Document & Entity Information D
Document & Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 15, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Public Float | $ 277,928,371 | ||
Document type | 10-K | ||
Amendment flag | false | ||
Document period end date | Dec. 31, 2016 | ||
Document fiscal period focus | FY | ||
Document fiscal year focus | 2,016 | ||
Trading symbol | UIHC | ||
Registrant name | United Insurance Holdings Corp. | ||
Central index key | 1,401,521 | ||
Current fiscal year end date | --12-31 | ||
Filer category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Common stock outstanding | 21,676,125 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments available for sale, at fair value: | ||
Total investments | $ 528,647 | $ 452,714 |
Cash and cash equivalents | 150,688 | 84,786 |
Accrued investment income | 3,735 | 2,915 |
Property, Plant and Equipment, Net | 17,860 | 17,135 |
Premiums receivable, net | 38,883 | 41,170 |
Reinsurance recoverable on paid and unpaid losses | 24,028 | 2,961 |
Prepaid reinsurance premiums | 132,564 | 79,399 |
Goodwill | 14,254 | 3,413 |
Deferred policy acquisition costs | 65,473 | 46,732 |
Other Assets | 23,554 | 8,796 |
Total Assets | 999,686 | 740,021 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 140,855 | 76,792 |
Unearned premiums | 372,223 | 304,653 |
Reinsurance payable | 99,891 | 64,542 |
Other Liabilities | 91,215 | 42,470 |
Notes payable | 54,175 | 12,353 |
Total Liabilities | 758,359 | 500,810 |
Commitments and contingencies (Note 13) | ||
Stockholders' Equity: | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 21,858,697 and 21,736,431 issued; 21,646,614 and 21,524,348 outstanding, respectively | 2 | 2 |
Additional Paid in Capital | 99,353 | 97,163 |
Treasury shares, at cost; 212,083 shares | (431) | (431) |
Accumulated other comprehensive income | 822 | 1,620 |
Retained Earnings (Accumulated Deficit) | 141,581 | 140,857 |
Total Stockholders' Equity | 241,327 | 239,211 |
Total Liabilities and Stockholders' Equity | 999,686 | 740,021 |
Fixed Maturities [Member] | ||
Investments available for sale, at fair value: | ||
Fixed maturities (amortized cost of $497,616 and $396,415, respectively) | 494,516 | 396,698 |
Equity Securities | ||
Investments available for sale, at fair value: | ||
Equity securities (adjusted cost of $24,074 and $48,679, respectively) | 28,398 | 50,806 |
Other Long-term Investments | ||
Investments available for sale, at fair value: | ||
Other investments (amortized cost of $5,493 and $4,980, respectively) | $ 5,733 | $ 5,210 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Amortized Cost Basis | $ 527,183 | $ 450,074 |
Preferred Stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 21,858,697 | 21,736,431 |
Common stock, outstanding shares | 21,646,614 | 21,524,348 |
Treasury stock | 212,083 | 212,083 |
Fixed Maturities [Member] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | $ 497,616 | $ 396,415 |
Equity Securities | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 24,074 | 48,679 |
Other Long-term Investments | ||
Available-for-sale Securities, Amortized Cost Basis | $ 5,493 | $ 4,980 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
REVENUE: | |||
Gross premiums written | $ 708,156 | $ 569,736 | $ 436,753 |
Increase in gross unearned premiums | (41,327) | (65,521) | (36,058) |
Gross premiums earned | 666,829 | 504,215 | 400,695 |
Ceded Premiums Earned | (209,898) | (168,257) | (135,845) |
Net premiums earned | 456,931 | 335,958 | 264,850 |
Net investment income | 10,679 | 9,212 | 6,795 |
Net realized gains (losses) | 547 | 827 | (20) |
Other revenue | 18,960 | 11,572 | 8,605 |
Total revenue | 487,117 | 357,569 | 280,230 |
EXPENSES: | |||
Losses and loss adjustment expenses | 298,353 | 183,108 | 118,077 |
Deferred Policy Acquisition Cost, Amortization Expense | 117,658 | 87,401 | 65,657 |
Operating Expenses | 20,524 | 15,316 | 11,746 |
General and Administrative Expense | 42,956 | 29,852 | 20,007 |
Interest Expense | 723 | 326 | 410 |
Total expenses | 480,214 | 316,003 | 215,897 |
Income before other income | 6,903 | 41,566 | 64,333 |
Other Nonoperating Income (Expense) | 100 | 294 | 77 |
Income before income taxes | 7,003 | 41,860 | 64,410 |
Provision for income taxes | 1,305 | 14,502 | 23,397 |
Net income | 5,698 | 27,358 | 41,013 |
OTHER COMPREHENSIVE INCOME: | |||
Change in net unrealized gain on investments | (629) | (3,070) | 6,367 |
Reclassification adjustment for net realized investment gains | (547) | (827) | 20 |
Income tax expense related to items of other comprehensive income | 378 | 1,506 | (2,468) |
Total comprehensive income | $ 4,900 | $ 24,967 | $ 44,932 |
Weighted average shares outstanding | |||
Basic | 21,417,486 | 21,218,233 | 19,933,652 |
Diluted | 21,614,443 | 21,452,540 | 20,045,907 |
Earnings per share | |||
Earnings Per Share, Basic | $ 0.27 | $ 1.29 | $ 2.06 |
Earnings Per Share, Diluted | 0.26 | 1.28 | 2.05 |
Common Stock, Dividends, Per Share, Declared | $ 0.23 | $ 0.20 | $ 0.16 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Net Income (Loss) Attributable to Parent | $ 41,013 | |||||
Beginning balance (shares) at Dec. 31, 2013 | 16,209,315 | |||||
Beginning balance at Dec. 31, 2013 | 107,587 | $ 2 | $ 27,800 | $ (431) | $ 92 | $ 80,124 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) Available to Common Stockholders, Basic | 41,013 | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 3,919 | $ 0 | 0 | 0 | 3,919 | 0 |
Stock Issued During Period, Shares, Share-based Compensation, Gross | 95,099 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 539 | $ 0 | 539 | 0 | 0 | 0 |
Stock Issued During Period, Shares, New Issues | 4,600,000 | |||||
Stock Issued During Period, Value, New Issues | 54,041 | $ 0 | 54,041 | 0 | 0 | 0 |
Dividends, Common Stock, Cash | (3,336) | $ 0 | 0 | 0 | 0 | (3,336) |
Ending balance (shares) at Dec. 31, 2014 | 20,904,414 | |||||
Ending balance at Dec. 31, 2014 | 203,763 | $ 2 | 82,380 | (431) | 4,011 | 117,801 |
Net Income (Loss) Attributable to Parent | 27,358 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) Available to Common Stockholders, Basic | 27,358 | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (2,391) | $ 0 | 0 | 0 | (2,391) | 0 |
Stock Issued During Period, Shares, Share-based Compensation, Gross | 116,077 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 1,789 | $ 0 | 1,789 | 0 | 0 | 0 |
Stock Issued During Period, Shares, New Issues | 503,857 | |||||
Stock Issued During Period, Value, New Issues | 12,994 | $ 0 | 12,994 | 0 | 0 | 0 |
Dividends, Common Stock, Cash | $ (4,302) | $ 0 | 0 | 0 | 0 | (4,302) |
Ending balance (shares) at Dec. 31, 2015 | 21,524,348 | 21,524,348 | ||||
Ending balance at Dec. 31, 2015 | $ 239,211 | $ 2 | 97,163 | (431) | 1,620 | 140,857 |
Net Income (Loss) Attributable to Parent | 5,698 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) Available to Common Stockholders, Basic | 5,698 | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (798) | $ 0 | 0 | 0 | (798) | 0 |
Stock Issued During Period, Shares, Share-based Compensation, Gross | 89,323 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 1,677 | $ 0 | 1,677 | 0 | 0 | 0 |
Stock Issued During Period, Shares, New Issues | 32,943 | |||||
Stock Issued During Period, Value, New Issues | 513 | $ 0 | 513 | 0 | 0 | 0 |
Dividends, Common Stock, Cash | $ (4,974) | $ 0 | 0 | 0 | 0 | (4,974) |
Ending balance (shares) at Dec. 31, 2016 | 21,646,614 | 21,646,614 | ||||
Ending balance at Dec. 31, 2016 | $ 241,327 | $ 2 | $ 99,353 | $ (431) | $ 822 | $ 141,581 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES | |||
Net income | $ 5,698 | $ 27,358 | $ 41,013 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 11,713 | 3,328 | 801 |
Accretion (Amortization) of Discounts and Premiums, Investments | (3,677) | (1,997) | (1,522) |
Gain (Loss) on Sale of Securities, Net | (547) | (827) | 20 |
Provision for uncollectible premiums/over and short | 64 | 272 | 73 |
Deferred income taxes, net | 2,210 | 2,305 | (1,181) |
Share-based Compensation | 1,947 | 1,974 | 649 |
Changes in operating assets and liabilities: | |||
Accrued investment income | (172) | (676) | (487) |
Premiums receivable | 5,409 | (8,577) | (5,366) |
Reinsurance recoverable on paid and unpaid losses | (18,459) | (893) | 358 |
Prepaid reinsurance premiums | (53,165) | (15,572) | (8,559) |
Deferred policy acquisition costs, net | (18,741) | (14,807) | (6,739) |
Other assets | (11,006) | (3,897) | (1,493) |
Unpaid losses and loss adjustment expenses | 39,096 | 19,966 | 6,985 |
Unearned premiums | 41,327 | 65,521 | 36,058 |
Reinsurance payable | 36,391 | 18,290 | 5,771 |
Other Liabilities | 20,305 | 2,557 | (507) |
Net Cash Provided by (Used in) Operating Activities | 65,747 | 98,319 | 68,918 |
INVESTING ACTIVITIES | |||
Proceeds from sales and maturities of investments available for sale | 187,522 | 199,575 | 219,893 |
Purchases of investments available for sale | (201,234) | (270,141) | (305,013) |
Cash Acquired from Acquisition | 0 | 14,467 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | (32,896) | 0 | 0 |
Payments to Acquire Property, Plant, and Equipment | (3,149) | (10,916) | (6,346) |
Net Cash Provided by (Used in) Investing Activities | (49,757) | (67,015) | (91,466) |
FINANCING ACTIVITIES | |||
Payments Related to Tax Withholding for Share-based Compensation | (270) | (185) | (110) |
Repayments of borrowings | (1,379) | (3,422) | (1,177) |
Proceeds from Issuance of Long-term Debt | 35,200 | 0 | 0 |
Payments of Debt Issuance Costs | (596) | 0 | 0 |
Payments of Dividends | (4,974) | (4,302) | (3,336) |
Bank overdrafts | (21,931) | 0 | 367 |
Proceeds from Issuance of Common Stock | 0 | 0 | 54,041 |
Net Cash Provided by (Used in) Financing Activities | 49,912 | (7,909) | 49,051 |
Increase (decrease) in cash | 65,902 | 23,395 | 26,503 |
Cash and cash equivalents at beginning of period | 84,786 | 61,391 | 34,888 |
Cash and cash equivalents at end of period | 150,688 | 84,786 | 61,391 |
Supplemental Cash Flows Information | |||
Interest paid | 285 | 296 | 389 |
Income taxes paid | $ 7,194 | $ 13,223 | $ 27,901 |
Organization, Consolidation and
Organization, Consolidation and Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation | ORGANIZATION, CONSOLIDATION AND PRESENTATION (a) Business United Insurance Holdings Corp. is a property and casualty insurance holding company that sources, writes, and services residential and commercial property and casualty insurance policies using a network of agents and three wholly owned insurance subsidiaries. Our primary insurance subsidiary is UPC, which was formed in Florida in 1999 and has operated continuously since that time. Our other subsidiaries include UIM, the managing general agent that manages substantially all aspects of UPC's business; Skyway Claims Services, LLC (our claims adjusting affiliate) that provides services to our insurance affiliates; and UPC Re (our reinsurance affiliate) that provides a portion of the reinsurance protection purchased by our insurance affiliates. On February 3, 2015, we acquired FSH and its two wholly owned subsidiaries, FSIC and FSU via merger. On April 29, 2016, we acquired IIC via merger. See Note 4 in our Notes to Consolidated Financial Statements for additional information regarding these acquisitions. Our primary product is homeowners' insurance, which we currently offer in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Texas, under authorization from the insurance regulatory authorities in each state. We are also licensed to write property and casualty insurance in Alabama, Delaware, Maryland, Mississippi, New Hampshire, and Virginia; however, we have not commenced writing in these states. We conduct our operations under one business segment. (b) Consolidation and Presentation We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP). While preparing our consolidated financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require us to make extensive use of estimates include our reserves for unpaid losses and loss adjustment expenses, reinsurance recoverable, deferred policy acquisition costs, investments and goodwill. Except for the captions on our Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income, we generally use the term loss(es) to collectively refer to both loss and loss adjustment expenses. We include all of our subsidiaries in our consolidated financial statements, eliminating all significant intercompany balances and transactions during consolidation. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES (a) Cash and Cash Equivalents Our cash and cash equivalents include demand deposits with financial institutions and short-term, highly-liquid instruments with original maturities of three months or less when purchased. (b) Investments We currently classify all of our investments in fixed maturities, equity securities and other investments as available-for-sale, and report them at fair value. Subsequent to our acquisition of available-for-sale securities, we record changes in value through the date of disposition as unrealized holding gains and losses, net of tax effects, and include them as a component of comprehensive income. We include realized gains and losses, which we calculate using the specific-identification method for determining the cost of securities sold, in net income. We amortize any premium or discount on fixed maturities over the remaining maturity period of the related securities using the effective interest method, and we report the amortization in net investment income. We recognize dividends and interest income when earned. Quarterly, we perform an assessment of our investments to determine if any are other-than-temporarily impaired. An investment is impaired when the fair value of the investment declines to an amount less than the cost or amortized cost of that investment. As part of our assessment process, we determine whether the impairment is temporary or other-than-temporary. We base our assessment on both quantitative criteria and qualitative information, considering a number of factors including, but not limited to: how long the security has been impaired; the amount of the impairment; whether, in the case of equity securities, we intend to hold, and have the ability to hold, the security for a period sufficient for us to recover our cost basis, or whether, in the case of debt securities, we intend to sell the security or it is more likely than not that we will have to sell the security before we recover the amortized cost; the financial condition and near-term prospects of the issuer; whether the issuer is current on contractually-obligated interest and principal payments; key corporate events pertaining to the issuer and whether the market decline was affected by macroeconomic conditions. If we determine that an equity security has incurred an other-than-temporary impairment, we permanently reduce the cost of the security to fair value and recognize an impairment charge in net income. If a debt security is impaired and we either intend to sell the security or it is more likely than not that we will have to sell the security before we are able to recover the amortized cost, then we record the full amount of the impairment in net income. If we determine that an impairment of a debt security is other-than-temporary and we neither intend to sell the security nor it is more likely than not that we will have to sell the security before we are able to recover its cost or amortized cost, then we separate the impairment into (a) the amount of impairment related to credit loss and (b) the amount of impairment related to all other factors. We record the amount of the impairment related to the credit loss as an impairment charge in net income, and we record the amount of the impairment related to all other factors in accumulated other comprehensive income. A large portion of our investment portfolio consists of fixed maturities, which may be adversely affected by changes in interest rates as a result of governmental monetary policies, domestic and international economic and political conditions and other factors beyond our control. A rise in interest rates would decrease the net unrealized holding gains of our investment portfolio, offset by our ability to earn higher rates of return on funds reinvested. Conversely, a decline in interest rates would increase the net unrealized holding gains of our investment portfolio, offset by lower rates of return on funds reinvested. (c) Fair Value See Note 3 in our Notes to Consolidated Financial Statements for a discussion regarding the fair value measurement of our investments at December 31, 2016 . (d) Premiums We recognize premiums as revenue, net of ceded reinsurance amounts, on a daily pro rata basis over the contract period of the related policies that are in force. For any portion of premiums not earned at the end of the reporting period, we record an unearned premium liability. Premiums receivable represents amounts due from our policyholders for billed premiums and related policy fees. We perform a policy-level evaluation to determine the extent to which the balance of premium receivable exceeds the balance of unearned premium. We then age any resulting exposure based on the last date the policy was billed to the policyholder, and we establish an allowance for credit losses for any amounts outstanding for more than 90 days. When we receive payments on amounts previously charged off, we credit bad debt expense in the period we receive the payment. The balances of our allowance for uncollectible premiums totaled $144,000 and $132,000 at December 31, 2016 and 2015 , respectively. When we receive premium payments from policyholders prior to the effective date of the related policy, we record an advance premiums liability. On the policy effective date, we reduce the advance premium liability and record the premiums as described above. (e) Policy Acquisition Costs We incur policy acquisition costs that vary with, and are directly related to, the production of new business. We capitalize policy acquisition costs to the extent recoverable, then we amortize those costs over the contract period of the related policy. At each reporting date, we determine whether we have a premium deficiency. A premium deficiency would result if the sum of our expected losses, deferred policy acquisition costs, and policy maintenance costs (such as costs to store records and costs incurred to collect premiums and pay commissions) exceeded our related unearned premiums plus investment income. Should we determine that a premium deficiency exists, we would write off the unrecoverable portion of deferred policy acquisition costs and record a liability to the extent the deficiency exceeded the deferred policy acquisition costs. (f) Debt Issuance Costs We record our debt issuance costs associated with a recognized debt liability as a direct deduction from the carrying amount of the corresponding debt liability. These costs are then amortized over the life of the liability using the effective interest method. (g) Long-lived Assets i) Property and Equipment We record our property and equipment, at cost less accumulated depreciation and amortization. We use the straight-line method of calculating depreciation over the estimated useful lives of the assets. We periodically review estimated useful lives and, where appropriate, we make changes prospectively. We charge maintenance and repair costs to expense as incurred. ii) Capitalized Software We capitalize certain direct development costs associated with internal-use software. We expect to amortize the capitalized software costs related to our new data warehouse over its expected seven year useful life. We amortize the costs related to our new policy administration and claims processing systems over their expected seven -year useful lives. See Note 7 in our Notes to Consolidated Financial Statements for a discussion of our property, equipment and capitalized software, including our properties, that were purchased during 2016 and 2015 . iii) Impairment of Long-lived Assets We annually review our long-lived assets, including intangible assets, to determine if their carrying amounts are recoverable. If the non-discounted future cash flows expected to result from the use and eventual disposition of the assets are less than their carrying amounts, we reduce their carrying amounts to fair value and recognize an impairment loss. (h) Unpaid Losses and Loss Adjustment Expenses Our reserves for unpaid losses represent the estimated ultimate cost of settling all reported claims plus all claims we incurred related to insured events that have occurred as of the reporting date, but that policyholders have not yet reported to us. We estimate our reserves for unpaid losses using individual case-basis estimates for reported claims and actuarial estimates for IBNR claims, and we continually review and adjust our estimated losses as necessary based on our historical experience and as we obtain new information. If our unpaid loss reserves prove to be deficient or redundant, we increase or decrease the liability in the period in which we identify the difference, thereby impacting net income. Though our estimate of the ultimate cost of settling all reported and unreported claims may change at any point in the future, a reasonable possibility exists that our estimate may vary significantly in the near term from the estimated amounts included in our consolidated financial statements. On our Consolidated Balance Sheets, we report our reserves for unpaid losses gross of the amounts related to unpaid losses recoverable from reinsurers. On our Consolidated Statements of Comprehensive Income, we report losses net of amounts ceded to reinsurers. We do not discount our loss reserves for financial statement purposes. (i) Managing General Agent Fees and Policy Fees Our policy fees consist of the managing general agent fee and a pay-plan fee. Regulatory authorities in Florida, Georgia, Louisiana, New Jersey and Rhode Island allow managing general agents to charge policyholders a $25 fee on each policy written. The regulatory authority in Hawaii allows managing general agents to charge policyholders a $50 fee on each policy written, while the regulatory authority in Texas allows managing general agents to charge policyholders a $25 or $75 fee, depending on the type of policy issued. Regulatory authorities in Massachusetts and Texas also allow managing general agents to charge a $25 inspection fee and regulatory authorities in Louisiana allow managing general agents to charge up to a $125 inspection fee, depending on the type of homeowner policy issued. We defer such fees as unearned revenue and then include them in income on a pro rata basis over the term of the underlying policies. We record our pay-plan fees, which we charge to all policyholders that pay their premium in more than one installment, as income when collected. We report all policy-related fees in other revenue on our Consolidated Statements of Comprehensive Income. (j) Reinsurance We follow industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or "ceding", all or a portion of the risk exposure on policies we write to another insurer, known as a reinsurer. To the extent that our reinsurers are unable to meet the obligations they assume under our reinsurance agreements, we remain liable for the entire insured loss. Our reinsurance agreements are short-term, prospective contracts. We record an asset, prepaid reinsurance premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of our new reinsurance agreements. We amortize our prepaid reinsurance premiums over the 12-month contract period. We record amounts recoverable from our reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of our liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to our estimate of unpaid losses. Though our estimate of amounts recoverable from reinsurers on unpaid losses may change at any point in the future because of its relation to our reserves for unpaid losses, a reasonable possibility exists that our estimate may change significantly in the near term from the amounts included in our consolidated financial statements. We estimate uncollectible amounts receivable from reinsurers based on an assessment of factors including the creditworthiness of the reinsurers and the adequacy of collateral obtained, where applicable. We recorded no bad debt expense related to reinsurance during the years ended December 31, 2016 , 2015 or 2014 . (k) Assessments We record guaranty fund and other insurance-related assessments imposed upon us as an expense in the period the regulatory agency imposes the assessment. To recover Florida Insurance Guaranty Association (FIGA) assessments, we calculate and begin collecting a policy surcharge that will allow us to collect the entire assessment over a 12-month period, based on our estimate of the number of policies we expect to write. We then submit an information only filing, pursuant to Florida Statute 631.57(3)(h), to the insurance regulatory authority requesting formal approval of the policy FIGA surcharge. The process may be repeated in successive 12-month periods until we collect the entire assessment. We record the recoveries as revenue in the period that we collect the cash. While current regulations allow us to recover from policyholders the amount of assessments imposed upon us, our payment of the assessments and our recoveries may not offset each other in the same fiscal period in our consolidated financial statements. Where permitted by law or regulatory authority, we collect assessments imposed upon policyholders as a policy surcharge and we record the amounts collected as a liability until we remit the amounts to the regulatory agency that imposed the assessment. During 2016 , we received an assessment for $415,000 from the North Carolina Joint Underwriting Association related to Hurricane Matthew. We did not receive any additional significant assessments from regulatory authorities in the states in which our insurance affiliates operate. (l) Income Taxes We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect to recover or settle those temporary differences. Should a change in tax rates occur, we recognize the effect on deferred tax assets and liabilities in operations in the period that includes the enactment date. Realization of our deferred income tax assets depends upon our generation of sufficient future taxable income. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. We record any income tax penalties and income-tax-related interest as income tax expense in the period incurred. We did not incur any material tax penalties or income-tax-related interest during the years ended December 31, 2016 , 2015 or 2014 . (m) Advertising Costs We expense all advertising costs when we incur those costs. For the years ended December 31, 2016 , 2015 and 2014 , we incurred advertising costs of $907,000 , $2,630,000 , and $1,819,000 , respectively. (n) Earnings Per Share We report both basic earnings per share and diluted earnings per share. To calculate basic earnings per share, we divide net income attributable to common stockholders by the weighted-average number of common stock shares outstanding during the period. We calculate diluted earnings per share by dividing net income attributable to common stockholders by the weighted-average number of common stock shares, common stock equivalents, and restricted shares outstanding during the period. (o) Concentrations of Risk Our current operations subject us to the following concentrations of risk: • a concentration of revenue because we write primarily homeowners policies • a geographic concentration resulting from the fact that, though we now operate in twelve states, we still write approximately 47% of our gross written premium in Florida • a group concentration of credit risk with regard to our reinsurance recoverable, since all of our reinsurers engage in similar activities and have similar economic characteristics that could cause their ability to repay us to be similarly affected by changes in economic or other conditions • a concentration of credit risk with regard to our cash, because we choose to deposit all our cash at six financial institutions We mitigate our geographic and group concentrations of risk by entering into reinsurance contracts with financially-stable reinsurers, and by securing irrevocable letters of credit from reinsurers when necessary. With regard to our cash balances held at financial institutions, we had $159,288,000 and $72,405,000 in excess of Federal Deposit Insurance Corporation (FDIC) insurance limits at December 31, 2016 and 2015 , respectively. The $86,883,000 increase in excess of FDIC insurance limits is the result of holding more cash and at the end of 2016 than we did in 2015. (p) Goodwill Goodwill is the excess of cost over the estimated fair value of net assets acquired. We attribute all goodwill associated with the acquisition of FSIC and IIC to one reporting unit. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test. The goodwill impairment process requires a comparison of the estimated fair value of a reporting unit to its carrying value. We test goodwill for impairment by either performing a qualitative assessment or a two-step quantitative test. The qualitative assessment is an assessment of historical information and relevant events and circumstances to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount, including goodwill. We may elect not to perform the qualitative assessment for our reporting unit and perform a two-step quantitative impairment test. In performing the two-step quantitative impairment test, we may use a market multiple valuation approach and a discounted cash flow valuation approach. The market multiple valuation approach utilizes market multiples of companies with similar businesses and the projected operating earnings of the reporting unit. The discounted cash flow valuation approach requires judgments about revenues, operating earnings projections, capital market assumptions and discount rates. The key inputs, judgments and assumptions necessary in determining estimated fair value of the reporting units include projected operating earnings, current book value, the level of economic capital required to support the mix of business, long-term growth rates, comparative market multiples, control premium, the account value of in-force business, projections of new and renewal business, as well as margins on such business, the level of interest rates, credit spreads, equity market levels, and the discount rate that we believe is appropriate for the respective reporting unit. When testing goodwill for impairment, we also considers our market capitalization in relation to the aggregate estimated fair value of our reporting unit. We apply significant judgment when determining the estimated fair value of our reporting unit and when assessing the relationship of market capitalization to the aggregate estimated fair value of our reporting unit. The valuation methodologies utilized are subject to key judgments and assumptions that are sensitive to change. Estimates of fair value are inherently uncertain and represent only management’s reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in the estimated fair value of our reporting unit could result in goodwill impairments in future periods which could materially adversely affect our results of operations or financial position. For the 2016 annual goodwill impairment test, we utilized the qualitative assessment and determined it was not more likely than not that the fair value of the reporting unit tested using the qualitative assessment was less than its carrying amount and, therefore no further testing was needed for the reporting unit. We determined that the fair values of the reporting unit was in excess of the carrying value and, therefore goodwill was not impaired. (q) Intangible Assets Identifiable intangible assets that are amortized generally represent the cost of client relationships, trade names and agency agreements acquired. In valuing these assets, we make assumptions regarding useful lives and projected growth rates, and significant judgment is required. We periodically reviews identifiable intangibles for impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amounts of the assets exceed their respective fair values, additional impairment tests are performed to measure the amount of the impairment loss, if any. Non-amortizing intangible assets generally represent the cost of insurance licenses acquired. Non-amortizing intangible assets are tested for impairment in the fourth quarter of each fiscal year by comparing the fair value of the licenses acquired to their carrying values. We established fair value for purposes of impairment testing using the income approach. If the carrying value of a license acquired exceeds its fair value, an impairment loss is recognized equal to that excess. For 2016, we determined that the fair values of the intangible assets were not impaired. (r) Accounting Pronouncements Adopted Policies In May 2015, the FASB issued Accounting Standards Update No. 2015-09, which requires expanded disclosures for insurance entities that issue short-duration contracts. The expanded disclosures are designed to provide additional insight into an insurance entity's significant estimates made in measuring the liability for unpaid claims and claim adjustment expenses. The disclosures include information about incurred and paid claims development by accident years, on a net basis after reinsurance, for the number of years' claims incurred typically remain outstanding, not to exceed ten years. Each period presented in the disclosure about claims development that precedes the current reporting period is considered required supplementary information. The expanded disclosures also include information about significant changes in methodologies and assumptions, a reconciliation of incurred and paid claims development to the carrying amount of the liability for unpaid claims and claim adjustment expenses, the total amount of incurred but not reported liabilities plus expected development, the incidence of claims including the methodology used to determine the incidence of claims, and claim duration. The guidance is effective for annual periods beginning after December 15, 2015, and interim periods beginning after December 15, 2016, and is to be applied retrospectively. The new guidance affects disclosures only and therefore, the adoption as of December 31, 2016 had no impact on the Company's results of operations or financial position. Pending Policies We have evaluated recent accounting pronouncements that have had or may have a significant effect on our financial statements or on our disclosures. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230) (ASU 2016-15). This update is intended to address eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230. The cash flow issues impacting our company include the presentation and classification of debt prepayment or debt extinguishment costs and contingent consideration payments made after a business combination. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. We do not intend to early adopt and are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). This update is intended to replace the incurred loss impairment methodology in current GAAP with a method that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 will provide users with more useful information regarding the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. In addition, credit losses on available-for-sale debt securities will now have to be presented as an allowance rather than as a write-down. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years with early adoption permitted for certain requirements. We do not intend to early adopt and are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). This update is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted for certain requirements. We do not intend to early adopt and are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02). This updated is intended to replace existing lease guidance by requiring a lessee to recognize substantially all leases (whether operating or finance leases) on the balance sheet as a right-of-use asset and an associated least liability. Short-term leases of 12 months or less are excluded from this amendment. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We do not intend to early adopt and are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). This update substantially revises standards for the recognition, measurement and presentation of financial instruments. This standard revises an entity's accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted for certain requirements. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS The following table details the difference between cost or adjusted/amortized cost and estimated fair value, by major investment category, at December 31, 2016 and 2015 : Cost or Adjusted/Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2016 U.S. government and agency securities $ 151,656 $ 189 $ 1,893 $ 149,952 Foreign governments 2,031 30 — 2,061 States, municipalities and political subdivisions 170,636 1,027 2,551 169,112 Public utilities 7,687 116 73 7,730 Corporate securities 164,424 1,238 1,126 164,536 Redeemable preferred stocks 1,182 5 62 1,125 Total fixed maturities 497,616 2,605 5,705 494,516 Public utilities 1,343 164 — 1,507 Other common stocks 19,815 4,552 319 24,048 Nonredeemable preferred stocks 2,916 10 83 2,843 Total equity securities 24,074 4,726 402 28,398 Other investments 5,493 267 27 5,733 Total investments $ 527,183 $ 7,598 $ 6,134 $ 528,647 December 31, 2015 U.S. government and agency securities $ 81,973 $ 148 $ 474 $ 81,647 Foreign government 2,038 37 — 2,075 States, municipalities and political subdivisions 154,004 2,391 490 155,905 Public utilities 8,398 128 33 8,493 Corporate securities 148,170 880 2,292 146,758 Redeemable preferred stocks 1,832 37 49 1,820 Total fixed maturities 396,415 3,621 3,338 396,698 Mutual funds 26,357 — 14 26,343 Public utilities 1,342 44 34 1,352 Other common stocks 18,624 2,615 545 20,694 Nonredeemable preferred stocks 2,356 67 6 2,417 Total equity securities 48,679 2,726 599 50,806 Other investments 4,980 230 — 5,210 Total investments $ 450,074 $ 6,577 $ 3,937 $ 452,714 When we sell investments, we calculate the gain or loss realized on the sale by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. We determine the cost or adjusted/amortized cost of the security sold using the specific-identification method. The following tables detail our realized gains (losses) by major investment category for the years ended December 31, 2016 , 2015 and 2014 : 2016 2015 2014 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale Fixed maturities $ 1,811 $ 56,484 $ 727 $ 87,141 $ 92 $ 5,598 Equity securities 64 13,253 1,895 7,790 298 111,325 Total realized gains 1,875 69,737 2,622 94,931 390 116,923 Fixed maturities (1,136 ) 24,464 (595 ) 38,485 (228 ) 11,389 Equity securities (192 ) 37,790 (1,200 ) 4,172 (182 ) 1,529 Total realized losses (1,328 ) 62,254 (1,795 ) 42,657 (410 ) 12,918 Net realized investment gains (losses) $ 547 $ 131,991 $ 827 $ 137,588 $ (20 ) $ 129,841 The table below summarizes our fixed maturities at year end by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations. December 31, 2016 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Due in one year or less $ 36,973 7.4 % $ 36,974 7.5 % Due after one year through five years 273,784 55.0 % 272,822 55.1 % Due after five years through ten years 142,452 28.6 % 140,416 28.4 % Due after ten years 44,407 9.0 % 44,304 9.0 % Total $ 497,616 100.0 % $ 494,516 100.0 % The following table summarizes our net investment income by major investment category: Year Ended December 31, 2016 2015 2014 Fixed maturities $ 9,170 $ 8,092 $ 5,866 Equity securities 996 859 734 Cash and cash equivalents 141 25 9 Other investments 352 222 166 Other assets 20 14 20 Investment income $ 10,679 $ 9,212 $ 6,795 Investment expenses (587 ) (267 ) (312 ) Net investment income $ 10,092 $ 8,945 $ 6,483 Portfolio monitoring We have a comprehensive portfolio monitoring process to identify and evaluate each fixed income and equity security whose carrying value may be other-than-temporarily impaired. For each fixed income security in an unrealized loss position, we determine if the loss is temporary or other-than-temporary. If our management decides to sell the security or determines that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs, contractual or regulatory requirements, then the security's decline in fair value is considered other-than-temporary and is recorded in earnings. If we have not made the decision to sell the fixed income security and it is not more likely than not that we will be required to sell the fixed income security before recovery of its amortized cost basis, we evaluate whether we expect the security to receive cash flows sufficient to recover the entire cost or amortized cost basis of the security. We calculate the estimated recovery value by discounting the best estimate of future cash flows at the security's original or current effective rate, as appropriate, and compare this to the cost or amortized cost of the security. If we do not expect to receive cash flows sufficient to recover the entire cost or amortized cost basis of the fixed income security, the credit loss component of the impairment is recorded in earnings, with the remaining amount of the unrealized loss related to other factors recognized in other comprehensive income. For equity securities, we consider various factors, including whether we have the intent and ability to hold the equity security for a period of time sufficient to recover its cost basis. If we lack the intent and ability to hold to recovery, or if we believe the recovery period is extended, the equity security's decline in fair value is considered other-than-temporary and is recorded in earnings. Our portfolio monitoring process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its cost or amortized cost (for fixed income securities) or cost (for equity securities) is below established thresholds. The process also includes the monitoring of other impairment indicators such as ratings, ratings downgrades and payment defaults. The securities identified, in addition to other securities for which we may have a concern, are evaluated for potential other-than-temporary impairment using all reasonably available information relevant to the collectability or recovery of the security. Inherent in our evaluation of other-than-temporary impairment for these fixed income and equity securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer. Some of the factors that may be considered in evaluating whether a decline in fair value is other-than-temporary are: (1) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; (2) the specific reasons that a security is in an unrealized loss position, including overall market conditions which could affect liquidity; and (3) the length of time and extent to which the fair value has been less than amortized cost or cost. The following table presents an aging of our unrealized investment losses by investment class: Less Than Twelve Months Twelve Months or More Number of Securities* Gross Unrealized Losses Fair Value Number of Securities* Gross Unrealized Losses Fair Value December 31, 2016 U.S. government and agency securities 186 $ 1,893 $ 111,216 — $ — $ — States, municipalities and political subdivisions 201 2,551 136,360 — — — Public utilities 8 73 2,222 — — — Corporate securities 215 1,100 88,605 1 26 1,021 Redeemable preferred stocks 7 62 764 — — — Total fixed maturities 617 5,679 339,167 1 26 1,021 Other common stocks 16 140 2,450 17 179 1,732 Nonredeemable preferred stocks 12 52 1,830 7 31 369 Total equity securities 28 192 4,280 24 210 2,101 Other investments 1 27 987 — — — Total 646 $ 5,898 $ 344,434 25 $ 236 $ 3,122 December 31, 2015 U.S. government and agency securities 73 $ 265 $ 44,786 21 $ 209 $ 11,250 States, municipalities and political subdivisions 61 463 56,971 5 27 7,620 Public utilities 8 4 1,961 1 29 1,015 Corporate securities 242 2,025 92,429 9 267 10,047 Redeemable preferred stocks 7 49 746 — — — Total fixed maturities 391 2,806 196,893 36 532 29,932 Mutual funds 1 14 26,343 — — — Public utilities 4 34 697 — — — Other common stocks 63 497 6,665 3 48 118 Nonredeemable preferred stocks 19 6 1,161 — — — Total equity securities 87 551 34,866 3 48 118 Total 478 $ 3,357 $ 231,759 39 $ 580 $ 30,050 * This amount represents the actual number of discrete securities, not the number of shares of those securities. The numbers are not presented in thousands. During our quarterly evaluations of our securities for impairment, we determined that none of our investments in debt and equity securities or limited partnership investments that reflected an unrealized loss position were other-than-temporarily impaired. The issuers of our debt securities continue to make interest payments on a timely basis. We do not intend to sell nor is it likely that we would be required to sell the debt securities before we recover our amortized cost basis. The near-term prospects of all the issuers of the equity securities we own indicate we could recover our cost basis, and we also do not intend to sell these securities until their value equals or exceeds their cost. The limited partnership continues to make interest payments on a timely basis and we do not intend to sell nor is it likely that we would be required to sell our investment in the partnership before we recover our amortized cost. During the years ended December 31, 2016 , 2015 and 2014 , we recorded no other-than-temporary impairment charges. Fair value measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Audited Consolidated Balance Sheets at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows: Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we can access. Level 2: Assets and liabilities whose values are based on the following: (a) Quoted prices for similar assets or liabilities in active markets; (b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or (c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect our estimates of the assumptions that market participants would use in valuing the assets and liabilities. We estimate the fair value of our investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE, NASDAQ, and NYSE MKT. For securities for which quoted prices in active markets are unavailable, we use a third-party pricing service that utilizes quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs to estimate the fair value of those securities for which quoted prices are unavailable. Our estimates of fair value reflect the interest rate environment that existed as of the close of business on December 31, 2016 and 2015 . Changes in interest rates subsequent to December 31, 2016 may affect the fair value of our investments. The fair value for our fixed-maturities is initially calculated by a third-party pricing service. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources, and through the use of proprietary models, produce valuation information in the form of a single fair value for individual fixed income and other securities for which a fair value has been requested. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, liquidity spreads, currency rates, and other information, as applicable. Credit and liquidity spreads are typically implied from completed transactions and transactions of comparable securities. Valuation service providers also use proprietary discounted cash flow models that are widely accepted in the financial services industry and similar to those used by other market participants to value the same financial information. The valuation models take into account, among other things, market observable information as of the measurement date, as described above, as well as the specific attributes of the security being valued including its term, interest rate, credit rating, industry sector, and where applicable, collateral quality and other issue or issuer specific information. Executing valuation models effectively requires seasoned professional judgment and experience. For our Level 3 assets, our internal pricing methods are primarily based on models using discounted cash flow methodologies that determine a single best estimate of fair value for individual financial instruments. In addition, our models use a discount rate and internally assigned credit ratings as inputs (which are generally consistent with any external ratings) and those we use to report our holdings by credit rating. Market related inputs used in these fair values, which we believe are representative of inputs other market participants would use to determine fair value of the same instruments include: interest rate yield curves, quoted market prices of comparable securities, credit spreads, and other applicable market data. As a result of the significance of non-market observable inputs, including internally assigned credit ratings as described above, judgment is required in developing these fair values. The fair value of these financial assets may differ from the amount actually received if we were to sell the asset. Moreover, the use of different valuation assumptions may have a material effect on the fair values on the financial assets. Any change in the estimated fair value of our securities would impact the amount of unrealized gain or loss we have recorded, which could change the amount we have recorded for our investments and other comprehensive income on our Consolidated Balance Sheets. The carrying amounts for the following financial instrument categories approximate their fair values at December 31, 2016 and 2015 because of their short-term nature: cash and cash equivalents, accrued investment income, premiums receivable, reinsurance recoverable, reinsurance payable, other assets, and other liabilities. The carrying amount of the notes payable to the Florida State Board of Administration, the Branch Banking & Trust Corporation (BB&T), and our senior notes payable approximate fair value as the interest rates are variable. The carrying amount of our note payable with Interboro, LLC approximates fair value due to the short term nature of the loan. The following table presents the fair value of our financial instruments measured on a recurring basis by level at December 31, 2016 and December 31, 2015 : December 31, 2016 Total Level 1 Level 2 Level 3 U.S. government and agency securities $ 149,952 $ — $ 149,952 $ — Foreign governments 2,061 — 2,061 — States, municipalities and political subdivisions 169,112 — 169,112 — Public utilities 7,730 — 7,730 — Corporate securities 164,536 — 164,536 — Redeemable preferred stocks 1,125 1,125 — — Total fixed maturities 494,516 1,125 493,391 — Public utilities 1,507 1,507 — — Other common stocks 24,048 24,048 — — Nonredeemable preferred stocks 2,843 2,843 — — Total equity securities 28,398 28,398 — — Other investments 5,733 300 3,735 1,698 Total investments $ 528,647 $ 29,823 $ 497,126 $ 1,698 December 31, 2015 U.S. government and agency securities $ 81,647 $ — $ 81,647 $ — Foreign governments 2,075 — 2,075 — States, municipalities and political subdivisions 155,905 — 155,905 — Public utilities 8,493 — 8,493 — Corporate securities 146,758 — 146,758 — Redeemable preferred stocks 1,820 1,820 — — Total fixed maturities 396,698 1,820 394,878 — Mutual Funds 26,343 26,343 — — Public utilities 1,352 1,352 — — Other common stocks 20,694 20,694 — — Nonredeemable preferred stocks 2,417 2,417 — — Total equity securities 50,806 50,806 — — Other investments 5,210 300 3,055 1,855 Total investments $ 452,714 $ 52,926 $ 397,933 $ 1,855 The table below presents the rollforward of our Level 3 investments held at fair value during the year ended December 31, 2016 : Other Investments December 31, 2015 $ 1,855 Transfers in — Partnership income 143 Return of capital (311 ) Unrealized gains in accumulated other comprehensive income 11 December 31, 2016 $ 1,698 We are responsible for the determination of fair value and the supporting assumptions and methodologies. We gain assurance on the overall reasonableness and consistent application of valuation methodologies and inputs and compliance with accounting standards through the execution of various processes and controls designed to provide assurance that our assets and liabilities are appropriately valued. For fair values received from third parties, our processes are designed to provide assurance that the valuation methodologies and inputs are appropriate and consistently applied, the assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. At the end of each quarter, we determine whether we need to transfer the fair values of any securities between levels of the fair value hierarchy and, if so, we report the transfer as of the end of the quarter. During 2016 , we transferred no investments between levels. We used unobservable inputs to derive our estimated fair value for Level 3 investments and the unobservable inputs are significant to the overall fair value measurement. For our investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, we obtain the fair values from our investment custodians which use a third-party valuation service. The valuation service calculates prices for our investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, then adds final spreads to the U.S. Treasury curve at 3 p.m. (ET) as of quarter end. Since the inputs the valuation service uses in their calculations are not quoted prices in active markets, but are observable inputs, they represent Level 2 inputs. Other investments We acquired investments in limited partnerships, recorded in the other investments line of our Consolidated Balance Sheets, that are currently being accounted for at fair value utilizing a discounted cash flow methodology. The estimated fair value of our investments in the limited partnership interests was $5,433,000 . We have fully funded our investments in DCR VI, DCR VII, and RCH VI; however, we are still obligated to fund an additional $425,000 and $760,000 for our investments in Kayne Anderson Senior Credit Fund II, L.P. (Kayne) and Blackstone Alternative Solutions 2015 Trust (Blackstone), respectively. The information presented in the table below is as of December 31, 2016 . Initial Investment Book Value Unrealized Gain Unrealized Loss Fair Value DCR Mortgage Partners VI, L.P. $ 382 $ 444 $ 267 $ — $ 711 RCH Mortgage Fund VI Investors, LP 1,000 1,014 — 27 987 Total Level 3 limited partnership investments 1,382 1,458 267 27 1,698 Kayne Senior Credit Fund II, L.P. 1,575 1,450 — — 1,450 DCR Mortgage Partners VII, L.P. 2,000 2,045 — — 2,045 Blackstone Alternative Solutions 2015 Trust 240 240 — — 240 Total Level 2 limited partnership investments 3,815 3,735 — — 3,735 Total limited partnership investments $ 5,197 $ 5,193 $ 267 $ 27 $ 5,433 Other short-term investments 300 300 — — 300 Total other investments $ 5,497 $ 5,493 $ 267 $ 27 $ 5,733 On December 6, 2016, we entered into a participation agreement with United Capital Funding (UC Funding), that was recorded in other assets, at cost. We invested $1,000,000 in cash with UC Funding which they are utilizing to factor receivables from another company. On October 20, 2015, we acquired our investment in DCR Mortgage Partners VII, L.P. (DCR VII), a limited partnership, that is currently being accounted for at cost. Our total investment in the partnership is $2,000,000 and we are not required to fund any additional amounts in excess of our initial investment. When the funding for the partnership closes, DCR VII will acquire and manage performing, sub-performing, and non-performing loans secured by income-producing commercial real estate. As the limited partnership was still in the formation phase at December 31, 2016, the cost basis of our investment approximated its fair value. In October 2015, we started funding our investment in Blackstone. Blackstone is a private placement offered by The Blackstone Group, L.P. (NYSE: BX), a publicly traded investment firm with approximately $336 billion in assets under management. The Blackstone Group is one of the largest independent alternative asset managers in the world providing a broad range of opportunities in four key alternative investment categories: private equity, real estate, credit and hedge funds. Blackstone is not a fund of funds and will generally participate directly in deals originated by The Blackstone Group during its three-year investment period. All deals will have been evaluated and approved by a Blackstone Group investment committee providing diversified exposure to private market investments across many of The Blackstone Group’s alternative investment strategies. Blackstone invests substantially all of its assets in investments in which other Blackstone Group investment vehicles, managed accounts or other Blackstone Group affiliates participate and also generally parallels the Blackstone Group annual employee investment program. Our investment in Blackstone is currently being accounted for at cost. Our total investment in the partnership is $240,000 . We are obligated to fund an additional amount of $760,000 to reach our initial $1,000,000 commitment. As the limited partnership is still in the formation phase, the cost basis of our investment approximated its fair value at December 31, 2016. In December 2014, we began funding our investment in the Kayne Anderson Senior Credit Fund II (KSCF). KSCF is a private placement offered by Kayne Anderson Capital Advisors, L.P., an S.E.C. registered investment advisor with approximately $25 billion in assets under management. KSCF will deploy its assets across a variety of loan types with three to five year maturities in senior secured positions to support acquisitions, growth, add-ons, recapitalizations, restructuring and bridge financing. KSCF’s investment strategies include upstream oil and gas companies, energy infrastructure, specialized real estate, middle market credit, growth private equity and distressed municipal opportunities. On September 27, 2013, we acquired our investment in RCH Mortgage Fund VI Investors, LP (RCH). RCH is a limited partnership that acquires and manages performing, sub-performing, and non-performing loans secured by income-producing commercial real estate. On September 25, 2012 , we acquired our investment in DCR Mortgage Partners VI, L.P. (DCR VI). DCR VI is a limited partnership that acquires and manages performing, sub-performing, and non-performing loans secured by income-producing commercial real estate. The following table summarizes the quantitative impact that the significant unobservable inputs used to estimate the fair value of our Level 3 investments has on the estimated fair value of our investments shown in the tables above. Due to Kayne, DCR VII, and Blackstone being carried at cost, we have excluded them from the table below. The DCR VI and RCH investments were valued using a duration of 60 months for both periods presented below. Fair Value Valuation Rate Impact Technique Unobservable Input Adjustment December 31, 2016 DCR VI $ (56 ) Discounted cash flow Discount rate based on D&B paydex scale 2.35% RCH $ (341 ) Discounted cash flow Discount rate based on D&B paydex scale 7.35% December 31, 2015 DCR VI $ (88 ) Discounted cash flow Discount rate based on D&B paydex scale 2.35% RCH $ (341 ) Discounted cash flow Discount rate based on D&B paydex scale 7.35% |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions [Abstract] | |
Business Combination Disclosure | ACQUISITION We account for business acquisitions in accordance with the acquisition method of accounting, which requires, among other things, that most assets acquired, liabilities assumed, and earn-out consideration be recognized at their fair values as of the acquisition date. Measurement period adjustments to provisional purchase price allocations are recognized in the period in which they are determined as it the accounting had been competed on the acquisition date. On April 29, 2016, we completed the acquisition of IIC. The purchase price for IIC consisted of $48,450,000 in cash, $8,550,000 in note payable and an accrued liability for $3,471,000 paid during July 2016. The acquisition of IIC supports the Company's growth strategy and further strengthens the Company's overall position in the property and casualty insurance market in the state of New York. The purchase price consisted of the following amounts: Cash $ 48,450 Notes payable 8,550 Accrued liability 3,471 Total purchase price $ 60,471 The operations of IIC are included in our Consolidated Statements of Comprehensive Income effective April 29, 2016. We have one year from the acquisition date to finalize the allocation of the purchase price of IIC. The fair value of the net liabilities assumed, the intangible assets and the related goodwill are preliminary and may be subject to change upon completing the final valuation assessment. The preliminary purchase price allocation is as follows: Cash and cash equivalents $ 15,554 Investments 66,527 Premium and agents' receivable 3,186 Reinsurance receivable 1,042 Intangible assets 5,877 Insurance contract asset 8,334 Goodwill 10,841 Other assets 3,980 Unpaid losses and loss adjustment expenses (24,967 ) Unearned premiums (26,243 ) Advanced premiums (1,472 ) Deferred taxes (109 ) Other liabilities (2,079 ) Total purchase price $ 60,471 The unaudited pro forma financial information has been prepared as if the IIC acquisition had taken place on January 1, 2015. The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transaction taken place on January 1, 2015, and the unaudited pro forma information does not purport to be indicative of future financial operating results. For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 As Pro Forma As Pro Forma Reported Adjustments (1) Pro Forma Reported Adjustments (2) Pro Forma Revenues $ 487,117 $ 18,963 $ 506,080 $ 357,569 $ 56,362 $ 413,931 Net income $ 5,698 $ 8,187 $ 13,885 $ 27,358 $ 5,692 $ 33,050 Diluted earnings per share $ 0.26 $ 0.38 $ 0.64 $ 1.28 $ 0.26 $ 1.54 (1) Adjustments are for the period from January 1, 2016 through April 29, 2016. (2) Adjustments are for the period from January 1, 2015 through December 31, 2015. On February 3, 2015, we completed the acquisition of FSH and its two wholly owned subsidiaries. The acquisition of FSIC supports the Company's growth strategy and further strengthens the Company's overall position in the property and casualty insurance market in the states of Louisiana and Hawaii. The total purchase price paid to acquire the companies was $13,507,000 that was paid in shares of our common stock in two installments. The first payment occurred at the closing of the transaction when we issued 503,857 shares of our common stock that had a fair value of $12,994,000 on the date of closing the transaction. One year after the closing of the transaction, we issued an additional 32,943 shares of our common stock as payment of $513,000 of contingent consideration that we owed to the former shareholders of FSH pursuant to the terms of the purchase agreement. The unaudited pro forma financial information has been prepared as if the FSH acquisition had taken place on January 1, 2015. The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transaction taken place on January 1, 2015, and the unaudited pro forma information does not purport to be indicative of future financial operating results. For the Year Ended December 31, 2015 Pro Forma As Reported Adjustments Pro Forma Revenues $ 357,569 $ 1,127 $ 358,696 Net income $ 27,358 $ 77 $ 27,435 Diluted earnings per share $ 1.28 $ — $ 1.28 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share (EPS) is based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from vesting of restricted stock awards. The following table shows the computation of basic and diluted EPS for the years ended December 31, 2016 , 2015 and 2014 : Year Ended December 31, 2016 2015 2014 Numerator: Net income attributable to common stockholders $ 5,698 $ 27,358 $ 41,013 Denominator: Weighted-average shares outstanding 21,417,486 21,218,233 19,933,652 Effect of dilutive securities 196,957 234,307 112,255 Weighted-average diluted shares 21,614,443 21,452,540 20,045,907 Basic earnings per share $ 0.27 $ 1.29 $ 2.06 Diluted earnings per share $ 0.26 $ 1.28 $ 2.05 See Note 19 for additional information on the stock grants related to dilutive securities. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS We anticipate that our deferred policy acquisition costs will be fully recoverable in the near term. The table below depicts the activity with regard to deferred policy acquisition costs: 2016 2015 Balance at January 1 $ 46,732 $ 31,925 Policy acquisition costs deferred 134,588 101,221 Amortization (115,847 ) (86,414 ) Balance at December 31 $ 65,473 $ 46,732 |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: Year Ended December 31, 2016 2015 Land $ 2,114 $ 2,114 Building and building improvements 5,502 4,298 Computer hardware and software 14,699 13,574 Office furniture and equipment 2,652 1,831 Leasehold improvements — 141 Total, at cost 24,967 21,958 Less: accumulated depreciation and amortization (7,107 ) (4,823 ) Property and equipment, net $ 17,860 $ 17,135 On September 5, 2014, we entered into a purchase and sale agreement to acquire approximately 40,000 square feet of commercial office space and associated property in St. Petersburg, Florida. At acquisition, the real estate consisted of approximately 2.3 acres of land and an office building, plus an additional 1.5 acres of leased parking space. We are depreciating the building over its expected useful life of 39 years. On September 9, 2015, we entered into a purchase and sale agreement to acquire approximately 7,800 square feet of commercial office space in St. Petersburg, Florida. We are depreciating the building over its expected useful life of 39 years. Depreciation and amortization expense under property and equipment was $2,424,000 , $1,803,000 and $731,000 , respectively, for the years ended December 31, 2016 , 2015 and 2014 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 are as follows: December 31, 2016 2015 Balance at beginning of period $ 3,413 $ — Acquisitions 10,841 3,413 Impairment — — Balance at end of period $ 14,254 $ 3,413 Using a qualitative assessment, we completed our most recent goodwill impairment testing during the fourth quarter of 2016 and determined that there was no impairment in the value of the asset as of December 31, 2016 . No impairment loss in the value of goodwill was recognized during the years ended December 31, 2016 and 2015 . Additionally, there was no accumulated impairment related to goodwill at December 31, 2016 or 2015 . Intangible Assets The following is a summary of intangible assets excluding goodwill and value of business acquired (VOBA) at December 31, 2016 or 2015 : Weighted-average remaining amortization period (in years) Gross carrying amount Accumulated amortization Net carrying amount 2016 Amortizing intangible assets Agency agreements acquired 3.8 $ 10,284 $ (2,784 ) $ 7,500 Trade names acquired 2.1 720 (264 ) 456 Non-amortizing intangible assets Licenses acquired 1,185 — 1,185 Total $ 12,189 $ (3,048 ) $ 9,141 2015 Amortizing intangible assets Agency agreements acquired 4.1 $ 5,652 $ (1,036 ) $ 4,616 Trade names acquired 2.1 250 (76 ) 174 Non-amortizing intangible assets Licenses acquired 410 — 410 Total $ 6,312 $ (1,112 ) $ 5,200 No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the years ended December 31, 2016 and 2015 . Amortization expense was $10,910,000 , $3,090,000 and $460,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. The large increase in amortization expense in 2016 was due to the amortization of intangible assets and VOBA acquired as part of the IIC acquisition. Estimated amortization expense to be recognized by the Company over the next five years is as follows: Year ending December 31, Estimated Amortization Expense 2017 $ 3,509 2018 2,271 2019 2,159 2020 1,071 2021 358 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE Our reinsurance program is designed, utilizing our risk management methodology, to address our exposure to catastrophes. According to the Insurance Service Office (ISO), a catastrophe loss is defined as a single unpredictable incident or series of closely related incidents that result in $25,000,000 or more in U.S. industry-wide direct insured losses to property and that affect a significant number of policyholders and insurers (ISO catastrophe). In addition to ISO catastrophes, we also include as catastrophes those events (non-ISO catastrophes), which may include losses, that we believe are, or will be, material to our operations, either in amount or in number of claims made. Our program provides reinsurance protection for catastrophes including hurricanes, tropical storms, and tornadoes. These reinsurance agreements are part of our catastrophe management strategy, which is intended to provide our shareholders an acceptable return on the risks assumed in our property business, and to reduce variability of earnings, while providing protection to our policyholders. During the second quarter of 2016 , we placed our reinsurance program for the 2016 treaty year beginning June 1, 2016 and ending on May 31, 2017. The agreements incorporate the mandatory coverage required by and placed with the Florida Hurricane Catastrophe Fund (FHCF). The FHCF is a Florida state-sponsored trust fund that provides reimbursement in Florida against storms that the National Hurricane Center designates as hurricanes. The private agreements provide coverage against severe weather events such as hurricanes, tropical storms and tornadoes. For the treaty year beginning June 1, 2016 and ending on May 31, 2017, UPC Insurance has obtained reinsurance protection of $1,515,197,000 excess $10,000,000 , providing sufficient protection for a 1-in-100 year hurricane event and a second 1-in-50 year hurricane event in the same year as calculated using a blended model result predominately based on our licensed modeling software, AIR model version 17, using long-term event rates excluding demand surge. For a single first event hurricane or tropical storm, UPC Insurance will pay, or “retain”, 100% of losses up to $30,000,000 including the $20,000,000 layer funded by UPC Re. The catastrophe excess of loss reinsurance program provides our insurance subsidiaries 100% coverage for all losses in excess of $10,000,000 up to $1,415,197,000 for a first event and $1,515,197,000 for any number of subsequent events until all limit is exhausted. For the 2016 contract year, UPC Insurance has elected a 45% participation rate with the FHCF and purchased replacement coverage from private insurers for the remaining 45% . Of the $1,515,197,000 in excess of $10,000,000 , we estimate the mandatory FHCF layer will provide approximately $354,015,000 ( 45% of $786,700,000 ) of aggregate coverage for losses in excess of $246,002,000 . The private market FHCF replacement coverage provides another $346,182,000 of aggregate protection (45% of $769,293,000 ) in excess of $244,206,000 layer for Florida only on a fully collateralized basis that also inures to the benefit of all other private reinsurance coverage. In addition to the FHCF and FHCF replacement coverage, we purchase $685,000,000 of aggregate catastrophe reinsurance coverage in excess of $10,000,000 from 55 unaffiliated private reinsurers and catastrophe bond investors who either carry A.M. Best financial strength ratings of A- or higher, or have fully collateralized their maximum potential obligations in dedicated trusts for the benefit of UPC Insurance. Our 2016 agreements with these private reinsurers structure coverage into 5 layers, with a cascading feature such that all layers attach at $10,000,000 . If the aggregate limit of the preceding layer is exhausted, the next layer drops down (cascades) in its place. Additionally, any unused layer protection drops down for subsequent events until exhausted ensuring there are no potential gaps in coverage up to the $1,415,197,000 first event program exhaustion point. The Company also secured up to $100,000,000 of limit that can be utilized at our option for the second and subsequent events at an additional cost, but the Company is under no obligation to activate this layer. The total cost of the 2016-17 catastrophe reinsurance program is estimated to be $191,500,000 . Effective December 1, 2016, UPC Insurance, through our wholly owned insurance subsidiary UPC entered into a quota share reinsurance agreement (the "quota share agreement") with private reinsurers. Also, effective January 1, 2017, we renewed our aggregate excess of loss reinsurance agreement (the "aggregate excess of loss agreement," and, together with the quota share agreement, the "agreements") with private reinsurers. These agreements provide coverage for in-force, new and renewal business. The quota share agreement provides coverage only for UPC, while the aggregate excess of loss agreement provides coverage for UPC, IIC, and FSIC. These new reinsurance programs are designed to work in conjunction with our catastrophe excess of loss reinsurance program to provide us broad risk transfer protection and to lessen financial volatility. The quota share agreement includes a cession rate of 20% (15% on single year and 5% over a two-year period) for all subject business. The quota share agreement provides coverage for all catastrophe perils (e.g. hurricanes, tropical storms, tropical depressions and earthquakes), other-catastrophe perils (e.g. weather-related perils other than hurricanes, tropical storms, tropical depressions and earthquakes), and attritional losses. For other-catastrophe perils, the quota share agreement provides coverage alongside the aggregate excess of loss program described herein, after our retention has been satisfied. For catastrophe perils, the quota share agreement provides ground-up protection that effectively reduces our retention for catastrophe losses. Quota share agreement reinsurers' participation in paying attritional losses is subject to an attritional loss ratio cap. The aggregate excess of loss agreement provides coverage only for other-catastrophe perils. Under this agreement, for other-catastrophe losses in excess of $1,000,000 but less than $15,000,000, UPC will retain, in the aggregate, 100% of those losses up to $30,000,000. The reinsurers will then be liable for all losses excess of $30,000,000 in the aggregate not to exceed an annual aggregate limit of $30,000,000. This program was placed at 85% rather than 100% because of the quota share agreement reinsurers' participation in paying other-catastrophe losses after the $30,000,000 retention. We amortize our prepaid reinsurance premiums over the annual agreement period, and we record that amortization in ceded premiums earned on our Consolidated Statements of Comprehensive Income. The table below summarizes the amounts of our ceded premiums written under the various types of agreements, as well as the amortization of prepaid reinsurance premiums: Year Ended 2016 2015 2014 Excess-of-loss $ (235,236 ) $ (163,106 ) $ (125,638 ) Equipment & identity theft (8,313 ) (6,169 ) (4,370 ) Novation of Auto Policies (1) (2,396 ) — — Flood (16,395 ) (14,533 ) (14,396 ) Ceded premiums written $ (262,340 ) $ (183,808 ) $ (144,404 ) Increase in ceded unearned premiums 52,442 15,551 8,559 Ceded premiums earned $ (209,898 ) $ (168,257 ) $ (135,845 ) (1) Reflects ceding of auto policy premiums to Maidstone Insurance Company as part of the settlement of the novation agreement entered into at the closing of the IIC transaction. Current year catastrophe losses by the event magnitude are shown in the following table. Number of Events Incurred Loss and LAE (1) Combined Ratio Impact December 31, 2016 Current period catastrophe losses incurred Greater than $5 million (2) 1 $ 29,987 6.5 % $1 million to $5 million (3) 12 21,506 4.7 % Less than $1 million (4) 6 4,349 1.0 % Total 19 $ 55,842 12.2 % December 31, 2015 Current period catastrophe losses incurred $5 million to $10 million (5) 2 $ 11,523 3.4 % $1 million to $5 million (6) 7 14,699 4.4 % Less than $1 million (7) 5 2,343 0.7 % Total 14 $ 28,565 8.5 % December 31, 2014 Current period catastrophe losses incurred Less than $1 million (8) 3 $ 829 0.3 % Total 3 $ 829 0.3 % (1) Incurred loss and LAE is equal to losses and LAE paid plus the change in case and incurred but not reported reserves. Shown net of losses ceded to reinsurers. (2) Reflects losses from Hurricane Matthew in 2016. (3) Reflects losses from Hurricane Hermine, Winter Storm Olympia, Tropical Storm Colin, tornadoes, wind storms, hail storms, and flooding in 2016. (4) Reflects losses from Tropical Storm Julia, tornadoes, wind storms, hail storms, and flooding in 2016. (5) Reflects losses from winter storms in 2015. (6) Reflects losses from winter storms, hail storms and wind storms in 2015. (7) Reflects losses from winter storms, hail storms, Texas flooding, Hurricane Anna and Tropical Storm Bill in 2015. (8) Reflects losses from the Richland hailstorm, Hurricane Arthur and the Revere Tornado in 2014. Reinsurance recoverable at the balance sheet dates consists of the following: December 31, 2016 2015 Reinsurance recoverable on unpaid losses and LAE $ 18,724 $ 2,114 Reinsurance recoverable on paid losses and LAE 5,304 847 Reinsurance recoverable $ 24,028 $ 2,961 During the years ended December 31, 2016 and 2015 , we realized recoveries under our reinsurance agreements totaling $18,412,000 and $10,282,000 , respectively. These recoveries were primarily related to losses from Hurricane Matthew, Hurricane Hermine, Winter Storm Olympia, Tropical Storm Colin, tornadoes, thunderstorms, hail storms, and flooding in 2016. We write flood insurance under an agreement with the National Flood Insurance Program. We cede 100% of the premiums written and the related risk of loss to the federal government. We earn commissions for the issuance of flood policies based upon a fixed percentage of net written premiums and the processing of flood claims based upon a fixed percentage of incurred losses, and we can earn additional commissions by meeting certain growth targets for the number of in-force policies. We recognized commission revenue from our flood program of $1,056,000 , $959,000 , and $1,078,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The following table depicts written premiums, earned premiums and losses, showing the effects that our reinsurance transactions have on these components of our Consolidated Statements of Comprehensive Income: Year ended December 31, 2016 2015 2014 Premium written: Direct $ 708,252 $ 548,916 $ 417,769 Assumed (96 ) 20,820 18,984 Ceded (262,340 ) (183,808 ) (144,404 ) Net premium written $ 445,816 $ 385,928 $ 292,349 Change in unearned premiums: Direct $ (57,759 ) $ (65,300 ) $ (38,995 ) Assumed 16,432 (221 ) 2,937 Ceded 52,442 15,551 8,559 Net decrease (increase) $ 11,115 $ (49,970 ) $ (27,499 ) Premiums earned: Direct $ 650,493 $ 483,616 $ 378,774 Assumed 16,336 20,599 21,921 Ceded (209,898 ) (168,257 ) (135,845 ) Net premiums earned $ 456,931 $ 335,958 $ 264,850 Losses and LAE incurred: Direct $ 335,542 $ 188,270 $ 111,820 Assumed 3,747 7,861 8,672 Ceded (40,936 ) (13,023 ) (2,415 ) Net losses and LAE incurred $ 298,353 $ 183,108 $ 118,077 Ceded losses incurred increased by $27,913,000 during the year ended December 31, 2016 , compared to the year ended December 31, 2015 , primarily because we paid more ceded losses in 2016 than in 2015 . A portion of the losses we incurred in 2016 and 2015 exceeded our retained loss thresholds, therefore we received reinsurance recoveries for some of the losses that we incurred on these storms. The losses we incurred in 2014 related to storms that occurred in the same year but did not exceed our retained loss thresholds. The following table highlights the effects that our reinsurance transactions have on unpaid losses and loss adjustment expenses and unearned premiums in our Consolidated Balance Sheets: December 31, 2016 2015 2014 Unpaid losses and LAE: Direct $ 138,345 $ 72,373 $ 49,734 Assumed 2,510 4,419 4,702 Gross unpaid losses and LAE 140,855 76,792 54,436 Ceded (18,724 ) (2,114 ) (1,252 ) Net unpaid losses and LAE $ 122,131 $ 74,678 $ 53,184 Unearned premiums: Direct $ 371,149 $ 287,148 $ 212,201 Assumed 1,074 17,506 17,285 Gross unearned premiums 372,223 304,654 229,486 Ceded (132,564 ) (79,400 ) (63,827 ) Net unearned premiums $ 239,659 $ 225,254 $ 165,659 |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expense Liability for Unpaid Losses and Loss Adjustment Expense (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSE We generally use the term loss(es) to collectively refer to both loss and loss adjusting expenses. We establish reserves for both reported and unreported unpaid losses that have occurred at or before the balance sheet date for amounts we estimate we will be required to pay in the future. Our policy is to establish these loss reserves after considering all information known to us at each reporting period. At any given point in time, our loss reserve represents our best estimate of the ultimate settlement and administration cost of our insured claims incurred and unpaid. Since the process of estimating loss reserves requires significant judgment due to a number of variables, such as fluctuations in inflation, judicial decisions, legislative changes and changes in claims handling procedures, our ultimate liability will likely differ from these estimates. We revise our reserve for unpaid losses as additional information becomes available, and reflect adjustments, if any, in our earnings in the periods in which we determine the adjustments are necessary. General Discussion of the Loss Reserving Process Reserves for unpaid losses fall into two categories: case reserves and reserves for claims incurred but not reported. • Case reserves - When a claim is exported, we establish an automatic minimum case reserve for that claim type that represents our initial estimate of the losses that will ultimately be paid on the reported claim. Our initial estimate for each claim is based upon averages of loss payments for our prior closed claims made for that claim type. Then, our claims personnel perform an evaluation of the type of claim involved, the circumstances surrounding each claim and the policy provisions relating to the loss and adjust the reserve as necessary. As claims mature, we increase or decrease the reserve estimates as deemed necessary by our claims department based upon additional information we receive regarding the loss, the results of on-site reviews and any other information we gather while reviewing the claims. • Reserves for losses incurred but not reported (IBNR reserves) - Our IBNR reserves include true IBNR reserves plus “bulk” reserves. Bulk reserves represent additional amounts that cannot be allocated to particular claims, but which are necessary to estimate ultimate losses on reported and unreported claims. We estimate our IBNR reserves by projecting the ultimate losses using the methods discussed below and then deducting actual loss payments and case reserves from the projected ultimate losses. We review and adjust our IBNR reserves on a quarterly basis based on information available to us at the balance sheet date. When we establish our reserves, we analyze various factors such as our historical loss experience and that of the insurance industry, claims frequency and severity, our business mix, our claims processing procedures, legislative enactments, judicial decisions and legal developments in imposition of damages, and general economic conditions, including inflation. A change in any of these factors from the assumptions implicit in our estimates will cause our ultimate loss experience to be better or worse than indicated by our reserves, and the difference could be material. Due to the interaction of the aforementioned factors, there is no precise method for evaluating the impact of any one specific factor in isolation, and an element of judgment is ultimately required. Due to the uncertain nature of any projection of the future, the ultimate amount we will pay for losses will be different from the reserves we record. However, in our judgment, we employ techniques and assumptions that are appropriate, and the resulting reserve estimates are reasonable, given the information available at the balance sheet date. We determine our ultimate losses by using multiple actuarial methods to determine an actuarial estimate within a relevant range of indications that we calculate using generally accepted actuarial techniques. Our selection of the actuarial estimate is influenced by the analysis of our historical loss and claim experience. For each accident year, we estimate the ultimate incurred losses for both reported and unreported claims. In establishing this estimate, we review the results of various actuarial methods discussed below. Estimation of the Reserves for Unpaid Losses and Allocated Loss Adjustment Expenses We calculate our estimate of ultimate losses by using the following actuarial methods. We separately calculate the methods using paid loss data and incurred loss data. In the versions of these methods based on incurred loss data, the incurred losses are defined as paid losses plus case reserves. For this discussion of our loss reserving process, the word “segment” refers to a subgrouping of our claims data, such as by geographic area and/or by particular line of business; it does not refer to operating segments. • Incurred Development Method - The incurred development method is based upon the assumption that the relative change in a given year’s incurred loss estimates from one evaluation point to the next is similar to the relative change in prior years’ reported loss estimates at similar evaluation points. In utilizing this method, actual annual historical incurred loss data is evaluated. Successive years can be arranged to form a triangle of data. Loss development factors (LDFs) are calculated to measure the change in cumulative incurred costs from one evaluation point to the next. These historical LDFs and comparable industry benchmark factors form the basis for selecting the LDFs used in projecting the current valuation of losses to an ultimate basis. This method’s implicit assumption is that the relative adequacy of case reserves has been consistent over time, and that there have been no material changes in the rate at which claims have been reported. The paid development method is similar to the incurred development method. While the paid development methods have the disadvantage of not recognizing the information by current case reserves, it has the advantage of avoiding potential distortions in the data due to changes in case reserving methodology. The paid development method’s implicit assumption is that the rate of payment of claims has been relatively consistent over time. • Expected Loss Method - In the expected loss method, ultimate loss projections are based upon some prior measure of the anticipated losses, usually relative to some measure of exposure (e.g., earned house years). An expected loss cost is applied to the measure of exposure to determine estimated ultimate losses for each year. Actual losses are not considered in this calculation. This method has the advantage of stability over time, because the ultimate loss estimates do not change unless the exposures or loss costs change. However, this advantage of stability is offset by a lack of responsiveness, since this method does not consider actual loss experience as it emerges. This method is based on the assumption that the loss cost per unit of exposure is a good indication of ultimate losses. It can be entirely dependent on pricing assumptions (e.g., historical experience adjusted for loss trend). • Bornhuetter-Ferguson Method - The incurred Bornhuetter-Ferguson (B-F) method is essentially a blend of two other methods. The first method is the loss development method whereby actual incurred losses are multiplied by an expected LDF. For slow reporting coverages, the loss development method can lead to erratic and unreliable projections because a relatively small swing in early reporting can result in a large swing in ultimate projections. The second method is the expected loss method whereby the IBNR estimate equals the difference between a predetermined estimate of expected losses and actual incurred losses. The incurred B-F method combines these two methods by setting ultimate losses equal to actual incurred losses plus expected unreported losses. As an experience year matures and expected unreported losses become smaller, the initial expected loss assumption becomes gradually less important. Two parameters are needed to apply the B-F method: the initial expected loss cost and the expected reporting pattern (LDFs). This method is often used for long-tail lines and in situations where the incurred loss experience is relatively immature or lacks sufficient credibility for the application of other methods. The paid B-F method is analogous to the incurred B-F method using paid losses and development patterns in place of incurred losses and patterns. • Paid-to-Paid Development Method - In addition to the aforementioned methods, we also rely upon the paid-to-paid development method to project ultimate unallocated loss adjustment expense (ULAE). Ratios of paid ULAE to paid loss and allocated loss adjustment expense (ALAE) are compiled by calendar year and a paid-to-paid ratio selection is made. The selected ratio is applied to the estimated IBNR amounts and one half of this ratio is applied to case reserves. This method is derived from rule of thumb that half of ULAE is incurred when a claim is opened and the other half is incurred over the remaining life of the claim. Reliance and Selection of Methods The various methods we use have strengths and weaknesses that depend upon the circumstances of the segment and the age of the claims experience we analyze. The nature of our book of business allows us to place substantial, but not exclusive, reliance on the loss development methods, the selected LDFs, represent the most critical aspect of our loss reserving process. We use the same set of LDFs in the methods during our loss reserving process that we also use to calculate the premium necessary to pay expected ultimate losses. Reasonably-Likely Changes in Variables As previously noted, we evaluate several factors when exercising our judgment in the selection of the loss development factors that ultimately drive the determination of our loss reserves. The process of establishing our reserves is complex and necessarily imprecise, as it involves using judgment that is affected by many variables. We believe a reasonably-likely change in almost any of these aforementioned factors could have an impact on our reported results, financial condition and liquidity. However, we do not believe any reasonably-likely changes in the frequency or severity of claims would have a material impact on us. On an annual basis, our consulting actuary issues a statement of actuarial opinion that documents the actuary’s evaluation of the adequacy of our unpaid loss obligations under the terms of our policies. We review the analysis underlying the actuary’s opinion and compare the projected ultimate losses per the actuary’s analysis to our own projection of ultimate losses to ensure that our reserve for unpaid losses recorded at each annual balance sheet date is based upon our analysis of all internal and external factors related to known and unknown claims against us and to ensure our reserve is within guidelines promulgated by the National Association of Insurance Commissioners (NAIC). We maintain an in-house claims staff that monitors and directs all aspects of our claims process. We assign the fieldwork to our wholly-owned claims subsidiary, or to third-party claims adjusting companies, none of whom have the authority to settle or pay any claims on our behalf. The third-party claims adjusting companies conduct inspection of the damaged property and prepare initial estimates. We review the inspection reports and initial estimates to determine the amounts to be paid to the policyholder in accordance with the terms and conditions of the policy in effect at the time that the policyholder incurs the loss. We maintain strategic relationships with multiple claims adjusting companies that we can engage should we need additional non-catastrophe claims servicing capacity. We believe the combination of our internal resources and relationships with external claims servicing companies provide an adequate level of claims servicing in the event catastrophes affect our policyholders. The following is information about incurred claims development and paid claims development as of December 31, 2016 , net of reinsurance, as well as cumulative claim frequency and the total of IBNR liability plus expected development on reported claims included within the net incurred claims amounts. The incurred claims development and paid claims development data reflect the acquisitions of FSIC and IIC in February 2015 and April 2016, respectively, on a retrospective basis (includes FSIC and IIC data for years prior to our acquisition of the insurance affiliates). The information about incurred claims development and paid claims development for the years ended December 31, 2007, to 2015 is presented as supplementary information. Homeowners' Insurance $ In thousands (except number of reported claims) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2016 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 28,232 $ 25,780 $ 24,828 $ 24,852 $ 24,641 $ 24,563 $ 24,665 $ 24,725 $ 24,596 $ 24,601 $ — 2,332,000 2008 — 30,073 28,126 27,174 27,161 27,358 27,597 27,564 27,468 27,453 — 3,170,000 2009 — — 46,952 46,089 45,515 45,583 45,316 45,116 44,959 44,996 — 4,044,000 2010 — — — 51,144 51,292 51,862 52,239 51,685 51,841 51,674 3 4,839,000 2011 — — — — 53,878 56,840 57,670 58,047 59,517 60,215 62 5,913,000 2012 — — — — — 65,112 69,438 68,923 68,388 69,000 167 10,649,000 2013 — — — — — — 98,461 94,755 93,041 92,702 677 7,809,000 2014 — — — — — — — 130,090 130,488 131,402 2,025 10,857,000 2015 — — — — — — — — 181,609 195,902 6,784 17,918,000 2016 — — — — — — — — — 249,276 34,483 28,430,000 Total $ 947,221 Accident Year Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 16,713 $ 22,017 $ 23,131 $ 24,155 $ 24,277 $ 24,382 $ 24,439 $ 24,483 $ 24,596 $ 24,601 2008 — 17,915 23,806 25,264 26,360 27,044 27,358 27,390 27,445 27,451 2009 — — 31,525 41,134 43,149 44,114 44,413 44,737 44,898 44,966 2010 — — — 32,993 43,932 46,711 49,256 50,215 50,704 51,163 2011 — — — — 36,419 48,558 52,412 55,532 58,069 59,461 2012 — — — — — 42,699 60,640 64,675 66,739 68,337 2013 — — — — — — 63,732 85,346 89,068 90,627 2014 — — — — — — — 88,375 119,612 125,951 2015 — — — — — — — — 123,888 174,993 2016 — — — — — — — — — 170,527 Total $ 838,077 All outstanding liabilities before 2007, net of reinsurance 176 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 109,320 The following is supplementary information about average historical claims duration as of December 31, 2016 . Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 65.4 % 22.4 % 4.7 % 3.6 % 2.0 % 1.1 % 0.4 % 0.2 % 0.2 % — % Remaining Product Lines $ In thousands (except number of reported claims) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2016 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 11,491 $ 9,605 $ 8,313 $ 7,825 $ 7,553 $ 7,554 $ 7,504 $ 7,464 $ 7,464 $ 7,507 $ — 1,191,000 2008 — 13,504 12,871 12,324 11,833 11,877 12,661 12,761 12,885 12,884 — 1,170,000 2009 — — 10,610 10,135 10,093 10,026 9,902 9,844 9,837 10,009 — 1,097,000 2010 — — — 9,911 11,042 10,733 11,126 11,020 11,105 11,072 — 1,160,000 2011 — — — — 11,126 11,022 10,896 10,630 10,575 10,740 — 1,217,000 2012 — — — — — 10,760 9,651 9,350 9,412 9,147 11 1,061,000 2013 — — — — — — 6,657 5,817 5,401 5,736 5 553,000 2014 — — — — — — — 9,073 7,927 8,016 76 682,000 2015 — — — — — — — — 19,669 19,723 581 1,384,000 2016 — — — — — — — — — 17,053 1,952 46,000 Total $ 111,887 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 3,974 $ 5,885 $ 6,627 $ 7,001 $ 7,127 $ 7,303 $ 7,442 $ 7,449 $ 7,452 $ 7,507 2008 — 6,169 9,309 10,647 11,104 11,404 12,360 12,403 12,557 12,884 2009 — — 4,807 7,507 8,470 9,062 9,471 9,570 9,688 10,009 2010 — — — 4,346 8,128 9,036 10,182 10,242 10,327 11,073 2011 — — — — 4,587 8,013 9,444 9,837 10,128 10,740 2012 — — — — — 5,112 7,631 8,242 8,626 9,124 2013 — — — — — — 2,925 4,496 4,811 5,566 2014 — — — — — — — 4,008 6,237 7,868 2015 — — — — — — — — 11,104 18,129 2016 — — — — — — — — — 12,432 Total $ 105,332 All outstanding liabilities before 2007, net of reinsurance 42 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 6,597 The following is supplementary information about average historical claims duration as of December 31, 2016 . Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 48.3 % 25.7 % 7.2 % 6.5 % 2.8 % 3.5 % 2.5 % 1.5 % 1.3 % 0.7 % The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. December 31, 2016 Net outstanding liabilities Homeowners' Only $ 109,320 All other lines of business 6,597 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 115,917 Reinsurance recoverable on unpaid claims Homeowners' Only $ 14,223 All other lines of business 4,501 Total reinsurance recoverable on unpaid claims $ 18,724 Unallocated claims adjustment expenses 6,214 Total gross liability for unpaid claims and claims adjustment expense $ 140,855 The table below shows the analysis of our reserve for unpaid losses for each of our last three fiscal years on a GAAP basis: 2016 2015 2014 Balance at January 1 $ 76,792 $ 54,436 $ 47,451 Acquisition of IIC reserves 22,576 — — Acquisition of FSIC reserves — 2,390 — Less: reinsurance recoverable on unpaid losses 2,114 1,252 1,957 Net balance at January 1 $ 97,254 $ 55,574 $ 45,494 Incurred related to: Current year 281,365 185,476 122,114 Prior years 16,988 (2,368 ) (4,037 ) Total incurred $ 298,353 $ 183,108 $ 118,077 Paid related to: Current year 210,970 127,306 83,967 Prior years 62,506 36,698 26,420 Total paid $ 273,476 $ 164,004 $ 110,387 Net balance at December 31 $ 122,131 $ 74,678 $ 53,184 Plus: reinsurance recoverable on unpaid losses 18,724 2,114 1,252 Balance at December 31 $ 140,855 $ 76,792 $ 54,436 Composition of reserve for unpaid losses and LAE: Case reserves $ 83,447 $ 45,502 $ 29,726 IBNR reserves 57,408 31,290 24,710 Balance at December 31 $ 140,855 $ 76,792 $ 54,436 Based upon our internal analysis and our review of the statement of actuarial opinion provided by our actuarial consultants, we believe that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date. As reflected by our losses incurred related to prior years, the favorable development experienced in 2015 was primarily the result of losses related to the 2014 and 2013 accident years coming in better than expected. The favorable development experienced in 2014 was primarily the result of losses related to the 2013 and 2012 accident years coming in better than expected. During 2016, we had a reserve deficiency. Since we place substantial reliance on loss-development-based actuarial models when determining our estimate of ultimate losses, the deficiencies resulted from additional development on prior accident years which caused our ultimate losses to increase. The table below shows the analysis of our reserve for unpaid losses for each of our last three fiscal years on a GAAP basis: 2016 2015 2014 Balance at January 1 $ 76,792 $ 54,436 $ 47,451 Acquisition of IIC reserves 22,576 — — Acquisition of FSIC reserves — 2,390 — Less: reinsurance recoverable on unpaid losses 2,114 1,252 1,957 Net balance at January 1 $ 97,254 $ 55,574 $ 45,494 Incurred related to: Current year 281,365 185,476 122,114 Prior years 16,988 (2,368 ) (4,037 ) Total incurred $ 298,353 $ 183,108 $ 118,077 Paid related to: Current year 210,970 127,306 83,967 Prior years 62,506 36,698 26,420 Total paid $ 273,476 $ 164,004 $ 110,387 Net balance at December 31 $ 122,131 $ 74,678 $ 53,184 Plus: reinsurance recoverable on unpaid losses 18,724 2,114 1,252 Balance at December 31 $ 140,855 $ 76,792 $ 54,436 Composition of reserve for unpaid losses and LAE: Case reserves $ 83,447 $ 45,502 $ 29,726 IBNR reserves 57,408 31,290 24,710 Balance at December 31 $ 140,855 $ 76,792 $ 54,436 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT At December 31, 2016 , the annual maturities of our long-term debt were as follows: Amount 2017 $ 9,969 2018 1,472 2019 1,473 2020 1,473 2121 1,474 Thereafter 38,314 Total debt $ 54,175 Florida State Board of Administration Note Payable Our long-term debt at December 31, 2016 and 2015 included a note payable to the Florida State Board of Administration (SBA Note). During the year ended December 31, 2016 , we paid $1,177,000 and $219,000 of principal and interest, respectively. At December 31, 2016 and 2015 , we owed $11,176,000 and $12,353,000 , respectively, on the note and the interest rate was 1.56% and 2.05% , respectively. We executed the 20-year, $20,000,000 note payable to the SBA under its Insurance Capital Build-Up Incentive Program, effective October 1, 2006. The stated rate for the SBA note is a rate equivalent to the 10-year U.S. Treasury Bond rate. We made quarterly interest-only payments for the first three years, then, as of October 1, 2009, we began making quarterly principal and interest payments. The SBA note requires UPC to maintain surplus as regards policyholders at or above a calculated level, which was $6,007,000 at December 31, 2016 . Each quarter, we monitor the surplus as regards policyholders for all of our insurance affiliates and, for various reasons, we occasionally provide additional capital to our insurance affiliates. Our SBA note requires that UPC maintain either a 2 :1 ratio of net written premium to surplus, or net writing ratio, or a 6 :1 ratio of gross written premium to surplus, or gross writing ratio, to avoid additional interest penalties. The SBA note agreement defines surplus for the purpose of calculating the required ratios as the $20,000,000 of capital contributed to UPC under the agreement plus the outstanding balance of the note. Should UPC fail to exceed either a net writing ratio of 1.5 :1 or a gross writing ratio of 4.5 :1, UPC's interest rate will increase by 450 basis points above the 10-year Constant Maturity Treasury rate which was 2.45% at the end of December 2016 . Any other writing ratio deficiencies result in an interest rate penalty of 25 basis points above the stated rate of the note, which was 1.56% at December 31, 2016 . Our SBA note further provides that the SBA may, among other things, declare its loan immediately due and payable for all defaults existing under the SBA note; however, any payment is subject to approval by the insurance regulatory authority. At December 31, 2016 , we were in compliance with the covenants as specified in the SBA note. Interboro, LLC Promissory Note Payable On April 29, 2016, we issued an $8,550,000 promissory note to Interboro, LLC, the former parent company of IIC, as part of the purchase price paid to acquire our newest insurance affiliate. The note will mature in 18 months after the closing of the transaction and bears interest at an annual rate of 6% which is paid in full at maturity. In accordance with the stock purchase agreement, we have the right to reduce the amount of the outstanding principal by the amount of all or part of any loss relating to a claim for indemnification to which we may be entitled under the stock purchase agreement. In the event of default, Interboro, LLC, at its option, may declare the loan immediately due and payable. BB&T Term Note Payable On May 26, 2016, we issued a $5,200,000 , 15 -year term note payable to BB&T (the BB&T note) with the intent to use the funds to purchase, renovate, furnish and equip our home office. The note bears interest at 1.65% in excess of the one month LIBOR. The interest rate resets monthly and was 2.44% at December 31, 2016 . Principal and interest are payable monthly. During the year ended December 31, 2016 , we paid $202,000 and $66,000 of principal and interest, respectively. At December 31, 2016 , we owed $4,998,000 on the note. The BB&T note requires that at all times while there has been no "Non-Recurring Losses", UPC will maintain a minimum Cash Flow Coverage ratio of 1.2 :1. The Cash Flow Coverage ratio is defined as UPC's cash flow to borrower's debt services. Cash flow is defined as earnings before taxes, plus depreciation and amortization and interest. Debt service is defined as prior year's current maturities of long term debt plus interest expense. This ratio will be tested annually, based on UPC's audited financial statements. For the annual period only following a "Non-Recurring Loss", UPC will maintain a minimum Cash Flow Coverage ratio of 1.0 :1. At December 31, 2016 , UPC's Cash Flow Coverage ratio was 9.2 :1, which is well above the 1.2 :1 required ratio at times when there has been no "Non-Recurring Losses". For purposes of both of the foregoing, "Non-Recurring Losses" is defined as losses from our insurance subsidiaries' operations, as determined from time to time in the bank's sole discretion. This covenant will only be effective if the Pre Non-Recurring Losses test is failed, and is only available and effective for one (1) annual test period. Thereafter, the Non-Recurring Loss Cash Flow Coverage Ratio of 1.2 :1 will immediately apply. In addition, the BB&T note requires that we establish and maintain with BB&T a noninterest bearing DDA account with a minimum balance of $500,000 , and an interest bearing account with a minimum balance of $1,500,000 , at all times during the term of the loan. In the event of default, BB&T, may among other things, declare its loan immediately due and payable, require us to pledge additional collateral to the bank, and take possession of and foreclose upon our home office which has been pledged to the bank as security for the loan. At December 31, 2016 , we were in compliance with the covenants as specified in the BB&T note. Senior Notes Payable On December 5, 2016, we issued $30,000,000 of senior notes pursuant to an Indenture (the "Indenture") dated as of December 5, 2016, by and between the Company and private investors. The notes bear interest at a floating rate equal to the three month LIBOR plus 5.75% per annum with interest payable quarterly in arrears. The notes will mature 10 years after the issue date, have no scheduled amortization, and may be redeemed at par any time without a pre-payment penalty. The Indenture contains customary event of default provisions. It also contains covenants that, among other things, restrict the Company's ability to incur indebtedness without first providing written notification and receiving approval from the majority of the holders of the notes, limit the Company's ability to create, incur or assume liens other than permitted liens that secure any indebtedness on any asset or property of the Company, require the Company to maintain reinsurance coverage during the life of the notes, and maintain a maximum debt to capital ratio of 20% beginning from December 31, 2017. Debt Issuance Costs The table below presents the rollforward of our debt issuance costs paid, in conjunction with the debts instruments described above, during the year ended December 31, 2016: 2016 Balance at January 1, $ — Additions 596 Amortization (47 ) Balance at December 31, $ 549 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The following table summarizes the provision for income taxes: Year Ended December 31, 2016 2015 2014 Federal: Current $ (1,906 ) $ 10,143 $ 21,633 Deferred 1,920 2,103 (996 ) Provision for Federal income tax expense 14 12,246 20,637 State: Current 1,001 2,054 2,945 Deferred 290 202 (185 ) Provision for State income tax expense 1,291 2,256 2,760 Provision for income taxes $ 1,305 $ 14,502 $ 23,397 The actual income tax expense differs from the expected income tax expense computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows: Year Ended December 31, 2016 2015 2014 Expected income tax expense at federal rate $ 2,381 $ 14,671 $ 22,545 State tax expense, net of federal deduction benefit 934 1,023 1,660 Dividend received deduction (217 ) — (350 ) Prior period adjustment — 42 — Section 847 payments — (693 ) — Municipal tax exempt interest (1,011 ) — — Other, net (782 ) (541 ) (458 ) Reported income tax expense $ 1,305 $ 14,502 $ 23,397 Deferred income taxes, which are included in other assets or other liabilities as appropriate, reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The table below summarizes the significant components of our net deferred tax liability : December 31, 2016 2015 Deferred tax assets: Unearned premiums $ 19,113 $ 18,182 Tax-related discount on loss reserve 1,479 936 Bad debt expense 54 51 Other-than-temporary impairment 27 28 Other 507 432 Total deferred tax assets 21,180 19,629 Deferred tax liabilities: Unrealized gain (642 ) (1,019 ) Deferred acquisitions costs (19,586 ) (18,976 ) Capitalized software (1,505 ) (251 ) Intangible asset (3,371 ) (1,974 ) Other (895 ) (433 ) Total deferred tax liabilities (25,999 ) (22,653 ) Net deferred tax liability $ (4,819 ) $ (3,024 ) In assessing the net realizable value of deferred tax assets, we consider whether it is more likely than not that we will not realize some portion or all of the deferred tax assets. The ultimate realization of deferred tax assets depends upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The statute of limitations related to our consolidated Federal income tax returns and our Florida income tax returns expired for all tax years up to and including 2012; therefore, only the 2013 through 2016 tax years remain subject to examination by taxing authorities. No taxing authorities are currently examining any of our federal or state income tax returns. UPC Insurance's reinsurance affiliate, which is based in the Cayman Islands, made an irrevocable election under section 953(d) of the U.S. Internal Revenue Code of 1986, as amended, to be treated as a domestic insurance company for U.S. Federal income tax purposes. As a result of this election, our reinsurance subsidiary is subject to United States income tax on its worldwide income as if it were a U.S. corporation. As of December 31, 2016 , we have not taken any uncertain tax positions with regard to our tax returns. |
Statutory Accounting and Regula
Statutory Accounting and Regulation | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Statutory Accounting and Regulation | STATUTORY ACCOUNTING AND REGULATION The insurance industry is heavily-regulated. State laws and regulations, as well as national regulatory agency requirements, govern the operations of all insurers such as our insurance affiliates. The various laws and regulations require that insurers maintain minimum amounts of statutory surplus and risk-based capital, restrict insurers' ability to pay dividends, specify allowable investment types and investment mixes, and subject insurers to assessments. At December 31, 2016 , we received an assessment for $415,000 from the North Carolina Joint Underwriting Association related to Hurricane Matthew. We did not receive any additional significant assessments from regulatory authorities in the states in which our insurance affiliates operate. Governmental agencies or certain quasi-governmental entities can levy assessments upon us in the states in which we write policies. See Note 2(k) for a description of how we recover assessments imposed upon us. The table below summarizes the activity related to assessments levied upon our insurance affiliates: 2016 2015 2014 Expected recoveries of assessments, January 1 $ — $ — $ 7 Assessments expensed 1,472 226 72 Assessments recovered — 1 (2 ) Assessments not recoverable (1,472 ) (227 ) (77 ) Expected recoveries of assessments, December 31 $ — $ — $ — We expense an assessment when the particular governmental agency or quasi-governmental entity levies it upon us; therefore, expected recoveries in the table above are not assets and we will record the amounts as income when collected from policyholders. Governmental agencies or certain quasi-governmental entities can also levy assessments upon policyholders, and we collect the amount of the assessments from policyholders as surcharges for the benefit of the assessing agency. We currently collect assessments levied upon policyholders on behalf of Citizens in the amount of 1.0% , and on behalf of FHCF in the amount of 1.3% . We multiply the premium written on each policy, except our flood policies, by these assessment percentages to determine the additional amount that we will collect from the policyholder and remit to the assessing agencies. Our insurance affiliates, UPC, FSIC and IIC are domiciled in Florida, Hawaii, and New York, respectively. They must maintain capital and surplus ratios or balances as determined by the regulatory authority of the states in which they are domiciled. The table below shows the minimum capital and surplus requirements, as well as the amount of surplus as regards policyholders for our regulated entities at December 31, 2016 and 2015. Minimum Requirement December 31, 2016 December 31, 2015 UPC (1) $ 5,000 $ 155,587 $ 135,288 FSIC $ 3,250 $ 16,269 $ 15,572 IIC $ 4,700 $ 40,442 N/A (2) (1) UPC is required to maintain capital and surplus equal to the greater of 10% of its total liabilities or $5,000,000 . (2) There is not a reportable value for IIC at December 31, 2015 as we did not own the company until April 2016. The amount of restricted net assets of UPC, FSIC, and IIC at December 31, 2016 was $140,606,000 , $18,825,000 , and $45,606,000 , respectively. Florida law limits an insurer’s investment in equity instruments and also restricts investments in medium to low quality debt instruments. We were in compliance with all investment restrictions at December 31, 2016 and 2015 . The SBA note is considered a surplus note pursuant to statutory accounting principles. As a result, UPC is subject to the authority of the Insurance Commissioner of the State of Florida with regard to its ability to repay principal and interest on the surplus note. Any payment of principal or interest requires permission from the insurance regulatory authority. We have reported our insurance affiliates' assets, liabilities and results of operations in accordance with GAAP, which varies from statutory accounting principles prescribed or permitted by state laws and regulations, as well as by general industry practices. The following items are principal differences between statutory accounting and GAAP: • Statutory accounting requires that we exclude certain assets, called non-admitted assets, from the balance sheet. • Statutory accounting requires us to expense policy acquisition costs when incurred, while GAAP allows us to defer to the extent realizable, and amortize policy acquisition costs over the estimated life of the policies. • Statutory accounting requires that surplus notes, also known as surplus debentures, be recorded in statutory surplus, while GAAP requires us to record surplus notes as a liability. • Statutory accounting allows certain investments to be carried at amortized cost or fair value based on the rating received from the Securities Valuation Office of the National Association of Insurance Commissioners, while they are recorded at fair value for GAAP because the investments are held as available for sale. • Statutory accounting allows ceding commission income to be recognized when written if the cost of acquiring and renewing the associated business exceeds the ceding commissions, but under GAAP such income is deferred and recognized over the coverage period. • Statutory accounting requires that unearned premiums and loss reserves are presented net of related reinsurance rather than on a gross basis under GAAP. • Statutory accounting requires a provision for reinsurance liability be established for reinsurance recoverable on paid losses aged over ninety days and for unsecured amounts recoverable from unauthorized reinsurers. Under GAAP there is no charge for uncollateralized amounts ceded to a company not licensed in the insurance affiliate's domiciliary state and a reserve for uncollectable reinsurance is charged through earnings rather than surplus or equity. • Statutory accounting requires an additional admissibility test and the change in deferred income tax is reported directly in capital and surplus, rather than being reported as a component of income tax expense under GAAP. Our insurance affiliates must file with the various insurance regulatory authorities an “Annual Statement” which reports, among other items, statutory net income (loss) and surplus as regards policyholders, which is called stockholders' equity under GAAP. The table below reconciles our consolidated GAAP net income to the statutory net income of our insurance affiliates: Year Ended December 31, 2016 2015 2014 Consolidated GAAP net income $ 5,698 $ 27,358 $ 41,013 Increase (decrease) due to: Commissions 17,486 339 (12,258 ) Deferred income taxes (3,255 ) (2,518 ) 64 Deferred policy acquisition costs (6,342 ) (4,962 ) (788 ) Allowance for doubtful accounts (24 ) 97 5 Assessments — — (78 ) Prepaid expenses (538 ) 131 (136 ) Other, net 166 — — Operations of non-statutory subsidiaries (10,621 ) (10,077 ) (14,915 ) January net income for FSIC — 152 — January through April net income for IIC 3,513 — — Statutory net income of insurance affiliates $ 6,083 $ 10,520 $ 12,907 The table below reconciles our consolidated GAAP stockholders’ equity to the surplus as regards policyholders of our insurance affiliates: December 31, 2016 2015 Consolidated GAAP stockholders’ equity $ 241,327 $ 239,211 Increase (decrease) due to: Deferred policy acquisition costs (15,373 ) (9,031 ) Deferred income taxes (3,338 ) 917 Investments 1,386 185 Non-admitted assets (623 ) (1,066 ) Surplus debentures 11,176 12,353 Provision for reinsurance (7,648 ) (734 ) Equity of non-statutory subsidiaries (32,615 ) (96,825 ) Commissions 18,570 876 Prepaid expenses (564 ) (26 ) Paid in surplus — 5,000 Statutory surplus as regards policyholders of insurance affiliates $ 212,298 $ 150,860 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES We are involved in claims-related legal actions arising in the ordinary course of business. We accrue amounts resulting from claims-related legal actions in unpaid losses and loss adjustment expenses during the period that we determine an unfavorable outcome becomes probable and we can estimate the amounts. Management makes revisions to our estimates based on its analysis of subsequent information that we receive regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) judicial decisions and legal developments in the awarding of damages, and (iv) trends in general economic conditions, including the effects of inflation. At December 31, 2016 , we were not involved in any material non claims-related legal actions. See Note 11 for information regarding commitments related to long-term debt, and Note 13 for commitments related to regulatory actions. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | LEASES We lease office space and office equipment under operating leases. In February 2015, we acquired an office space lease in Hawaii held by FSH which was renewed during November 2016 and will expire in November 2019. We have office equipment leases with various expiration dates. Lease expense amounted to $205,000 , $922,000 , and $783,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. At December 31, 2016 , our minimum future lease payment s under non-cancellable operating leases are: Amount 2017 $ 173 2018 112 2019 110 2020 89 2021 59 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS One of our executive officers, Ms. Salmon, is a former partner at the law firm of Groelle & Salmon, PA, where her spouse remains partner and co-owner. Groelle & Salmon, PA provides legal representation to us related to our claims litigation, and also provided representation to us for several years prior to Ms. Salmon joining UPC Insurance in 2014. During the years ended December 31, 2016 and 2015 , Groelle & Salmon, PA billed us approximately $2,892,000 and $1,439,000 , respectively. Ms. Salmon's spouse has a 50% interest in these billings, or approximately $1,446,000 and $719,500 for the years ended December 31, 2016 and 2015 , respectively. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure | EMPLOYEE BENEFIT PLAN We provide a 401(k) plan for substantially all of our employees. We match 100% of the first 5% of employees’ contributions to the plan. For the years ended December 31, 2016 , 2015 , and 2014 , our contributions to the plan on behalf of the participating employees were $444,000 , $365,000 , and $267,000 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME We report changes in other comprehensive income items within comprehensive income on the Consolidated Statements of Comprehensive Income, and we include accumulated other comprehensive income as a component of stockholders' equity on the Consolidated Balance Sheets. The table below details the components of accumulated other comprehensive income at year end: Pre-Tax Amount Tax (Expense)Benefit Net-of-Tax Amount December 31, 2013 $ 150 $ (58 ) $ 92 Changes in net unrealized gain on investments 6,367 (2,460 ) 3,907 Reclassification adjustment for net realized losses 20 (8 ) 12 December 31, 2014 6,537 (2,526 ) 4,011 Changes in net unrealized loss on investments (3,070 ) 1,187 (1,883 ) Reclassification adjustment for net realized losses (827 ) 319 (508 ) December 31, 2015 2,640 (1,020 ) 1,620 Changes in net unrealized gain on investments (629 ) 167 (462 ) Reclassification adjustment for net realized gains (547 ) 211 (336 ) December 31, 2016 $ 1,464 $ (642 ) $ 822 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY Our Board declared dividends on our outstanding shares of common stock to shareholders of record as follows for the periods presented (in thousands, except per share amounts): Year Ended December 31, 2016 2015 2014 Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount First Quarter $ 0.05 $ 1,076 $ 0.05 $ 1,073 $ 0.04 $ 832 Second Quarter $ 0.06 $ 1,300 $ 0.05 $ 1,077 $ 0.04 $ 834 Third Quarter $ 0.06 $ 1,299 $ 0.05 $ 1,076 $ 0.04 $ 834 Fourth Quarter $ 0.06 $ 1,299 $ 0.05 $ 1,076 $ 0.04 $ 836 On February 3, 2015, we completed the acquisition of FSH and its subsidiaries by issuing 503,857 shares of our common stock as payment of the initial purchase price. In March 2016 we paid contingent consideration of 32,943 shares of common stock as part of the FSH acquisition. See Note 4 for additional information on this acquisition. On March 5, 2014, we closed an underwritten public offering of 4,600,000 shares of our common stock. Our total net proceeds from the offering were approximately $54,041,000 . We are authorized to issue 875,000 shares of "blank check" preferred stock, which may be issued from time to time in one or more series upon authorization by our board of directors. Our Board, without further approval of the stockholders, is authorized to fix the designations, powers, including voting powers, preferences and the relative, participating optional or other special rights of the shares of each series and any qualifications, limitations and restrictions thereof. As of December 31, 2016 , we had not issued any shares of preferred stock. See Note 20 for information regarding the activity of our common stock and share-based compensation. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION We account for stock-based compensation under the fair value recognition provisions of ASC Topic 718 - Compensation - Stock Compensation . Stock-based compensation cost for restricted stock grants is measured based on the closing fair market value of our common stock on the date of grant. We recognize stock-based compensation cost over the award’s requisite service period on a straight-line basis for time-based restricted stock grants. We granted 115,405 shares of restricted common stock awards during the twelve-month period ended December 31, 2016 , which had a weighted-average grant date fair value of $16.90 per share. We granted 130,442 shares of restricted stock during the twelve-month period ended December 31, 2015 , which had a weighted-average grant date fair value of $20.38 per share. The following table presents certain information related to the activity of our non-vested common stock grants: Number of Restricted Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2013 80,068 $ 5.56 Granted 103,156 13.86 Forfeited 8,057 7.69 Vested 21,784 6.40 Outstanding as of December 31, 2014 153,383 10.91 Granted 130,442 20.38 Forfeited 14,365 13.80 Vested 90,277 12.71 Outstanding as of December 31, 2015 179,183 16.67 Granted 115,405 16.90 Forfeited 26,082 17.44 Vested 98,864 16.39 Outstanding as of December 31, 2016 169,642 $ 16.87 We had approximately $1,106,000 of unrecognized stock compensation expense on December 31, 2016 related to non-vested stock-based compensation granted, that we expect to recognize over the next three years. We recognized $877,000 , $808,000 and $280,000 of stock-based compensation expense during the twelve months ended December 31, 2016 , 2015 and 2014 , respectively. We had approximately $370,000 of unrecognized director stock-based compensation expense at December 31, 2016 related to non-vested director stock-based compensation granted, which we expect to recognize ratably until the 2017 Annual Meeting of Stockholders. We recognized $1,070,000 , $1,166,000 and $371,000 of director stock-based compensation expense during the twelve months ended December 31, 2016 , 2015 and 2014 , respectively. |
Quaterly Results (Unaudited) Qu
Quaterly Results (Unaudited) Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | QUARTERLY RESULTS (UNAUDITED) Three Months Ended March 31, June 30, September 30, December 31, (In thousands, except per share data) 2016 Revenues $ 107,561 $ 120,921 $ 127,202 $ 131,433 Income before income taxes $ 4,330 $ 15,210 $ 5,041 $ (17,578 ) Net income $ 2,951 $ 9,841 $ 3,423 $ (10,517 ) Earnings per common share - Basic (1) $ 0.14 $ 0.46 $ 0.16 $ (0.49 ) Earnings per common share - Diluted (1) $ 0.14 $ 0.45 $ 0.16 $ (0.49 ) 2015 Revenues $ 82,396 $ 85,340 $ 89,806 $ 100,027 Income before income taxes $ 338 $ 8,187 $ 12,984 $ 20,351 Net income $ 198 $ 5,275 $ 8,083 $ 13,802 Earnings per common share - Basic (1) $ 0.01 $ 0.25 $ 0.38 $ 0.65 Earnings per common share - Diluted (1) $ 0.01 $ 0.25 $ 0.38 $ 0.64 (1) The sum of the quarterly reported amounts may not equal the full year, as each is computed independently. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS We evaluate all subsequent events and transactions for potential recognition or disclosure in our financial statements. On February 22, 2017, our Board of Directors declared a $0.06 per share quarterly cash dividend payable on March 15, 2017, to stockholders of record on March 8, 2017. On February 3, 2017, a special meeting of our stockholders was held at our principal executive offices. A total of 17,042,645 shares of our common stock, out of a total of 21,646,614 shares of common stock issued and outstanding and entitled to vote as of the close of business on December 28, 2016, were present in person or represented by proxy and the special meeting. Stockholders voted upon and approved the issuance of shares of our common stock, as contemplated by the merger agreement with AmCo Holding Company. Approximately 98.8% of the shares entitled to vote were voted in favor of the issuance. |
Schedule I - Summary of Investm
Schedule I - Summary of Investments | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments, Other than Investments in Related Parties | SCHEDULE I. SUMMARY OF INVESTMENTS December 31, 2016 Cost or Amortized Cost Fair Value Amount Shown in Consolidated Balance Sheet Bonds: U.S. government and agency securities $ 151,656 $ 149,952 $ 149,952 Foreign governments 2,031 2,061 2,061 States, municipalities and political subdivisions 170,636 169,112 169,112 Public utilities 7,687 7,730 7,730 Corporate securities 164,424 164,536 164,536 Redeemable preferred stocks 1,182 1,125 1,125 Total fixed maturities 497,616 494,516 494,516 Common stocks: Public utilities 1,343 1,507 1,507 Other common stocks 19,815 24,048 24,048 Nonredeemable preferred stocks 2,916 2,843 2,843 Total equity securities 24,074 28,398 28,398 Other investments 5,493 5,733 5,733 Total investments $ 527,183 $ 528,647 $ 528,647 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT Condensed Balance Sheets December 31, 2016 2015 Assets Fixed maturities, available for sale, at fair value $ — $ 8,157 Equity securities, available for sale, at fair value — 26,343 Cash and cash equivalents 7,399 11,555 Accrued investment income — 3 Investment in subsidiaries 263,712 195,940 Goodwill 10,841 — Property and equipment, net 7,993 6,838 Other assets 11,337 2 Total Assets $ 301,282 $ 248,838 Liabilities Intercompany payable $ 14,531 $ 8,657 Other liabilities 2,426 970 Long-term notes payable 42,998 — Total Liabilities 59,955 9,627 Stockholders' Equity Common stock 2 2 Additional paid-in capital 99,353 97,163 Treasury stock (431 ) (431 ) Accumulated other comprehensive income 822 1,620 Retained earnings 141,581 140,857 Total Stockholders' Equity 241,327 239,211 Total Liabilities and Stockholders' Equity $ 301,282 $ 248,838 SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED Condensed Statements of Comprehensive Income Years Ended December 31, 2016 2015 2014 Revenues Net income from subsidiaries (equity method) $ 13,296 $ 27,562 $ 40,108 Net realized investment gain (loss) (14 ) 951 — Net investment income 88 239 — Total revenues 13,370 28,752 40,108 Expenses Operating and underwriting 337 138 86 General and administrative 11,805 1,252 130 Interest expense 496 — — Total expenses 12,638 1,390 216 Income before other income 732 27,362 39,892 Other income 60 245 61 Income before income taxes 792 27,607 39,953 Provision for income tax expense (benefit) (4,906 ) 249 (1,060 ) Net income $ 5,698 $ 27,358 $ 41,013 Unrealized gain (loss) on investments (1,191) 25 — Reclassification adjustments - losses (gains) 14 (951 ) — Income tax benefit (expense) related to other items of comprehensive income 378 (357 ) — Total Comprehensive Income $ 4,899 $ 26,075 $ 41,013 SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED Condensed Statements of Cash Flows Year Ended December 31, 2016 2015 2014 OPERATING ACTIVITIES Net income $ 5,698 $ 27,358 $ 41,013 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 682 74 — Net realized investment gains 14 (951 ) — Deferred income taxes, net 382 126 (44 ) Stock based compensation 1,947 1,974 649 Changes in operating assets and liabilities: Accrued investment income 3 (3 ) — Other assets (22,553 ) 450 (548 ) Intercompany payable 5,874 2,557 (47,033 ) Other liabilities 1,969 918 (352 ) Net cash provided by (used in) operating activities (5,984 ) 32,503 (6,315 ) INVESTING ACTIVITIES Proceeds from sales of investments available for sale 34,551 19,633 — Purchases of investments available for sale (70 ) (53,212 ) — Additional investment in subsidiaries (68,563 ) 16,276 (36,608 ) Cost of property and equipment acquired (1,797 ) (3,255 ) (3,583 ) Net cash used in investing activities (35,879 ) (20,558 ) (40,191 ) FINANCING ACTIVITIES Tax withholding payment related to net settlement of equity awards (270 ) (185 ) (110 ) Proceeds from borrowings 42,951 — — Dividends (4,974 ) (4,302 ) (3,336 ) Proceeds from offering — — 54,041 Net cash provided by (used in) financing activities 37,707 (4,487 ) 50,595 Increase in cash (4,156 ) 7,458 4,089 Cash and cash equivalents at beginning of period 11,555 4,097 8 Cash and cash equivalents at end of period $ 7,399 $ 11,555 $ 4,097 Notes to Condensed Financial Statements - Basis of Presentation The Company's investment in subsidiaries is stated at cost plus equity in the undistributed earnings of subsidiaries since the date of acquisition. The Company's share of net income of its subsidiaries is included in income using the equity method. These financial statements should be read in conjunction with UPC Insurance's consolidated financial statements. |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies | SCHEDULE IV. REINSURANCE Property and Casualty Insurance Direct Premium Written Premiums Ceded to Other Companies Premiums Assumed from Other Companies Net Premiums Written Percentage of Premiums Assumed to Net Years Ended December 31, 2016 $ 708,252 $ 262,340 $ (96 ) $ 445,816 — % 2015 548,916 183,808 20,820 385,928 5.4 % 2014 417,769 144,404 18,984 292,349 6.5 % |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE V. VALUATION AND QUALIFYING ACCOUNTS Uncollectible Premium Liability Balance at Beginning of Period Charged to Costs and Expenses Deductions Balance at End of Period Years Ended December 31, 2016 $ 132 $ 356 $ (344 ) $ 144 2015 34 198 (100 ) 132 2014 29 42 (37 ) 34 |
Significant Accounting Polici33
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Our cash and cash equivalents include demand deposits with financial institutions and short-term, highly-liquid instruments with original maturities of three months or less when purchased. |
Investment, Policy [Policy Text Block] | Investments We currently classify all of our investments in fixed maturities, equity securities and other investments as available-for-sale, and report them at fair value. Subsequent to our acquisition of available-for-sale securities, we record changes in value through the date of disposition as unrealized holding gains and losses, net of tax effects, and include them as a component of comprehensive income. We include realized gains and losses, which we calculate using the specific-identification method for determining the cost of securities sold, in net income. We amortize any premium or discount on fixed maturities over the remaining maturity period of the related securities using the effective interest method, and we report the amortization in net investment income. We recognize dividends and interest income when earned. Quarterly, we perform an assessment of our investments to determine if any are other-than-temporarily impaired. An investment is impaired when the fair value of the investment declines to an amount less than the cost or amortized cost of that investment. As part of our assessment process, we determine whether the impairment is temporary or other-than-temporary. We base our assessment on both quantitative criteria and qualitative information, considering a number of factors including, but not limited to: how long the security has been impaired; the amount of the impairment; whether, in the case of equity securities, we intend to hold, and have the ability to hold, the security for a period sufficient for us to recover our cost basis, or whether, in the case of debt securities, we intend to sell the security or it is more likely than not that we will have to sell the security before we recover the amortized cost; the financial condition and near-term prospects of the issuer; whether the issuer is current on contractually-obligated interest and principal payments; key corporate events pertaining to the issuer and whether the market decline was affected by macroeconomic conditions. If we determine that an equity security has incurred an other-than-temporary impairment, we permanently reduce the cost of the security to fair value and recognize an impairment charge in net income. If a debt security is impaired and we either intend to sell the security or it is more likely than not that we will have to sell the security before we are able to recover the amortized cost, then we record the full amount of the impairment in net income. If we determine that an impairment of a debt security is other-than-temporary and we neither intend to sell the security nor it is more likely than not that we will have to sell the security before we are able to recover its cost or amortized cost, then we separate the impairment into (a) the amount of impairment related to credit loss and (b) the amount of impairment related to all other factors. We record the amount of the impairment related to the credit loss as an impairment charge in net income, and we record the amount of the impairment related to all other factors in accumulated other comprehensive income. A large portion of our investment portfolio consists of fixed maturities, which may be adversely affected by changes in interest rates as a result of governmental monetary policies, domestic and international economic and political conditions and other factors beyond our control. A rise in interest rates would decrease the net unrealized holding gains of our investment portfolio, offset by our ability to earn higher rates of return on funds reinvested. Conversely, a decline in interest rates would increase the net unrealized holding gains of our investment portfolio, offset by lower rates of return on funds reinvested. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value See Note 3 in our Notes to Consolidated Financial Statements for a discussion regarding the fair value measurement of our investments at December 31, 2016 . |
Premiums Receivable, Basis of Accounting, Policy [Policy Text Block] | Premiums We recognize premiums as revenue, net of ceded reinsurance amounts, on a daily pro rata basis over the contract period of the related policies that are in force. For any portion of premiums not earned at the end of the reporting period, we record an unearned premium liability. Premiums receivable represents amounts due from our policyholders for billed premiums and related policy fees. We perform a policy-level evaluation to determine the extent to which the balance of premium receivable exceeds the balance of unearned premium. We then age any resulting exposure based on the last date the policy was billed to the policyholder, and we establish an allowance for credit losses for any amounts outstanding for more than 90 days. When we receive payments on amounts previously charged off, we credit bad debt expense in the period we receive the payment. The balances of our allowance for uncollectible premiums totaled $144,000 and $132,000 at December 31, 2016 and 2015 , respectively. When we receive premium payments from policyholders prior to the effective date of the related policy, we record an advance premiums liability. On the policy effective date, we reduce the advance premium liability and record the premiums as described above. |
Deferred Policy Acquisition Costs, Policy [Policy Text Block] | Policy Acquisition Costs We incur policy acquisition costs that vary with, and are directly related to, the production of new business. We capitalize policy acquisition costs to the extent recoverable, then we amortize those costs over the contract period of the related policy. At each reporting date, we determine whether we have a premium deficiency. A premium deficiency would result if the sum of our expected losses, deferred policy acquisition costs, and policy maintenance costs (such as costs to store records and costs incurred to collect premiums and pay commissions) exceeded our related unearned premiums plus investment income. Should we determine that a premium deficiency exists, we would write off the unrecoverable portion of deferred policy acquisition costs and record a liability to the extent the deficiency exceeded the deferred policy acquisition costs. |
Debt, Policy [Policy Text Block] | Debt Issuance Costs We record our debt issuance costs associated with a recognized debt liability as a direct deduction from the carrying amount of the corresponding debt liability. These costs are then amortized over the life of the liability using the effective interest method. |
Property, Plant and Equipment, Policy [Policy Text Block] | Long-lived Assets i) Property and Equipment We record our property and equipment, at cost less accumulated depreciation and amortization. We use the straight-line method of calculating depreciation over the estimated useful lives of the assets. We periodically review estimated useful lives and, where appropriate, we make changes prospectively. We charge maintenance and repair costs to expense as incurred. |
Internal Use Software, Policy [Policy Text Block] | Capitalized Software We capitalize certain direct development costs associated with internal-use software. We expect to amortize the capitalized software costs related to our new data warehouse over its expected seven year useful life. We amortize the costs related to our new policy administration and claims processing systems over their expected seven -year useful lives. See Note 7 in our Notes to Consolidated Financial Statements for a discussion of our property, equipment and capitalized software, including our properties, that were purchased during 2016 and 2015 . |
Property, Plant and Equipment, Impairment [Policy Text Block] | Impairment of Long-lived Assets We annually review our long-lived assets, including intangible assets, to determine if their carrying amounts are recoverable. If the non-discounted future cash flows expected to result from the use and eventual disposition of the assets are less than their carrying amounts, we reduce their carrying amounts to fair value and recognize an impairment loss. |
Unpaid Policy Claims and Claims Adjustment Expense, Policy [Policy Text Block] | Unpaid Losses and Loss Adjustment Expenses Our reserves for unpaid losses represent the estimated ultimate cost of settling all reported claims plus all claims we incurred related to insured events that have occurred as of the reporting date, but that policyholders have not yet reported to us. We estimate our reserves for unpaid losses using individual case-basis estimates for reported claims and actuarial estimates for IBNR claims, and we continually review and adjust our estimated losses as necessary based on our historical experience and as we obtain new information. If our unpaid loss reserves prove to be deficient or redundant, we increase or decrease the liability in the period in which we identify the difference, thereby impacting net income. Though our estimate of the ultimate cost of settling all reported and unreported claims may change at any point in the future, a reasonable possibility exists that our estimate may vary significantly in the near term from the estimated amounts included in our consolidated financial statements. On our Consolidated Balance Sheets, we report our reserves for unpaid losses gross of the amounts related to unpaid losses recoverable from reinsurers. On our Consolidated Statements of Comprehensive Income, we report losses net of amounts ceded to reinsurers. We do not discount our loss reserves for financial statement purposes. |
Management Fees, Policy [Policy Text Block] | Managing General Agent Fees and Policy Fees Our policy fees consist of the managing general agent fee and a pay-plan fee. Regulatory authorities in Florida, Georgia, Louisiana, New Jersey and Rhode Island allow managing general agents to charge policyholders a $25 fee on each policy written. The regulatory authority in Hawaii allows managing general agents to charge policyholders a $50 fee on each policy written, while the regulatory authority in Texas allows managing general agents to charge policyholders a $25 or $75 fee, depending on the type of policy issued. Regulatory authorities in Massachusetts and Texas also allow managing general agents to charge a $25 inspection fee and regulatory authorities in Louisiana allow managing general agents to charge up to a $125 inspection fee, depending on the type of homeowner policy issued. We defer such fees as unearned revenue and then include them in income on a pro rata basis over the term of the underlying policies. We record our pay-plan fees, which we charge to all policyholders that pay their premium in more than one installment, as income when collected. We report all policy-related fees in other revenue on our Consolidated Statements of Comprehensive Income. |
Reinsurance Accounting Policy [Policy Text Block] | Reinsurance We follow industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or "ceding", all or a portion of the risk exposure on policies we write to another insurer, known as a reinsurer. To the extent that our reinsurers are unable to meet the obligations they assume under our reinsurance agreements, we remain liable for the entire insured loss. Our reinsurance agreements are short-term, prospective contracts. We record an asset, prepaid reinsurance premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of our new reinsurance agreements. We amortize our prepaid reinsurance premiums over the 12-month contract period. We record amounts recoverable from our reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of our liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to our estimate of unpaid losses. Though our estimate of amounts recoverable from reinsurers on unpaid losses may change at any point in the future because of its relation to our reserves for unpaid losses, a reasonable possibility exists that our estimate may change significantly in the near term from the amounts included in our consolidated financial statements. We estimate uncollectible amounts receivable from reinsurers based on an assessment of factors including the creditworthiness of the reinsurers and the adequacy of collateral obtained, where applicable. We recorded no bad debt expense related to reinsurance during the years ended December 31, 2016 , 2015 or 2014 . |
Assessment [Policy Text Block] | Assessments We record guaranty fund and other insurance-related assessments imposed upon us as an expense in the period the regulatory agency imposes the assessment. To recover Florida Insurance Guaranty Association (FIGA) assessments, we calculate and begin collecting a policy surcharge that will allow us to collect the entire assessment over a 12-month period, based on our estimate of the number of policies we expect to write. We then submit an information only filing, pursuant to Florida Statute 631.57(3)(h), to the insurance regulatory authority requesting formal approval of the policy FIGA surcharge. The process may be repeated in successive 12-month periods until we collect the entire assessment. We record the recoveries as revenue in the period that we collect the cash. While current regulations allow us to recover from policyholders the amount of assessments imposed upon us, our payment of the assessments and our recoveries may not offset each other in the same fiscal period in our consolidated financial statements. Where permitted by law or regulatory authority, we collect assessments imposed upon policyholders as a policy surcharge and we record the amounts collected as a liability until we remit the amounts to the regulatory agency that imposed the assessment. During 2016 , we received an assessment for $415,000 from the North Carolina Joint Underwriting Association related to Hurricane Matthew. We did not receive any additional significant assessments from regulatory authorities in the states in which our insurance affiliates operate. |
Income Tax, Policy [Policy Text Block] | Income Taxes We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect to recover or settle those temporary differences. Should a change in tax rates occur, we recognize the effect on deferred tax assets and liabilities in operations in the period that includes the enactment date. Realization of our deferred income tax assets depends upon our generation of sufficient future taxable income. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. We record any income tax penalties and income-tax-related interest as income tax expense in the period incurred. We did not incur any material tax penalties or income-tax-related interest during the years ended December 31, 2016 , 2015 or 2014 . |
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block] | Advertising Costs We expense all advertising costs when we incur those costs. For the years ended December 31, 2016 , 2015 and 2014 , we incurred advertising costs of $907,000 , $2,630,000 , and $1,819,000 , respectively. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share We report both basic earnings per share and diluted earnings per share. To calculate basic earnings per share, we divide net income attributable to common stockholders by the weighted-average number of common stock shares outstanding during the period. We calculate diluted earnings per share by dividing net income attributable to common stockholders by the weighted-average number of common stock shares, common stock equivalents, and restricted shares outstanding during the period. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk Our current operations subject us to the following concentrations of risk: • a concentration of revenue because we write primarily homeowners policies • a geographic concentration resulting from the fact that, though we now operate in twelve states, we still write approximately 47% of our gross written premium in Florida • a group concentration of credit risk with regard to our reinsurance recoverable, since all of our reinsurers engage in similar activities and have similar economic characteristics that could cause their ability to repay us to be similarly affected by changes in economic or other conditions • a concentration of credit risk with regard to our cash, because we choose to deposit all our cash at six financial institutions We mitigate our geographic and group concentrations of risk by entering into reinsurance contracts with financially-stable reinsurers, and by securing irrevocable letters of credit from reinsurers when necessary. With regard to our cash balances held at financial institutions, we had $159,288,000 and $72,405,000 in excess of Federal Deposit Insurance Corporation (FDIC) insurance limits at December 31, 2016 and 2015 , respectively. The $86,883,000 increase in excess of FDIC insurance limits is the result of holding more cash and at the end of 2016 than we did in 2015. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill is the excess of cost over the estimated fair value of net assets acquired. We attribute all goodwill associated with the acquisition of FSIC and IIC to one reporting unit. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test. The goodwill impairment process requires a comparison of the estimated fair value of a reporting unit to its carrying value. We test goodwill for impairment by either performing a qualitative assessment or a two-step quantitative test. The qualitative assessment is an assessment of historical information and relevant events and circumstances to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount, including goodwill. We may elect not to perform the qualitative assessment for our reporting unit and perform a two-step quantitative impairment test. In performing the two-step quantitative impairment test, we may use a market multiple valuation approach and a discounted cash flow valuation approach. The market multiple valuation approach utilizes market multiples of companies with similar businesses and the projected operating earnings of the reporting unit. The discounted cash flow valuation approach requires judgments about revenues, operating earnings projections, capital market assumptions and discount rates. The key inputs, judgments and assumptions necessary in determining estimated fair value of the reporting units include projected operating earnings, current book value, the level of economic capital required to support the mix of business, long-term growth rates, comparative market multiples, control premium, the account value of in-force business, projections of new and renewal business, as well as margins on such business, the level of interest rates, credit spreads, equity market levels, and the discount rate that we believe is appropriate for the respective reporting unit. When testing goodwill for impairment, we also considers our market capitalization in relation to the aggregate estimated fair value of our reporting unit. We apply significant judgment when determining the estimated fair value of our reporting unit and when assessing the relationship of market capitalization to the aggregate estimated fair value of our reporting unit. The valuation methodologies utilized are subject to key judgments and assumptions that are sensitive to change. Estimates of fair value are inherently uncertain and represent only management’s reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in the estimated fair value of our reporting unit could result in goodwill impairments in future periods which could materially adversely affect our results of operations or financial position. For the 2016 annual goodwill impairment test, we utilized the qualitative assessment and determined it was not more likely than not that the fair value of the reporting unit tested using the qualitative assessment was less than its carrying amount and, therefore no further testing was needed for the reporting unit. We determined that the fair values of the reporting unit was in excess of the carrying value and, therefore goodwill was not impaired. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets Identifiable intangible assets that are amortized generally represent the cost of client relationships, trade names and agency agreements acquired. In valuing these assets, we make assumptions regarding useful lives and projected growth rates, and significant judgment is required. We periodically reviews identifiable intangibles for impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amounts of the assets exceed their respective fair values, additional impairment tests are performed to measure the amount of the impairment loss, if any. Non-amortizing intangible assets generally represent the cost of insurance licenses acquired. Non-amortizing intangible assets are tested for impairment in the fourth quarter of each fiscal year by comparing the fair value of the licenses acquired to their carrying values. We established fair value for purposes of impairment testing using the income approach. If the carrying value of a license acquired exceeds its fair value, an impairment loss is recognized equal to that excess. For 2016, we determined that the fair values of the intangible assets were not impaired. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Accounting Pronouncements Adopted Policies In May 2015, the FASB issued Accounting Standards Update No. 2015-09, which requires expanded disclosures for insurance entities that issue short-duration contracts. The expanded disclosures are designed to provide additional insight into an insurance entity's significant estimates made in measuring the liability for unpaid claims and claim adjustment expenses. The disclosures include information about incurred and paid claims development by accident years, on a net basis after reinsurance, for the number of years' claims incurred typically remain outstanding, not to exceed ten years. Each period presented in the disclosure about claims development that precedes the current reporting period is considered required supplementary information. The expanded disclosures also include information about significant changes in methodologies and assumptions, a reconciliation of incurred and paid claims development to the carrying amount of the liability for unpaid claims and claim adjustment expenses, the total amount of incurred but not reported liabilities plus expected development, the incidence of claims including the methodology used to determine the incidence of claims, and claim duration. The guidance is effective for annual periods beginning after December 15, 2015, and interim periods beginning after December 15, 2016, and is to be applied retrospectively. The new guidance affects disclosures only and therefore, the adoption as of December 31, 2016 had no impact on the Company's results of operations or financial position. Pending Policies We have evaluated recent accounting pronouncements that have had or may have a significant effect on our financial statements or on our disclosures. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230) (ASU 2016-15). This update is intended to address eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230. The cash flow issues impacting our company include the presentation and classification of debt prepayment or debt extinguishment costs and contingent consideration payments made after a business combination. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. We do not intend to early adopt and are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). This update is intended to replace the incurred loss impairment methodology in current GAAP with a method that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 will provide users with more useful information regarding the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. In addition, credit losses on available-for-sale debt securities will now have to be presented as an allowance rather than as a write-down. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years with early adoption permitted for certain requirements. We do not intend to early adopt and are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). This update is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted for certain requirements. We do not intend to early adopt and are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02). This updated is intended to replace existing lease guidance by requiring a lessee to recognize substantially all leases (whether operating or finance leases) on the balance sheet as a right-of-use asset and an associated least liability. Short-term leases of 12 months or less are excluded from this amendment. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We do not intend to early adopt and are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). This update substantially revises standards for the recognition, measurement and presentation of financial instruments. This standard revises an entity's accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted for certain requirements. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following table details the difference between cost or adjusted/amortized cost and estimated fair value, by major investment category, at December 31, 2016 and 2015 : Cost or Adjusted/Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2016 U.S. government and agency securities $ 151,656 $ 189 $ 1,893 $ 149,952 Foreign governments 2,031 30 — 2,061 States, municipalities and political subdivisions 170,636 1,027 2,551 169,112 Public utilities 7,687 116 73 7,730 Corporate securities 164,424 1,238 1,126 164,536 Redeemable preferred stocks 1,182 5 62 1,125 Total fixed maturities 497,616 2,605 5,705 494,516 Public utilities 1,343 164 — 1,507 Other common stocks 19,815 4,552 319 24,048 Nonredeemable preferred stocks 2,916 10 83 2,843 Total equity securities 24,074 4,726 402 28,398 Other investments 5,493 267 27 5,733 Total investments $ 527,183 $ 7,598 $ 6,134 $ 528,647 December 31, 2015 U.S. government and agency securities $ 81,973 $ 148 $ 474 $ 81,647 Foreign government 2,038 37 — 2,075 States, municipalities and political subdivisions 154,004 2,391 490 155,905 Public utilities 8,398 128 33 8,493 Corporate securities 148,170 880 2,292 146,758 Redeemable preferred stocks 1,832 37 49 1,820 Total fixed maturities 396,415 3,621 3,338 396,698 Mutual funds 26,357 — 14 26,343 Public utilities 1,342 44 34 1,352 Other common stocks 18,624 2,615 545 20,694 Nonredeemable preferred stocks 2,356 67 6 2,417 Total equity securities 48,679 2,726 599 50,806 Other investments 4,980 230 — 5,210 Total investments $ 450,074 $ 6,577 $ 3,937 $ 452,714 |
Schedule of Realized Gain (Loss) | The following tables detail our realized gains (losses) by major investment category for the years ended December 31, 2016 , 2015 and 2014 : 2016 2015 2014 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale Fixed maturities $ 1,811 $ 56,484 $ 727 $ 87,141 $ 92 $ 5,598 Equity securities 64 13,253 1,895 7,790 298 111,325 Total realized gains 1,875 69,737 2,622 94,931 390 116,923 Fixed maturities (1,136 ) 24,464 (595 ) 38,485 (228 ) 11,389 Equity securities (192 ) 37,790 (1,200 ) 4,172 (182 ) 1,529 Total realized losses (1,328 ) 62,254 (1,795 ) 42,657 (410 ) 12,918 Net realized investment gains (losses) $ 547 $ 131,991 $ 827 $ 137,588 $ (20 ) $ 129,841 |
Investments Classified by Contractual Maturity Date | The table below summarizes our fixed maturities at year end by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations. December 31, 2016 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Due in one year or less $ 36,973 7.4 % $ 36,974 7.5 % Due after one year through five years 273,784 55.0 % 272,822 55.1 % Due after five years through ten years 142,452 28.6 % 140,416 28.4 % Due after ten years 44,407 9.0 % 44,304 9.0 % Total $ 497,616 100.0 % $ 494,516 100.0 % |
Investment Income | The following table summarizes our net investment income by major investment category: Year Ended December 31, 2016 2015 2014 Fixed maturities $ 9,170 $ 8,092 $ 5,866 Equity securities 996 859 734 Cash and cash equivalents 141 25 9 Other investments 352 222 166 Other assets 20 14 20 Investment income $ 10,679 $ 9,212 $ 6,795 Investment expenses (587 ) (267 ) (312 ) Net investment income $ 10,092 $ 8,945 $ 6,483 |
Schedule of Unrealized Loss on Investments | The following table presents an aging of our unrealized investment losses by investment class: Less Than Twelve Months Twelve Months or More Number of Securities* Gross Unrealized Losses Fair Value Number of Securities* Gross Unrealized Losses Fair Value December 31, 2016 U.S. government and agency securities 186 $ 1,893 $ 111,216 — $ — $ — States, municipalities and political subdivisions 201 2,551 136,360 — — — Public utilities 8 73 2,222 — — — Corporate securities 215 1,100 88,605 1 26 1,021 Redeemable preferred stocks 7 62 764 — — — Total fixed maturities 617 5,679 339,167 1 26 1,021 Other common stocks 16 140 2,450 17 179 1,732 Nonredeemable preferred stocks 12 52 1,830 7 31 369 Total equity securities 28 192 4,280 24 210 2,101 Other investments 1 27 987 — — — Total 646 $ 5,898 $ 344,434 25 $ 236 $ 3,122 December 31, 2015 U.S. government and agency securities 73 $ 265 $ 44,786 21 $ 209 $ 11,250 States, municipalities and political subdivisions 61 463 56,971 5 27 7,620 Public utilities 8 4 1,961 1 29 1,015 Corporate securities 242 2,025 92,429 9 267 10,047 Redeemable preferred stocks 7 49 746 — — — Total fixed maturities 391 2,806 196,893 36 532 29,932 Mutual funds 1 14 26,343 — — — Public utilities 4 34 697 — — — Other common stocks 63 497 6,665 3 48 118 Nonredeemable preferred stocks 19 6 1,161 — — — Total equity securities 87 551 34,866 3 48 118 Total 478 $ 3,357 $ 231,759 39 $ 580 $ 30,050 |
Fair Value, Measurement Inputs, Disclosure | The following table presents the fair value of our financial instruments measured on a recurring basis by level at December 31, 2016 and December 31, 2015 : December 31, 2016 Total Level 1 Level 2 Level 3 U.S. government and agency securities $ 149,952 $ — $ 149,952 $ — Foreign governments 2,061 — 2,061 — States, municipalities and political subdivisions 169,112 — 169,112 — Public utilities 7,730 — 7,730 — Corporate securities 164,536 — 164,536 — Redeemable preferred stocks 1,125 1,125 — — Total fixed maturities 494,516 1,125 493,391 — Public utilities 1,507 1,507 — — Other common stocks 24,048 24,048 — — Nonredeemable preferred stocks 2,843 2,843 — — Total equity securities 28,398 28,398 — — Other investments 5,733 300 3,735 1,698 Total investments $ 528,647 $ 29,823 $ 497,126 $ 1,698 December 31, 2015 U.S. government and agency securities $ 81,647 $ — $ 81,647 $ — Foreign governments 2,075 — 2,075 — States, municipalities and political subdivisions 155,905 — 155,905 — Public utilities 8,493 — 8,493 — Corporate securities 146,758 — 146,758 — Redeemable preferred stocks 1,820 1,820 — — Total fixed maturities 396,698 1,820 394,878 — Mutual Funds 26,343 26,343 — — Public utilities 1,352 1,352 — — Other common stocks 20,694 20,694 — — Nonredeemable preferred stocks 2,417 2,417 — — Total equity securities 50,806 50,806 — — Other investments 5,210 300 3,055 1,855 Total investments $ 452,714 $ 52,926 $ 397,933 $ 1,855 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The table below presents the rollforward of our Level 3 investments held at fair value during the year ended December 31, 2016 : Other Investments December 31, 2015 $ 1,855 Transfers in — Partnership income 143 Return of capital (311 ) Unrealized gains in accumulated other comprehensive income 11 December 31, 2016 $ 1,698 |
Other Investments Not Readily Marketable [Table Text Block] | The information presented in the table below is as of December 31, 2016 . Initial Investment Book Value Unrealized Gain Unrealized Loss Fair Value DCR Mortgage Partners VI, L.P. $ 382 $ 444 $ 267 $ — $ 711 RCH Mortgage Fund VI Investors, LP 1,000 1,014 — 27 987 Total Level 3 limited partnership investments 1,382 1,458 267 27 1,698 Kayne Senior Credit Fund II, L.P. 1,575 1,450 — — 1,450 DCR Mortgage Partners VII, L.P. 2,000 2,045 — — 2,045 Blackstone Alternative Solutions 2015 Trust 240 240 — — 240 Total Level 2 limited partnership investments 3,815 3,735 — — 3,735 Total limited partnership investments $ 5,197 $ 5,193 $ 267 $ 27 $ 5,433 Other short-term investments 300 300 — — 300 Total other investments $ 5,497 $ 5,493 $ 267 $ 27 $ 5,733 |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | Fair Value Valuation Rate Impact Technique Unobservable Input Adjustment December 31, 2016 DCR VI $ (56 ) Discounted cash flow Discount rate based on D&B paydex scale 2.35% RCH $ (341 ) Discounted cash flow Discount rate based on D&B paydex scale 7.35% December 31, 2015 DCR VI $ (88 ) Discounted cash flow Discount rate based on D&B paydex scale 2.35% RCH $ (341 ) Discounted cash flow Discount rate based on D&B paydex scale 7.35% |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions [Abstract] | |
Business Acquisition, Pro Forma Information | For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 As Pro Forma As Pro Forma Reported Adjustments (1) Pro Forma Reported Adjustments (2) Pro Forma Revenues $ 487,117 $ 18,963 $ 506,080 $ 357,569 $ 56,362 $ 413,931 Net income $ 5,698 $ 8,187 $ 13,885 $ 27,358 $ 5,692 $ 33,050 Diluted earnings per share $ 0.26 $ 0.38 $ 0.64 $ 1.28 $ 0.26 $ 1.54 The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transaction taken place on January 1, 2015, and the unaudited pro forma information does not purport to be indicative of future financial operating results. For the Year Ended December 31, 2015 Pro Forma As Reported Adjustments Pro Forma Revenues $ 357,569 $ 1,127 $ 358,696 Net income $ 27,358 $ 77 $ 27,435 Diluted earnings per share $ 1.28 $ — $ 1.28 |
Schedule of Business Acquisitio
Schedule of Business Acquisitions, by Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The purchase price consisted of the following amounts: Cash $ 48,450 Notes payable 8,550 Accrued liability 3,471 Total purchase price $ 60,471 The preliminary purchase price allocation is as follows: Cash and cash equivalents $ 15,554 Investments 66,527 Premium and agents' receivable 3,186 Reinsurance receivable 1,042 Intangible assets 5,877 Insurance contract asset 8,334 Goodwill 10,841 Other assets 3,980 Unpaid losses and loss adjustment expenses (24,967 ) Unearned premiums (26,243 ) Advanced premiums (1,472 ) Deferred taxes (109 ) Other liabilities (2,079 ) Total purchase price $ 60,471 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table shows the computation of basic and diluted EPS for the years ended December 31, 2016 , 2015 and 2014 : Year Ended December 31, 2016 2015 2014 Numerator: Net income attributable to common stockholders $ 5,698 $ 27,358 $ 41,013 Denominator: Weighted-average shares outstanding 21,417,486 21,218,233 19,933,652 Effect of dilutive securities 196,957 234,307 112,255 Weighted-average diluted shares 21,614,443 21,452,540 20,045,907 Basic earnings per share $ 0.27 $ 1.29 $ 2.06 Diluted earnings per share $ 0.26 $ 1.28 $ 2.05 |
Deferred Policy Acquisition C38
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | The table below depicts the activity with regard to deferred policy acquisition costs: 2016 2015 Balance at January 1 $ 46,732 $ 31,925 Policy acquisition costs deferred 134,588 101,221 Amortization (115,847 ) (86,414 ) Balance at December 31 $ 65,473 $ 46,732 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment, net consists of the following: Year Ended December 31, 2016 2015 Land $ 2,114 $ 2,114 Building and building improvements 5,502 4,298 Computer hardware and software 14,699 13,574 Office furniture and equipment 2,652 1,831 Leasehold improvements — 141 Total, at cost 24,967 21,958 Less: accumulated depreciation and amortization (7,107 ) (4,823 ) Property and equipment, net $ 17,860 $ 17,135 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 are as follows: December 31, 2016 2015 Balance at beginning of period $ 3,413 $ — Acquisitions 10,841 3,413 Impairment — — Balance at end of period $ 14,254 $ 3,413 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense to be recognized by the Company over the next five years is as follows: Year ending December 31, Estimated Amortization Expense 2017 $ 3,509 2018 2,271 2019 2,159 2020 1,071 2021 358 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The following is a summary of intangible assets excluding goodwill and value of business acquired (VOBA) at December 31, 2016 or 2015 : Weighted-average remaining amortization period (in years) Gross carrying amount Accumulated amortization Net carrying amount 2016 Amortizing intangible assets Agency agreements acquired 3.8 $ 10,284 $ (2,784 ) $ 7,500 Trade names acquired 2.1 720 (264 ) 456 Non-amortizing intangible assets Licenses acquired 1,185 — 1,185 Total $ 12,189 $ (3,048 ) $ 9,141 2015 Amortizing intangible assets Agency agreements acquired 4.1 $ 5,652 $ (1,036 ) $ 4,616 Trade names acquired 2.1 250 (76 ) 174 Non-amortizing intangible assets Licenses acquired 410 — 410 Total $ 6,312 $ (1,112 ) $ 5,200 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
Ceded Premiums Earned by type | The table below summarizes the amounts of our ceded premiums written under the various types of agreements, as well as the amortization of prepaid reinsurance premiums: Year Ended 2016 2015 2014 Excess-of-loss $ (235,236 ) $ (163,106 ) $ (125,638 ) Equipment & identity theft (8,313 ) (6,169 ) (4,370 ) Novation of Auto Policies (1) (2,396 ) — — Flood (16,395 ) (14,533 ) (14,396 ) Ceded premiums written $ (262,340 ) $ (183,808 ) $ (144,404 ) Increase in ceded unearned premiums 52,442 15,551 8,559 Ceded premiums earned $ (209,898 ) $ (168,257 ) $ (135,845 ) |
Liability for Catastrophe Claims Disclosure | Current year catastrophe losses by the event magnitude are shown in the following table. Number of Events Incurred Loss and LAE (1) Combined Ratio Impact December 31, 2016 Current period catastrophe losses incurred Greater than $5 million (2) 1 $ 29,987 6.5 % $1 million to $5 million (3) 12 21,506 4.7 % Less than $1 million (4) 6 4,349 1.0 % Total 19 $ 55,842 12.2 % December 31, 2015 Current period catastrophe losses incurred $5 million to $10 million (5) 2 $ 11,523 3.4 % $1 million to $5 million (6) 7 14,699 4.4 % Less than $1 million (7) 5 2,343 0.7 % Total 14 $ 28,565 8.5 % December 31, 2014 Current period catastrophe losses incurred Less than $1 million (8) 3 $ 829 0.3 % Total 3 $ 829 0.3 % (1) Incurred loss and LAE is equal to losses and LAE paid plus the change in case and incurred but not reported reserves. Shown net of losses ceded to reinsurers. (2) Reflects losses from Hurricane Matthew in 2016. (3) Reflects losses from Hurricane Hermine, Winter Storm Olympia, Tropical Storm Colin, tornadoes, wind storms, hail storms, and flooding in 2016. (4) Reflects losses from Tropical Storm Julia, tornadoes, wind storms, hail storms, and flooding in 2016. (5) Reflects losses from winter storms in 2015. (6) Reflects losses from winter storms, hail storms and wind storms in 2015. (7) Reflects losses from winter storms, hail storms, Texas flooding, Hurricane Anna and Tropical Storm Bill in 2015. (8) Reflects losses from the Richland hailstorm, Hurricane Arthur and the Revere Tornado in 2014. |
Reinsurance Recoverable | Reinsurance recoverable at the balance sheet dates consists of the following: December 31, 2016 2015 Reinsurance recoverable on unpaid losses and LAE $ 18,724 $ 2,114 Reinsurance recoverable on paid losses and LAE 5,304 847 Reinsurance recoverable $ 24,028 $ 2,961 |
Reinsurance, Effect on Operations | The following table depicts written premiums, earned premiums and losses, showing the effects that our reinsurance transactions have on these components of our Consolidated Statements of Comprehensive Income: Year ended December 31, 2016 2015 2014 Premium written: Direct $ 708,252 $ 548,916 $ 417,769 Assumed (96 ) 20,820 18,984 Ceded (262,340 ) (183,808 ) (144,404 ) Net premium written $ 445,816 $ 385,928 $ 292,349 Change in unearned premiums: Direct $ (57,759 ) $ (65,300 ) $ (38,995 ) Assumed 16,432 (221 ) 2,937 Ceded 52,442 15,551 8,559 Net decrease (increase) $ 11,115 $ (49,970 ) $ (27,499 ) Premiums earned: Direct $ 650,493 $ 483,616 $ 378,774 Assumed 16,336 20,599 21,921 Ceded (209,898 ) (168,257 ) (135,845 ) Net premiums earned $ 456,931 $ 335,958 $ 264,850 Losses and LAE incurred: Direct $ 335,542 $ 188,270 $ 111,820 Assumed 3,747 7,861 8,672 Ceded (40,936 ) (13,023 ) (2,415 ) Net losses and LAE incurred $ 298,353 $ 183,108 $ 118,077 |
Reinsurance Effects On Unpaid Lossses, LAE and Unearned Premiums | The following table highlights the effects that our reinsurance transactions have on unpaid losses and loss adjustment expenses and unearned premiums in our Consolidated Balance Sheets: December 31, 2016 2015 2014 Unpaid losses and LAE: Direct $ 138,345 $ 72,373 $ 49,734 Assumed 2,510 4,419 4,702 Gross unpaid losses and LAE 140,855 76,792 54,436 Ceded (18,724 ) (2,114 ) (1,252 ) Net unpaid losses and LAE $ 122,131 $ 74,678 $ 53,184 Unearned premiums: Direct $ 371,149 $ 287,148 $ 212,201 Assumed 1,074 17,506 17,285 Gross unearned premiums 372,223 304,654 229,486 Ceded (132,564 ) (79,400 ) (63,827 ) Net unearned premiums $ 239,659 $ 225,254 $ 165,659 |
Liability for Unpaid Losses a42
Liability for Unpaid Losses and Loss Adjustment Expense Liability for Unpaid Losses and Loss Adjustment Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Short-duration Insurance Contracts, Claims Development | Remaining Product Lines $ In thousands (except number of reported claims) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2016 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 11,491 $ 9,605 $ 8,313 $ 7,825 $ 7,553 $ 7,554 $ 7,504 $ 7,464 $ 7,464 $ 7,507 $ — 1,191,000 2008 — 13,504 12,871 12,324 11,833 11,877 12,661 12,761 12,885 12,884 — 1,170,000 2009 — — 10,610 10,135 10,093 10,026 9,902 9,844 9,837 10,009 — 1,097,000 2010 — — — 9,911 11,042 10,733 11,126 11,020 11,105 11,072 — 1,160,000 2011 — — — — 11,126 11,022 10,896 10,630 10,575 10,740 — 1,217,000 2012 — — — — — 10,760 9,651 9,350 9,412 9,147 11 1,061,000 2013 — — — — — — 6,657 5,817 5,401 5,736 5 553,000 2014 — — — — — — — 9,073 7,927 8,016 76 682,000 2015 — — — — — — — — 19,669 19,723 581 1,384,000 2016 — — — — — — — — — 17,053 1,952 46,000 Total $ 111,887 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 3,974 $ 5,885 $ 6,627 $ 7,001 $ 7,127 $ 7,303 $ 7,442 $ 7,449 $ 7,452 $ 7,507 2008 — 6,169 9,309 10,647 11,104 11,404 12,360 12,403 12,557 12,884 2009 — — 4,807 7,507 8,470 9,062 9,471 9,570 9,688 10,009 2010 — — — 4,346 8,128 9,036 10,182 10,242 10,327 11,073 2011 — — — — 4,587 8,013 9,444 9,837 10,128 10,740 2012 — — — — — 5,112 7,631 8,242 8,626 9,124 2013 — — — — — — 2,925 4,496 4,811 5,566 2014 — — — — — — — 4,008 6,237 7,868 2015 — — — — — — — — 11,104 18,129 2016 — — — — — — — — — 12,432 Total $ 105,332 All outstanding liabilities before 2007, net of reinsurance 42 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 6,597 Homeowners' Insurance $ In thousands (except number of reported claims) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2016 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 28,232 $ 25,780 $ 24,828 $ 24,852 $ 24,641 $ 24,563 $ 24,665 $ 24,725 $ 24,596 $ 24,601 $ — 2,332,000 2008 — 30,073 28,126 27,174 27,161 27,358 27,597 27,564 27,468 27,453 — 3,170,000 2009 — — 46,952 46,089 45,515 45,583 45,316 45,116 44,959 44,996 — 4,044,000 2010 — — — 51,144 51,292 51,862 52,239 51,685 51,841 51,674 3 4,839,000 2011 — — — — 53,878 56,840 57,670 58,047 59,517 60,215 62 5,913,000 2012 — — — — — 65,112 69,438 68,923 68,388 69,000 167 10,649,000 2013 — — — — — — 98,461 94,755 93,041 92,702 677 7,809,000 2014 — — — — — — — 130,090 130,488 131,402 2,025 10,857,000 2015 — — — — — — — — 181,609 195,902 6,784 17,918,000 2016 — — — — — — — — — 249,276 34,483 28,430,000 Total $ 947,221 Accident Year Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 16,713 $ 22,017 $ 23,131 $ 24,155 $ 24,277 $ 24,382 $ 24,439 $ 24,483 $ 24,596 $ 24,601 2008 — 17,915 23,806 25,264 26,360 27,044 27,358 27,390 27,445 27,451 2009 — — 31,525 41,134 43,149 44,114 44,413 44,737 44,898 44,966 2010 — — — 32,993 43,932 46,711 49,256 50,215 50,704 51,163 2011 — — — — 36,419 48,558 52,412 55,532 58,069 59,461 2012 — — — — — 42,699 60,640 64,675 66,739 68,337 2013 — — — — — — 63,732 85,346 89,068 90,627 2014 — — — — — — — 88,375 119,612 125,951 2015 — — — — — — — — 123,888 174,993 2016 — — — — — — — — — 170,527 Total $ 838,077 All outstanding liabilities before 2007, net of reinsurance 176 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 109,320 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSE We generally use the term loss(es) to collectively refer to both loss and loss adjusting expenses. We establish reserves for both reported and unreported unpaid losses that have occurred at or before the balance sheet date for amounts we estimate we will be required to pay in the future. Our policy is to establish these loss reserves after considering all information known to us at each reporting period. At any given point in time, our loss reserve represents our best estimate of the ultimate settlement and administration cost of our insured claims incurred and unpaid. Since the process of estimating loss reserves requires significant judgment due to a number of variables, such as fluctuations in inflation, judicial decisions, legislative changes and changes in claims handling procedures, our ultimate liability will likely differ from these estimates. We revise our reserve for unpaid losses as additional information becomes available, and reflect adjustments, if any, in our earnings in the periods in which we determine the adjustments are necessary. General Discussion of the Loss Reserving Process Reserves for unpaid losses fall into two categories: case reserves and reserves for claims incurred but not reported. • Case reserves - When a claim is exported, we establish an automatic minimum case reserve for that claim type that represents our initial estimate of the losses that will ultimately be paid on the reported claim. Our initial estimate for each claim is based upon averages of loss payments for our prior closed claims made for that claim type. Then, our claims personnel perform an evaluation of the type of claim involved, the circumstances surrounding each claim and the policy provisions relating to the loss and adjust the reserve as necessary. As claims mature, we increase or decrease the reserve estimates as deemed necessary by our claims department based upon additional information we receive regarding the loss, the results of on-site reviews and any other information we gather while reviewing the claims. • Reserves for losses incurred but not reported (IBNR reserves) - Our IBNR reserves include true IBNR reserves plus “bulk” reserves. Bulk reserves represent additional amounts that cannot be allocated to particular claims, but which are necessary to estimate ultimate losses on reported and unreported claims. We estimate our IBNR reserves by projecting the ultimate losses using the methods discussed below and then deducting actual loss payments and case reserves from the projected ultimate losses. We review and adjust our IBNR reserves on a quarterly basis based on information available to us at the balance sheet date. When we establish our reserves, we analyze various factors such as our historical loss experience and that of the insurance industry, claims frequency and severity, our business mix, our claims processing procedures, legislative enactments, judicial decisions and legal developments in imposition of damages, and general economic conditions, including inflation. A change in any of these factors from the assumptions implicit in our estimates will cause our ultimate loss experience to be better or worse than indicated by our reserves, and the difference could be material. Due to the interaction of the aforementioned factors, there is no precise method for evaluating the impact of any one specific factor in isolation, and an element of judgment is ultimately required. Due to the uncertain nature of any projection of the future, the ultimate amount we will pay for losses will be different from the reserves we record. However, in our judgment, we employ techniques and assumptions that are appropriate, and the resulting reserve estimates are reasonable, given the information available at the balance sheet date. We determine our ultimate losses by using multiple actuarial methods to determine an actuarial estimate within a relevant range of indications that we calculate using generally accepted actuarial techniques. Our selection of the actuarial estimate is influenced by the analysis of our historical loss and claim experience. For each accident year, we estimate the ultimate incurred losses for both reported and unreported claims. In establishing this estimate, we review the results of various actuarial methods discussed below. Estimation of the Reserves for Unpaid Losses and Allocated Loss Adjustment Expenses We calculate our estimate of ultimate losses by using the following actuarial methods. We separately calculate the methods using paid loss data and incurred loss data. In the versions of these methods based on incurred loss data, the incurred losses are defined as paid losses plus case reserves. For this discussion of our loss reserving process, the word “segment” refers to a subgrouping of our claims data, such as by geographic area and/or by particular line of business; it does not refer to operating segments. • Incurred Development Method - The incurred development method is based upon the assumption that the relative change in a given year’s incurred loss estimates from one evaluation point to the next is similar to the relative change in prior years’ reported loss estimates at similar evaluation points. In utilizing this method, actual annual historical incurred loss data is evaluated. Successive years can be arranged to form a triangle of data. Loss development factors (LDFs) are calculated to measure the change in cumulative incurred costs from one evaluation point to the next. These historical LDFs and comparable industry benchmark factors form the basis for selecting the LDFs used in projecting the current valuation of losses to an ultimate basis. This method’s implicit assumption is that the relative adequacy of case reserves has been consistent over time, and that there have been no material changes in the rate at which claims have been reported. The paid development method is similar to the incurred development method. While the paid development methods have the disadvantage of not recognizing the information by current case reserves, it has the advantage of avoiding potential distortions in the data due to changes in case reserving methodology. The paid development method’s implicit assumption is that the rate of payment of claims has been relatively consistent over time. • Expected Loss Method - In the expected loss method, ultimate loss projections are based upon some prior measure of the anticipated losses, usually relative to some measure of exposure (e.g., earned house years). An expected loss cost is applied to the measure of exposure to determine estimated ultimate losses for each year. Actual losses are not considered in this calculation. This method has the advantage of stability over time, because the ultimate loss estimates do not change unless the exposures or loss costs change. However, this advantage of stability is offset by a lack of responsiveness, since this method does not consider actual loss experience as it emerges. This method is based on the assumption that the loss cost per unit of exposure is a good indication of ultimate losses. It can be entirely dependent on pricing assumptions (e.g., historical experience adjusted for loss trend). • Bornhuetter-Ferguson Method - The incurred Bornhuetter-Ferguson (B-F) method is essentially a blend of two other methods. The first method is the loss development method whereby actual incurred losses are multiplied by an expected LDF. For slow reporting coverages, the loss development method can lead to erratic and unreliable projections because a relatively small swing in early reporting can result in a large swing in ultimate projections. The second method is the expected loss method whereby the IBNR estimate equals the difference between a predetermined estimate of expected losses and actual incurred losses. The incurred B-F method combines these two methods by setting ultimate losses equal to actual incurred losses plus expected unreported losses. As an experience year matures and expected unreported losses become smaller, the initial expected loss assumption becomes gradually less important. Two parameters are needed to apply the B-F method: the initial expected loss cost and the expected reporting pattern (LDFs). This method is often used for long-tail lines and in situations where the incurred loss experience is relatively immature or lacks sufficient credibility for the application of other methods. The paid B-F method is analogous to the incurred B-F method using paid losses and development patterns in place of incurred losses and patterns. • Paid-to-Paid Development Method - In addition to the aforementioned methods, we also rely upon the paid-to-paid development method to project ultimate unallocated loss adjustment expense (ULAE). Ratios of paid ULAE to paid loss and allocated loss adjustment expense (ALAE) are compiled by calendar year and a paid-to-paid ratio selection is made. The selected ratio is applied to the estimated IBNR amounts and one half of this ratio is applied to case reserves. This method is derived from rule of thumb that half of ULAE is incurred when a claim is opened and the other half is incurred over the remaining life of the claim. Reliance and Selection of Methods The various methods we use have strengths and weaknesses that depend upon the circumstances of the segment and the age of the claims experience we analyze. The nature of our book of business allows us to place substantial, but not exclusive, reliance on the loss development methods, the selected LDFs, represent the most critical aspect of our loss reserving process. We use the same set of LDFs in the methods during our loss reserving process that we also use to calculate the premium necessary to pay expected ultimate losses. Reasonably-Likely Changes in Variables As previously noted, we evaluate several factors when exercising our judgment in the selection of the loss development factors that ultimately drive the determination of our loss reserves. The process of establishing our reserves is complex and necessarily imprecise, as it involves using judgment that is affected by many variables. We believe a reasonably-likely change in almost any of these aforementioned factors could have an impact on our reported results, financial condition and liquidity. However, we do not believe any reasonably-likely changes in the frequency or severity of claims would have a material impact on us. On an annual basis, our consulting actuary issues a statement of actuarial opinion that documents the actuary’s evaluation of the adequacy of our unpaid loss obligations under the terms of our policies. We review the analysis underlying the actuary’s opinion and compare the projected ultimate losses per the actuary’s analysis to our own projection of ultimate losses to ensure that our reserve for unpaid losses recorded at each annual balance sheet date is based upon our analysis of all internal and external factors related to known and unknown claims against us and to ensure our reserve is within guidelines promulgated by the National Association of Insurance Commissioners (NAIC). We maintain an in-house claims staff that monitors and directs all aspects of our claims process. We assign the fieldwork to our wholly-owned claims subsidiary, or to third-party claims adjusting companies, none of whom have the authority to settle or pay any claims on our behalf. The third-party claims adjusting companies conduct inspection of the damaged property and prepare initial estimates. We review the inspection reports and initial estimates to determine the amounts to be paid to the policyholder in accordance with the terms and conditions of the policy in effect at the time that the policyholder incurs the loss. We maintain strategic relationships with multiple claims adjusting companies that we can engage should we need additional non-catastrophe claims servicing capacity. We believe the combination of our internal resources and relationships with external claims servicing companies provide an adequate level of claims servicing in the event catastrophes affect our policyholders. The following is information about incurred claims development and paid claims development as of December 31, 2016 , net of reinsurance, as well as cumulative claim frequency and the total of IBNR liability plus expected development on reported claims included within the net incurred claims amounts. The incurred claims development and paid claims development data reflect the acquisitions of FSIC and IIC in February 2015 and April 2016, respectively, on a retrospective basis (includes FSIC and IIC data for years prior to our acquisition of the insurance affiliates). The information about incurred claims development and paid claims development for the years ended December 31, 2007, to 2015 is presented as supplementary information. Homeowners' Insurance $ In thousands (except number of reported claims) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2016 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 28,232 $ 25,780 $ 24,828 $ 24,852 $ 24,641 $ 24,563 $ 24,665 $ 24,725 $ 24,596 $ 24,601 $ — 2,332,000 2008 — 30,073 28,126 27,174 27,161 27,358 27,597 27,564 27,468 27,453 — 3,170,000 2009 — — 46,952 46,089 45,515 45,583 45,316 45,116 44,959 44,996 — 4,044,000 2010 — — — 51,144 51,292 51,862 52,239 51,685 51,841 51,674 3 4,839,000 2011 — — — — 53,878 56,840 57,670 58,047 59,517 60,215 62 5,913,000 2012 — — — — — 65,112 69,438 68,923 68,388 69,000 167 10,649,000 2013 — — — — — — 98,461 94,755 93,041 92,702 677 7,809,000 2014 — — — — — — — 130,090 130,488 131,402 2,025 10,857,000 2015 — — — — — — — — 181,609 195,902 6,784 17,918,000 2016 — — — — — — — — — 249,276 34,483 28,430,000 Total $ 947,221 Accident Year Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 16,713 $ 22,017 $ 23,131 $ 24,155 $ 24,277 $ 24,382 $ 24,439 $ 24,483 $ 24,596 $ 24,601 2008 — 17,915 23,806 25,264 26,360 27,044 27,358 27,390 27,445 27,451 2009 — — 31,525 41,134 43,149 44,114 44,413 44,737 44,898 44,966 2010 — — — 32,993 43,932 46,711 49,256 50,215 50,704 51,163 2011 — — — — 36,419 48,558 52,412 55,532 58,069 59,461 2012 — — — — — 42,699 60,640 64,675 66,739 68,337 2013 — — — — — — 63,732 85,346 89,068 90,627 2014 — — — — — — — 88,375 119,612 125,951 2015 — — — — — — — — 123,888 174,993 2016 — — — — — — — — — 170,527 Total $ 838,077 All outstanding liabilities before 2007, net of reinsurance 176 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 109,320 The following is supplementary information about average historical claims duration as of December 31, 2016 . Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 65.4 % 22.4 % 4.7 % 3.6 % 2.0 % 1.1 % 0.4 % 0.2 % 0.2 % — % Remaining Product Lines $ In thousands (except number of reported claims) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2016 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 11,491 $ 9,605 $ 8,313 $ 7,825 $ 7,553 $ 7,554 $ 7,504 $ 7,464 $ 7,464 $ 7,507 $ — 1,191,000 2008 — 13,504 12,871 12,324 11,833 11,877 12,661 12,761 12,885 12,884 — 1,170,000 2009 — — 10,610 10,135 10,093 10,026 9,902 9,844 9,837 10,009 — 1,097,000 2010 — — — 9,911 11,042 10,733 11,126 11,020 11,105 11,072 — 1,160,000 2011 — — — — 11,126 11,022 10,896 10,630 10,575 10,740 — 1,217,000 2012 — — — — — 10,760 9,651 9,350 9,412 9,147 11 1,061,000 2013 — — — — — — 6,657 5,817 5,401 5,736 5 553,000 2014 — — — — — — — 9,073 7,927 8,016 76 682,000 2015 — — — — — — — — 19,669 19,723 581 1,384,000 2016 — — — — — — — — — 17,053 1,952 46,000 Total $ 111,887 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 3,974 $ 5,885 $ 6,627 $ 7,001 $ 7,127 $ 7,303 $ 7,442 $ 7,449 $ 7,452 $ 7,507 2008 — 6,169 9,309 10,647 11,104 11,404 12,360 12,403 12,557 12,884 2009 — — 4,807 7,507 8,470 9,062 9,471 9,570 9,688 10,009 2010 — — — 4,346 8,128 9,036 10,182 10,242 10,327 11,073 2011 — — — — 4,587 8,013 9,444 9,837 10,128 10,740 2012 — — — — — 5,112 7,631 8,242 8,626 9,124 2013 — — — — — — 2,925 4,496 4,811 5,566 2014 — — — — — — — 4,008 6,237 7,868 2015 — — — — — — — — 11,104 18,129 2016 — — — — — — — — — 12,432 Total $ 105,332 All outstanding liabilities before 2007, net of reinsurance 42 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 6,597 The following is supplementary information about average historical claims duration as of December 31, 2016 . Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 48.3 % 25.7 % 7.2 % 6.5 % 2.8 % 3.5 % 2.5 % 1.5 % 1.3 % 0.7 % The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. December 31, 2016 Net outstanding liabilities Homeowners' Only $ 109,320 All other lines of business 6,597 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 115,917 Reinsurance recoverable on unpaid claims Homeowners' Only $ 14,223 All other lines of business 4,501 Total reinsurance recoverable on unpaid claims $ 18,724 Unallocated claims adjustment expenses 6,214 Total gross liability for unpaid claims and claims adjustment expense $ 140,855 The table below shows the analysis of our reserve for unpaid losses for each of our last three fiscal years on a GAAP basis: 2016 2015 2014 Balance at January 1 $ 76,792 $ 54,436 $ 47,451 Acquisition of IIC reserves 22,576 — — Acquisition of FSIC reserves — 2,390 — Less: reinsurance recoverable on unpaid losses 2,114 1,252 1,957 Net balance at January 1 $ 97,254 $ 55,574 $ 45,494 Incurred related to: Current year 281,365 185,476 122,114 Prior years 16,988 (2,368 ) (4,037 ) Total incurred $ 298,353 $ 183,108 $ 118,077 Paid related to: Current year 210,970 127,306 83,967 Prior years 62,506 36,698 26,420 Total paid $ 273,476 $ 164,004 $ 110,387 Net balance at December 31 $ 122,131 $ 74,678 $ 53,184 Plus: reinsurance recoverable on unpaid losses 18,724 2,114 1,252 Balance at December 31 $ 140,855 $ 76,792 $ 54,436 Composition of reserve for unpaid losses and LAE: Case reserves $ 83,447 $ 45,502 $ 29,726 IBNR reserves 57,408 31,290 24,710 Balance at December 31 $ 140,855 $ 76,792 $ 54,436 Based upon our internal analysis and our review of the statement of actuarial opinion provided by our actuarial consultants, we believe that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date. As reflected by our losses incurred related to prior years, the favorable development experienced in 2015 was primarily the result of losses related to the 2014 and 2013 accident years coming in better than expected. The favorable development experienced in 2014 was primarily the result of losses related to the 2013 and 2012 accident years coming in better than expected. During 2016, we had a reserve deficiency. Since we place substantial reliance on loss-development-based actuarial models when determining our estimate of ultimate losses, the deficiencies resulted from additional development on prior accident years which caused our ultimate losses to increase. The table below shows the analysis of our reserve for unpaid losses for each of our last three fiscal years on a GAAP basis: 2016 2015 2014 Balance at January 1 $ 76,792 $ 54,436 $ 47,451 Acquisition of IIC reserves 22,576 — — Acquisition of FSIC reserves — 2,390 — Less: reinsurance recoverable on unpaid losses 2,114 1,252 1,957 Net balance at January 1 $ 97,254 $ 55,574 $ 45,494 Incurred related to: Current year 281,365 185,476 122,114 Prior years 16,988 (2,368 ) (4,037 ) Total incurred $ 298,353 $ 183,108 $ 118,077 Paid related to: Current year 210,970 127,306 83,967 Prior years 62,506 36,698 26,420 Total paid $ 273,476 $ 164,004 $ 110,387 Net balance at December 31 $ 122,131 $ 74,678 $ 53,184 Plus: reinsurance recoverable on unpaid losses 18,724 2,114 1,252 Balance at December 31 $ 140,855 $ 76,792 $ 54,436 Composition of reserve for unpaid losses and LAE: Case reserves $ 83,447 $ 45,502 $ 29,726 IBNR reserves 57,408 31,290 24,710 Balance at December 31 $ 140,855 $ 76,792 $ 54,436 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | The following is supplementary information about average historical claims duration as of December 31, 2016 . Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 65.4 % 22.4 % 4.7 % 3.6 % 2.0 % 1.1 % 0.4 % 0.2 % 0.2 % — % The following is supplementary information about average historical claims duration as of December 31, 2016 . Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 48.3 % 25.7 % 7.2 % 6.5 % 2.8 % 3.5 % 2.5 % 1.5 % 1.3 % 0.7 % |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. December 31, 2016 Net outstanding liabilities Homeowners' Only $ 109,320 All other lines of business 6,597 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 115,917 Reinsurance recoverable on unpaid claims Homeowners' Only $ 14,223 All other lines of business 4,501 Total reinsurance recoverable on unpaid claims $ 18,724 Unallocated claims adjustment expenses 6,214 Total gross liability for unpaid claims and claims adjustment expense $ 140,855 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The table below presents the rollforward of our debt issuance costs paid, in conjunction with the debts instruments described above, during the year ended December 31, 2016: 2016 Balance at January 1, $ — Additions 596 Amortization (47 ) Balance at December 31, $ 549 |
Schedule of Maturities of Long-term Debt | At December 31, 2016 , the annual maturities of our long-term debt were as follows: Amount 2017 $ 9,969 2018 1,472 2019 1,473 2020 1,473 2121 1,474 Thereafter 38,314 Total debt $ 54,175 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table summarizes the provision for income taxes: Year Ended December 31, 2016 2015 2014 Federal: Current $ (1,906 ) $ 10,143 $ 21,633 Deferred 1,920 2,103 (996 ) Provision for Federal income tax expense 14 12,246 20,637 State: Current 1,001 2,054 2,945 Deferred 290 202 (185 ) Provision for State income tax expense 1,291 2,256 2,760 Provision for income taxes $ 1,305 $ 14,502 $ 23,397 |
Tax Expense Reconciliation | The actual income tax expense differs from the expected income tax expense computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows: Year Ended December 31, 2016 2015 2014 Expected income tax expense at federal rate $ 2,381 $ 14,671 $ 22,545 State tax expense, net of federal deduction benefit 934 1,023 1,660 Dividend received deduction (217 ) — (350 ) Prior period adjustment — 42 — Section 847 payments — (693 ) — Municipal tax exempt interest (1,011 ) — — Other, net (782 ) (541 ) (458 ) Reported income tax expense $ 1,305 $ 14,502 $ 23,397 |
Schedule of Deferred Tax Assets and Liabilities | The table below summarizes the significant components of our net deferred tax liability : December 31, 2016 2015 Deferred tax assets: Unearned premiums $ 19,113 $ 18,182 Tax-related discount on loss reserve 1,479 936 Bad debt expense 54 51 Other-than-temporary impairment 27 28 Other 507 432 Total deferred tax assets 21,180 19,629 Deferred tax liabilities: Unrealized gain (642 ) (1,019 ) Deferred acquisitions costs (19,586 ) (18,976 ) Capitalized software (1,505 ) (251 ) Intangible asset (3,371 ) (1,974 ) Other (895 ) (433 ) Total deferred tax liabilities (25,999 ) (22,653 ) Net deferred tax liability $ (4,819 ) $ (3,024 ) |
Statutory Accounting and Regu45
Statutory Accounting and Regulation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Assessments | The table below summarizes the activity related to assessments levied upon our insurance affiliates: 2016 2015 2014 Expected recoveries of assessments, January 1 $ — $ — $ 7 Assessments expensed 1,472 226 72 Assessments recovered — 1 (2 ) Assessments not recoverable (1,472 ) (227 ) (77 ) Expected recoveries of assessments, December 31 $ — $ — $ — |
Statutory Accounting Practices, Statutory to GAAP Net Income Reconciliation | The table below reconciles our consolidated GAAP net income to the statutory net income of our insurance affiliates: Year Ended December 31, 2016 2015 2014 Consolidated GAAP net income $ 5,698 $ 27,358 $ 41,013 Increase (decrease) due to: Commissions 17,486 339 (12,258 ) Deferred income taxes (3,255 ) (2,518 ) 64 Deferred policy acquisition costs (6,342 ) (4,962 ) (788 ) Allowance for doubtful accounts (24 ) 97 5 Assessments — — (78 ) Prepaid expenses (538 ) 131 (136 ) Other, net 166 — — Operations of non-statutory subsidiaries (10,621 ) (10,077 ) (14,915 ) January net income for FSIC — 152 — January through April net income for IIC 3,513 — — Statutory net income of insurance affiliates $ 6,083 $ 10,520 $ 12,907 |
Statutory Accounting Practices, Statutory to GAAP, Stockholders' Equity Reconciliation | The table below reconciles our consolidated GAAP stockholders’ equity to the surplus as regards policyholders of our insurance affiliates: December 31, 2016 2015 Consolidated GAAP stockholders’ equity $ 241,327 $ 239,211 Increase (decrease) due to: Deferred policy acquisition costs (15,373 ) (9,031 ) Deferred income taxes (3,338 ) 917 Investments 1,386 185 Non-admitted assets (623 ) (1,066 ) Surplus debentures 11,176 12,353 Provision for reinsurance (7,648 ) (734 ) Equity of non-statutory subsidiaries (32,615 ) (96,825 ) Commissions 18,570 876 Prepaid expenses (564 ) (26 ) Paid in surplus — 5,000 Statutory surplus as regards policyholders of insurance affiliates $ 212,298 $ 150,860 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2016 , our minimum future lease payment s under non-cancellable operating leases are: Amount 2017 $ 173 2018 112 2019 110 2020 89 2021 59 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below details the components of accumulated other comprehensive income at year end: Pre-Tax Amount Tax (Expense)Benefit Net-of-Tax Amount December 31, 2013 $ 150 $ (58 ) $ 92 Changes in net unrealized gain on investments 6,367 (2,460 ) 3,907 Reclassification adjustment for net realized losses 20 (8 ) 12 December 31, 2014 6,537 (2,526 ) 4,011 Changes in net unrealized loss on investments (3,070 ) 1,187 (1,883 ) Reclassification adjustment for net realized losses (827 ) 319 (508 ) December 31, 2015 2,640 (1,020 ) 1,620 Changes in net unrealized gain on investments (629 ) 167 (462 ) Reclassification adjustment for net realized gains (547 ) 211 (336 ) December 31, 2016 $ 1,464 $ (642 ) $ 822 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Dividends Declared | Our Board declared dividends on our outstanding shares of common stock to shareholders of record as follows for the periods presented (in thousands, except per share amounts): Year Ended December 31, 2016 2015 2014 Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount First Quarter $ 0.05 $ 1,076 $ 0.05 $ 1,073 $ 0.04 $ 832 Second Quarter $ 0.06 $ 1,300 $ 0.05 $ 1,077 $ 0.04 $ 834 Third Quarter $ 0.06 $ 1,299 $ 0.05 $ 1,076 $ 0.04 $ 834 Fourth Quarter $ 0.06 $ 1,299 $ 0.05 $ 1,076 $ 0.04 $ 836 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Share Activity | The following table presents certain information related to the activity of our non-vested common stock grants: Number of Restricted Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2013 80,068 $ 5.56 Granted 103,156 13.86 Forfeited 8,057 7.69 Vested 21,784 6.40 Outstanding as of December 31, 2014 153,383 10.91 Granted 130,442 20.38 Forfeited 14,365 13.80 Vested 90,277 12.71 Outstanding as of December 31, 2015 179,183 16.67 Granted 115,405 16.90 Forfeited 26,082 17.44 Vested 98,864 16.39 Outstanding as of December 31, 2016 169,642 $ 16.87 |
Significant Accounting Polici50
Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Allowance for Uncollectible Premium | $ 144,000 | $ 132,000 | |
Finite-Lived Intangible Asset, Useful Life | 7 years | ||
Schedule of Managing General Agent and Policy Fees [Line Items] | |||
Assessments levied, for NCJUA | $ 415,000 | ||
Advertising Expense | $ 907,000 | 2,630,000 | $ 1,819,000 |
Concentration Risk, Percentage | 47.00% | ||
Cash, FDIC Insured Amount | $ 159,288,000 | $ 72,405,000 | |
Cash, FDIC Insured Amount, Period Increase (Decrease) | 86,883,000 | ||
FLORIDA | Policy Underwriting Fee [Member] | Option 1 [Member] | |||
Schedule of Managing General Agent and Policy Fees [Line Items] | |||
Policy Charges, Insurance | 25 | ||
GEORGIA | Policy Underwriting Fee [Member] | |||
Schedule of Managing General Agent and Policy Fees [Line Items] | |||
Policy Charges, Insurance | 25 | ||
RHODE ISLAND | Policy Underwriting Fee [Member] | |||
Schedule of Managing General Agent and Policy Fees [Line Items] | |||
Policy Charges, Insurance | 25 | ||
HAWAII | Policy Underwriting Fee [Member] | |||
Schedule of Managing General Agent and Policy Fees [Line Items] | |||
Policy Charges, Insurance | 50 | ||
TEXAS | Policy Underwriting Fee [Member] | Option 1 [Member] | |||
Schedule of Managing General Agent and Policy Fees [Line Items] | |||
Policy Charges, Insurance | 25 | ||
TEXAS | Policy Underwriting Fee [Member] | Option 2 [Member] | |||
Schedule of Managing General Agent and Policy Fees [Line Items] | |||
Policy Charges, Insurance | 75 | ||
TEXAS | Inspection Fees [Member] | |||
Schedule of Managing General Agent and Policy Fees [Line Items] | |||
Policy Charges, Insurance | 25 | ||
LOUISIANA | Inspection Fees [Member] | |||
Schedule of Managing General Agent and Policy Fees [Line Items] | |||
Policy Charges, Insurance | 125 | ||
MASSACHUSETTS | Inspection Fees [Member] | |||
Schedule of Managing General Agent and Policy Fees [Line Items] | |||
Policy Charges, Insurance | 25 | ||
NEW JERSEY | Policy Underwriting Fee [Member] | |||
Schedule of Managing General Agent and Policy Fees [Line Items] | |||
Policy Charges, Insurance | $ 25 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investment Holdings [Line Items] | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 0 | |
Fair Value of Limited Partnership Interest | 5,433 | |
Kayne Senior Credit Fund II, L.P. | ||
Investment Holdings [Line Items] | ||
Fair Value of Limited Partnership Interest | 1,450 | |
United Capital Funding Corp. | ||
Investment Holdings [Line Items] | ||
Payments to Acquire Other Investments | 1,000 | |
Other Long-term Investments | ||
Investment Holdings [Line Items] | ||
Other Long-term Investments | $ 5,733 | $ 5,210 |
Investments Reconciliation, Inv
Investments Reconciliation, Investments by Category (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 527,183 | $ 450,074 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 7,598 | 6,577 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 6,134 | 3,937 |
Investments | 528,647 | 452,714 |
US Government and Government Agencies and Authorities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 151,656 | 81,973 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 189 | 148 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 1,893 | 474 |
Available-for-sale Securities, Debt Securities | 149,952 | 81,647 |
Foreign Government Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 2,031 | 2,038 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 30 | 37 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 0 | 0 |
Available-for-sale Securities, Debt Securities | 2,061 | 2,075 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 170,636 | 154,004 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 1,027 | 2,391 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 2,551 | 490 |
Available-for-sale Securities, Debt Securities | 169,112 | 155,905 |
Public Utility, Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 7,687 | 8,398 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 116 | 128 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 73 | 33 |
Available-for-sale Securities, Debt Securities | 7,730 | 8,493 |
All Other Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 164,424 | 148,170 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 1,238 | 880 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 1,126 | 2,292 |
Available-for-sale Securities, Debt Securities | 164,536 | 146,758 |
Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 1,182 | 1,832 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 5 | 37 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 62 | 49 |
Available-for-sale Securities, Debt Securities | 1,125 | 1,820 |
Fixed Maturities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 497,616 | 396,415 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 2,605 | 3,621 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 5,705 | 3,338 |
Available-for-sale Securities, Debt Securities | 494,516 | 396,698 |
Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 26,357 | |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 0 | |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 14 | |
Available-for-sale Securities, Equity Securities | 26,343 | |
Public Utility, Equities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 1,343 | 1,342 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 164 | 44 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 0 | 34 |
Available-for-sale Securities, Equity Securities | 1,507 | 1,352 |
Other Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 19,815 | 18,624 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 4,552 | 2,615 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 319 | 545 |
Available-for-sale Securities, Equity Securities | 24,048 | 20,694 |
Nonredeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 2,916 | 2,356 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 10 | 67 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 83 | 6 |
Available-for-sale Securities, Equity Securities | 2,843 | 2,417 |
Equity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 24,074 | 48,679 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 4,726 | 2,726 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 402 | 599 |
Available-for-sale Securities, Equity Securities | 28,398 | 50,806 |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 5,493 | 4,980 |
Available-for-sale Securities, Gross Unrealized Gain, Accumulated in Investments | 267 | 230 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 27 | 0 |
Other Long-term Investments | $ 5,733 | $ 5,210 |
Investments Gains and Losses by
Investments Gains and Losses by Security Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Gross Realized Gains | $ 1,875 | $ 2,622 | $ 390 |
Available-for-sale, Gross Realized Gains, Fair Value at Sale | 69,737 | 94,931 | 116,923 |
Available-for-sale Securities, Gross Realized Losses | (1,328) | (1,795) | (410) |
Available-for-sale, Gross Realized Losses, Fair Value at Sale | 62,254 | 42,657 | 12,918 |
Available-for-sale Securities, Gross Realized Gain (Loss) | 547 | 827 | (20) |
Available-for-sale, Gross Realized Gains (Losses), Fair Value at Sale | 131,991 | 137,588 | 129,841 |
Fixed Maturities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Gross Realized Gains | 1,811 | 727 | 92 |
Available-for-sale, Gross Realized Gains, Fair Value at Sale | 56,484 | 87,141 | 5,598 |
Available-for-sale Securities, Gross Realized Losses | (1,136) | (595) | (228) |
Available-for-sale, Gross Realized Losses, Fair Value at Sale | 24,464 | 38,485 | 11,389 |
Equity Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Gross Realized Gains | 64 | 1,895 | 298 |
Available-for-sale, Gross Realized Gains, Fair Value at Sale | 13,253 | 7,790 | 111,325 |
Available-for-sale Securities, Gross Realized Losses | (192) | (1,200) | (182) |
Available-for-sale, Gross Realized Losses, Fair Value at Sale | $ 37,790 | $ 4,172 | $ 1,529 |
Investments Classified by Matur
Investments Classified by Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Maturities, within One Year, Amortized Cost Basis, Percent of Total | 7.40% | |
Available-for-sale Securities, Debt Maturities, within One Year, Fair Value, Percent of Total | 7.50% | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Amortized Cost Basis, Percent of Total | 55.00% | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value, Percent of Total | 55.10% | |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Amortized Cost Basis, Percent of Total | 28.60% | |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value, Percent of Total | 28.40% | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis, Percent of Total | 9.00% | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value, Percent of Total | 9.00% | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Percent of Total | 100.00% | |
Available-for-sale Securities | $ 528,647 | $ 452,714 |
Available-for-sale Securities, Fair Value Disclosure, Percent of Total | 100.00% | |
Fixed Maturities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $ 36,973 | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 36,974 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 273,784 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 272,822 | |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 142,452 | |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 140,416 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 44,407 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 44,304 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 497,616 | 396,415 |
Available-for-sale Securities | $ 494,516 | $ 396,698 |
Investments Net Investment Inco
Investments Net Investment Income by Major Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Investment Income [Line Items] | |||
Net investment income | $ 10,679 | $ 9,212 | $ 6,795 |
Investment expenses | (587) | (267) | (312) |
Investment Income, Net | 10,092 | 8,945 | 6,483 |
Debt Securities [Member] | |||
Net Investment Income [Line Items] | |||
Net investment income | 9,170 | 8,092 | 5,866 |
Equity Securities | |||
Net Investment Income [Line Items] | |||
Net investment income | 996 | 859 | 734 |
Cash, Cash Equivalents And Short-Term Investments [Member] | |||
Net Investment Income [Line Items] | |||
Net investment income | 141 | 25 | 9 |
Partnership Interest [Member] | |||
Net Investment Income [Line Items] | |||
Net investment income | 352 | 222 | 166 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |||
Net Investment Income [Line Items] | |||
Net investment income | $ 20 | $ 14 | $ 20 |
Investments Aging of Unrealized
Investments Aging of Unrealized Losses by Class (Details) $ in Thousands | Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 646 | 478 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 5,898 | $ 3,357 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 344,434 | $ 231,759 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 25 | 39 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 236 | $ 580 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 3,122 | $ 30,050 |
US Government and Government Agencies and Authorities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 186 | 73 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 1,893 | $ 265 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 111,216 | $ 44,786 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 0 | 21 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ 209 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | $ 11,250 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 201 | 61 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 2,551 | $ 463 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 136,360 | $ 56,971 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 0 | 5 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ 27 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | $ 7,620 |
Public Utility, Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 8 | 8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 73 | $ 4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 2,222 | $ 1,961 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 0 | 1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ 29 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | $ 1,015 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 215 | 242 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 1,100 | $ 2,025 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 88,605 | $ 92,429 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 1 | 9 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 26 | $ 267 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 1,021 | $ 10,047 |
Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 7 | 7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 62 | $ 49 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 764 | $ 746 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | $ 0 |
Fixed Maturities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 617 | 391 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 5,679 | $ 2,806 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 339,167 | $ 196,893 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 1 | 36 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 26 | $ 532 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 1,021 | $ 29,932 |
Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 14 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 26,343 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | |
Public Utility, Equities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 4 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 34 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 697 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | |
Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 16 | 63 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 140 | $ 497 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 2,450 | $ 6,665 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 17 | 3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 179 | $ 48 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 1,732 | $ 118 |
Nonredeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 12 | 19 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 52 | $ 6 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 1,830 | $ 1,161 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 7 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 31 | $ 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 369 | $ 0 |
Equity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 28 | 87 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 192 | $ 551 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 4,280 | $ 34,866 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 24 | 3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 210 | $ 48 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 2,101 | $ 118 |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 27 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 987 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 |
Investments by Category and Lev
Investments by Category and Level (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | $ 528,647 | $ 452,714 |
US Government and Government Agencies and Authorities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 149,952 | 81,647 |
Foreign Government Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 2,061 | 2,075 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 169,112 | 155,905 |
Public Utility, Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 7,730 | 8,493 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 164,536 | 146,758 |
Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 1,125 | 1,820 |
Fixed Maturities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 494,516 | 396,698 |
Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 26,343 | |
Public Utility, Equities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 1,507 | 1,352 |
Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 24,048 | 20,694 |
Nonredeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 2,843 | 2,417 |
Equity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 28,398 | 50,806 |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 5,733 | 5,210 |
Level 1 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 29,823 | 52,926 |
Level 1 [Member] | US Government and Government Agencies and Authorities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level 1 [Member] | Foreign Government Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level 1 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level 1 [Member] | Public Utility, Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level 1 [Member] | Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level 1 [Member] | Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 1,125 | 1,820 |
Level 1 [Member] | Fixed Maturities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 1,125 | 1,820 |
Level 1 [Member] | Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 26,343 | |
Level 1 [Member] | Public Utility, Equities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 1,507 | 1,352 |
Level 1 [Member] | Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 24,048 | 20,694 |
Level 1 [Member] | Nonredeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 2,843 | 2,417 |
Level 1 [Member] | Equity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 28,398 | 50,806 |
Level 1 [Member] | Other Long-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 300 | 300 |
Level 2 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 497,126 | 397,933 |
Level 2 | US Government and Government Agencies and Authorities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 149,952 | 81,647 |
Level 2 | Foreign Government Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 2,061 | 2,075 |
Level 2 | US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 169,112 | 155,905 |
Level 2 | Public Utility, Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 7,730 | 8,493 |
Level 2 | Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 164,536 | 146,758 |
Level 2 | Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level 2 | Fixed Maturities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 493,391 | 394,878 |
Level 2 | Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | |
Level 2 | Public Utility, Equities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level 2 | Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level 2 | Nonredeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level 2 | Equity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level 2 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 3,735 | 3,055 |
Fair Value, Inputs, Level 3 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 1,698 | 1,855 |
Fair Value, Inputs, Level 3 | US Government and Government Agencies and Authorities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Foreign Government Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Public Utility, Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Fixed Maturities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | |
Fair Value, Inputs, Level 3 | Public Utility, Equities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Nonredeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Equity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | $ 1,698 | $ 1,855 |
Investments Investments, Level
Investments Investments, Level 3 Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | $ 528,647 | $ 452,714 |
Other Long-term Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 5,733 | 5,210 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale Securities | 1,698 | 1,855 |
Fair Value, Inputs, Level 3 | Other Long-term Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 1,855 | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 143 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (311) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 11 | |
Available-for-sale Securities | $ 1,698 | $ 1,855 |
Investments Investments, Other
Investments Investments, Other Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Cost-method Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 527,183 | $ 450,074 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 7,598 | 6,577 |
Fair Value of Limited Partnership Interest | 5,433 | |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 6,134 | 3,937 |
DCR Mortgage Fund VI, L.P. | ||
Schedule of Cost-method Investments [Line Items] | ||
Fair Value of Limited Partnership Interest | 711 | |
RCH Mortgage Fund VI, L.P. | ||
Schedule of Cost-method Investments [Line Items] | ||
Fair Value of Limited Partnership Interest | 987 | |
Kayne Senior Credit Fund II, L.P. | ||
Schedule of Cost-method Investments [Line Items] | ||
Fair Value of Limited Partnership Interest | 1,450 | |
DCR Mortgage Fund VII, L.P. | ||
Schedule of Cost-method Investments [Line Items] | ||
Fair Value of Limited Partnership Interest | 2,045 | |
Blackstone Alternative Solutions Trust 2015 | ||
Schedule of Cost-method Investments [Line Items] | ||
Fair Value of Limited Partnership Interest | 240 | |
Limited Partner | ||
Schedule of Cost-method Investments [Line Items] | ||
Payments to Acquire Limited Partnership Interests | 5,197 | |
Available-for-sale Securities, Amortized Cost Basis | 5,193 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 267 | |
Fair Value of Limited Partnership Interest | 5,433 | |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 27 | |
Certificates of Deposit | ||
Schedule of Cost-method Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 300 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Payments to Acquire Restricted Certificates of Deposit | 300 | |
Certificates of Deposit, at Carrying Value | 300 | |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 0 | |
Other Long-term Investments | ||
Schedule of Cost-method Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 5,493 | 4,980 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 267 | 230 |
Cost Method Investments | 5,497 | |
Other Long-term Investments | 5,733 | 5,210 |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 27 | $ 0 |
Other Long-term Investments | Limited Partner | Kayne Senior Credit Fund II, L.P. | ||
Schedule of Cost-method Investments [Line Items] | ||
Payments to Acquire Other Investments | 425 | |
Other Long-term Investments | Limited Partner | Blackstone Alternative Solutions Trust 2015 | ||
Schedule of Cost-method Investments [Line Items] | ||
Payments to Acquire Other Investments | 760 | |
Fair Value, Inputs, Level 3 | Limited Partner | ||
Schedule of Cost-method Investments [Line Items] | ||
Payments to Acquire Limited Partnership Interests | 1,382 | |
Available-for-sale Securities, Amortized Cost Basis | 1,458 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 267 | |
Fair Value of Limited Partnership Interest | 1,698 | |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 27 | |
Fair Value, Inputs, Level 3 | Other Long-term Investments | Limited Partner | DCR Mortgage Fund VI, L.P. | ||
Schedule of Cost-method Investments [Line Items] | ||
Payments to Acquire Limited Partnership Interests | 382 | |
Available-for-sale Securities, Amortized Cost Basis | 444 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 267 | |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 0 | |
Fair Value, Inputs, Level 3 | Other Long-term Investments | Limited Partner | RCH Mortgage Fund VI, L.P. | ||
Schedule of Cost-method Investments [Line Items] | ||
Payments to Acquire Limited Partnership Interests | 1,000 | |
Available-for-sale Securities, Amortized Cost Basis | 1,014 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 27 | |
Level 2 | Limited Partner | ||
Schedule of Cost-method Investments [Line Items] | ||
Payments to Acquire Limited Partnership Interests | 3,815 | |
Available-for-sale Securities, Amortized Cost Basis | 3,735 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Fair Value of Limited Partnership Interest | 3,735 | |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 0 | |
Level 2 | Other Long-term Investments | Limited Partner | Kayne Senior Credit Fund II, L.P. | ||
Schedule of Cost-method Investments [Line Items] | ||
Payments to Acquire Limited Partnership Interests | 1,575 | |
Available-for-sale Securities, Amortized Cost Basis | 1,450 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 0 | |
Level 2 | Other Long-term Investments | Limited Partner | DCR Mortgage Fund VII, L.P. | ||
Schedule of Cost-method Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 2,045 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Payments to Acquire Other Investments | 2,000 | |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | 0 | |
Level 2 | Other Long-term Investments | Limited Partner | Blackstone Alternative Solutions Trust 2015 | ||
Schedule of Cost-method Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 240 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Payments to Acquire Other Investments | 240 | |
Available-for-sale Securities, Gross Unrealized Loss, Accumulated in Investments | $ 0 |
Investments Fair Value Inputs,
Investments Fair Value Inputs, Assets, Quantitative Information (Details) - Discounted Cash Flow [Member] - Limited Partner - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
DCR Mortgage Fund VI, L.P. | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ (56) | $ (88) |
Fair Value Inputs, Discount Rate | 2.35% | 2.35% |
RCH Mortgage Fund VI, L.P. | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ (341) | $ (341) |
Fair Value Inputs, Discount Rate | 7.35% | 7.35% |
Acquisitions Pro Forma (Details
Acquisitions Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Feb. 03, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Apr. 29, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||
Revenues | $ 487,117 | $ 357,569 | $ 280,230 | ||||||||||
Business Acquisition, Pro Forma Revenue | 506,080 | 413,931 | |||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 13,885 | $ 33,050 | |||||||||||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 0.64 | $ 1.54 | |||||||||||
Net Income (Loss) Attributable to Parent | $ (10,517) | $ 3,423 | $ 9,841 | $ 2,951 | $ 13,802 | $ 8,083 | $ 5,275 | $ 198 | $ 5,698 | $ 27,358 | $ 41,013 | ||
Earnings Per Share, Diluted | $ (0.49) | $ 0.16 | $ 0.45 | $ 0.14 | $ 0.64 | $ 0.38 | $ 0.25 | $ 0.01 | $ 0.26 | $ 1.28 | $ 2.05 | ||
Family Security Holdings (FSH) | |||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||
Revenues | $ 1,127 | ||||||||||||
Business Acquisition, Pro Forma Revenue | $ 358,696 | ||||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 27,435 | ||||||||||||
Net Income (Loss) Attributable to Parent | $ 77 | ||||||||||||
Earnings Per Share, Diluted | $ 0 | $ 1.28 | |||||||||||
Interboro Insurance Company | |||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||
Revenues | $ 18,963 | $ 56,362 | |||||||||||
Net Income (Loss) Attributable to Parent | $ 8,187 | $ 5,692 | |||||||||||
Earnings Per Share, Diluted | $ 0.38 | $ 0.26 |
Schedule of Business Acquisit62
Schedule of Business Acquisitions, by Acquisition, Contingent Consideration (Details) - Common Stock - Family Security Holdings (FSH) - USD ($) $ in Thousands | Mar. 18, 2016 | Feb. 03, 2015 |
Business Acquisition, Contingent Consideration [Line Items] | ||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 12,994 | |
Business Combination, Consideration Transferred, Liabilities Incurred | 513 | |
Business Combination, Consideration Transferred | $ 13,507 | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 503,857 | |
Weighted Average Number of Shares, Contingently Issuable | 32,943 |
Schedule of Business Acquisit63
Schedule of Business Acquisitions, by Acquisition (Details) - Interboro Insurance Company $ in Thousands | Apr. 29, 2016USD ($) |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 15,554 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 66,527 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 3,186 |
Business Combination, Assets Acquired and Liabilities Assumed, Reinsurance Receivable | 1,042 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 5,877 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 10,841 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 3,980 |
Business Combination, Assets Acquired and Liabilities Assumed, Loss Reserves | (24,967) |
Business Combination, Assets Acquired and Liabilities Assumed, Unearned Premiums | 26,243 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | (1,472) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 60,471 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 8,334 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 109 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 2,079 |
Payments to Acquire Businesses, Gross | 48,450 |
Business Combination, Consideration Transferred, Other | 8,550 |
Business Combination, Consideration Transferred, Liabilities Incurred | 3,471 |
Business Combination, Consideration Transferred | $ 60,471 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net Income (Loss) Attributable to Parent | $ (10,517) | $ 3,423 | $ 9,841 | $ 2,951 | $ 13,802 | $ 8,083 | $ 5,275 | $ 198 | $ 5,698 | $ 27,358 | $ 41,013 |
Weighted-average shares-basic | 21,417,486 | 21,218,233 | 19,933,652 | ||||||||
Restricted stock award | 196,957 | 234,307 | 112,255 | ||||||||
Weighted-average shares-diluted | 21,614,443 | 21,452,540 | 20,045,907 | ||||||||
Earnings Per Share, Basic | $ (0.49) | $ 0.16 | $ 0.46 | $ 0.14 | $ 0.65 | $ 0.38 | $ 0.25 | $ 0.01 | $ 0.27 | $ 1.29 | $ 2.06 |
Earnings Per Share, Diluted | $ (0.49) | $ 0.16 | $ 0.45 | $ 0.14 | $ 0.64 | $ 0.38 | $ 0.25 | $ 0.01 | $ 0.26 | $ 1.28 | $ 2.05 |
Deferred Policy Acquisition C65
Deferred Policy Acquisition Costs Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||
Deferred policy acquisition costs, beg. balance | $ 46,732 | $ 31,925 |
Deferred Policy Acquisition Costs, Additions | 134,588 | 101,221 |
Amortization | (115,847) | (86,414) |
Deferred policy acquisition costs, end. balance | $ 65,473 | $ 46,732 |
Property and equipment - Narrat
Property and equipment - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 09, 2015ft² | Sep. 05, 2014aft² | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation, Depletion and Amortization | $ | $ 2,424 | $ 1,803 | $ 731 | ||
Leaseholds and Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Area of Land | 1.5 | ||||
Building [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Area of Real Estate Property | ft² | 7,800 | 40,000 | |||
Land and Building [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Area of Land | 2.3 |
Property and equipment table (D
Property and equipment table (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 24,967 | $ 21,958 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (7,107) | (4,823) |
Property, Plant and Equipment, Net | 17,860 | 17,135 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,114 | 2,114 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 5,502 | 4,298 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 14,699 | 13,574 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,652 | 1,831 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 0 | $ 141 |
Goodwill and Intangible Asset68
Goodwill and Intangible Assets Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 3,509 | ||
Goodwill | 14,254 | $ 3,413 | $ 0 |
Goodwill, Acquired During Period | 10,841 | 3,413 | |
Goodwill, Impairment Loss | 0 | $ 0 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2,271 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,159 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,071 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 358 |
Goodwill and Intangible Asset69
Goodwill and Intangible Assets Goowill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 10,910 | $ 3,090 | $ 460 |
Goodwill and Intangible Asset70
Goodwill and Intangible Assets Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (3,048) | $ (1,112) |
Intangible Assets, Gross (Excluding Goodwill) | 12,189 | 6,312 |
Intangible Assets, Net (Excluding Goodwill) | 9,141 | 5,200 |
Licensing Agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets Acquired | 1,185 | 410 |
Customer Relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 10,284 | 5,652 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,784) | (1,036) |
Finite-Lived Intangible Assets, Net | $ 7,500 | $ 4,616 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years 8 months | 4 years 1 month |
Trade Names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 720 | $ 250 |
Finite-Lived Intangible Assets, Accumulated Amortization | (264) | (76) |
Finite-Lived Intangible Assets, Net | $ 456 | $ 174 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 2 years 1 month | 2 years 1 month |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) $ in Thousands | Jun. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Prepaid Reinsurance Premiums | $ 132,564 | $ 79,399 | ||
Policyholder Benefits and Claims Incurred, Assumed and Ceded | $ 18,412 | 10,282 | ||
Percentage of Flood Premiums Ceded | 100.00% | |||
Insurance Commissions and Fees, Flood Program | $ 1,056 | $ 959 | $ 1,078 | |
Increase (Decrease) in Ceded Losses and LAE Incurred | $ (27,913) | |||
Minimum | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
ISO Catastrophe Definition | $ 25,000 | |||
Catastrophe | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Reinsurance Coverage, Percentage Placed | 100.00% | |||
Prepaid Reinsurance Premiums | $ 191,500 | |||
Catastrophe | Maximum [Member] | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Reinsurance Retention Policy, Amount Retained | 10,000 | |||
Catastrophe | Unaffiliated Private Reinsurers [Member] | Maximum [Member] | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Aggregate Coverage for Covered Losses Under Reinsurance Contract | $ 685,000 | |||
Catastrophe | FLORIDA | Florida Hurricane Catastrophe Fund [Member] | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Reinsurance Retention Policy, Participation Rate | 45.00% | |||
Reinsurance, Aggregate Value of Property Covered Under Contracts | $ 786,700 | |||
Reinsurance, Losses Not Covered Prior to Coverage Beginning | 246,002 | |||
Aggregate Coverage for Covered Losses Under Reinsurance Contract | 354,015 | |||
Second And Subsequent Catastrophic Events | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 100,000 | |||
Second And Subsequent Catastrophic Events | Maximum [Member] | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 1,515,197 |
Ceded Premiums Earned by type (
Ceded Premiums Earned by type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Ceded Premiums Earned by type [Line Items] | |||
Ceded Premiums Written | $ (262,340) | $ (183,808) | $ (144,404) |
Increase (Decrease) in Ceded Unearned Premiums | 52,442 | 15,551 | 8,559 |
Ceded Premiums Earned | (209,898) | (168,257) | (135,845) |
Excess of Loss Product Line | |||
Ceded Premiums Earned by type [Line Items] | |||
Ceded Premiums Written | (235,236) | (163,106) | (125,638) |
Equipment and Identity Theft Product Line | |||
Ceded Premiums Earned by type [Line Items] | |||
Ceded Premiums Written | (8,313) | (6,169) | (4,370) |
Flood Product Line | |||
Ceded Premiums Earned by type [Line Items] | |||
Ceded Premiums Written | (16,395) | (14,533) | (14,396) |
Novation of Auto Policies | |||
Ceded Premiums Earned by type [Line Items] | |||
Ceded Premiums Written | $ (2,396) | $ 0 | $ 0 |
Catastrophe Losses (Details)
Catastrophe Losses (Details) - Catastrophe $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)catastrophic_event | Dec. 31, 2015USD ($)catastrophic_event | Dec. 31, 2014USD ($)catastrophic_event | |
Liability for Catastrophe Claims [Line Items] | |||
Number of Catastrophic Events | catastrophic_event | 19 | 14 | 3 |
Catastrophic Event, Incurred Losses and Loss Adjustment Expense | $ | $ 55,842 | $ 28,565 | $ 829 |
Catastrophic Events, Impact on Combined Ratio | 12.20% | 8.50% | 0.30% |
Catastrophe Loss Size, Range 3 | |||
Liability for Catastrophe Claims [Line Items] | |||
Number of Catastrophic Events | catastrophic_event | 1 | 2 | |
Catastrophic Event, Incurred Losses and Loss Adjustment Expense | $ | $ 29,987 | $ 11,523 | |
Catastrophic Events, Impact on Combined Ratio | 6.50% | 3.40% | |
Catastrophe Loss Size, Range 2 | |||
Liability for Catastrophe Claims [Line Items] | |||
Number of Catastrophic Events | catastrophic_event | 12 | 7 | |
Catastrophic Event, Incurred Losses and Loss Adjustment Expense | $ | $ 21,506 | $ 14,699 | |
Catastrophic Events, Impact on Combined Ratio | 4.70% | 4.40% | |
Catastrophe Loss Size, Range 1 | |||
Liability for Catastrophe Claims [Line Items] | |||
Number of Catastrophic Events | catastrophic_event | 6 | 5 | 3 |
Catastrophic Event, Incurred Losses and Loss Adjustment Expense | $ | $ 4,349 | $ 2,343 | $ 829 |
Catastrophic Events, Impact on Combined Ratio | 1.00% | 0.70% | 0.30% |
Reinsurance Recoverables (Detai
Reinsurance Recoverables (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Reinsurance Disclosures [Abstract] | ||
Reinsurance Recoverables on Unpaid Losses | $ 18,724 | $ 2,114 |
Reinsurance Recoverables on Paid Losses | 5,304 | 847 |
Reinsurance recoverable on paid and unpaid losses | $ 24,028 | $ 2,961 |
Effects of Reinsurance on Premi
Effects of Reinsurance on Premiums (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
Direct Premiums Written | $ 708,252 | $ 548,916 | $ 417,769 |
Assumed Premiums Written | (96) | 20,820 | 18,984 |
Ceded Premiums Written | (262,340) | (183,808) | (144,404) |
Premiums Written, Net | 445,816 | 385,928 | 292,349 |
Increase (Decrease) in Direct Unearned Premiums | (57,759) | (65,300) | (38,995) |
Increase (Decrease) in Assumed Unearned Premiums | 16,432 | (221) | 2,937 |
Increase (Decrease) in Ceded Unearned Premiums | 52,442 | 15,551 | 8,559 |
Increase (Decrease) in Unearned Premiums | 11,115 | (49,970) | (27,499) |
Direct Premiums Earned, Property and Casualty | 650,493 | 483,616 | 378,774 |
Assumed Premiums Earned, Property and Casualty | 16,336 | 20,599 | 21,921 |
Ceded Premiums Earned | (209,898) | (168,257) | (135,845) |
Premiums Earned, Net | 456,931 | 335,958 | 264,850 |
Direct Losses and LAE Incurred | 335,542 | 188,270 | 111,820 |
Assumed Losses and LAE Incurred | 3,747 | 7,861 | 8,672 |
Ceded Losses and LAE Incurred | (40,936) | (13,023) | (2,415) |
Net Losses and LAE Incurred | $ 298,353 | $ 183,108 | $ 118,077 |
Effects of Reinsurance on Losse
Effects of Reinsurance on Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Insurance [Abstract] | ||||
Net Direct Unpaid Losses and LAE | $ 138,345 | $ 72,373 | $ 49,734 | |
Net Assumed Unpaid Losses and LAE | 2,510 | 4,419 | 4,702 | |
Unpaid losses and loss adjustment expenses | 140,855 | 76,792 | 54,436 | $ 47,451 |
Net Ceded Unpaid Losses and LAE | (18,724) | (2,114) | (1,252) | |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 122,131 | 74,678 | 53,184 | |
Direct Unearned Premiums, Net | 371,149 | 287,148 | 212,201 | |
Assumed Unearned Premiums, Net | 1,074 | 17,506 | 17,285 | |
Unearned Premiums, Gross | 372,223 | 304,654 | 229,486 | |
Ceded Unearned Premiums, Net | (132,564) | (79,400) | (63,827) | |
Unearned Premiums, Net | $ 239,659 | $ 225,254 | $ 165,659 |
Liability for Unpaid Losses a77
Liability for Unpaid Losses and Loss Adjustment Expense Liability for Unpaid Losses and Loss Adjustment Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Current Year Claims and Claims Adjustment Expense | $ 281,365 | $ 185,476 | $ 122,114 | |
Prior Year Claims and Claims Adjustment Expense | 16,988 | (2,368) | (4,037) | |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 298,353 | 183,108 | 118,077 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year | 210,970 | 127,306 | 83,967 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 62,506 | 36,698 | 26,420 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 273,476 | 164,004 | 110,387 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 122,131 | 74,678 | 53,184 | |
Reinsurance Recoverable on Unpaid Losses and LAE | 18,724 | 2,114 | 1,252 | $ 1,957 |
Liability for Unpaid Claims and Claims Adjustment Expense, Net, Including Acquisition | 97,254 | 55,574 | 45,494 | |
Unpaid losses and loss adjustment expenses | 140,855 | 76,792 | 54,436 | 47,451 |
Liability for Unpaid Claims and Claims Adjustment Expense, Reported Claims, Amount | 83,447 | 45,502 | 29,726 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | $ 57,408 | 31,290 | 24,710 | |
Family Security Holdings (FSH) | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustments | 0 | 2,390 | 0 | |
Interboro Insurance Company | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustments | $ 22,576 | $ 0 | $ 0 |
Liability for Unpaid Losses a78
Liability for Unpaid Losses and Loss Adjustment Expense Liability for Unpaid Losses and Loss Adjustment Expense - Claims Development (Details) $ in Thousands | Dec. 31, 2016USD ($)claim | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($) |
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | $ 115,917 | |||||||||
Other Short-duration Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 111,887 | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 6,597 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 105,332 | |||||||||
Homeowners' Insurance Product | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 947,221 | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 109,320 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 838,077 | |||||||||
Short-duration Insurance Contracts, Accident Year 2006 | Other Short-duration Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 42 | |||||||||
Short-duration Insurance Contracts, Accident Year 2006 | Homeowners' Insurance Product | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 176 | |||||||||
Short-duration Insurance Contracts, Accident Year 2007 | Other Short-duration Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 7,507 | $ 7,464 | $ 7,464 | $ 7,504 | $ 7,554 | $ 7,553 | $ 7,825 | $ 8,313 | $ 9,605 | $ 11,491 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 1,191,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 7,507 | 7,452 | 7,449 | 7,442 | 7,303 | 7,127 | 7,001 | 6,627 | 5,885 | 3,974 |
Short-duration Insurance Contracts, Accident Year 2007 | Homeowners' Insurance Product | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 24,601 | 24,596 | 24,725 | 24,665 | 24,563 | 24,641 | 24,852 | 24,828 | 25,780 | 28,232 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 2,332,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 24,601 | 24,596 | 24,483 | 24,439 | 24,382 | 24,277 | 24,155 | 23,131 | 22,017 | $ 16,713 |
Short-duration Insurance Contracts, Accident Year 2008 | Other Short-duration Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 12,884 | 12,885 | 12,761 | 12,661 | 11,877 | 11,833 | 12,324 | 12,871 | 13,504 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 1,170,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 12,884 | 12,557 | 12,403 | 12,360 | 11,404 | 11,104 | 10,647 | 9,309 | 6,169 | |
Short-duration Insurance Contracts, Accident Year 2008 | Homeowners' Insurance Product | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 27,453 | 27,468 | 27,564 | 27,597 | 27,358 | 27,161 | 27,174 | 28,126 | 30,073 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 3,170,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 27,451 | 27,445 | 27,390 | 27,358 | 27,044 | 26,360 | 25,264 | 23,806 | $ 17,915 | |
Short-duration Insurance Contracts, Accident Year 2009 | Other Short-duration Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 10,009 | 9,837 | 9,844 | 9,902 | 10,026 | 10,093 | 10,135 | 10,610 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 1,097,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 10,009 | 9,688 | 9,570 | 9,471 | 9,062 | 8,470 | 7,507 | 4,807 | ||
Short-duration Insurance Contracts, Accident Year 2009 | Homeowners' Insurance Product | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 44,996 | 44,959 | 45,116 | 45,316 | 45,583 | 45,515 | 46,089 | 46,952 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 4,044,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 44,966 | 44,898 | 44,737 | 44,413 | 44,114 | 43,149 | 41,134 | $ 31,525 | ||
Short-duration Insurance Contracts, Accident Year 2010 | Other Short-duration Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 11,072 | 11,105 | 11,020 | 11,126 | 10,733 | 11,042 | 9,911 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 1,160,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 11,073 | 10,327 | 10,242 | 10,182 | 9,036 | 8,128 | 4,346 | |||
Short-duration Insurance Contracts, Accident Year 2010 | Homeowners' Insurance Product | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 51,674 | 51,841 | 51,685 | 52,239 | 51,862 | 51,292 | 51,144 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 3 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 4,839,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 51,163 | 50,704 | 50,215 | 49,256 | 46,711 | 43,932 | $ 32,993 | |||
Short-duration Insurance Contracts, Accident Year 2011 | Other Short-duration Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 10,740 | 10,575 | 10,630 | 10,896 | 11,022 | 11,126 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 1,217,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 10,740 | 10,128 | 9,837 | 9,444 | 8,013 | 4,587 | ||||
Short-duration Insurance Contracts, Accident Year 2011 | Homeowners' Insurance Product | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 60,215 | 59,517 | 58,047 | 57,670 | 56,840 | 53,878 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 62 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 5,913,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 59,461 | 58,069 | 55,532 | 52,412 | 48,558 | $ 36,419 | ||||
Short-duration Insurance Contracts, Accident Year 2012 | Other Short-duration Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 9,147 | 9,412 | 9,350 | 9,651 | 10,760 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 11 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 1,061,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 9,124 | 8,626 | 8,242 | 7,631 | 5,112 | |||||
Short-duration Insurance Contracts, Accident Year 2012 | Homeowners' Insurance Product | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 69,000 | 68,388 | 68,923 | 69,438 | 65,112 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 167 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 10,649,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 68,337 | 66,739 | 64,675 | 60,640 | $ 42,699 | |||||
Short-duration Insurance Contracts, Accident Year 2013 | Other Short-duration Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 5,736 | 5,401 | 5,817 | 6,657 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 5 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 553,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 5,566 | 4,811 | 4,496 | 2,925 | ||||||
Short-duration Insurance Contracts, Accident Year 2013 | Homeowners' Insurance Product | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 92,702 | 93,041 | 94,755 | 98,461 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 677 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 7,809,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 90,627 | 89,068 | 85,346 | $ 63,732 | ||||||
Short-duration Insurance Contracts, Accident Year 2014 | Other Short-duration Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 8,016 | 7,927 | 9,073 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 76 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 682,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 7,868 | 6,237 | 4,008 | |||||||
Short-duration Insurance Contracts, Accident Year 2014 | Homeowners' Insurance Product | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 131,402 | 130,488 | 130,090 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2,025 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 10,857,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 125,951 | 119,612 | $ 88,375 | |||||||
Short-duration Insurance Contracts, Accident Year 2015 | Other Short-duration Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 19,723 | 19,669 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 581 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 1,384,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 18,129 | 11,104 | ||||||||
Short-duration Insurance Contracts, Accident Year 2015 | Homeowners' Insurance Product | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 195,902 | 181,609 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 6,784 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 17,918,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 174,993 | $ 123,888 | ||||||||
Short-duration Insurance Contracts, Accident Year 2016 | Other Short-duration Insurance Product Line | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 17,053 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,952 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 46,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 12,432 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 | Homeowners' Insurance Product | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 249,276 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 34,483 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | claim | 28,430,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 170,527 |
Liability for Unpaid Losses a79
Liability for Unpaid Losses and Loss Adjustment Expense Liability for Unpaid Losses and Loss Adjustment Expenses - Percentage Payout (Details) | Dec. 31, 2016 |
Homeowners' Insurance Product | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 65.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 22.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 4.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 3.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 2.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 1.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 0.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 0.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0.00% |
Other Short-duration Insurance Product Line | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 48.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 25.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 7.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 6.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 2.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 3.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 2.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 1.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 1.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0.70% |
Liability for Unpaid Losses a80
Liability for Unpaid Losses and Loss Adjustment Expense Liability for Unpaid Losses and Loss Adjustment Expense - Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Reinsurance Recoverables on Unpaid Losses | $ 18,724 | $ 2,114 | ||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Claims Adjustment Expense, Accumulated Unallocated Claim Adjustment Expense | 6,214 | |||
Unpaid losses and loss adjustment expenses | 140,855 | $ 76,792 | $ 54,436 | $ 47,451 |
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 115,917 | |||
Homeowners' Insurance Product | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Reinsurance Recoverables on Unpaid Losses | 14,223 | |||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 109,320 | |||
Other Short-duration Insurance Product Line | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Reinsurance Recoverables on Unpaid Losses | 4,501 | |||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | $ 6,597 |
Long-Term Debt, Fiscal Year Mat
Long-Term Debt, Fiscal Year Maturity (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,017 | $ 9,969 |
2,018 | 1,472 |
2,019 | 1,473 |
2,020 | 1,473 |
2,021 | 1,474 |
Thereafter | 38,314 |
Total debt | $ 54,175 |
Long-Term Debt Long-term Debt -
Long-Term Debt Long-term Debt - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 05, 2016USD ($)Rate | May 26, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||||
Notes payable | $ 54,175 | $ 12,353 | ||
10-Year Constant Maturity Interest Rate | 2.45% | |||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | |||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.25% | |||
SBA Note Payable | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Periodic Payment, Principal | $ 1,177 | |||
Debt Instrument, Periodic Payment, Interest | 219 | |||
Notes payable | $ 11,176 | $ 12,353 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.56% | 2.05% | ||
Debt instrument surplus definition | $ 20,000 | |||
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 6,007 | |||
SBA Note Payable | Gross Writing Ratio [Member] | ||||
Debt Instrument [Line Items] | ||||
Required Written Premiums To Surplus Ratio | 6 | |||
SBA Note Payable | Net Writing Ratio [Member] | ||||
Debt Instrument [Line Items] | ||||
Required Written Premiums To Surplus Ratio | 2 | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 30,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 5.75% | |||
Interboro, LLC Promissory Note | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 8,550 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||
BB&T Term Note Payable | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Periodic Payment, Principal | $ 202 | |||
Debt Instrument, Periodic Payment, Interest | 66 | |||
Notes payable | $ 4,998 | $ 5,200 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.44% | 1.65% | ||
Cash Flow Coverage Ratio | 9.2 | |||
Minimum | SBA Note Payable | Gross Writing Ratio [Member] | ||||
Debt Instrument [Line Items] | ||||
Required Written Premiums To Surplus Ratio | 4.5 | |||
Minimum | SBA Note Payable | Net Writing Ratio [Member] | ||||
Debt Instrument [Line Items] | ||||
Required Written Premiums To Surplus Ratio | 1.5 | |||
Minimum | BB&T Term Note Payable | ||||
Debt Instrument [Line Items] | ||||
Required Balance in Non-Interest Bearing Account | $ 500 | |||
Required Balance in Interest Bearing Account | $ 1,500 | |||
Cash Flow Coverage Ratio | 1.2 | |||
Minimum | BB&T Term Note Payable | Non-recurring Loss [Member] | ||||
Debt Instrument [Line Items] | ||||
Cash Flow Coverage Ratio | 1 |
Long-Term Debt Long-Term Debt83
Long-Term Debt Long-Term Debt - Debt Issuance Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Debt Issuance Costs, Gross | $ 596 | |
Debt Issuance Costs, Net | 549 | $ 0 |
Amortization of Debt Issuance Costs | $ (47) |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ (1,906) | $ 10,143 | $ 21,633 |
Deferred Federal Income Tax Expense (Benefit) | 1,920 | 2,103 | (996) |
Federal Income Tax Expense (Benefit), Continuing Operations | 14 | 12,246 | 20,637 |
Current State and Local Tax Expense (Benefit) | 1,001 | 2,054 | 2,945 |
Deferred State and Local Income Tax Expense (Benefit) | 290 | 202 | (185) |
State and Local Income Tax Expense (Benefit), Continuing Operations | 1,291 | 2,256 | 2,760 |
Income Tax Expense (Benefit) | 1,305 | 14,502 | $ 23,397 |
Deferred tax assets: | |||
Deferred Tax Asset, Unearned Premiums | 19,113 | 18,182 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Policyholder Liabilities | 1,479 | 936 | |
Deferred Tax Asset, Bad Debt Expense | 54 | 51 | |
Deferred Tax Asset, Other-than-temporary-impairment | 27 | 28 | |
Deferred Tax Assets, Other | 507 | 432 | |
Deferred Tax Assets, Gross | 21,180 | 19,629 | |
Deferred tax liabilities: | |||
Deferred Tax Liability, Unrealized Gain | (642) | (1,019) | |
Deferred Tax Liabilities, Deferred Expense, Deferred Policy Acquisition Cost | (19,586) | (18,976) | |
Deferred Tax Liabilities, Intangible Assets | (3,371) | (1,974) | |
Deferred Tax Liabilities, Other | (895) | (433) | |
Deferred Tax Liabilities, Gross | 25,999 | 22,653 | |
Deferred Tax Liabilities, Property, Plant and Equipment | (1,505) | (251) | |
Deferred Tax Assets, Net | $ 4,819 | $ 3,024 |
Tax Expense Reconciliation (Det
Tax Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 2,381 | $ 14,671 | $ 22,545 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 934 | 1,023 | 1,660 |
Effective Income Tax Rate Reconciliation, Deduction, Dividends, Amount | (217) | 0 | (350) |
Effective Income Tax Rate Reconciliation, Tax Settlement, Other, Amount | 0 | (42) | 0 |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | 0 | (693) | 0 |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount | 1,011 | 0 | 0 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | (782) | (541) | (458) |
Income Tax Expense (Benefit) | $ 1,305 | $ 14,502 | $ 23,397 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Asset, Unearned Premiums | $ 19,113 | $ 18,182 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Policyholder Liabilities | 1,479 | 936 |
Deferred Tax Asset, Bad Debt Expense | 54 | 51 |
Deferred Tax Asset, Other-than-temporary-impairment | 27 | 28 |
Deferred Tax Assets, Other | 507 | 432 |
Deferred Tax Assets, Gross | 21,180 | 19,629 |
Deferred Tax Liability, Unrealized Gain | (642) | (1,019) |
Deferred Tax Liabilities, Deferred Expense, Deferred Policy Acquisition Cost | (19,586) | (18,976) |
Deferred Tax Liabilities, Intangible Assets | (3,371) | (1,974) |
Deferred Tax Liabilities, Property, Plant and Equipment | (1,505) | (251) |
Deferred Tax Liabilities, Other | (895) | (433) |
Deferred Tax Liabilities, Gross | (25,999) | (22,653) |
Deferred Tax Assets, Net | $ (4,819) | $ (3,024) |
Statutory Accounting and Regu87
Statutory Accounting and Regulation - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statutory Accounting Practices [Line Items] | ||
Assessments levied, for Citizens | 1.00% | |
Assessments levied, for FHCF | 1.30% | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 212,298 | $ 150,860 |
Assessments levied, for NCJUA | $ 415 | |
UPC, Subsidiary | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required, Percent of Total Liabilities | 10.00% | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 155,587 | 135,288 |
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | 140,606 | |
Family Security Holdings (FSH) | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 16,269 | $ 15,572 |
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | 18,825 | |
Interboro Insurance Company | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 40,442 | |
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | 45,606 | |
Minimum | UPC, Subsidiary | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 5,000 | |
Minimum | Family Security Holdings (FSH) | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 3,250 | |
Minimum | Interboro Insurance Company | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 4,700 |
Statutory Accounting Practices
Statutory Accounting Practices Disclosure - Assessments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Expected Recoveries of Assessments [Roll Forward] | ||||
Expected Recoveries of Assessments 1 | $ 0 | $ 0 | $ 0 | $ 7 |
Assessments Expensed | 1,472 | 226 | 72 | |
Assessments Recovered | 0 | 1 | (2) | |
Assessments Not Recoverable 1 | $ 1,472 | $ 227 | $ 77 |
Statutory Accounting Practice89
Statutory Accounting Practices Disclosure - Net Income (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 03, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory Accounting Practices [Line Items] | ||||||||||||
Net Income (Loss) Attributable to Parent | $ (10,517) | $ 3,423 | $ 9,841 | $ 2,951 | $ 13,802 | $ 8,083 | $ 5,275 | $ 198 | $ 5,698 | $ 27,358 | $ 41,013 | |
Statutory Accounting Practices, GAAP TO Statutory, Increase (Decrease) Due to Commissions | 17,486 | 339 | (12,258) | |||||||||
Statutory Accounting Practices, GAAP TO Statutory, Increase (Decrease) Due to Deferred Income Taxes | (3,255) | (2,518) | 64 | |||||||||
Statutory Accounting Practices, GAAP TO Statutory, Increase (Decrease) Due to Deferred Policy Acquisition Costs | (6,342) | (4,962) | (788) | |||||||||
Statutory Accounting Practices, GAAP TO Statutory, Increase (Decrease) Due to Allowance for Doubtful Accounts | (24) | 97 | 5 | |||||||||
Statutory Accounting Practices, GAAP TO Statutory, Increase (Decrease) Due to Assessments | 0 | 0 | (78) | |||||||||
Statutory Accounting Practices, GAAP TO Statutory, Increase (Decrease) Due to Prepaid Expenses | (538) | 131 | (136) | |||||||||
Statutory Accounting Practices, GAAP to Statutory, Increase (Decrease) Due to Other, net | 166 | 0 | 0 | |||||||||
Statutory Accounting Practices, GAAP TO Statutory, Increase (Decrease) Due to Operations of Non-Statutory Subsidiaries | (10,621) | (10,077) | (14,915) | |||||||||
Statutory Accounting Practices, Statutory Net Income Amount | 6,083 | 10,520 | 12,907 | |||||||||
Family Security Holdings (FSH) | ||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||
Net Income (Loss) Attributable to Parent | $ 77 | |||||||||||
Statutory Accounting Practices, Statutory Net Income Amount | 0 | 152 | 0 | |||||||||
Interboro Insurance Company | ||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||
Statutory Accounting Practices, Statutory Net Income Amount | $ 3,513 | $ 0 | $ 0 |
Statutory Accounting and Regu90
Statutory Accounting and Regulation - Equity (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statutory Accounting Practices [Line Items] | ||
Stockholders' Equity Attributable to Parent | $ 241,327 | $ 239,211 |
Statutory Accounting Practices, GAAP to Statutory, Equity Increase (Decrease) Due to Deferred Policy Acquisition Costs | (15,373) | (9,031) |
Statutory Accounting Practices, GAAP to Statutory, Equity Increase (Decrease) Due to Deferred Income Taxes | (3,338) | 917 |
Statutory Accounting Practices, GAAP to Statutory, Equity Increase (Decrease) Due to Investments | 1,386 | 185 |
Statutory Accounting Practices, GAAP to Statutory, Equity Increase (Decrease) Due to Non-admitted Assets | (623) | (1,066) |
Statutory Accounting Practices, GAAP to Statutory, Equity Increase (Decrease) Due to Surplus Debentures | 11,176 | 12,353 |
Statutory Accounting Practices, GAAP to Statutory, Equity Increase (Decrease) Due to Provision for Reinsurance | (7,648) | (734) |
Statutory Accounting Practices, GAAP to Statutory, Equity Increase (Decrease) Due to Non-statutory Subsidiaries | (32,615) | (96,825) |
Statutory Accounting Practices, GAAP to Statutory, Equity Increase (Decrease) Due to Commissions | 18,570 | 876 |
Statutory Accounting Practices, GAAP to Statutory, Equity Increase (Decrease) Due to Prepaid Expenses | (564) | (26) |
Statutory Accounting Practices, Statutory to GAAP, Amount of Reconciling Item | 0 | 5,000 |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 212,298 | 150,860 |
Family Security Holdings (FSH) | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 16,269 | 15,572 |
UPC, Subsidiary | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 155,587 | $ 135,288 |
Interboro Insurance Company | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 40,442 | |
Minimum | Family Security Holdings (FSH) | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 3,250 | |
Minimum | UPC, Subsidiary | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 5,000 | |
Minimum | Interboro Insurance Company | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 4,700 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Operating Leases, Rent Expense, Net | $ 205 | $ 922 | $ 783 |
Schedule of Future Minimum Rent
Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
Operating Leases, Future Minimum Payments Receivable, Current | $ 173 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 112 |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 110 |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 89 |
Operating Leases, Future Minimum Payments Receivable, in Five Years | $ 59 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - Legal Fees [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 2,892 | $ 1,439 |
Immediate Family Member of Management or Principal Owner [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 1,446 | $ 720 |
Related Party Transaction, Amounts Of Transaction, Related Party Ownership Interest | 50.00% |
Employee Benefit Plan - Narrati
Employee Benefit Plan - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Benefit Plan [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | 100.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 5.00% | ||
Defined Contribution Plan, Cost Recognized | $ 444 | $ 365 | $ 267 |
Accumulated Other Comprehensi95
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income and (Loss), Pre-Tax Amount, Beginning of period | $ 2,640 | $ 6,537 | $ 150 |
Change in net unrealized gain (loss) on investments, Pre-Tax Amount | (629) | (3,070) | 6,367 |
Reclassification adjustment for realized losses, Pre-Tax Amount | (547) | (827) | 20 |
Accumulated Other Comprehensive Income and (Loss), Pre-Tax Amount, End of period | 1,464 | 2,640 | 6,537 |
Accumulated Other Comprehensive Income (Loss), Tax (Expense) Benefit, Beginning of period | 1,020 | 2,526 | 58 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 167 | 1,187 | (2,460) |
Reclassification adjustment for realized losses, Tax (Expense) Benefit | 211 | 319 | (8) |
Accumulated Other Comprehensive Income (Loss), Tax (Expense) Benefit, End of period | 642 | 1,020 | 2,526 |
Accumulated Other Comprehensive Income (Loss), Net-of-Tax Amount, Beginning of period | 1,620 | 4,011 | 92 |
Change in net unrealized gain (loss) on investments, Net-of-Tax Amount | (462) | (1,883) | 3,907 |
Reclassification adjustment for realized losses, Net-of-Tax Amount | (336) | (508) | 12 |
Accumulated Other Comprehensive Income (Loss), Net-of-Tax Amount, End of period | $ 822 | $ 1,620 | $ 4,011 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 05, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | ||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.23 | $ 0.20 | $ 0.16 | |
Dividends, Common Stock, Cash | $ 1,299 | $ 1,299 | $ 1,300 | $ 1,076 | $ 1,076 | $ 1,076 | $ 1,077 | $ 1,073 | $ 836 | $ 834 | $ 834 | $ 832 | $ 4,974 | $ 4,302 | $ 3,336 | |
Proceeds from Issuance of Common Stock | $ 54,041 | $ 0 | $ 0 | $ 54,041 | ||||||||||||
Preferred stock, authorized shares | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||
Common Stock | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stock Issued During Period, Shares, New Issues | 4,600,000 | |||||||||||||||
Blank Check Preferred Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock, authorized shares | 875,000 | 875,000 |
Stockholders' Equity Dividends
Stockholders' Equity Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.23 | $ 0.20 | $ 0.16 |
Dividends, Common Stock, Cash | $ 1,299 | $ 1,299 | $ 1,300 | $ 1,076 | $ 1,076 | $ 1,076 | $ 1,077 | $ 1,073 | $ 836 | $ 834 | $ 834 | $ 832 | $ 4,974 | $ 4,302 | $ 3,336 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock compensation expense | $ 1,106 | ||
Allocated Share-based Compensation Expense | 877 | $ 808 | $ 280 |
Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock compensation expense | 370 | ||
Allocated Share-based Compensation Expense | $ 1,070 | $ 1,166 | $ 371 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 115,405 | 130,442 | 103,156 |
Weighted average grant date fair value, Granted | $ 16.90 | $ 20.38 | $ 13.86 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares outstanding, Beginning balance | 179,183 | 153,383 | 80,068 |
Shares granted | 115,405 | 130,442 | 103,156 |
Shares vested | 98,864 | 90,277 | 21,784 |
Shares forfeited | 26,082 | 14,365 | 8,057 |
Shares outstanding, Ending balance | 169,642 | 179,183 | 153,383 |
Weighted average grant date fair value, Beginning of period | $ 16.67 | $ 10.91 | $ 5.56 |
Weighted average grant date fair value, Granted | 16.90 | 20.38 | 13.86 |
Weighted average grant date fair value, Vested | 16.39 | 12.71 | 6.40 |
Weighted average grant date fair value, Forfeited | 17.44 | 13.80 | 7.69 |
Weighted average grant date fair value, End of period | $ 16.87 | $ 16.67 | $ 10.91 |
Quaterly Results (Unaudited)100
Quaterly Results (Unaudited) Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue, Net | $ 131,433 | $ 127,202 | $ 120,921 | $ 107,561 | $ 100,027 | $ 89,806 | $ 85,340 | $ 82,396 | |||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | (17,578) | 5,041 | 15,210 | 4,330 | 20,351 | 12,984 | 8,187 | 338 | |||
Net Income (Loss) Attributable to Parent | $ (10,517) | $ 3,423 | $ 9,841 | $ 2,951 | $ 13,802 | $ 8,083 | $ 5,275 | $ 198 | $ 5,698 | $ 27,358 | $ 41,013 |
Earnings Per Share, Basic | $ (0.49) | $ 0.16 | $ 0.46 | $ 0.14 | $ 0.65 | $ 0.38 | $ 0.25 | $ 0.01 | $ 0.27 | $ 1.29 | $ 2.06 |
Earnings Per Share, Diluted | $ (0.49) | $ 0.16 | $ 0.45 | $ 0.14 | $ 0.64 | $ 0.38 | $ 0.25 | $ 0.01 | $ 0.26 | $ 1.28 | $ 2.05 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - $ / shares | Feb. 22, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 03, 2017 | Dec. 28, 2016 |
Subsequent Event [Line Items] | ||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.23 | $ 0.20 | $ 0.16 | |||
Common Stock, Shares, Outstanding | 21,646,614 | 21,524,348 | 21,646,614 | 21,524,348 | 21,646,614 | |||||||||||||
Subsequent Event | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.06 | |||||||||||||||||
Voted Shares of Common Stock | 17,043,000 | |||||||||||||||||
Shares Voted in Favor | 98.80% |
Schedule I (Details)
Schedule I (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 527,183 | $ 450,074 |
Investments | 528,647 | 452,714 |
US Government and Government Agencies and Authorities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 151,656 | 81,973 |
Available-for-sale Securities, Debt Securities | 149,952 | 81,647 |
Foreign Government Debt Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 2,031 | 2,038 |
Available-for-sale Securities, Debt Securities | 2,061 | 2,075 |
US States and Political Subdivisions Debt Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 170,636 | 154,004 |
Available-for-sale Securities, Debt Securities | 169,112 | 155,905 |
Public Utility, Bonds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 7,687 | 8,398 |
Available-for-sale Securities, Debt Securities | 7,730 | 8,493 |
All Other Corporate Bonds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 164,424 | 148,170 |
Available-for-sale Securities, Debt Securities | 164,536 | 146,758 |
Redeemable Preferred Stock [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 1,182 | 1,832 |
Available-for-sale Securities, Debt Securities | 1,125 | 1,820 |
Debt Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 497,616 | |
Fixed Maturities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 497,616 | 396,415 |
Available-for-sale Securities, Debt Securities | 494,516 | 396,698 |
Mutual Fund [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 26,357 | |
Available-for-sale Securities, Equity Securities | 26,343 | |
Public Utility, Equities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 1,343 | 1,342 |
Available-for-sale Securities, Equity Securities | 1,507 | 1,352 |
Other Common Stock [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 19,815 | 18,624 |
Available-for-sale Securities, Equity Securities | 24,048 | 20,694 |
Common Stock | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Securities, Equity Securities | 24,048 | |
Nonredeemable Preferred Stock [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 2,916 | 2,356 |
Available-for-sale Securities, Equity Securities | 2,843 | 2,417 |
Equity Securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 24,074 | 48,679 |
Available-for-sale Securities, Equity Securities | 28,398 | 50,806 |
Other Long-term Investments | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 5,493 | 4,980 |
Other Long-term Investments | $ 5,733 | $ 5,210 |
Schedule II Balance Sheet (Deta
Schedule II Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 150,688 | $ 84,786 | $ 61,391 | $ 34,888 |
Accrued investment income | 3,735 | 2,915 | ||
Goodwill | 14,254 | 3,413 | 0 | |
Property, Plant and Equipment, Net | 17,860 | 17,135 | ||
Other Assets | 23,554 | 8,796 | ||
Total Assets | 999,686 | 740,021 | ||
Other Liabilities | 91,215 | 42,470 | ||
Notes payable | 54,175 | 12,353 | ||
Total Liabilities | 758,359 | 500,810 | ||
Common Stock, Value, Issued | 2 | 2 | ||
Additional Paid in Capital | 99,353 | 97,163 | ||
Treasury Stock, Value | (431) | (431) | ||
Accumulated other comprehensive income | 822 | 1,620 | 4,011 | 92 |
Retained Earnings (Accumulated Deficit) | 141,581 | 140,857 | ||
Total Stockholders' Equity | 241,327 | 239,211 | ||
Liabilities and Equity | 999,686 | 740,021 | ||
Parent Company [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Fixed maturities (amortized cost of $497,616 and $396,415, respectively) | 0 | 8,157 | ||
Equity securities (adjusted cost of $24,074 and $48,679, respectively) | 0 | 26,343 | ||
Cash and cash equivalents | 7,399 | 11,555 | $ 4,097 | $ 8 |
Accrued investment income | 0 | 3 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 263,712 | 195,940 | ||
Goodwill | 10,841 | 0 | ||
Property, Plant and Equipment, Net | 7,993 | 6,838 | ||
Other Assets | 11,337 | 2 | ||
Total Assets | 301,282 | 248,838 | ||
Due to Related Parties | 14,531 | 8,657 | ||
Other Liabilities | 2,426 | 970 | ||
Notes payable | 42,998 | 0 | ||
Total Liabilities | 59,955 | 9,627 | ||
Common Stock, Value, Issued | 2 | 2 | ||
Additional Paid in Capital | 99,353 | 97,163 | ||
Treasury Stock, Value | (431) | (431) | ||
Accumulated other comprehensive income | 822 | 1,620 | ||
Retained Earnings (Accumulated Deficit) | 141,581 | 140,857 | ||
Total Stockholders' Equity | 241,327 | 239,211 | ||
Liabilities and Equity | $ 301,282 | $ 248,838 |
Schedule II Income Statement (D
Schedule II Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net investment income | $ 10,679 | $ 9,212 | $ 6,795 | ||||||||
Total revenue | 487,117 | 357,569 | 280,230 | ||||||||
Operating Expenses | 20,524 | 15,316 | 11,746 | ||||||||
General and Administrative Expense | 42,956 | 29,852 | 20,007 | ||||||||
Interest Expense | 723 | 326 | 410 | ||||||||
Total expenses | 480,214 | 316,003 | 215,897 | ||||||||
Operating Income (Loss) | 6,903 | 41,566 | 64,333 | ||||||||
Other Nonoperating Income (Expense) | 100 | 294 | 77 | ||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (7,003) | (41,860) | (64,410) | ||||||||
Income Tax Expense (Benefit) | 1,305 | 14,502 | 23,397 | ||||||||
Net income | $ (10,517) | $ 3,423 | $ 9,841 | $ 2,951 | $ 13,802 | $ 8,083 | $ 5,275 | $ 198 | 5,698 | 27,358 | 41,013 |
Change in net unrealized gain on investments | (629) | (3,070) | 6,367 | ||||||||
Reclassification adjustment for net realized investment gains | (547) | (827) | 20 | ||||||||
Income tax expense related to items of other comprehensive income | 378 | 1,506 | (2,468) | ||||||||
Total comprehensive income | 4,900 | 24,967 | 44,932 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Income (Loss) from Subsidiaries, Net of Tax | 13,296 | 27,562 | 40,108 | ||||||||
Realized Investment Gains (Losses) | (14) | 951 | 0 | ||||||||
Net investment income | 88 | 239 | 0 | ||||||||
Total revenue | 13,370 | 28,752 | 40,108 | ||||||||
Operating Expenses | 337 | 138 | 86 | ||||||||
General and Administrative Expense | 11,805 | 1,252 | 130 | ||||||||
Interest Expense | 496 | 0 | 0 | ||||||||
Total expenses | 12,638 | 1,390 | 216 | ||||||||
Operating Income (Loss) | 732 | 27,362 | 39,892 | ||||||||
Other Nonoperating Income (Expense) | 60 | 245 | 61 | ||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (792) | (27,607) | (39,953) | ||||||||
Income Tax Expense (Benefit) | (4,906) | 249 | (1,060) | ||||||||
Net income | 5,698 | 27,358 | 41,013 | ||||||||
Change in net unrealized gain on investments | (1,191) | 25 | 0 | ||||||||
Reclassification adjustment for net realized investment gains | 14 | (951) | 0 | ||||||||
Income tax expense related to items of other comprehensive income | 378 | (357) | 0 | ||||||||
Total comprehensive income | $ 4,899 | $ 26,075 | $ 41,013 |
Schedule II Statement of Cash F
Schedule II Statement of Cash Flows (Details) - USD ($) $ in Thousands | Mar. 05, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||||
Net income | $ (10,517) | $ 3,423 | $ 9,841 | $ 2,951 | $ 13,802 | $ 8,083 | $ 5,275 | $ 198 | $ 5,698 | $ 27,358 | $ 41,013 | ||
Depreciation and amortization | 11,713 | 3,328 | 801 | ||||||||||
Gain (Loss) on Sale of Securities, Net | (547) | (827) | 20 | ||||||||||
Increase (Decrease) in Deferred Income Taxes | 2,210 | 2,305 | (1,181) | ||||||||||
Share-based Compensation | 1,947 | 1,974 | 649 | ||||||||||
Increase (Decrease) in Accrued Investment Income Receivable | (172) | (676) | (487) | ||||||||||
Increase (Decrease) in Other Operating Assets | (11,006) | (3,897) | (1,493) | ||||||||||
Increase (Decrease) in Other Operating Liabilities | 20,305 | 2,557 | (507) | ||||||||||
Net Cash Provided by (Used in) Operating Activities | 65,747 | 98,319 | 68,918 | ||||||||||
Proceeds from sales and maturities of investments available for sale | 187,522 | 199,575 | 219,893 | ||||||||||
Payments to Acquire Property, Plant, and Equipment | (3,149) | (10,916) | (6,346) | ||||||||||
Net Cash Provided by (Used in) Investing Activities | (49,757) | (67,015) | (91,466) | ||||||||||
Payments Related to Tax Withholding for Share-based Compensation | (270) | (185) | (110) | ||||||||||
Payments of Dividends | 4,974 | 4,302 | 3,336 | ||||||||||
Proceeds from Issuance of Common Stock | $ 54,041 | 0 | 0 | 54,041 | |||||||||
Net Cash Provided by (Used in) Financing Activities | 49,912 | (7,909) | 49,051 | ||||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 65,902 | 23,395 | 26,503 | ||||||||||
Cash and Cash Equivalents, at Carrying Value | 150,688 | 84,786 | 150,688 | 84,786 | 61,391 | $ 34,888 | |||||||
Parent Company [Member] | |||||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||||
Net income | 5,698 | 27,358 | 41,013 | ||||||||||
Depreciation and amortization | 682 | 74 | 0 | ||||||||||
Gain (Loss) on Sale of Securities, Net | 14 | (951) | 0 | ||||||||||
Increase (Decrease) in Deferred Income Taxes | 382 | 126 | (44) | ||||||||||
Share-based Compensation | 1,947 | 1,974 | 649 | ||||||||||
Increase (Decrease) in Accrued Investment Income Receivable | 3 | (3) | 0 | ||||||||||
Increase (Decrease) in Other Operating Assets | (22,553) | 450 | (548) | ||||||||||
Increase (Decrease) in Notes Payable, Related Parties | 5,874 | 2,557 | (47,033) | ||||||||||
Increase (Decrease) in Other Operating Liabilities | 1,969 | 918 | (352) | ||||||||||
Net Cash Provided by (Used in) Operating Activities | (5,984) | 32,503 | (6,315) | ||||||||||
Proceeds from sales and maturities of investments available for sale | 34,551 | 19,633 | 0 | ||||||||||
Payments to Acquire Investments | (70) | (53,212) | 0 | ||||||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | (68,563) | 16,276 | (36,608) | ||||||||||
Payments to Acquire Property, Plant, and Equipment | (1,797) | (3,255) | (3,583) | ||||||||||
Net Cash Provided by (Used in) Investing Activities | (35,879) | (20,558) | (40,191) | ||||||||||
Payments Related to Tax Withholding for Share-based Compensation | (270) | (185) | (110) | ||||||||||
Proceeds from Issuance of Debt | 42,951 | 0 | 0 | ||||||||||
Payments of Dividends | 4,974 | 4,302 | 3,336 | ||||||||||
Proceeds from Issuance of Common Stock | 0 | 0 | 54,041 | ||||||||||
Net Cash Provided by (Used in) Financing Activities | 37,707 | (4,487) | 50,595 | ||||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | (4,156) | 7,458 | 4,089 | ||||||||||
Cash and Cash Equivalents, at Carrying Value | $ 7,399 | $ 11,555 | $ 7,399 | $ 11,555 | $ 4,097 | $ 8 |
Schedule IV (Details)
Schedule IV (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |||
Direct Premiums Written | $ 708,252 | $ 548,916 | $ 417,769 |
Ceded Premiums Written | 262,340 | 183,808 | 144,404 |
Assumed Premiums Written | (96) | 20,820 | 18,984 |
Premiums Written, Net | $ 445,816 | $ 385,928 | $ 292,349 |
premiums assumed as percentage of net premiums | 0.00% | 5.40% | 6.50% |
Schedule V (Details)
Schedule V (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Uncollectible Premium Liability, Beg. Balance | $ 132 | $ 34 | $ 29 |
Charged to Costs and Expenses | 356 | 198 | 42 |
Deductions | (344) | (100) | (37) |
Uncollectible Premium Liability, End. Balance | $ 144 | $ 132 | $ 34 |