ended March 31, 2017 and 2016 is as follows (option amounts not in thousands): Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Term Value Outstanding at January 1, 2017 50,000 $ 4.02 2.3 years $ 1,773 Granted 110,000 $ 40.00 Outstanding at March 31, 2017 160,000 $ 28.76 7.4 years $ 2,591 Exercisable at March 31, 2017 50,000 $ 4.02 2.0 years $ 2,046 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 Exercisable at March 31, 2016 110,000 $ 3.19 2.1 years $ 3,312 There were no options exercised during the three months ended March 31, 2017 and 2016. For the three months ended March 31, 2017 and 2016, the Company recognized $96 and $0, respectively, of compensation expense which was included in other operating expenses. Deferred tax benefits related to stock options for the three months ended March 31, 2017 and 2016 were $37 and $0, respectively. At March 31, 2017 and December 31, 2016, there was $1,151 and $0, respectively, of unrecognized compensation expense related to nonvested stock options. The Company expects to recognize the remaining compensation expense over a weighted-average period of 3.8 years. The following table provides assumptions used in the Black-Scholes option-pricing model to estimate the fair value of the stock options granted during the three months ended March 31, 2017: Expected dividend yield 3.53 % Expected volatility 42.86 % Risk-free interest rate 1.92 % Expected life (in years) 5 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 containing only performance or service-based conditions is based on the market value of the Company’s common stock on the grant date. Information with respect to the activity of unvested restricted stock awards during the three months ended March 31, 2017 and 2016 is as follows: Number of Weighted Restricted Average Stock Grant Date Awards Fair Value Nonvested at January 1, 2017 542,503 $ 30.81 Granted 45,000 $ 40.15 Vested (20,109 ) $ 48.42 Forfeited (926 ) $ 35.52 Nonvested at March 31, 2017 566,468 $ 30.92 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 The Company recognized compensation expense related to restricted stock, which is included in other operating expenses, of $1,006 and $981 for the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017 and 2016, there was approximately $8,299 and $6,625, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 23 months. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the three months ended March 31, 2017 and 2016. Three Months Ended March 31, 2017 2016 Deferred tax benefits recognized $ 353 $ 379 Tax benefits realized for restricted stock and paid dividends* $ 62 $ 50 Fair value of vested restricted stock $ 974 $ 1,013 * For the three months ended March 31, 2017, tax benefits were realized for paid dividends only. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15 — Commitments and Contingencies Obligations under Multi-Year Reinsurance Contracts As of March 31, 2017, the Company has contractual obligations related to multi-year reinsurance contracts. These contracts have effective dates of June 1, 2016 and may be cancelled only with the other party’s consent. The future minimum aggregate premiums amount payable to the reinsurers due in June of 2017 and 2018 is $19,400 and $19,400, respectively. Capital Commitment As described in Note 3 — “Investments” under Limited Partnership Investments |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16 — Subsequent Events On April 18, 2017, the Company’s Board of Directors approved the termination of its common shareholder’s right to purchase Series B Junior Participating Preferred Share by amending the associated rights agreement to accelerate the expiration date to April 18, 2017. On April 3, 2017, the Company redeemed its 8% publicly traded, unsecured senior notes at par for $40,805, including accrued and unpaid interest of $555. The Company recognized a total charge of $743 associated with the early extinguishment of this debt. The redemption was funded by the net proceeds from the issuance of the 4.25% Convertible Senior Notes as described in Note 7 — “Long-Term Debt” under Convertible Senior Notes |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited, consolidated financial statements for HCI Group, Inc. and its majority-owned and controlled subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2017 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, 2017. 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, 2016 included in the Company’s Form 10-K, In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, deferred income taxes, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements. All significant intercompany balances and transactions have been eliminated. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards Effective January 1, 2017, the Company adopted Accounting Standards Update No. 2016-09, |
Long-Term Debt | Long-Term Debt Long-term debt is generally classified as a liability and carried at amortized cost, net of any discount and issuance costs. At issuance, a debt instrument with embedded features such as conversion and redemption options is evaluated to determine whether bifurcation and derivative accounting is applicable. If such instrument is not subject to derivative accounting, it is further evaluated to determine if the Company is required to separately account for the liability and equity components. To determine the carrying values of the liability and equity components at issuance, the Company measures the fair value of a similar liability, including any embedded features other than the conversion option, and assigns such value to the liability component. The liability component’s fair value is then subtracted from the initial proceeds to determine the carrying value of the debt instrument’s equity component, which is included in additional paid-in Any embedded feature other than the conversion option is evaluated at issuance to determine if it is probable that such embedded feature will be exercised. If the Company concludes that the exercisability of that embedded feature is not probable, the embedded feature is considered to be non-substantive Transaction costs related to issuing a debt instrument that embodies both liability and equity components are allocated to the liability and equity components in proportion to the allocation of the proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. Debt issuance costs are capitalized and presented as a deduction from the carrying value of the debt. Both debt discount and deferred debt issuance costs are amortized to interest expense over the expected life of the debt instrument using the effective interest method. Equity issuance costs are a reduction to the proceeds allocated to the equity component. |
Common Share Repurchases | Common Share Repurchases The Company primarily repurchases its common stock in the open market through share repurchase programs and from institutional investors in private transactions such as prepaid share repurchase forward contracts and share repurchase agreements. A prepaid share repurchase forward contract is generally a contract that allows a party to buy from the counterparty a specified number of common shares at a specific time at a given forward price. The Company entered into such a contract and evaluated the characteristics of the forward contract to determine whether it met the definition of a derivative financial instrument pursuant to U.S. GAAP. The Company determined the forward contract is an equity contract on the Company’s common shares requiring physical settlement in common shares of the Company. As such, the transaction is recognized as a component of stockholders’ equity and there will be no recognition in earnings for changes in fair value in subsequent periods. In general, the Company first charges the purchase price or the prepayment amount to additional paid-in paid-in |
Reclassifications | Reclassifications Certain reclassifications of prior year amounts have been made to conform to the current year presentation. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities | At March 31, 2017 and December 31, 2016, the cost or amortized cost, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale Cost or Gross Gross Estimated Value As of March 31, 2017 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ 4,568 $ — $ (37 ) $ 4,531 Corporate bonds 79,780 853 (1,263 ) 79,370 State, municipalities, and political subdivisions 76,566 1,020 (375 ) 77,211 Exchange-traded debt 11,325 177 (87 ) 11,415 Redeemable preferred stock 237 10 — 247 Total 172,476 2,060 (1,762 ) 172,774 Equity securities 51,948 5,898 (382 ) 57,464 Total available-for-sale $ 224,424 $ 7,958 $ (2,144 ) $ 230,238 As of December 31, 2016 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ 1,975 $ — $ (36 ) $ 1,939 Corporate bonds 75,538 607 (1,641 ) 74,504 State, municipalities, and political subdivisions 78,018 776 (488 ) 78,306 Exchange-traded debt 11,463 36 (237 ) 11,262 Redeemable preferred stock 237 3 (3 ) 237 Total 167,231 1,422 (2,405 ) 166,248 Equity securities 47,750 5,769 (484 ) 53,035 Total available-for-sale $ 214,981 $ 7,191 $ (2,889 ) $ 219,283 |
Scheduled Contractual Maturities of Fixed-Maturity Securities | The scheduled contractual maturities of fixed-maturity securities as of March 31, 2017 and December 31, 2016 are as follows: Amortized Estimated As of March 31, 2017 Available-for-sale Due in one year or less $ 8,184 $ 8,215 Due after one year through five years 54,202 54,390 Due after five years through ten years 87,114 87,068 Due after ten years 22,976 23,101 $ 172,476 $ 172,774 Amortized Estimated As of December 31, 2016 Available-for-sale Due in one year or less $ 2,656 $ 2,662 Due after one year through five years 49,915 50,023 Due after five years through ten years 90,360 89,332 Due after ten years 24,300 24,231 $ 167,231 $ 166,248 |
Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available for Sale Securities | Sales of Available-for-Sale Proceeds received, and the gross realized gains and losses from sales of available-for-sale Gross Realized Gross Realized Proceeds Gains Losses Three months ended March 31, 2017 Fixed-maturity securities $ 4,439 $ 23 $ (4 ) Equity securities $ 7,271 $ 745 $ (49 ) Three months ended March 31, 2016 Fixed-maturity securities $ 1,100 $ 7 $ — Equity securities $ 4,354 $ 139 $ (221 ) |
Rollforward of Cumulative Credit Losses in Other-Than-Temporary Impairments 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 impairments recognized in income from available for sale fixed-maturity securities. 2017 2016 Balance at January 1 $ 475 $ 111 Additional credit impairments on previously impaired securities — 293 Balance at March 31 $ 475 $ 404 |
Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category | Securities with gross unrealized loss positions at March 31, 2017 and December 31, 2016, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair Loss Value Loss Value Loss Value As of March 31, 2017 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ (37 ) $ 3,135 $ — $ — $ (37 ) $ 3,135 Corporate bonds (1,229 ) 44,090 (34 ) 966 (1,263 ) 45,056 State, municipalities, and political subdivisions (336 ) 13,604 (39 ) 3,042 (375 ) 16,646 Exchange-traded debt (87 ) 4,157 — — (87 ) 4,157 Total fixed-maturity securities (1,689 ) 64,986 (73 ) 4,008 (1,762 ) 68,994 Equity securities (303 ) 8,027 (79 ) 1,791 (382 ) 9,818 Total available-for-sale $ (1,992 ) $ 73,013 $ (152 ) $ 5,799 $ (2,144 ) $ 78,812 At March 31, 2017, there were 112 securities in an unrealized loss position. Of these securities, 13 securities had been in an unrealized loss position for 12 months or longer. The gross unrealized loss of corporate bonds in an unrealized loss position for twelve months or more included $83 of other-than-temporary impairment losses related to non-credit Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair Loss Value Loss Value Loss Value As of December 31, 2016 Fixed-maturity securities U.S. Treasury and U.S. government agencies $ (36 ) $ 1,939 $ — $ — $ (36 ) $ 1,939 Corporate bonds (1,546 ) 43,859 (95 ) 2,814 (1,641 ) 46,673 State, municipalities, and political subdivisions (441 ) 26,029 (47 ) 3,036 (488 ) 29,065 Exchange-traded debt (191 ) 4,980 (46 ) 1,954 (237 ) 6,934 Redeemable preferred stock (3 ) 47 — — (3 ) 47 Total fixed-maturity securities (2,217 ) 76,854 (188 ) 7,804 (2,405 ) 84,658 Equity securities (293 ) 10,042 (191 ) 3,209 (484 ) 13,251 Total available-for-sale $ (2,510 ) $ 86,896 $ (379 ) $ 11,013 $ (2,889 ) $ 97,909 |
Schedule of Company's Investments in Limited Partnerships | The following table provides information related to the Company’s investments in limited partnerships. March 31, 2017 December 31, 2016 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) $ 7,146 $ 5,505 15.37 $ 6,246 $ 6,428 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) 7,666 1,360 1.76 7,358 1,360 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. — — — 11,333 — 66.58 High returns and long-term capital appreciation through investments in the power, utility and energy industries, and in the infrastructure sector. (b)(g)(h) 5,539 4,343 0.18 4,326 5,766 0.18 Total $ 20,351 $ 11,208 $ 29,263 $ 13,554 (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 (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 (f) The withdrawal was effective on February 15, 2017. As a result, the Company’s investment in this limited partnership was terminated. (g) Expected to have a 10-year (h) With the consent of a super majority, the term of the fund may be extended for up to three additional one-year |
Summary of Unaudited Financial Information and Unaudited Financial Position | The following tables provide FMJV’s summarized unaudited financial results and the unaudited financial positions: Three Months Ended March 31, 2017 2016 Operating results: Total revenues and gain $ 331 $ 533 Total expenses (32 ) (236 ) Net income $ 299 $ 297 The Company’s share of net income* $ 172 $ 287 * Included in net investment income in the Company’s consolidated statements of income. March 31, December 31, 2017 2016 Balance Sheet: Construction in progress - real estate $ 318 $ 334 Property and equipment, net 1,240 1,654 Cash 171 179 Other 180 180 Total assets $ 1,909 $ 2,347 Accounts payable $ 4 $ 11 Other liabilities 5 — Members’ capital 1,900 2,336 Total liabilities and members’ capital $ 1,909 $ 2,347 Investment in unconsolidated joint venture, at equity* $ 1,710 $ 2,102 * Included the 90% share of FMKT Mel JV’s operating results. |
Summary of Real Estate Investment | Real estate investments consist of the following as of March 31, 2017 and December 31, 2016. March 31, December 31, 2017 2016 Land $ 17,592 $ 17,592 Land improvements 9,346 9,336 Buildings 16,601 16,154 Tenant and leasehold improvements 940 872 Construction in progress* 3,646 3,404 Other 2,892 2,683 Total, at cost 51,017 50,041 Less: accumulated depreciation and amortization (2,292 ) (1,955 ) Real estate investments $ 48,725 $ 48,086 * The project is being developed by the Company’s consolidated variable interest entity. |
Investment (Loss) Income Summarized | Net investment income (loss), by source, is summarized as follows: Three Months Ended March 31, 2017 2016 Available-for-sale Fixed-maturity securities $ 1,237 $ 1,099 Equity securities 874 951 Investment expense (159 ) (162 ) Limited partnership investments 772 (869 ) Real estate investments (396 ) (30 ) Income from unconsolidated joint venture 172 287 Cash and cash equivalents 328 202 Other 6 12 Net investment income $ 2,834 $ 1,490 |
Variable Interest Entity [Member] | |
Summary of Unaudited Financial Information and Unaudited Financial Position | The following table summarizes the assets and liabilities related to this variable interest entity which are included in the accompanying consolidated balance sheets. March 31, December 31, 2017 2016 Cash and cash equivalents $ 60 $ 65 Construction in progress included in real estate investments $ 3,646 $ 3,404 Other assets $ 19 $ — Accrued expenses $ 14 $ 68 Other liabilities $ 17 $ 11 |
Limited Partnership [Member] | |
Summary of Unaudited Financial Information and Unaudited Financial Position | The following is the aggregated summarized unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. In applying the equity method of accounting, the Company uses the most recently available financial information provided by the general partner of each of these partnerships. The financial statements of these limited partnerships are audited annually. Three Months Ended March 31, 2017 2016 Operating results: Total income $ 72,317 $ (16,082 ) Total expenses (27,642 ) (102,621 ) Net income (loss) $ 44,675 $ (118,703 ) March 31, December 31, 2017 2016 Balance Sheet: Total assets $ 3,513,683 $ 2,956,327 Total liabilities $ 594,711 $ 63,813 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive Income or Loss and Related Tax Effects Allocated to Each Component | The components of other comprehensive income or loss and the related tax effects allocated to each component were as follows: Three Months Ended March 31, 2017 Income Tax Before Expense Net of Tax (Benefit) Tax Unrealized gain arising during the period $ 2,013 $ 777 $ 1,236 Other-than-temporary impairment loss 213 82 131 Call and repayment losses charged to investment income 1 — 1 Reclassification adjustment for realized gains (715 ) (276 ) (439 ) Total other comprehensive income $ 1,512 $ 583 $ 929 Three Months Ended March 31, 2016 Income Tax Before Expense Net of Tax (Benefit) Tax Unrealized gain arising during the period $ 2,163 $ 834 $ 1,329 Other-than-temporary impairment loss 675 261 414 Call and repayment losses charged to investment income 1 — 1 Reclassification adjustment for realized losses 75 29 46 Total other comprehensive income $ 2,914 $ 1,124 $ 1,790 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Components of Long-Term Debt and Methods Used in Estimating Fair Values | The following table summarizes components of the Company’s long-term debt and methods used in estimating their fair values: Maturity Date Valuation Methodology 8% Senior Notes 2020 Closing price listed on the New York Stock Exchange 3.875% Convertible Senior Notes 2019 Discounted cash flow method/Level 3 inputs 4.25% Convertible Senior Notes 2037 Discounted cash flow method/Level 3 inputs 3.95% Promissory Note 2020 Discounted cash flow method/Level 3 inputs 4% Promissory Note 2031 Discounted cash flow method/Level 3 inputs 3.75% Promissory Note 2036 Discounted cash flow method/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 March 31, 2017 and December 31, 2016: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of March 31, 2017 Financial Assets: Cash and cash equivalents $ 407,937 $ — $ — $ 407,937 Fixed-maturity securities: U.S. Treasury and U.S. government agencies 4,033 498 — 4,531 Corporate bonds 78,404 966 — 79,370 State, municipalities, and political subdivisions — 77,211 — 77,211 Exchange-traded debt 11,415 — — 11,415 Redeemable preferred stock 247 — — 247 Total fixed-maturity securities 94,099 78,675 — 172,774 Equity securities 57,464 — — 57,464 Total available-for-sale 151,563 78,675 — 230,238 Total $ 559,500 $ 78,675 $ — $ 638,175 Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2016 Financial Assets: Cash and cash equivalents $ 280,531 $ — $ — $ 280,531 Fixed-maturity securities: U.S. Treasury and U.S. government agencies 1,939 — — 1,939 Corporate bonds 73,519 985 — 74,504 State, municipalities, and political subdivisions — 78,306 — 78,306 Exchange-traded debt 11,262 — — 11,262 Redeemable preferred stock 237 — — 237 Total fixed-maturity securities 86,957 79,291 — 166,248 Equity securities 53,035 — — 53,035 Total available-for-sale 139,992 79,291 — 219,283 Total $ 420,523 $ 79,291 $ — $ 499,814 |
Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Balance Sheet | The following tables present fair value information for assets and liabilities that are carried on the balance sheet at amounts other than fair value as of March 31, 2017 and December 31, 2016: Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of March 31, 2017 Financial Assets: Limited partnership investments $ 20,351 $ — $ — $ 20,351 $ 20,351 Long-term debt: 8% Senior notes $ 39,505 $ — $ 40,765 $ — $ 40,765 3.875% Convertible senior notes 82,823 — — 84,096 84,096 4.25% Convertible senior notes 123,883 — — 124,825 124,825 3.95% Promissory note 9,528 — — 9,466 9,466 4% Promissory note 8,549 — — 8,226 8,226 3.75% Promissory note 8,694 — — 8,029 8,029 Total long-term debt $ 272,982 $ — $ 40,765 $ 234,642 $ 275,407 Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of December 31, 2016 Financial Assets: Limited partnership investments $ 29,263 $ — $ — $ 29,263 $ 29,263 Financial Liabilities: Revolving credit facility $ 9,463 $ — $ — $ 9,463 $ 9,463 Long-term debt: 8% Senior notes $ 39,448 $ — $ 41,618 $ — $ 41,618 3.875% Convertible senior notes 81,988 — — 84,696 84,696 4% Promissory note 8,660 — — 8,664 8,664 3.75% Promissory note 8,767 — — 8,506 8,506 Total long-term debt $ 138,863 $ — $ 41,618 $ 101,866 $ 143,484 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | The following table summarizes the Company’s other assets. March 31, December 31, 2017 2016 Benefits receivable related to retrospective reinsurance contracts $ 8,302 $ 5,810 Prepaid expenses 2,106 1,581 Lease acquisition costs, net 610 615 Restricted cash 709 600 Other 3,750 2,736 Total other assets $ 15,477 $ 11,342 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | The following table summarizes the Company’s long-term debt. March 31, December 31, 2017 2016 8% Senior Notes, due January 30, 2020 $ 40,250 $ 40,250 3.875% Convertible Senior Notes, due March 15, 2019 89,990 89,990 4.25% Convertible Senior Notes, due March 1, 2037 143,750 — 3.95% Promissory note, due through February 17, 2020 9,529 — 4% Promissory note, due through February 1, 2031 8,704 8,821 3.75% Promissory note, due through September 1, 2036 8,847 8,924 Total principal amount 301,070 147,985 Less: unamortized discount and issuance costs (28,088 ) (9,122 ) Total long-term debt $ 272,982 $ 138,863 |
Summary of Future Maturities of Long-Term Debt | The following table summarizes future maturities of long-term debt as of March 31, 2017, which takes into consideration the early redemption of the 8% Senior Notes (see Note 16 — “Subsequent Event”) and the assumption that the 4.25% Convertible Senior Notes are repurchased at the earliest call date. Due in 12 months following March 31, 2017 $ 41,269 2018 91,049 2019 9,919 2020 889 2021 144,674 Thereafter 13,270 Total $ 301,070 |
Schedule of Interest Expense Related to Long-Term Debt | Information with respect to interest expense related to long-term debt is as follows: Three Months Ended March 31, 2017 2016 Interest Expense: Contractual interest $ 2,424 $ 1,889 Non-cash 1,159 940 Capitalized interest (b) (41 ) — $ 3,542 $ 2,829 (a) Includes amortization of debt discount and issuance costs. (b) Interest was capitalized for a construction project in Riverview, Florida which is intended for lease. |
Summary of Principal and Interest Payment Terms of Convertible Senior Notes | The following table summarizes the principal and interest payment terms of these Convertible Senior Notes: Convertible Senior Notes Interest Payment Terms 3.875% Convertible Notes, due March 15, 2019 Semiannually in arrears: March 15 and September 15 4.25% Convertible Notes, due March 1, 2037 Semiannually in arrears: March 1 and September 1 |
Summary of Equity and Liability Components of the Convertible Senior Notes | The following table summarizes information regarding the equity and liability components of the Convertible Senior Notes: March 31, December 31 Principal amount $ 233,740 $ 89,990 Unamortized discount (21,578 ) (6,795 ) Liability component – net carrying value before issuance costs $ 212,162 $ 83,195 Equity component – conversion, net of offering costs $ 31,051 $ 15,900 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Insurance [Abstract] | |
Impact of the Catastrophe Excess of Loss Reinsurance Treaties and Two Quota Share Reinsurance Arrangements on Premiums Written and Earned | The impact of the catastrophe excess of loss reinsurance treaties and two quota share reinsurance arrangements on premiums written and earned is as follows: Three Months Ended 2017 2016 Premiums Written: Direct $ 72,386 $ 75,639 Assumed (961 ) (79 ) Gross written 71,425 75,560 Ceded (28,583 ) (40,372 ) Net premiums written $ 42,842 $ 35,188 Premiums Earned: Direct $ 86,272 $ 96,853 Assumed 5,347 1,966 Gross earned 91,619 98,819 Ceded (28,583 ) (40,372 ) Net premiums earned $ 63,036 $ 58,447 |
Losses and Loss Adjustment Ex32
Losses and Loss Adjustment Expenses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 2017 2016 Balance, beginning of period $ 70,492 $ 51,690 Incurred related to: Current period 23,208 26,617 Prior period 2,321 463 Total incurred 25,529 27,080 Paid related to: Current period (6,645 ) (8,357 ) Prior period (19,465 ) (17,142 ) Total paid (26,110 ) (25,499 ) Balance, end of period $ 69,911 $ 53,271 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Segment Information Reconciled to Consolidated Statements of Income | The following tables present segment information reconciled to the Company’s consolidated statements of income. Other non-reportable Insurance Corporate/ Reclassification/ Consolidated Three Months Ended March 31, 2017 Revenue: Net premiums earned $ 63,036 $ — $ — $ 63,036 Net investment income (loss) 2,373 686 (225 ) 2,834 Net realized investment gains 606 109 — 715 Net other-than-temporary impairment losses (213 ) — — (213 ) Policy fee income 908 — — 908 Other 205 2,461 (2,233 ) 433 Total revenue 66,915 3,256 (2,458 ) 67,713 Expenses: Losses and loss adjustment expenses 25,529 — — 25,529 Amortization of deferred policy acquisition costs 8,852 — — 8,852 Interest expense — 3,542 — 3,542 Depreciation and amortization 28 714 (459 ) 283 Other 7,369 4,995 (1,999 ) 10,365 Total expenses 41,778 9,251 (2,458 ) 48,571 Income before income taxes $ 25,137 $ (5,995 ) $ — $ 19,142 Insurance Corporate/ Reclassification/ Operations Other(a) Elimination Consolidated Three Months Ended March 31, 2016 Revenue: Net premiums earned $ 58,447 $ — $ — $ 58,447 Net investment income (loss) 1,750 (363 ) 103 1,490 Net realized investment (losses) gains (58 ) (17 ) — (75 ) Net other-than-temporary impairment losses (661 ) (14 ) — (675 ) Policy fee income 1,007 — — 1,007 Gain on repurchases of convertible senior notes — 153 — 153 Other 226 1,651 (1,477 ) 400 Total revenue 60,711 1,410 (1,374 ) 60,747 Expenses: Losses and loss adjustment expenses 27,080 — — 27,080 Amortization of deferred policy acquisition costs 9,811 — — 9,811 Interest expense — 2,829 — 2,829 Depreciation and amortization 50 386 (93 ) 343 Other 8,188 4,080 (1,281 ) 10,987 Total expenses 45,129 7,295 (1,374 ) 51,050 Income before income taxes $ 15,582 $ (5,885 ) $ — $ 9,697 (a) Other revenue under corporate and other primarily consisted of rental income from investment properties and revenue from restaurant and marina businesses. |
Summary of Segment Assets Reconciled to Consolidated Balance Sheet | The following table presents segment assets reconciled to the Company’s total assets in the consolidated balance sheets. March 31, December 31, 2017 2016 Segment: Insurance Operations $ 553,823 $ 651,927 Corporate and Other 251,298 116,849 Consolidation and Elimination (16,980 ) (98,712 ) Total assets $ 788,141 $ 670,064 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Numerator and Denominator of Basic and Fully Diluted Earnings Per Common Share | A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below. Three Months Ended Three Months Ended March 31, 2017 March 31, 2016 Income Shares Per Share Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net income $ 12,020 $ 6,056 Less:Income attributable to participating securities (708 ) (297 ) Basic Earnings Per Share: Income allocated to common stockholders 11,312 8,918 $ 1.27 5,759 9,578 $ 0.60 Effect of Dilutive Securities: Stock options — 45 — 63 Convertible senior notes* 1,499 2,177 — — Diluted Earnings Per Share: Income available to common stockholders and assumed conversions $ 12,811 11,140 $ 1.15 $ 5,759 9,641 $ 0.60 * Excluded in 2016 due to anti-dilutive effect. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Company's Stock Option Plan Activity | A summary of the stock option activity for the three months ended March 31, 2017 and 2016 is as follows (option amounts not in thousands): Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Term Value Outstanding at January 1, 2017 50,000 $ 4.02 2.3 years $ 1,773 Granted 110,000 $ 40.00 Outstanding at March 31, 2017 160,000 $ 28.76 7.4 years $ 2,591 Exercisable at March 31, 2017 50,000 $ 4.02 2.0 years $ 2,046 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 Exercisable at March 31, 2016 110,000 $ 3.19 2.1 years $ 3,312 |
Assumptions Used to Estimate the Fair Value of Stock Options Granted | The following table provides assumptions used in the Black-Scholes option-pricing model to estimate the fair value of the stock options granted during the three months ended March 31, 2017: Expected dividend yield 3.53 % Expected volatility 42.86 % Risk-free interest rate 1.92 % Expected life (in years) 5 |
Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan | Information with respect to the activity of unvested restricted stock awards during the three months ended March 31, 2017 and 2016 is as follows: Number of Weighted Restricted Average Stock Grant Date Awards Fair Value Nonvested at January 1, 2017 542,503 $ 30.81 Granted 45,000 $ 40.15 Vested (20,109 ) $ 48.42 Forfeited (926 ) $ 35.52 Nonvested at March 31, 2017 566,468 $ 30.92 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 |
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 months ended March 31, 2017 and 2016. Three Months Ended March 31, 2017 2016 Deferred tax benefits recognized $ 353 $ 379 Tax benefits realized for restricted stock and paid dividends* $ 62 $ 50 Fair value of vested restricted stock $ 974 $ 1,013 * For the three months ended March 31, 2017, tax benefits were realized for paid dividends only. |
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 | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | $ 172,476 | $ 167,231 |
Equity securities, Cost or Amortized Cost | 51,948 | 47,750 |
Total available-for-sale securities, Cost or Amortized Cost | 224,424 | 214,981 |
Total available-for-sale securities, Gross Unrealized Gain | 2,060 | 1,422 |
Total available-for-sale securities, Gross Unrealized Gain | 5,898 | 5,769 |
Total available-for-sale securities, Gross Unrealized Gain | 7,958 | 7,191 |
Total available-for-sale securities, Gross Unrealized Loss | (1,762) | (2,405) |
Total available-for-sale securities, Gross Unrealized Loss | (382) | (484) |
Total available-for-sale securities, Gross Unrealized Loss | (2,144) | (2,889) |
Fixed-maturity securities, Estimated Fair Value | 172,774 | 166,248 |
Equity securities, Estimated Fair Value | 57,464 | 53,035 |
Total available-for-sale securities, Estimated Fair Value | 230,238 | 219,283 |
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 | 4,568 | 1,975 |
Total available-for-sale securities, Gross Unrealized Loss | (37) | (36) |
Fixed-maturity securities, Estimated Fair Value | 4,531 | 1,939 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 79,780 | 75,538 |
Total available-for-sale securities, Gross Unrealized Gain | 853 | 607 |
Total available-for-sale securities, Gross Unrealized Loss | (1,263) | (1,641) |
Fixed-maturity securities, Estimated Fair Value | 79,370 | 74,504 |
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 | 76,566 | 78,018 |
Total available-for-sale securities, Gross Unrealized Gain | 1,020 | 776 |
Total available-for-sale securities, Gross Unrealized Loss | (375) | (488) |
Fixed-maturity securities, Estimated Fair Value | 77,211 | 78,306 |
Fixed-Maturity Securities [Member] | Exchange-Traded Debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 11,325 | 11,463 |
Total available-for-sale securities, Gross Unrealized Gain | 177 | 36 |
Total available-for-sale securities, Gross Unrealized Loss | (87) | (237) |
Fixed-maturity securities, Estimated Fair Value | 11,415 | 11,262 |
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed-maturity securities, Cost or Amortized Cost | 237 | 237 |
Total available-for-sale securities, Gross Unrealized Gain | 10 | 3 |
Total available-for-sale securities, Gross Unrealized Loss | (3) | |
Fixed-maturity securities, Estimated Fair Value | $ 247 | $ 237 |
Investments - Scheduled Contrac
Investments - Scheduled Contractual Maturities of Fixed-Maturity Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Available-for-sale | ||
Due in one year or less, Amortized Cost | $ 8,184 | $ 2,656 |
Due after one year through five years, Amortized Cost | 54,202 | 49,915 |
Due after five years through ten years, Amortized Cost | 87,114 | 90,360 |
Due after ten years, Amortized Cost | 22,976 | 24,300 |
Fixed-maturity securities, Cost or Amortized Cost | 172,476 | 167,231 |
Due in one year or less, Fair Value | 8,215 | 2,662 |
Due after one year through five years, Fair Value | 54,390 | 50,023 |
Due after five years through ten years, Fair Value | 87,068 | 89,332 |
Due after ten years, Fair Value | 23,101 | 24,231 |
Fair Value Total | $ 172,774 | $ 166,248 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Proceeds | $ 4,439 | $ 1,100 |
Gross Realized Gains | 23 | 7 |
Gross Realized Losses | (4) | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Proceeds | 7,271 | 4,354 |
Gross Realized Gains | 745 | 139 |
Gross Realized Losses | $ (49) | $ (221) |
Investments (Other-than-tempora
Investments (Other-than-temporary Impairment) - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)Securities | Mar. 31, 2016USD ($)Securities | Dec. 31, 2016USD ($)Securities | |
Schedule of Investments [Line Items] | |||
Other-than-temporary impairment losses related to additional loss | $ 213 | $ 408 | |
Other-than-temporary impairment losses | $ 213 | $ 675 | |
Number of securities in an unrealized loss position | Securities | 112 | 134 | |
Number of securities had been in an unrealized loss position for 12 months or longer | Securities | 13 | 20 | |
Fixed-Maturity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Other-than-temporary impairment losses, number of securities | Securities | 2 | 2 | |
Other-than-temporary impairment losses, number of securities sold | Securities | 1 | ||
Other-than-temporary impairment losses related to additional loss | $ 62 | ||
Other-than-temporary impairment losses | $ 293 | ||
Other-than-temporary impairment losses related to additional loss | 26 | ||
Accumulated other-than-temporary impairment losses related to non-credit losses | $ 267 | ||
Equity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Other-than-temporary impairment losses, number of securities | Securities | 3 | 11 | |
Other-than-temporary impairment losses related to additional loss | $ 151 | $ 382 | |
Corporate Bonds [Member] | |||
Schedule of Investments [Line Items] | |||
Accumulated other-than-temporary impairment losses related to non-credit losses | $ 83 | $ 76 |
Investments - Rollforward of Cu
Investments - Rollforward of Cumulative Credit Losses in Other-Than-Temporary Impairments 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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Beginning Balance | $ 475 | $ 111 |
Additional credit impairments on previously impaired securities | 0 | 293 |
Ending Balance | $ 475 | $ 404 |
Investments - Summary of Securi
Investments - Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | $ (1,992) | $ (2,510) |
Fair Value, Less than Twelve Months | 73,013 | 86,896 |
Gross Unrealized Loss, Twelve Months or Longer | (152) | (379) |
Fair Value, Twelve Months or Longer | 5,799 | 11,013 |
Gross Unrealized Loss, Total | (2,144) | (2,889) |
Fair Value, Total | 78,812 | 97,909 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (303) | (293) |
Fair Value, Less than Twelve Months | 8,027 | 10,042 |
Gross Unrealized Loss, Twelve Months or Longer | (79) | (191) |
Fair Value, Twelve Months or Longer | 1,791 | 3,209 |
Gross Unrealized Loss, Total | (382) | (484) |
Fair Value, Total | 9,818 | 13,251 |
Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (1,689) | (2,217) |
Fair Value, Less than Twelve Months | 64,986 | 76,854 |
Gross Unrealized Loss, Twelve Months or Longer | (73) | (188) |
Fair Value, Twelve Months or Longer | 4,008 | 7,804 |
Gross Unrealized Loss, Total | (1,762) | (2,405) |
Fair Value, Total | 68,994 | 84,658 |
Fixed-Maturity Securities [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (37) | (36) |
Fair Value, Less than Twelve Months | 3,135 | 1,939 |
Gross Unrealized Loss, Total | (37) | (36) |
Fair Value, Total | 3,135 | 1,939 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (1,229) | (1,546) |
Fair Value, Less than Twelve Months | 44,090 | 43,859 |
Gross Unrealized Loss, Twelve Months or Longer | (34) | (95) |
Fair Value, Twelve Months or Longer | 966 | 2,814 |
Gross Unrealized Loss, Total | (1,263) | (1,641) |
Fair Value, Total | 45,056 | 46,673 |
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 | (336) | (441) |
Fair Value, Less than Twelve Months | 13,604 | 26,029 |
Gross Unrealized Loss, Twelve Months or Longer | (39) | (47) |
Fair Value, Twelve Months or Longer | 3,042 | 3,036 |
Gross Unrealized Loss, Total | (375) | (488) |
Fair Value, Total | 16,646 | 29,065 |
Fixed-Maturity Securities [Member] | Exchange-Traded Debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (87) | (191) |
Fair Value, Less than Twelve Months | 4,157 | 4,980 |
Gross Unrealized Loss, Twelve Months or Longer | (46) | |
Fair Value, Twelve Months or Longer | 1,954 | |
Gross Unrealized Loss, Total | (87) | (237) |
Fair Value, Total | $ 4,157 | 6,934 |
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (3) | |
Fair Value, Less than Twelve Months | 47 | |
Gross Unrealized Loss, Total | (3) | |
Fair Value, Total | $ 47 |
Investments - Schedule of Compa
Investments - Schedule of Company's Investments in Limited Partnerships (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Investment Securities [Line Items] | ||
Carrying Value | $ 20,351 | $ 29,263 |
Unfunded Balance | 11,208 | 13,554 |
Private US Lower Middle Market Companies [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | 7,146 | 6,246 |
Unfunded Balance | $ 5,505 | $ 6,428 |
Percentage investment held by the entity | 15.37% | 16.50% |
Bank Loans Public and Private Corporate Bonds Asset Backed Securities Equity and Debt Restructuring [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 7,666 | $ 7,358 |
Unfunded Balance | $ 1,360 | $ 1,360 |
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 | $ 11,333 | |
Percentage investment held by the entity | 66.58% | |
Power Utility and Energy Industries and Infrastructure [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 5,539 | $ 4,326 |
Unfunded Balance | $ 4,343 | $ 5,766 |
Percentage investment held by the entity | 0.18% | 0.18% |
Investments - Schedule of Com43
Investments - Schedule of Company's Investments in Limited Partnerships (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2017 | |
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 |
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 | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Operating results: | |||
Total income | $ 67,713 | $ 60,747 | |
Limited Partnership [Member] | |||
Operating results: | |||
Total income | 72,317 | (16,082) | |
Total expenses | (27,642) | (102,621) | |
Net income (loss) | 44,675 | $ (118,703) | |
Balance Sheet: | |||
Total assets | 3,513,683 | $ 2,956,327 | |
Total liabilities | $ 594,711 | $ 63,813 |
Investments (Limited Partnershi
Investments (Limited Partnership Investments) - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Schedule of Investments [Line Items] | |||
Recognized investment income (loss) | $ 772,000 | $ (869,000) | |
Return of capital | 11,758,000 | ||
Maximum exposure loss relating to VIE | 1,710,000 | $ 2,102,000 | |
Cash distributions | 11,758,000 | 0 | |
Return on investment | 272,000 | ||
Limited Partnership [Member] | |||
Schedule of Investments [Line Items] | |||
Recognized investment income (loss) | 772,000 | $ (869,000) | |
Return of capital | 11,626,000 | ||
Company's contributed capital to the partnership | 19,292,000 | 31,946,000 | |
Maximum exposure loss relating to VIE | 20,351,000 | $ 29,263,000 | |
Cash distributions | 12,030,000 | ||
Return on investment | $ 272,000 |
Investments (Investment in Unco
Investments (Investment in Unconsolidated Joint Venture) - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investments [Line Items] | |||
Amount of gains (losses) on sale of investment to company | $ 199 | ||
Maximum exposure loss relating to VIE | 1,710 | $ 1,710 | $ 2,102 |
Undistributed losses after equity distribution | 25 | ||
Earnings distribution | 147 | ||
Capital distribution | 417 | ||
FMKT Mel JV, LLC [Member] | |||
Schedule of Investments [Line Items] | |||
Gross proceeds from outparcel land | 825 | ||
Gain on sale of land | $ 331 | ||
Cash distribution | 564 | $ 0 | |
Earnings distribution | 147 | ||
Capital distribution | $ 417 |
Investments - Summary of Unau47
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Joint Venture (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Operating results: | |||
The Company's share of net income | $ 172 | $ 287 | |
Balance Sheet: | |||
Other | 15,477 | $ 11,342 | |
Total assets | 788,141 | 670,064 | |
Other liabilities | 16,703 | 26,702 | |
Total liabilities and stockholders' equity (or members' capital) | 788,141 | 670,064 | |
Investment in unconsolidated joint venture, at equity | 1,710 | 2,102 | |
Unconsolidated Joint Venture [Member] | |||
Operating results: | |||
Total revenues and gain | 331 | 533 | |
Total expenses | (32) | (236) | |
Net income (loss) | 299 | 297 | |
Balance Sheet: | |||
Construction in progress - real estate | 318 | 334 | |
Property and equipment, net | 1,240 | 1,654 | |
Cash | 171 | 179 | |
Other | 180 | 180 | |
Total assets | 1,909 | 2,347 | |
Accounts payable | 4 | 11 | |
Other liabilities | 5 | ||
Members' capital | 1,900 | 2,336 | |
Total liabilities and stockholders' equity (or members' capital) | 1,909 | $ 2,347 | |
Operating Expense [Member] | |||
Operating results: | |||
The Company's share of net income | $ 172 | $ 287 |
Investments - Summary of Unau48
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Joint Venture (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Percentage of operating results | 90.00% |
Investments (Real Estate Invest
Investments (Real Estate Investments) - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)Restaurant | Mar. 31, 2016USD ($) | Dec. 31, 2016Restaurant | |
Schedule of Investments [Line Items] | |||
Depreciation and amortization expenses under real estate investments | $ 283 | $ 343 | |
Real Estate Investments [Member] | |||
Schedule of Investments [Line Items] | |||
Number of restaurants | Restaurant | 1 | 1 | |
Depreciation and amortization expenses under real estate investments | $ 337 | $ 93 |
Investments - Summary of Real E
Investments - Summary of Real Estate Investment (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Real Estate [Abstract] | ||
Land | $ 17,592 | $ 17,592 |
Land improvements | 9,346 | 9,336 |
Buildings | 16,601 | 16,154 |
Tenant and leasehold improvements | 940 | 872 |
Construction in progress | 3,646 | 3,404 |
Other | 2,892 | 2,683 |
Total, at cost | 51,017 | 50,041 |
Less: accumulated depreciation and amortization | (2,292) | (1,955) |
Real estate investments | $ 48,725 | $ 48,086 |
Investments - Summary of Assets
Investments - Summary of Assets and Liabilities Related to Company's Consolidated Variable Interest Entity (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 407,937 | $ 280,531 | $ 277,913 | $ 267,738 |
Construction in progress included in real estate investments | 3,646 | 3,404 | ||
Other assets | 15,477 | 11,342 | ||
Accrued expenses | 8,986 | 6,513 | ||
Other liabilities | 16,703 | 26,702 | ||
Variable Interest Entity [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 60 | 65 | ||
Construction in progress included in real estate investments | 3,646 | 3,404 | ||
Other assets | 19 | |||
Accrued expenses | 14 | 68 | ||
Other liabilities | $ 17 | $ 11 |
Investments - Investment (Loss)
Investments - Investment (Loss) Income Summarized (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment income | $ 772 | $ (869) |
Net investment income (loss) from real estate investments | (396) | (30) |
Income from unconsolidated joint venture | 172 | 287 |
Net investment income | 2,834 | 1,490 |
Limited Partnership Investment [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment income | 772 | (869) |
Cash and Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment income | 328 | 202 |
Other Types Of Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment income | 6 | 12 |
Available-for-Sale Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment expense | (159) | (162) |
Available-for-Sale Securities [Member] | Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment income | 1,237 | 1,099 |
Available-for-Sale Securities [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment income | $ 874 | $ 951 |
Comprehensive Income (Loss) - S
Comprehensive Income (Loss) - Schedule of Components of Other Comprehensive Income or Loss and Related Tax Effects Allocated to Each Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Before Tax | ||
Unrealized gain arising during the period, Before Tax | $ 2,013 | $ 2,163 |
Other-than-temporary impairment loss, Before Tax | 213 | 675 |
Call and repayment losses charged to investment income, Before Tax | 1 | 1 |
Reclassification adjustment for realized (gains) losses, Before Tax | (715) | 75 |
Total other comprehensive income (loss), Before Tax | 1,512 | 2,914 |
Income Tax Expense (Benefit) | ||
Unrealized gain arising during the period, Income Tax Expense (Benefit) | 777 | 834 |
Other-than-temporary impairment loss, Income Tax Expense (Benefit) | 82 | 261 |
Call and repayment losses charged to investment income, Income Tax Expense (Benefit) | 0 | 0 |
Reclassification adjustment for realized (gains) losses, Income Tax Expense (Benefit) | (276) | 29 |
Total other comprehensive income (loss), Income Tax Expense (Benefit) | 583 | 1,124 |
Net of Tax | ||
Unrealized gain arising during the period, Net of Tax | 1,236 | 1,329 |
Other-than-temporary impairment loss, Net of Tax | 131 | 414 |
Call and repayment losses charged to investment income, Net of Tax | 1 | 1 |
Reclassification adjustment for realized (gains) losses, Net of Tax | (439) | 46 |
Total other comprehensive income (loss), Net of Tax | $ 929 | $ 1,790 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - 3.95% Promissory Note [Member] | 1 Months Ended | ||
Feb. 28, 2017 | Mar. 31, 2017 | Feb. 27, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument stated interest rate | 3.95% | 3.95% | |
Revolving Credit Facility [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument stated interest rate | 3.95% | ||
Debt instrument, maturity term | 3 years |
Fair Value Measurements - Compo
Fair Value Measurements - Components of Long-Term Debt and Methods Used in Estimating Fair Values (Detail) | 3 Months Ended |
Mar. 31, 2017 | |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2,020 |
Valuation Methodology | Closing price listed on the New York Stock Exchange |
3.875% Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2,019 |
Valuation Methodology | Discounted cash flow method/Level 3 inputs |
4.25% Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2,037 |
Valuation Methodology | Discounted cash flow method/Level 3 inputs |
3.95% Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2,020 |
Valuation Methodology | Discounted cash flow method/Level 3 inputs |
4% Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2,031 |
Valuation Methodology | Discounted cash flow method/Level 3 inputs |
3.75% Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2,036 |
Valuation Methodology | Discounted cash flow method/Level 3 inputs |
Fair Value Measurements - Com56
Fair Value Measurements - Components of Long-Term Debt and Methods Used in Estimating Fair Values (Parenthetical) (Detail) | Mar. 31, 2017 | Feb. 27, 2017 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Fixed annual rate of interest | 8.00% | |
3.875% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.875% | |
4.25% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.25% | |
3.95% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.95% | 3.95% |
4% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.00% | |
3.75% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.75% |
Fair Value Measurements - Avail
Fair Value Measurements - Available-for-Sale Securities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financial Assets: | ||
Total fixed-maturity securities | $ 172,774 | $ 166,248 |
Equity securities | 57,464 | 53,035 |
Total available-for-sale securities | 230,238 | 219,283 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 407,937 | 280,531 |
Total fixed-maturity securities | 172,774 | 166,248 |
Equity securities | 57,464 | 53,035 |
Total available-for-sale securities | 230,238 | 219,283 |
Total financial assets | 638,175 | 499,814 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 4,531 | 1,939 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 79,370 | 74,504 |
Fair Value, Measurements, Recurring [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 77,211 | 78,306 |
Fair Value, Measurements, Recurring [Member] | Exchange-Traded Debt [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 11,415 | 11,262 |
Fair Value, Measurements, Recurring [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 247 | 237 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 407,937 | 280,531 |
Total fixed-maturity securities | 94,099 | 86,957 |
Equity securities | 57,464 | 53,035 |
Total available-for-sale securities | 151,563 | 139,992 |
Total financial assets | 559,500 | 420,523 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 4,033 | 1,939 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 78,404 | 73,519 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | Exchange-Traded Debt [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 11,415 | 11,262 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | Redeemable Preferred Stock [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 247 | 237 |
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 78,675 | 79,291 |
Total available-for-sale securities | 78,675 | 79,291 |
Total financial assets | 78,675 | 79,291 |
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 498 | |
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | Corporate Bonds [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | 966 | 985 |
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Financial Assets: | ||
Total fixed-maturity securities | $ 77,211 | $ 78,306 |
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 | Mar. 31, 2017 | Dec. 31, 2016 |
Financial Assets: | ||
Limited partnership investments | $ 20,351 | $ 29,263 |
Financial Liabilities: | ||
Total long-term debt | 272,982 | 138,863 |
Estimate of Fair Value Measurement [Member] | ||
Financial Assets: | ||
Limited partnership investments | 20,351 | 29,263 |
Financial Liabilities: | ||
Revolving credit facility | 9,463 | |
Total long-term debt | 275,407 | 143,484 |
Estimate of Fair Value Measurement [Member] | Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 40,765 | 41,618 |
Estimate of Fair Value Measurement [Member] | 3.875% Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 84,096 | 84,696 |
Estimate of Fair Value Measurement [Member] | 4.25% Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 124,825 | |
Estimate of Fair Value Measurement [Member] | 3.95% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 9,466 | |
Estimate of Fair Value Measurement [Member] | 4% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 8,226 | 8,664 |
Estimate of Fair Value Measurement [Member] | 3.75% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 8,029 | 8,506 |
Estimate of Fair Value Measurement [Member] | (Level 2) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 40,765 | 41,618 |
Estimate of Fair Value Measurement [Member] | (Level 2) [Member] | Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 40,765 | 41,618 |
Estimate of Fair Value Measurement [Member] | (Level 3) [Member] | ||
Financial Assets: | ||
Limited partnership investments | 20,351 | 29,263 |
Financial Liabilities: | ||
Revolving credit facility | 9,463 | |
Total long-term debt | 234,642 | 101,866 |
Estimate of Fair Value Measurement [Member] | (Level 3) [Member] | 3.875% Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 84,096 | 84,696 |
Estimate of Fair Value Measurement [Member] | (Level 3) [Member] | 4.25% Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 124,825 | |
Estimate of Fair Value Measurement [Member] | (Level 3) [Member] | 3.95% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 9,466 | |
Estimate of Fair Value Measurement [Member] | (Level 3) [Member] | 4% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 8,226 | 8,664 |
Estimate of Fair Value Measurement [Member] | (Level 3) [Member] | 3.75% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 8,029 | 8,506 |
Carrying Value [Member] | ||
Financial Assets: | ||
Limited partnership investments | 20,351 | 29,263 |
Financial Liabilities: | ||
Revolving credit facility | 9,463 | |
Total long-term debt | 272,982 | 138,863 |
Carrying Value [Member] | Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 39,505 | 39,448 |
Carrying Value [Member] | 3.875% Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 82,823 | 81,988 |
Carrying Value [Member] | 4.25% Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 123,883 | |
Carrying Value [Member] | 3.95% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 9,528 | |
Carrying Value [Member] | 4% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 8,549 | 8,660 |
Carrying Value [Member] | 3.75% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | $ 8,694 | $ 8,767 |
Fair Value Measurements - Sch59
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Balance Sheet (Parenthetical) (Detail) | Mar. 31, 2017 | Dec. 31, 2016 |
Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed annual rate of interest | 8.00% | |
3.875% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.875% | |
4.25% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.25% | |
4% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.00% | |
3.75% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.75% | |
Estimate of 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% |
Estimate of Fair Value Measurement [Member] | 3.875% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.875% | 3.875% |
Estimate of Fair Value Measurement [Member] | 4.25% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.25% | |
Estimate of Fair Value Measurement [Member] | 3.95% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.95% | |
Estimate of Fair Value Measurement [Member] | 4% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.00% | 4.00% |
Estimate of Fair Value Measurement [Member] | 3.75% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.75% | 3.75% |
Carrying Value [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed annual rate of interest | 8.00% | 8.00% |
Carrying Value [Member] | 3.875% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.875% | 3.875% |
Carrying Value [Member] | 4.25% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.25% | |
Carrying Value [Member] | 3.95% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.95% | |
Carrying Value [Member] | 4% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.00% | 4.00% |
Carrying Value [Member] | 3.75% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.75% | 3.75% |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Benefits receivable related to retrospective reinsurance contracts | $ 8,302 | $ 5,810 |
Prepaid expenses | 2,106 | 1,581 |
Lease acquisition costs, net | 610 | 615 |
Restricted cash | 709 | 600 |
Other | 3,750 | 2,736 |
Total other assets | $ 15,477 | $ 11,342 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 03, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2013 |
Debt Instrument [Line Items] | |||||
Total principal amount | $ 301,070 | $ 147,985 | |||
Less: unamortized discount and issuance costs | (28,088) | (9,122) | |||
Total long-term debt | 272,982 | 138,863 | |||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Total principal amount | 40,250 | 40,250 | |||
3.875% Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Total principal amount | 89,990 | 89,990 | $ 89,990 | $ 103,000 | |
4.25% Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Total principal amount | 143,750 | $ 143,750 | |||
3.95% Promissory Note [Member] | |||||
Debt Instrument [Line Items] | |||||
Total principal amount | 9,529 | ||||
4% Promissory Note [Member] | |||||
Debt Instrument [Line Items] | |||||
Total principal amount | 8,704 | 8,821 | |||
3.75% Promissory Note [Member] | |||||
Debt Instrument [Line Items] | |||||
Total principal amount | $ 8,847 | $ 8,924 |
Long-Term Debt - Summary of L62
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | 3 Months Ended | |
Mar. 31, 2017 | Feb. 27, 2017 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Fixed annual rate of interest | 8.00% | |
Debt instrument, maturity date | Jan. 30, 2020 | |
3.875% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.875% | |
Debt instrument, maturity date | Mar. 15, 2019 | |
4.25% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.25% | |
Debt instrument, maturity date | Mar. 1, 2037 | |
3.95% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.95% | 3.95% |
Debt instrument, maturity date | Feb. 17, 2020 | |
4% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.00% | |
Debt instrument, maturity date | Feb. 1, 2031 | |
3.75% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.75% | |
Debt instrument, maturity date | Sep. 1, 2036 |
Long-Term Debt - Summary of Fut
Long-Term Debt - Summary of Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Long-term Debt, Rolling Maturity [Abstract] | ||
2,017 | $ 41,269 | |
2,018 | 91,049 | |
2,019 | 9,919 | |
2,020 | 889 | |
2,021 | 144,674 | |
Thereafter | 13,270 | |
Total | $ 301,070 | $ 147,985 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense Related to Long-Term Debt (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest Expense, Debt [Abstract] | ||
Contractual interest | $ 2,424 | $ 1,889 |
Non-cash expense | 1,159 | 940 |
Capitalized interest | (41) | |
Total interest expense related to long-term debt | $ 3,542 | $ 2,829 |
Long-Term Debt (Convertible Sen
Long-Term Debt (Convertible Senior Notes) - Additional Information (Detail) $ / shares in Units, $ in Thousands | Mar. 03, 2017USD ($) | Jan. 31, 2015$ / shares | Mar. 31, 2017USD ($)d$ / shares | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2013USD ($) |
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 301,070 | $ 147,985 | ||||
Debt issuance and transaction costs | $ 4,806 | $ 177 | ||||
3.875% Convertible Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 3.875% | |||||
Debt conversion date | 2,019 | |||||
Debt instrument, face amount | $ 89,990 | 89,990 | 89,990 | $ 103,000 | ||
Aggregate amount of debt repurchased | $ 13,010 | |||||
Convertible debt, conversion ratio | 16.1248 | |||||
Convertible debt, conversion price | $ / shares | $ 62.02 | |||||
Debt instrument, effective interest rate | 8.30% | |||||
Debt discount, remaining amortization period | 1 year 10 months 24 days | |||||
3.875% Convertible Senior Notes [Member] | Convertible Debt Instrument Conversion Period Two [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Cash dividends on common stock | $ / shares | $ 0.275 | |||||
4.25% Convertible Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 4.25% | |||||
Debt conversion date | 2,037 | |||||
Debt instrument, face amount | $ 143,750 | $ 143,750 | ||||
Proceeds from senior convertible notes net | 138,775 | |||||
Debt issuance and transaction costs | $ 4,975 | |||||
Debt issuance and transaction costs | $ 4,806 | |||||
Convertible debt, conversion ratio | 16.2635 | |||||
Convertible debt, conversion price | $ / shares | $ 61.49 | |||||
Debt Instrument effective Rate | 5.40% | |||||
Debt Instrument term | 20 years | |||||
Debt instrument, effective interest rate | 7.60% | |||||
Debt discount, remaining amortization period | 4 years 9 months 18 days | |||||
4.25% Convertible Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repurchase date of convertible notes | Mar. 1, 2022 | |||||
4.25% Convertible Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repurchase date of convertible notes | Mar. 1, 2027 | |||||
4.25% Convertible Senior Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repurchase date of convertible notes | Mar. 1, 2032 | |||||
Convertible Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 233,740 | $ 89,990 | ||||
Convertible debt, conversion debt description | The note holders of the Convertible Senior Notes may convert all or a portion of their Convertible Senior Notes during specified periods as follows: (1) during any calendar quarter commencing after the calendar quarter ending on the dates specified in each respective indenture, if the last reported sale price of the Company’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five business-day period after any ten consecutive trading-day period in which the trading price per $1 principal amount of the Convertible Senior Notes is less than 98% of the product of the last reported sale price and the conversion rate on each such trading day; (3) if specified corporate events, including a change in control, occur; or (4) at any time on or after the dates specified in each respective indenture. | |||||
Convertible debt, threshold trading days | d | 20 | |||||
Convertible debt, threshold consecutive trading days | 30 days | |||||
Convertible debt, threshold percentage of stock trigger price | 130.00% | |||||
Convertible Senior Notes [Member] | Convertible Debt Instrument Conversion Period Two [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Convertible debt, threshold consecutive trading days | 10 days | |||||
Convertible debt, threshold trading days | 5 days | |||||
Convertible debt, threshold percentage of stock trigger price | 98.00% |
Long-Term Debt - Summary of Pri
Long-Term Debt - Summary of Principal and Interest Payment Terms of Convertible Senior Notes (Detail) | 3 Months Ended |
Mar. 31, 2017 | |
3.875% Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Convertible senior notes, interest payment terms | Semiannually in arrears March 15 and September 15 |
4.25% Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Convertible senior notes, interest payment terms | Semiannually in arrears March 1 and September 1 |
Long-Term Debt - Summary of Equ
Long-Term Debt - Summary of Equity and Liability Components of the Convertible Senior Notes (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Principal amount | $ 301,070 | $ 147,985 |
Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 233,740 | 89,990 |
Unamortized discount | (21,578) | (6,795) |
Liability component - net carrying value before issuance costs | 212,162 | 83,195 |
Equity component - conversion, net of offering costs | $ 31,051 | $ 15,900 |
Long-Term Debt (3.95% Promissor
Long-Term Debt (3.95% Promissory Note) - Additional Information (Detail) | Feb. 27, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||
Outstanding balance under revolving credit facility | $ 9,441,000 | ||
Additional borrowings from revolving credit facility | $ 143,859,000 | $ 9,200,000 | |
3.95% Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding balance under revolving credit facility | $ 9,441,000 | ||
Period of mortgage loan | 3 years | ||
Additional borrowings from revolving credit facility | $ 109,000 | ||
Maximum borrowing limit | $ 9,550,000 | ||
Fixed annual interest rate | 3.95% | 3.95% | |
Debt instrument periodic payment | $ 50,000 | ||
Debt instrument, payment frequency description | Monthly | ||
Number of installment payments | 35 | ||
Date of initial payment | Mar. 17, 2017 | ||
Debt instrument, balloon payment to be paid | $ 8,891,000 | ||
Debt instruments, payment terms description | The promissory note may be repaid in part or in full at any time without penalty. |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)Reinsurers | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)Reinsurers | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Percentage of ceding commission on ceded premiums written | 30.00% | ||
Reinsurance recoverable | $ 0 | $ 0 | |
Number of reinsurers | Reinsurers | 36 | 35 | |
Credit risk associated with reinsurance receivables | $ 0 | $ 0 | |
Recoveries pertaining to reinsurance contracts | 0 | 0 | |
Net reduction in ceded premiums | 3,322,000 | 2,821,000 | |
Other assets | 15,477,000 | 11,342,000 | |
Prepaid reinsurance premiums | 12,393,000 | 24,554,000 | |
Oxbridge [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Net reduction in ceded premiums | 576,000 | $ 327,000 | |
Other assets | 1,490,000 | 1,043,000 | |
Prepaid reinsurance premiums | 467,000 | 338,000 | |
Reinsurance [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Other assets | 8,302,000 | 5,810,000 | |
Prepaid reinsurance premiums | $ 2,983,000 | $ 2,152,000 |
Reinsurance - Impact of the Cat
Reinsurance - Impact of the Catastrophe Excess of Loss Reinsurance Treaties and Two Quota Share Reinsurance Arrangements on Premiums Written and Earned (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Premiums Written: | ||
Direct | $ 72,386 | $ 75,639 |
Assumed | (961) | (79) |
Gross written | 71,425 | 75,560 |
Ceded | (28,583) | (40,372) |
Net premiums written | 42,842 | 35,188 |
Premiums Earned: | ||
Direct | 86,272 | 96,853 |
Assumed | 5,347 | 1,966 |
Gross earned | 91,619 | 98,819 |
Ceded | (28,583) | (40,372) |
Net premiums earned | $ 63,036 | $ 58,447 |
Losses and Loss Adjustment Ex71
Losses and Loss Adjustment Expenses - Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Balance, beginning of period | $ 70,492 | $ 51,690 |
Incurred related to: | ||
Current period | 23,208 | 26,617 |
Prior period | 2,321 | 463 |
Total incurred | 25,529 | 27,080 |
Paid related to: | ||
Current period | (6,645) | (8,357) |
Prior period | (19,465) | (17,142) |
Total paid | (26,110) | (25,499) |
Balance, end of period | $ 69,911 | $ 53,271 |
Losses and Loss Adjustment Ex72
Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reserves For Losses And Loss Adjustment Expenses [Line Items] | ||
Prior period | $ 2,321 | $ 463 |
2016 loss year [Member] | ||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | ||
Prior period | $ 2,491 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segments | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Number of operating divisions | 4 | |
Sales Revenue, Net [Member] | Segment Concentration Risk [Member] | Insurance Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 96.50% | 97.10% |
Assets [Member] | Segment Concentration Risk [Member] | Insurance Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 87.10% | 87.90% |
Segment Information - Summary o
Segment Information - Summary of Segment Information Reconciled to Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||
Net premiums earned | $ 63,036 | $ 58,447 |
Net investment income (loss) | 2,834 | 1,490 |
Net realized investment (losses) gains | 715 | (75) |
Net other-than-temporary impairment losses | (213) | (675) |
Policy fee income | 908 | 1,007 |
Gain on repurchases of convertible senior notes | 153 | |
Other | 433 | 400 |
Total revenue | 67,713 | 60,747 |
Expenses: | ||
Losses and loss adjustment expenses | 25,529 | 27,080 |
Amortization of deferred policy acquisition costs | 8,852 | 9,811 |
Interest expense | 3,542 | 2,829 |
Depreciation and amortization | 283 | 343 |
Other | 10,365 | 10,987 |
Total expenses | 48,571 | 51,050 |
Income before income taxes | 19,142 | 9,697 |
Operating Segments [Member] | Insurance Operations [Member] | ||
Revenue: | ||
Net premiums earned | 63,036 | 58,447 |
Net investment income (loss) | 2,373 | 1,750 |
Net realized investment (losses) gains | 606 | (58) |
Net other-than-temporary impairment losses | (213) | (661) |
Policy fee income | 908 | 1,007 |
Other | 205 | 226 |
Total revenue | 66,915 | 60,711 |
Expenses: | ||
Losses and loss adjustment expenses | 25,529 | 27,080 |
Amortization of deferred policy acquisition costs | 8,852 | 9,811 |
Depreciation and amortization | 28 | 50 |
Other | 7,369 | 8,188 |
Total expenses | 41,778 | 45,129 |
Income before income taxes | 25,137 | 15,582 |
Operating Segments [Member] | Corporate and Other [Member] | ||
Revenue: | ||
Net investment income (loss) | 686 | (363) |
Net realized investment (losses) gains | 109 | (17) |
Net other-than-temporary impairment losses | (14) | |
Gain on repurchases of convertible senior notes | 153 | |
Other | 2,461 | 1,651 |
Total revenue | 3,256 | 1,410 |
Expenses: | ||
Interest expense | 3,542 | 2,829 |
Depreciation and amortization | 714 | 386 |
Other | 4,995 | 4,080 |
Total expenses | 9,251 | 7,295 |
Income before income taxes | (5,995) | (5,885) |
Intersegment Eliminations [Member] | ||
Revenue: | ||
Net investment income (loss) | (225) | 103 |
Other | (2,233) | (1,477) |
Total revenue | (2,458) | (1,374) |
Expenses: | ||
Depreciation and amortization | (459) | (93) |
Other | (1,999) | (1,281) |
Total expenses | $ (2,458) | $ (1,374) |
Segment Information - Summary75
Segment Information - Summary of Segment Assets Reconciled to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 788,141 | $ 670,064 |
Consolidation, Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | (16,980) | (98,712) |
Insurance Operations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 553,823 | 651,927 |
Corporate and Other [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 251,298 | $ 116,849 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 7,122 | $ 3,641 |
Effective tax rates | 37.20% | 37.50% |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 12,020 | $ 6,056 |
Less:Income attributable to participating securities | (708) | (297) |
Basic Earnings Per Share: | ||
Income allocated to common stockholders, Income (Numerator) | $ 11,312 | $ 5,759 |
Income allocated to common stockholders, Shares (Denominator) | 8,918 | 9,578 |
Income allocated to common stockholders, Per Share Amount | $ 1.27 | $ 0.60 |
Diluted Earnings Per Share: | ||
Income available to common stockholders and assumed conversions, Income (Numerator) | $ 12,811 | $ 5,759 |
Income available to common stockholders and assumed conversions, Shares (Denominator) | 11,140 | 9,641 |
Income available to common stockholders and assumed conversions, Per Share Amount | $ 1.15 | $ 0.60 |
Convertible Senior Notes [Member] | ||
Effect of Dilutive Securities: | ||
Dilutive Securities, Income (Numerator) | $ 1,499 | |
Dilutive Securities, Shares (Denominator) | 2,177 | |
Stock Options [Member] | ||
Effect of Dilutive Securities: | ||
Dilutive Securities, Income (Numerator) | $ 0 | $ 0 |
Dilutive Securities, Shares (Denominator) | 45 | 63 |
Stockholders' Equity (Common St
Stockholders' Equity (Common Stock) - Additional Information (Detail) - USD ($) | Apr. 17, 2017 | Jan. 16, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||||
Stock repurchased and retired, total costs | $ 20,605,000 | $ 212,000 | ||||
Dividends per common share | $ 0.35 | $ 0.30 | ||||
Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Repurchase and retirement of common stock, shares | 420,217 | 6,892 | ||||
Share Repurchase Plan [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock repurchase authorized amount | $ 20,000,000 | |||||
Common stock repurchased and retired, weighted average price | $ 41.29 | |||||
Stock repurchased and retired, total costs | $ 1,550,000 | |||||
Fees and commissions average price repurchase common stock | $ 41.33 | |||||
Dividends per common share | $ 0.35 | |||||
Date of dividend payable | Mar. 17, 2017 | |||||
Record date of dividend payable | Feb. 17, 2017 | |||||
Share Repurchase Plan [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends per common share | $ 0.35 | |||||
Date of dividend payable | Jun. 16, 2017 | |||||
Record date of dividend payable | May 19, 2017 | |||||
Share Repurchase Plan [Member] | Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Repurchase and retirement of common stock, shares | 37,516 | |||||
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 | $ 32.11 | |||||
Stock repurchased and retired, total costs | $ 6,007,000 | |||||
Fees and commissions average price repurchase common stock | $ 32.15 | |||||
Share Repurchase Plan [Member] | 2015 Plan [Member] | Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Repurchase and retirement of common stock, shares | 186,858 |
Stockholders' Equity (Share Rep
Stockholders' Equity (Share Repurchase Agreement) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Subsequent Event [Line Items] | ||
Repurchase and retirement of common stock, value | $ 20,605 | $ 212 |
Share Repurchase Plan [Member] | ||
Subsequent Event [Line Items] | ||
Repurchase and retirement of common stock, value | $ 1,550 | |
Common stock repurchased and retired, price per share | $ 41.29 | |
Share Repurchase Plan [Member] | Institutional Investors [Member] | ||
Subsequent Event [Line Items] | ||
Repurchase and retirement of common stock, value | $ 20,345 | |
Repurchase and retirement of common stock, shares | 413,600 | |
Common stock repurchased and retired, price per share | $ 49.19 |
Stockholders' Equity (Prepaid S
Stockholders' Equity (Prepaid Share Repurchase Forward Contract) - Additional Information (Detail) - Share Repurchase Plan [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)shares | |
Subsequent Event [Line Items] | |
Number of outstanding prepaid share repurchase forward contract | 2 |
Deutsche Bank AG, London Branch [Member] | 3.875% Convertible Senior Notes [Member] | |
Subsequent Event [Line Items] | |
Repurchase of common stock under prepaid forward contract | $ | $ 29,923 |
Repurchase of Common stock, shares | shares | 622,751 |
Prepaid stock repurchases forward contract settlement period | 2,019 |
Societe Generale [Member] | 4.25% Convertible Senior Notes [Member] | |
Subsequent Event [Line Items] | |
Repurchase of common stock under prepaid forward contract | $ | $ 9,400 |
Repurchase of Common stock, shares | shares | 191,100 |
Prepaid stock repurchases forward contract settlement period | 2,022 |
Stock-Based Compensation (Incen
Stock-Based Compensation (Incentive Plans) - Additional Information (Detail) - Omnibus Incentive Plan New Plan 2012 [Member] - shares | Mar. 31, 2017 | Mar. 17, 2017 | Mar. 16, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common shares available for grant | 2,082,751 | ||
Common shares reserved for future issuance | 3,000,000 | 5,000,000 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - Stock Options [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option contractual term | 10 years | ||
Exercise of common stock options, shares | 0 | 0 | |
Recognized compensation expenses | $ 96 | $ 0 | |
Deferred tax benefits related to stock options | 37 | $ 0 | |
Unrecognized compensation expense related to nonvested stock options | $ 1,151 | $ 0 | |
Recognition of remaining compensation expense over a weighted-average period | 3 years 9 months 18 days | ||
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 | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Granted, Number of Options | 110,000 | |||
Outstanding, Number of Options | 160,000 | 110,000 | 50,000 | 110,000 |
Exercisable, Number of Options | 50,000 | 110,000 | ||
Granted, Weighted Average Exercise Price | $ 40 | |||
Outstanding, Weighted Average Exercise Price | 28.76 | $ 3.19 | $ 4.02 | $ 3.19 |
Exercisable, Weighted-Average Exercise Price | $ 4.02 | $ 3.19 | ||
Outstanding, Weighted-Average Remaining Contractual Term | 7 years 4 months 24 days | 2 years 1 month 6 days | 2 years 3 months 18 days | 2 years 3 months 18 days |
Exercisable, Weighted-Average Remaining Contractual Term | 2 years | 2 years 1 month 6 days | ||
Outstanding, Aggregate Intrinsic Value | $ 2,591 | $ 3,312 | $ 1,773 | $ 3,482 |
Exercisable, Aggregate Intrinsic Value | $ 2,046 | $ 3,312 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Estimate the Fair Value of Stock Options Granted (Detail) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Expected dividend yield | 3.53% |
Expected volatility | 42.86% |
Risk-free interest rate | 1.92% |
Expected life (in years) | 5 years |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance, shares | 542,503 | 620,513 |
Granted, Number of Restricted Stock Awards | 45,000 | |
Vested, Number of Restricted Stock Awards | (20,109) | (20,917) |
Cancelled, Number of Restricted Stock Awards | (160,000) | |
Forfeited, Number of Restricted Stock Awards | (926) | (750) |
Ending balance, shares | 566,468 | 438,846 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $ 30.81 | $ 30.33 |
Granted, Weighted-Average Grant Date Fair Value | 40.15 | |
Vested, Weighted-Average Grant Date Fair Value | 48.42 | 48.42 |
Cancelled, Weighted-Average Grant Date Fair Value | 26.27 | |
Forfeited, Weighted-Average Grant Date Fair Value | 35.52 | 45.25 |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $ 30.92 | $ 30.93 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Awards) - Additional Information (Detail) - Restricted Stock [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Recognized compensation expenses | $ 1,006 | $ 981 |
Total unrecognized compensation expense, Nonvested restricted stock arrangements granted | $ 8,299 | $ 6,625 |
Recognition of remaining compensation expense over a weighted-average period | 23 months |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred tax benefits recognized | $ 353 | $ 379 |
Tax benefits realized for restricted stock and paid dividends | 62 | 50 |
Fair value of vested restricted stock | $ 974 | $ 1,013 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 01, 2018 | Jun. 01, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Commitment And Contingencies [Line Items] | ||||
Unfunded Balance | $ 11,208 | $ 13,554 | ||
Scenario, Forecast [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Future premiums payable to re insurers | $ 19,400 | $ 19,400 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Senior Notes [Member] - USD ($) $ in Thousands | Apr. 03, 2017 | Mar. 31, 2017 |
Subsequent Event [Line Items] | ||
Fixed annual rate of interest | 8.00% | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Extinguishment of debt | $ 40,805 | |
Fixed annual rate of interest | 8.00% | |
Accrued and unpaid interest | $ 555 | |
Debt extinguishment costs | $ 743 |