Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | ||
Mar. 31, 2014 | 5-May-14 | 5-May-14 | |
Ordinary Shares A | Ordinary Shares B | ||
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' |
Trading Symbol | 'GBLI | ' | ' |
Entity Registrant Name | 'GLOBAL INDEMNITY PLC | ' | ' |
Entity Central Index Key | '0001494904 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 13,233,411 | 12,061,370 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fixed maturities: | ' | ' |
Available for sale, at fair value (amortized cost: $1,180,713 and $1,187,685) | $1,196,858 | $1,204,364 |
Equity securities: | ' | ' |
Available for sale, at fair value (cost: $197,088 and $191,425) | 257,940 | 254,070 |
Other invested assets: | ' | ' |
Available for sale, at fair value (cost: $5,167 and $3,065) | 5,364 | 3,489 |
Total investments | 1,460,162 | 1,461,923 |
Cash and cash equivalents | 99,223 | 105,492 |
Premiums receivable, net | 57,853 | 49,888 |
Reinsurance receivables, net | 198,967 | 197,887 |
Funds held by ceding insurers | 23,764 | 18,662 |
Federal income taxes receivable | 422 | ' |
Deferred federal income taxes | 6,444 | 4,206 |
Deferred acquisition costs | 24,237 | 22,177 |
Intangible assets | 17,901 | 17,990 |
Goodwill | 4,820 | 4,820 |
Prepaid reinsurance premiums | 4,840 | 5,199 |
Receivable for securities sold | ' | 723 |
Other assets | 25,456 | 22,812 |
Total assets | 1,924,089 | 1,911,779 |
Liabilities: | ' | ' |
Unpaid losses and loss adjustment expenses | 779,047 | 779,466 |
Unearned premiums | 121,588 | 116,629 |
Federal income taxes payable | ' | 1,595 |
Ceded balances payable | 2,719 | 5,177 |
Contingent commissions | 11,819 | 12,677 |
Payable for securities purchased | 6,595 | ' |
Margin borrowing facility | 100,000 | 100,000 |
Other liabilities | 21,520 | 22,955 |
Total liabilities | 1,043,288 | 1,038,499 |
Commitments and contingencies (Note 9) | ' | ' |
Shareholders' equity: | ' | ' |
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued: 16,298,226 and 16,200,406, respectively; A ordinary shares outstanding: 13,233,411 and 13,141,035, respectively; B ordinary shares issued and outstanding: 12,061,370 and 12,061,370, respectively | 3 | 3 |
Additional paid-in capital | 517,466 | 516,653 |
Accumulated other comprehensive income, net of taxes | 52,052 | 54,028 |
Retained earnings | 412,684 | 403,861 |
A ordinary shares in treasury, at cost: 3,064,815 and 3,059,371 shares, respectively | -101,404 | -101,265 |
Total shareholders' equity | 880,801 | 873,280 |
Total liabilities and shareholders' equity | $1,924,089 | $1,911,779 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Available for sale, amortized cost | $1,180,713 | $1,187,685 |
Available for sale, at cost | 197,088 | 191,425 |
Available for sale, at cost | $5,167 | $3,065 |
Ordinary shares, par value | $0.00 | $0.00 |
Ordinary shares, shares authorized | 900,000,000 | 900,000,000 |
Ordinary Shares A | ' | ' |
Ordinary shares, shares issued | 16,298,226 | 16,200,406 |
Ordinary shares, shares outstanding | 13,233,411 | 13,141,035 |
Treasury shares, cost | 3,064,815 | 3,059,371 |
Ordinary Shares B | ' | ' |
Ordinary shares, shares issued | 12,061,370 | 12,061,370 |
Ordinary shares, shares outstanding | 12,061,370 | 12,061,370 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Gross premiums written | $77,197 | $74,939 |
Net premiums written | 72,861 | 71,478 |
Net premiums earned | 67,544 | 55,996 |
Net investment income | 8,284 | 10,034 |
Net realized investment gains (losses): | ' | ' |
Other than temporary impairment losses on investments | -25 | -43 |
Other net realized investment gains | -788 | 5,800 |
Total net realized investment gains (losses) | -813 | 5,757 |
Other income | 168 | 54 |
Total revenues | 75,183 | 71,841 |
Losses and Expenses: | ' | ' |
Net losses and loss adjustment expenses | 38,572 | 31,788 |
Acquisition costs and other underwriting expenses | 26,485 | 24,477 |
Corporate and other operating expenses | 2,961 | 2,345 |
Interest expense | 191 | 1,173 |
Income before income taxes | 6,974 | 12,058 |
Income tax benefit | -1,849 | -307 |
Net income | $8,823 | $12,365 |
Net income | ' | ' |
Basic | $0.35 | $0.49 |
Diluted | $0.35 | $0.49 |
Weighted-average number of shares outstanding | ' | ' |
Basic | 25,122,812 | 25,055,116 |
Diluted | 25,278,907 | 25,099,044 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $8,823 | $12,365 |
Other comprehensive income (loss), net of taxes: | ' | ' |
Unrealized holding gains | 2,041 | 11,310 |
Portion of other-than-temporary impairment losses recognized in other comprehensive income | -1 | -1 |
Recognition of previously unrealized holding gains | -4,032 | -3,828 |
Unrealized foreign currency translation gains ( losses) | 16 | -32 |
Other comprehensive income (loss), net of taxes | -1,976 | 7,449 |
Comprehensive income, net of taxes | $6,847 | $19,814 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Additional Paid-in Capital | Accumulated other comprehensive income, net of deferred income tax | Retained Earnings | Treasury Shares | Ordinary Shares A | Ordinary Shares B |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2012 | ' | $512,304 | $53,350 | $342,171 | ($101,210) | $2 | $1 |
Number at Dec. 31, 2012 | ' | ' | ' | ' | 3,057,001 | 16,087,939 | 12,061,370 |
Ordinary shares issued under share incentive plans | ' | ' | ' | ' | ' | 74,400 | ' |
A ordinary shares purchased | ' | ' | ' | ' | 2,370 | ' | ' |
Ordinary shares issued to directors | ' | ' | ' | ' | ' | 38,067 | ' |
A ordinary shares purchased, at cost | ' | ' | ' | ' | -55 | ' | ' |
Other comprehensive income: | ' | ' | ' | ' | ' | ' | ' |
Change in unrealized holding gains | ' | ' | 514 | ' | ' | ' | ' |
Change in other than temporary impairment losses recognized in other comprehensive income | ' | ' | 1 | ' | ' | ' | ' |
Unrealized foreign currency translation losses | ' | ' | 163 | ' | ' | ' | ' |
Other comprehensive income (loss), net of taxes | ' | ' | 678 | ' | ' | ' | ' |
Share compensation plans | ' | 4,349 | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | 61,690 | ' | ' | ' |
Balance at Dec. 31, 2013 | 873,280 | 516,653 | 54,028 | 403,861 | -101,265 | 2 | 1 |
Number at Dec. 31, 2013 | ' | ' | ' | ' | 3,059,371 | 16,200,406 | 12,061,370 |
Ordinary shares issued under share incentive plans | ' | ' | ' | ' | ' | 88,892 | ' |
A ordinary shares purchased | ' | ' | ' | ' | 5,444 | ' | ' |
Ordinary shares issued to directors | ' | ' | ' | ' | ' | 8,928 | ' |
A ordinary shares purchased, at cost | ' | ' | ' | ' | -139 | ' | ' |
Other comprehensive income: | ' | ' | ' | ' | ' | ' | ' |
Change in unrealized holding gains | ' | ' | -1,991 | ' | ' | ' | ' |
Change in other than temporary impairment losses recognized in other comprehensive income | ' | ' | -1 | ' | ' | ' | ' |
Unrealized foreign currency translation losses | 16 | ' | 16 | ' | ' | ' | ' |
Other comprehensive income (loss), net of taxes | -1,976 | ' | -1,976 | ' | ' | ' | ' |
Share compensation plans | ' | 813 | ' | ' | ' | ' | ' |
Net income | 8,823 | ' | ' | 8,823 | ' | ' | ' |
Balance at Mar. 31, 2014 | $880,801 | $517,466 | $52,052 | $412,684 | ($101,404) | $2 | $1 |
Number at Mar. 31, 2014 | ' | ' | ' | ' | 3,064,815 | 16,298,226 | 12,061,370 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $8,823 | $12,365 |
Adjustments to reconcile net income to net cash used for operating activities: | ' | ' |
Amortization of trust preferred securities issuance costs | ' | 12 |
Amortization and depreciation | 895 | 192 |
Restricted stock and stock option expense | 813 | 1,222 |
Deferred federal income taxes | -1,643 | 294 |
Amortization of bond premium and discount, net | 1,848 | 1,407 |
Net realized investment (gains) losses | 813 | -5,757 |
Changes in: | ' | ' |
Premiums receivable, net | -7,965 | 4,784 |
Reinsurance receivables, net | -1,080 | 2,143 |
Funds held by ceding insurers | -5,102 | -16,354 |
Unpaid losses and loss adjustment expenses | -419 | -14,947 |
Unearned premiums | 4,959 | 14,264 |
Ceded balances payable | -2,458 | -1,358 |
Other assets and liabilities, net | -5,606 | -3,527 |
Contingent commissions | -858 | -1,737 |
Federal income tax receivable/payable | -2,017 | -649 |
Deferred acquisition costs, net | -2,060 | -3,996 |
Prepaid reinsurance premiums | 359 | 1,219 |
Net cash used for operating activities | -10,698 | -10,423 |
Cash flows from investing activities: | ' | ' |
Proceeds from sale of fixed maturities | 95,289 | 92,513 |
Proceeds from sale of equity securities | 10,702 | 20,699 |
Proceeds from maturity of fixed maturities | 32,095 | 9,545 |
Amount held in connection with derivatives | -5,636 | ' |
Purchases of fixed maturities | -113,406 | -127,321 |
Purchases of equity securities | -12,375 | -20,136 |
Purchases of other invested assets | -2,101 | -10 |
Net cash provided by (used for) investing activities | 4,568 | -24,710 |
Cash flows from financing activities: | ' | ' |
Tax expense associated with share-based compensation plans | ' | 22 |
Purchase of A ordinary shares | -139 | -28 |
Net cash used for financing activities | -139 | -6 |
Net change in cash and cash equivalents | -6,269 | -35,139 |
Cash and cash equivalents at beginning of period | 105,492 | 104,460 |
Cash and cash equivalents at end of period | $99,223 | $69,321 |
Principles_of_Consolidation_an
Principles of Consolidation and Basis of Presentation | 3 Months Ended | |
Mar. 31, 2014 | ||
Principles of Consolidation and Basis of Presentation | ' | |
1 | Principles of Consolidation and Basis of Presentation | |
Global Indemnity plc (“Global Indemnity” or “the Company”) was incorporated on March 9, 2010 and is domiciled in Ireland. Global Indemnity replaced the Company’s predecessor, United America Indemnity, Ltd., as the ultimate parent company as a result of a re-domestication transaction. United America Indemnity, Ltd. was incorporated on August 26, 2003, and is domiciled in the Cayman Islands. United America Indemnity, Ltd. is now a subsidiary of the Company. The Company’s A ordinary shares are publicly traded on the NASDAQ Global Select Market under the trading symbol “GBLI.” | ||
The Company manages its business through two business segments: Insurance Operations, which includes the operations of United National Insurance Company, Diamond State Insurance Company, United National Specialty Insurance Company, Penn-America Insurance Company, Penn-Star Insurance Company, Penn-Patriot Insurance Company, American Insurance Adjustment Agency, Inc., Collectibles Insurance Services, LLC, Global Indemnity Insurance Agency, LLC, and J.H. Ferguson & Associates, LLC, and Reinsurance Operations, which includes the operations of Wind River Reinsurance Company, Ltd. (“Wind River Reinsurance”). | ||
The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters ended March 31, 2014 and 2013 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2013 Annual Report on Form 10-K. | ||
The consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Investments
Investments | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
2 | Investments | ||||||||||||||||||||||||
The amortized cost and estimated fair value of investments were as follows as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Estimated | Other than | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | temporary | |||||||||||||||||||||
Gains | Losses | impairments | |||||||||||||||||||||||
recognized in | |||||||||||||||||||||||||
AOCI (1) | |||||||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. treasury and agency obligations | $ | 78,194 | $ | 3,134 | $ | (139 | ) | $ | 81,189 | $ | — | ||||||||||||||
Obligations of states and political subdivisions | 177,223 | 4,265 | (1,146 | ) | 180,342 | — | |||||||||||||||||||
Mortgage-backed securities | 218,786 | 3,961 | (2,123 | ) | 220,624 | (4 | ) | ||||||||||||||||||
Asset-backed securities | 183,471 | 1,258 | (168 | ) | 184,561 | (17 | ) | ||||||||||||||||||
Commercial mortgage-backed securities | 55,781 | 50 | (402 | ) | 55,429 | — | |||||||||||||||||||
Corporate bonds and loans | 389,483 | 6,771 | (450 | ) | 395,804 | — | |||||||||||||||||||
Foreign corporate bonds | 77,775 | 1,204 | (70 | ) | 78,909 | — | |||||||||||||||||||
Total fixed maturities | 1,180,713 | 20,643 | (4,498 | ) | 1,196,858 | (21 | ) | ||||||||||||||||||
Common stock | 197,088 | 62,100 | (1,248 | ) | 257,940 | — | |||||||||||||||||||
Other invested assets | 5,167 | 282 | (85 | ) | 5,364 | — | |||||||||||||||||||
Total | $ | 1,382,968 | $ | 83,025 | $ | (5,831 | ) | $ | 1,460,162 | $ | (21 | ) | |||||||||||||
-1 | Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). | ||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Estimated | Other than | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | temporary | |||||||||||||||||||||
Gains | Losses | impairments | |||||||||||||||||||||||
recognized in | |||||||||||||||||||||||||
AOCI (2) | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. treasury and agency obligations | $ | 78,510 | $ | 3,330 | $ | (166 | ) | $ | 81,674 | $ | — | ||||||||||||||
Obligations of states and political subdivisions | 178,705 | 4,472 | (2,241 | ) | 180,936 | — | |||||||||||||||||||
Mortgage-backed securities | 228,550 | 4,219 | (2,859 | ) | 229,910 | (5 | ) | ||||||||||||||||||
Asset-backed securities | 167,454 | 1,210 | (228 | ) | 168,436 | (19 | ) | ||||||||||||||||||
Commercial mortgage-backed securities | 54,822 | 9 | (856 | ) | 53,975 | — | |||||||||||||||||||
Corporate bonds and loans | 426,872 | 9,112 | (592 | ) | 435,392 | — | |||||||||||||||||||
Foreign corporate bonds | 52,772 | 1,269 | — | 54,041 | — | ||||||||||||||||||||
Total fixed maturities | 1,187,685 | 23,621 | (6,942 | ) | 1,204,364 | (24 | ) | ||||||||||||||||||
Common stock | 191,425 | 63,281 | (636 | ) | 254,070 | — | |||||||||||||||||||
Other invested assets | 3,065 | 424 | — | 3,489 | — | ||||||||||||||||||||
Total | $ | 1,382,175 | $ | 87,326 | $ | (7,578 | ) | $ | 1,461,923 | $ | (24 | ) | |||||||||||||
-2 | Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). | ||||||||||||||||||||||||
Excluding U.S. treasuries and agency bonds, the Company did not hold any debt or equity investments in a single issuer that was in excess of 4% of shareholders’ equity at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||
The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at March 31, 2014, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Estimated | |||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
Due in one year or less | $ | 123,488 | $ | 125,293 | |||||||||||||||||||||
Due in one year through five years | 505,853 | 517,147 | |||||||||||||||||||||||
Due in five years through ten years | 67,611 | 68,094 | |||||||||||||||||||||||
Due in ten years through fifteen years | 4,405 | 4,761 | |||||||||||||||||||||||
Due after fifteen years | 21,318 | 20,949 | |||||||||||||||||||||||
Mortgage-backed securities | 218,786 | 220,624 | |||||||||||||||||||||||
Asset-backed securities | 183,471 | 184,561 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 55,781 | 55,429 | |||||||||||||||||||||||
Total | $ | 1,180,713 | $ | 1,196,858 | |||||||||||||||||||||
The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of March 31, 2014: | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer (1) | Total | |||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
US treasury and agency obligations | $ | 6,272 | $ | (139 | ) | $ | — | $ | — | $ | 6,272 | $ | (139 | ) | |||||||||||
Obligations of states and political subdivisions | 50,565 | (852 | ) | 9,862 | (294 | ) | 60,427 | (1,146 | ) | ||||||||||||||||
Mortgage-backed securities | 95,564 | (1,987 | ) | 3,087 | (136 | ) | 98,651 | (2,123 | ) | ||||||||||||||||
Asset-backed securities | 33,307 | (167 | ) | 2,703 | (1 | ) | 36,010 | (168 | ) | ||||||||||||||||
Commercial mortgage-backed securities | 29,721 | (402 | ) | — | — | 29,721 | (402 | ) | |||||||||||||||||
Corporate bonds and loans | 76,933 | (450 | ) | — | — | 76,933 | (450 | ) | |||||||||||||||||
Foreign corporate bonds | 20,681 | (70 | ) | — | — | 20,681 | (70 | ) | |||||||||||||||||
Total fixed maturities | 313,043 | (4,067 | ) | 15,652 | (431 | ) | 328,695 | (4,498 | ) | ||||||||||||||||
Common stock | 22,501 | (1,233 | ) | 134 | (15 | ) | 22,635 | (1,248 | ) | ||||||||||||||||
Other invested assets | 1,993 | (85 | ) | — | — | 1,993 | (85 | ) | |||||||||||||||||
Total | $ | 337,537 | $ | (5,385 | ) | $ | 15,786 | $ | (446 | ) | $ | 353,323 | $ | (5,831 | ) | ||||||||||
-1 | Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. | ||||||||||||||||||||||||
The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2013: | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer (2) | Total | |||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. treasury and agency obligations | $ | 9,335 | $ | (166 | ) | $ | — | $ | — | $ | 9,335 | $ | (166 | ) | |||||||||||
Obligations of states and political subdivisions | 61,401 | (2,000 | ) | 9,922 | (241 | ) | 71,323 | (2,241 | ) | ||||||||||||||||
Mortgage-backed securities | 110,304 | (2,859 | ) | 2 | — | 110,306 | (2,859 | ) | |||||||||||||||||
Asset-backed securities | 42,247 | (228 | ) | 3 | — | 42,250 | (228 | ) | |||||||||||||||||
Commercial mortgage-backed securities | 45,642 | (856 | ) | — | — | 45,642 | (856 | ) | |||||||||||||||||
Corporate bonds and loans | 60,306 | (582 | ) | 376 | (10 | ) | 60,682 | (592 | ) | ||||||||||||||||
Total fixed maturities | 329,235 | (6,691 | ) | 10,303 | (251 | ) | 339,538 | (6,942 | ) | ||||||||||||||||
Common stock | 18,622 | (627 | ) | 140 | (9 | ) | 18,762 | (636 | ) | ||||||||||||||||
Total | $ | 347,857 | $ | (7,318 | ) | $ | 10,443 | $ | (260 | ) | $ | 358,300 | $ | (7,578 | ) | ||||||||||
-2 | Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. | ||||||||||||||||||||||||
The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each fixed maturity security in an unrealized loss position to assess whether the security is a candidate for credit loss. Specifically, the Company considers credit rating, market price, and issuer specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which the Company determines that a credit loss is likely are subjected to further analysis through discounted cash flow testing to estimate the credit loss to be recognized in earnings, if any. The specific methodologies and significant assumptions used by asset class are discussed below. Upon identification of such securities and periodically thereafter, a detailed review is performed to determine whether the decline is considered other than temporary. This review includes an analysis of several factors, including but not limited to, the credit ratings and cash flows of the securities and the magnitude and length of time that the fair value of such securities is below cost. | |||||||||||||||||||||||||
For fixed maturities, the factors considered in reaching the conclusion that a decline below cost is other than temporary include, among others, whether: | |||||||||||||||||||||||||
-1 | the issuer is in financial distress; | ||||||||||||||||||||||||
-2 | the investment is secured; | ||||||||||||||||||||||||
-3 | a significant credit rating action occurred; | ||||||||||||||||||||||||
-4 | scheduled interest payments were delayed or missed; | ||||||||||||||||||||||||
-5 | changes in laws or regulations have affected an issuer or industry; | ||||||||||||||||||||||||
-6 | the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; and | ||||||||||||||||||||||||
-7 | the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized. | ||||||||||||||||||||||||
According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securities in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary impairment into two components: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses is recorded in other comprehensive income, net of taxes. | |||||||||||||||||||||||||
For equity securities, management carefully reviews all securities with unrealized losses to determine if a security should be impaired and further focuses on securities that have either: | |||||||||||||||||||||||||
-1 | persisted with unrealized losses for more than twelve consecutive months or | ||||||||||||||||||||||||
-2 | the value of the investment has been 20% or more below cost for six continuous months or more. | ||||||||||||||||||||||||
The amount of any write-down, including those that are deemed to be other than temporary, is included in earnings as a realized loss in the period in which the impairment arose. | |||||||||||||||||||||||||
The following is a description, by asset type, of the methodology and significant inputs that the Company used to measure the amount of credit loss recognized in earnings, if any: | |||||||||||||||||||||||||
U.S. treasury and agency obligations - As of March 31, 2014, gross unrealized losses related to U.S. treasury and agency obligations were $0.139 million. All unrealized losses have been in an unrealized loss position for less than twelve months. All of these securities are rated AA+. Extensive macroeconomic and market analysis is conducted in evaluating these securities. The analysis is driven by moderate interest rate anticipation, yield curve management, and security selection. | |||||||||||||||||||||||||
Obligations of states and political subdivisions - As of March 31, 2014, gross unrealized losses related to obligations of states and political subdivisions were $1.146 million. Of this amount, $0.294 million have been in an unrealized loss position for twelve months or greater and are rated A- or better. All factors that influence performance of the municipal bond market are considered in evaluating these securities. The aforementioned factors include investor expectations, supply and demand patterns, and current versus historical yield and spread relationships. The analysis relies on the output of fixed income credit analysts, as well as dedicated municipal bond analysts who perform extensive in-house fundamental analysis on each issuer, regardless of their rating by the major agencies. | |||||||||||||||||||||||||
Mortgage-backed securities (“MBS”) - As of March 31, 2014, gross unrealized losses related to mortgage-backed securities were $2.123 million. Of this amount, $0.136 million have been in an unrealized loss position for twelve months or greater and are rated AA+. Mortgage-backed securities are modeled to project principal losses under downside, base, and upside scenarios for the economy and home prices. The primary assumption that drives the security and loan level modeling is the Home Price Index (“HPI”) projection. The model first projects HPI at the national level, then at the zip-code level based on the historical relationship between the individual zip code HPI and the national HPI. The model utilizes loan level data and borrower characteristics including FICO score, geographic location, original and current loan size, loan age, mortgage rate and type (fixed rate / interest-only / adjustable rate mortgage), issuer / originator, residential type (owner occupied / investor property), dwelling type (single family / multi-family), loan purpose, level of documentation, and delinquency status as inputs. The model also includes the explicit treatment of silent second liens, utilization of loan modification history, and the application of roll rate adjustments. | |||||||||||||||||||||||||
Asset-backed securities (“ABS”) - As of March 31, 2014, gross unrealized losses related to asset backed securities were $0.168 million. Of this amount, $0.001 million have been in an unrealized loss position for twelve months or greater and are rated A or better. The weighted average credit enhancement for the Company’s asset backed portfolio is 23.9. This represents the percentage of pool losses that can occur before an asset backed security will incur its first dollar of principal losses. Every ABS transaction is analyzed on a stand-alone basis. This analysis involves a thorough review of the collateral, prepayment, and structural risk in each transaction. Additionally, the analysis includes an in-depth credit analysis of the originator and servicer of the collateral. The analysis projects an expected loss for a deal given a set of assumptions specific to the asset type. These assumptions are used to calculate at what level of losses the deal will incur its first dollar of principal loss. The major assumptions used to calculate this ratio are loss severities, recovery lags, and no advances on principal and interest. | |||||||||||||||||||||||||
Commercial mortgage-backed securities (“CMBS”) - As of March 31, 2014, gross unrealized losses related to the CMBS portfolio were $0.402 million. All unrealized losses have been in an unrealized loss position for less than twelve months. All of these securities are rated AA or better. The weighted average credit enhancement for the Company’s CMBS portfolio is 31.1. This represents the percentage of pool losses that can occur before a mortgage-backed security will incur its first dollar of principal loss. For the Company’s CMBS portfolio, a loan level analysis is utilized where every underlying CMBS loan is re-underwritten based on a set of assumptions reflecting expectations for the future path of the economy. In the analysis, the focus is centered on stressing the significant variables that influence commercial loan defaults and collateral losses in CMBS deals. These variables include: (1) a projected drop in occupancies; (2) capitalization rates that vary by property type and are forecasted to return to more normalized levels as the capital markets repair and capital begins to flow again; and (3) property value stress testing using projected property performance and projected capitalization rates. Term risk is triggered if the projected debt service coverage rate falls below 1x. Balloon risk is triggered if a property’s projected performance does not satisfy new tighter mortgage standards. | |||||||||||||||||||||||||
Corporate bonds and loans - As of March 31, 2014, gross unrealized losses related to corporate bonds and loans were $0.450 million. All unrealized losses have been in an unrealized loss position for less than twelve months. These securities are rated investment grade. The analysis for this sector includes maintaining detailed financial models that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. | |||||||||||||||||||||||||
Foreign bonds - As of March 31, 2014, gross unrealized losses related to foreign bonds were $0.070 million. All unrealized losses have been in an unrealized loss position for less than twelve months. These securities are rated investment grade. For this sector, detailed financial models are maintained that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. | |||||||||||||||||||||||||
Common stock - As of March 31, 2014, gross unrealized losses related to common stock were $1.248 million. Of this amount, $0.015 million have been in an unrealized loss position for twelve months or greater. To determine if an other than temporary impairment of an equity security has occurred, the Company considers, among other things, the severity and duration of the decline in fair value of the equity security. The Company also examines other factors to determine if the equity security could recover its value in a reasonable period of time. | |||||||||||||||||||||||||
Other invested assets - As of March 31, 2014, gross unrealized losses related to other invested assets were $0.085 million. All securities have been in an unrealized loss position for less than twelve months. | |||||||||||||||||||||||||
The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the quarters ended March 31, 2014 and 2013: | |||||||||||||||||||||||||
(Dollars in thousands) | Quarters Ended | ||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
OTTI losses, gross | $ | (25 | ) | $ | (43 | ) | |||||||||||||||||||
Portion of loss recognized in other comprehensive income (pre-tax) | — | — | |||||||||||||||||||||||
Net impairment losses on fixed maturities recognized in earnings | (25 | ) | (43 | ) | |||||||||||||||||||||
Equity securities | — | — | |||||||||||||||||||||||
Total | $ | (25 | ) | $ | (43 | ) | |||||||||||||||||||
The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company for the quarters ended March 31, 2014 and 2013 for which a portion of the OTTI loss was recognized in other comprehensive income. | |||||||||||||||||||||||||
(Dollars in thousands) | Quarters Ended | ||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Balance at beginning of period | $ | 54 | $ | 86 | |||||||||||||||||||||
Additions where no OTTI was previously recorded | — | — | |||||||||||||||||||||||
Additions where an OTTI was previously recorded | — | — | |||||||||||||||||||||||
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery | — | — | |||||||||||||||||||||||
Reductions reflecting increases in expected cash flows to be collected | — | — | |||||||||||||||||||||||
Reductions for securities sold during the period | — | — | |||||||||||||||||||||||
Balance at end of period | $ | 54 | $ | 86 | |||||||||||||||||||||
Accumulated Other Comprehensive Income, Net of Tax | |||||||||||||||||||||||||
Accumulated other comprehensive income, net of tax, as of March 31, 2014 and December 31, 2013 was as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Net unrealized gains (losses) from: | |||||||||||||||||||||||||
Fixed maturities | $ | 16,145 | $ | 16,679 | |||||||||||||||||||||
Common stock | 60,852 | 62,645 | |||||||||||||||||||||||
Other | (60 | ) | 184 | ||||||||||||||||||||||
Deferred taxes | (24,885 | ) | (25,480 | ) | |||||||||||||||||||||
Accumulated other comprehensive income, net of tax | $ | 52,052 | $ | 54,028 | |||||||||||||||||||||
The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the quarter ended March 31, 2014 and 2013: | |||||||||||||||||||||||||
Quarter Ended March 31, 2014 | Unrealized Gains | Foreign Currency | Accumulated Other | ||||||||||||||||||||||
(Dollars in thousands) | and Losses on | Items, Net of Tax | Comprehensive | ||||||||||||||||||||||
Available for Sale | Income, Net of Tax | ||||||||||||||||||||||||
Securities, Net of | |||||||||||||||||||||||||
Tax | |||||||||||||||||||||||||
Beginning balance | $ | 53,950 | $ | 78 | $ | 54,028 | |||||||||||||||||||
Other comprehensive income before reclassification | 2,027 | 29 | 2,056 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (4,019 | ) | (13 | ) | (4,032 | ) | |||||||||||||||||||
Other comprehensive income (loss) | (1,992 | ) | 16 | (1,976 | ) | ||||||||||||||||||||
Ending balance | $ | 51,958 | $ | 94 | $ | 52,052 | |||||||||||||||||||
Quarter Ended March 31, 2013 | Unrealized Gains | Foreign Currency | Accumulated Other | ||||||||||||||||||||||
(Dollars in thousands) | and Losses on | Items, Net of Tax | Comprehensive | ||||||||||||||||||||||
Available for Sale | Income, Net of Tax | ||||||||||||||||||||||||
Securities, Net of | |||||||||||||||||||||||||
Tax | |||||||||||||||||||||||||
Beginning balance | $ | 53,435 | $ | (85 | ) | $ | 53,350 | ||||||||||||||||||
Other comprehensive income before reclassification | 11,366 | (89 | ) | 11,277 | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (3,885 | ) | 57 | (3,828 | ) | ||||||||||||||||||||
Other comprehensive income (loss) | 7,481 | (32 | ) | 7,449 | |||||||||||||||||||||
Ending balance | $ | 60,916 | $ | (117 | ) | $ | 60,799 | ||||||||||||||||||
The reclassifications out of accumulated other comprehensive income for the quarters ended March 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Amounts Reclassified from | ||||||||||||||||||||||||
Accumulated Other | |||||||||||||||||||||||||
Comprehensive Income | |||||||||||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||||||||||
Details about Accumulated Other Comprehensive | Affected Line Item in the | 2014 | 2013 | ||||||||||||||||||||||
Income Components | Consolidated Statements of | ||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||
Unrealized gains and losses on available for sale securities | Other net realized investment gains | $ | (5,534 | ) | $ | (5,888 | ) | ||||||||||||||||||
Other than temporary impairment losses on investments | 25 | 43 | |||||||||||||||||||||||
Total before tax | (5,509 | ) | (5,845 | ) | |||||||||||||||||||||
Income tax benefit | 1,490 | 1,960 | |||||||||||||||||||||||
Net of tax | $ | (4,019 | ) | $ | (3,885 | ) | |||||||||||||||||||
Foreign Currency Items | Other net realized investment gains | $ | (20 | ) | $ | 88 | |||||||||||||||||||
Income tax benefit | 7 | (31 | ) | ||||||||||||||||||||||
Net of tax | $ | (13 | ) | $ | 57 | ||||||||||||||||||||
Total reclassifications | Net of tax | $ | (4,032 | ) | $ | (3,828 | ) | ||||||||||||||||||
Net Realized Investment Gains | |||||||||||||||||||||||||
The components of net realized investment gains for the quarters ended March 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Gross realized gains | $ | 1,671 | $ | 386 | |||||||||||||||||||||
Gross realized losses | (131 | ) | (56 | ) | |||||||||||||||||||||
Net realized gains (losses) | 1,540 | 330 | |||||||||||||||||||||||
Common stock: | |||||||||||||||||||||||||
Gross realized gains | 4,007 | 5,481 | |||||||||||||||||||||||
Gross realized losses | (18 | ) | (54 | ) | |||||||||||||||||||||
Net realized gains (losses) | 3,989 | 5,427 | |||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Gross realized gains | — | — | |||||||||||||||||||||||
Gross realized losses | (6,342 | ) | — | ||||||||||||||||||||||
Net realized gains (losses) | (6,342 | ) | — | ||||||||||||||||||||||
Total net realized investment gains (losses) | $ | (813 | ) | $ | 5,757 | ||||||||||||||||||||
The proceeds from sales of available for sale securities resulting in net realized investment gains for the quarters ended March 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Quarters Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Fixed maturities | $ | 95,289 | $ | 92,513 | |||||||||||||||||||||
Equity securities | 10,702 | 20,699 | |||||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||||
The sources of net investment income for the quarters ended March 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Fixed maturities | $ | 7,255 | $ | 9,827 | |||||||||||||||||||||
Equity securities | 2,140 | 1,292 | |||||||||||||||||||||||
Cash and cash equivalents | 18 | 50 | |||||||||||||||||||||||
Other invested assets | — | — | |||||||||||||||||||||||
Total investment income | 9,413 | 11,169 | |||||||||||||||||||||||
Investment expense | (1,129 | ) | (1,135 | ) | |||||||||||||||||||||
Net investment income | $ | 8,284 | $ | 10,034 | |||||||||||||||||||||
The Company’s total investment return on a pre-tax basis for the quarters ended March 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Net investment income | $ | 8,284 | $ | 10,034 | |||||||||||||||||||||
Net realized investment gains (losses) | (813 | ) | 5,757 | ||||||||||||||||||||||
Net unrealized investment gains (losses) | (2,571 | ) | 12,854 | ||||||||||||||||||||||
Net investment return | (3,384 | ) | 18,611 | ||||||||||||||||||||||
Total investment return | $ | 4,900 | $ | 28,645 | |||||||||||||||||||||
Total investment return % (1) | 0.3 | % | 1.9 | % | |||||||||||||||||||||
Average investment portfolio (2) | $ | 1,560,464 | $ | 1,534,743 | |||||||||||||||||||||
-1 | Not annualized. | ||||||||||||||||||||||||
-2 | Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period. | ||||||||||||||||||||||||
Insurance Enhanced Municipal Bonds | |||||||||||||||||||||||||
As of March 31, 2014, the Company held insurance enhanced municipal bonds of approximately $26.5 million, which represented approximately 1.7% of the Company’s total cash and invested assets, net of payable/receivable for securities purchased and sold. These securities had an average rating of “AA-.” Approximately $2.9 million of these bonds are pre-refunded with U.S. treasury securities, of which $1.2 million are backed by financial guarantors, meaning that funds have been set aside in escrow to satisfy the future interest and principal obligations of the bond. Of the remaining $23.6 million of insurance enhanced municipal bonds, $15.0 million would have carried a lower credit rating had they not been insured. The following table provides a breakdown of the ratings for these municipal bonds with and without insurance. | |||||||||||||||||||||||||
(Dollars in thousands) | Ratings | Ratings | |||||||||||||||||||||||
with | without | ||||||||||||||||||||||||
Rating | Insurance | Insurance | |||||||||||||||||||||||
AAA | $ | 8,842 | $ | — | |||||||||||||||||||||
AA | — | 8,842 | |||||||||||||||||||||||
A | 6,187 | 6,187 | |||||||||||||||||||||||
Total | $ | 15,029 | $ | 15,029 | |||||||||||||||||||||
A summary of the Company’s insurance enhanced municipal bonds that are backed by financial guarantors, including the pre-refunded bonds that are escrowed in U.S. government obligations, as of March 31, 2014, is as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Total | Pre-refunded | Government | Exposure Net | |||||||||||||||||||||
Financial Guarantor | Securities | Guaranteed | of Pre-refunded | ||||||||||||||||||||||
Securities | & Government | ||||||||||||||||||||||||
Guaranteed | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Ambac Financial Group | $ | 2,283 | $ | 1,223 | $ | — | $ | 1,060 | |||||||||||||||||
Assured Guaranty Corporation | 9,050 | — | — | 9,050 | |||||||||||||||||||||
Municipal Bond Insurance Association | 4,007 | — | — | 4,007 | |||||||||||||||||||||
Gov’t National Housing Association | 672 | — | 672 | — | |||||||||||||||||||||
Permanent School Fund Guaranty | 8,842 | — | 8,842 | — | |||||||||||||||||||||
Total backed by financial guarantors | 24,854 | 1,223 | 9,514 | 14,117 | |||||||||||||||||||||
Other credit enhanced municipal bonds | 1,685 | 1,685 | — | — | |||||||||||||||||||||
Total | $ | 26,539 | $ | 2,908 | $ | 9,514 | $ | 14,117 | |||||||||||||||||
In addition to the $26.5 million of insurance enhanced municipal bonds, the Company also held insurance enhanced asset-backed and credit securities with a market value of approximately $14.2 million, which represented approximately 0.9% of the Company’s total invested assets net of receivable/payable for securities purchased and sold. The financial guarantors of the Company’s $14.2 million of insurance enhanced asset-backed and credit securities include Municipal Bond Insurance Association ($6.8 million), Ambac ($1.0 million), and Assured Guaranty Corporation ($6.4 million). | |||||||||||||||||||||||||
The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at March 31, 2014. | |||||||||||||||||||||||||
Bonds Held on Deposit | |||||||||||||||||||||||||
Certain cash balances, cash equivalents, equity securities and bonds available for sale were deposited with various governmental authorities in accordance with statutory requirements, were held as collateral pursuant to borrowing arrangement, or were held in trust pursuant to intercompany reinsurance agreements. The fair values were as follows as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||||
(Dollars in thousands) | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
On deposit with governmental authorities | $ | 35,992 | $ | 36,176 | |||||||||||||||||||||
Intercompany trusts held for the benefit of U.S. policyholders | 495,917 | 584,683 | |||||||||||||||||||||||
Held in trust pursuant to third party requirements | 124,026 | 129,339 | |||||||||||||||||||||||
Letter of credit held for third party requirements | 3,293 | — | |||||||||||||||||||||||
Securities held as collateral for borrowing arrangements (a) | 120,414 | 120,937 | |||||||||||||||||||||||
Total | $ | 779,642 | $ | 871,135 | |||||||||||||||||||||
(a) | Amount required to collateralize margin borrowing facility. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||
3 | Derivative Instruments | ||||||||||||||||||
Interest rate swaps are used by the Company primarily to reduce risks from changes in interest rates. Under the terms of the interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. As of March 31, 2014, the Company posted collateral of $4.9 million which is included in other assets on the consolidated balance sheets. | |||||||||||||||||||
The Company accounts for its interest rate swaps in accordance with accounting guidance under Financial Accounting Standards Codification (“ASC”) section 815, Derivatives and Hedging. The Company has designated the interest rate swaps as non-hedge instruments. Accordingly, the Company recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains in the consolidated statement of operations. The estimated fair value of the interest rate swaps, which is primarily derived from the forward interest rate curve, is based on the valuation received from a third party financial institution. | |||||||||||||||||||
The following table summarizes information on the location and amount of the derivatives’ fair value on the consolidated balance sheets as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||
(Dollars in thousands) | March 31, 2014 | December 31, 2013 | |||||||||||||||||
Derivatives Not Designated as Hedging Instruments under ASC 815 | Balance Sheet | Notional | Fair Value | Notional | Fair Value | ||||||||||||||
Location | Amount | Amount | |||||||||||||||||
Interest rate swap agreements | Other liabilities | $ | 200,000 | $ | (3,266 | ) | — | — | |||||||||||
Interest rate swap agreements | Other assets | — | — | $ | 200,000 | $ | 1,668 | ||||||||||||
The following table summarizes the net losses included in the consolidated statement of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters ended March 31, 2014 and 2013: | |||||||||||||||||||
Quarter Ended March 31, | |||||||||||||||||||
(Dollars in thousands) | Statement of Operations Line | 2014 | 2013 | ||||||||||||||||
Interest rate swap agreements | Net realized investment gains (losses) | $ | (6,342 | ) | N/A |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
4 | Fair Value Measurements | ||||||||||||||||
The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards. | |||||||||||||||||
The Company’s invested assets are carried at their fair value and are categorized based upon a fair value hierarchy: | |||||||||||||||||
• | Level 1 - inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date. | ||||||||||||||||
• | Level 2 - inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly. | ||||||||||||||||
• | Level 3 - inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset. | ||||||||||||||||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset. | |||||||||||||||||
Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains and losses for invested assets within the Level 3 category presented in the tables below may include changes in fair value that are attributed to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. | |||||||||||||||||
The following table presents information about the Company’s invested assets measured at fair value on a recurring basis as of March 31, 2014 and December 31, 2013, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. | |||||||||||||||||
As of March 31, 2014 | Fair Value Measurements | ||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Fixed maturities: | |||||||||||||||||
U.S. treasury and agency obligations | $ | 68,895 | $ | 12,294 | $ | — | $ | 81,189 | |||||||||
Obligations of states and political subdivisions | — | 180,342 | — | 180,342 | |||||||||||||
Mortgage-backed securities | — | 220,624 | — | 220,624 | |||||||||||||
Commercial mortgage-backed securities | — | 55,429 | — | 55,429 | |||||||||||||
Asset-backed securities | — | 184,561 | — | 184,561 | |||||||||||||
Corporate bonds and loans | — | 395,804 | — | 395,804 | |||||||||||||
Foreign corporate bonds | — | 78,909 | — | 78,909 | |||||||||||||
Total fixed maturities | 68,895 | 1,127,963 | — | 1,196,858 | |||||||||||||
Common stock | 257,940 | — | — | 257,940 | |||||||||||||
Other invested assets | — | — | 5,364 | 5,364 | |||||||||||||
Total assets measured at fair value | $ | 326,835 | $ | 1,127,963 | $ | 5,364 | $ | 1,460,162 | |||||||||
Liabilities: | |||||||||||||||||
Derivative instruments | $ | — | $ | 3,266 | $ | — | $ | 3,266 | |||||||||
Total liabilities measured at fair value | $ | — | $ | 3,266 | $ | — | $ | 3,266 | |||||||||
As of December 31, 2013 | Fair Value Measurements | ||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Fixed maturities: | |||||||||||||||||
U.S. treasury and agency obligations | $ | 71,294 | $ | 10,380 | $ | — | $ | 81,674 | |||||||||
Obligations of states and political subdivisions | — | 180,936 | — | 180,936 | |||||||||||||
Mortgage-backed securities | — | 229,910 | — | 229,910 | |||||||||||||
Commercial mortgage-backed securities | — | 53,975 | — | 53,975 | |||||||||||||
Asset-backed securities | — | 168,436 | — | 168,436 | |||||||||||||
Corporate bonds and loans | — | 435,392 | — | 435,392 | |||||||||||||
Foreign corporate bonds | — | 54,041 | — | 54,041 | |||||||||||||
Total fixed maturities | 71,294 | 1,133,070 | — | 1,204,364 | |||||||||||||
Common stock | 254,070 | — | — | 254,070 | |||||||||||||
Other invested assets | — | — | 3,489 | 3,489 | |||||||||||||
Derivative instruments | — | 1,668 | — | 1,668 | |||||||||||||
Total assets measured at fair value | $ | 325,364 | $ | 1,134,738 | $ | 3,489 | $ | 1,463,591 | |||||||||
The securities classified as Level 1 in the above table consist of U.S. Treasuries and equity securities actively traded on an exchange. | |||||||||||||||||
The securities classified as Level 2 in the above table consist primarily of fixed maturity securities and derivative instruments. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, security prices are derived through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recent reported trades, matrix or model processes are used to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the pricing of asset-backed securities, collateralized mortgage obligations, and mortgage-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral. For corporate loans, price quotes from multiple dealers along with recent reported trades for identical or similar securities are used to develop prices. The estimated fair value of the interest rate swaps is obtained from a third party financial institution who utilizes observable inputs such as the forward interest rate curve. | |||||||||||||||||
There were no transfers between Level 1 and Level 2 during the quarters ended March 31, 2014 or 2013. | |||||||||||||||||
The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters ended March 31, 2014 and 2013: | |||||||||||||||||
(Dollars in thousands) | Quarters Ended March 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Beginning balance | $ | 3,489 | $ | 3,132 | |||||||||||||
Total gains (losses) (realized / unrealized): | |||||||||||||||||
Included in accumulated other comprehensive income (loss) | (226 | ) | (37 | ) | |||||||||||||
Purchases | 2,101 | 10 | |||||||||||||||
Sales | — | — | |||||||||||||||
Ending balance | $ | 5,364 | $ | 3,105 | |||||||||||||
The investments classified as Level 3 in the above table relate to investments in limited partnerships. The Company does not have access to daily valuations; therefore, the estimated fair values of the limited partnerships are measured utilizing net asset value as a practical expedient for the limited partnerships. | |||||||||||||||||
Fair Value of Alternative Investments | |||||||||||||||||
Included in “Other invested assets” in the fair value hierarchy at March 31, 2014 and December 31, 2013 are limited liability partnerships measured at fair value. The following table provides the fair value and future funding commitments related to these investments at March 31, 2014 and December 31, 2013. | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
(Dollars in thousands) | Fair Value | Future | Fair Value | Future | |||||||||||||
Funding | Funding | ||||||||||||||||
Commitment | Commitment | ||||||||||||||||
Equity Fund, LP (1) | $ | 3,371 | $ | 2,465 | $ | 3,489 | $ | 2,490 | |||||||||
Real Estate Fund, LP (2) | — | — | — | — | |||||||||||||
European Non-Performing Loan Fund, LP (3) | 1,993 | 48,007 | — | — | |||||||||||||
Total | $ | 5,364 | $ | 50,472 | $ | 3,489 | $ | 2,490 | |||||||||
-1 | This limited partnership invests in companies from various business sectors whereby the partnership has acquired control of the operating business as a lead or organizing investor. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. | ||||||||||||||||
-2 | This limited partnership invests in real estate assets through a combination of direct or indirect investments in partnerships, limited liability companies, mortgage loans, and lines of credit. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company continues to hold an investment in this limited partnership and has written the fair value down to zero. | ||||||||||||||||
-3 | This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. | ||||||||||||||||
Pricing | |||||||||||||||||
The Company’s pricing vendors provide prices for all investment categories except for investments in limited partnerships which are measured utilizing net asset values as a practical expedient. One vendor provides prices for equity securities and all fixed maturity categories. | |||||||||||||||||
The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value: | |||||||||||||||||
• | Equity prices are received from all primary and secondary exchanges. | ||||||||||||||||
• | Corporate and agency bonds are evaluated by utilizing a multi-dimensional relational model. For bonds with early redemption options, an option adjusted spread model is utilized. Both asset classes use standard inputs and incorporate security set up, defined sector breakdown, benchmark yields, apply base spreads, yield to maturity, and adjust for corporate actions. | ||||||||||||||||
• | A volatility-driven multi-dimensional spread table or an option-adjusted spread model and prepayment model is used for agency commercial mortgage obligations (“CMO”). For non-agency CMOs, a prepayment/spread/yield/price adjustment model is utilized. CMOs are categorized with mortgage-backed securities in the tables listed above. For ABSs, a multi-dimensional, collateral specific spread / prepayment speed tables is utilized. For both asset classes, evaluations utilize standard inputs plus new issue data, monthly payment information, and collateral performance. The evaluated pricing models incorporate security set-up, prepayment speeds, cash flows, and treasury swap curves and spread adjustments. | ||||||||||||||||
• | For municipals, a multi-dimensional relational model is used to evaluate securities within this asset class. The evaluated pricing models for this asset class incorporate security set-up, benchmark yields, apply base spreads, yield to worst or market convention, ratings updates, prepayment schedules and adjustments for material events notices. | ||||||||||||||||
• | U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including active market makers and inter-dealer brokers. | ||||||||||||||||
• | For MBSs, a matrix model correlation to TBA (a forward MBS trade) or benchmarking is utilized to value a security. | ||||||||||||||||
The Company performs certain procedures to validate whether the pricing information received from the pricing vendors is reasonable, to ensure that the fair value determination is consistent with accounting guidance, and to ensure that its assets are properly classified in the fair value hierarchy. The Company’s procedures include, but are not limited to: | |||||||||||||||||
• | Reviewing periodic reports provided by the Investment Manager that provide information regarding rating changes and securities placed on watch. This procedure allows the Company to understand why a particular security’s market value may have changed. | ||||||||||||||||
• | Understanding and periodically evaluating the various pricing methods and procedures used by the Company’s pricing vendors to ensure that investments are properly classified within the fair value hierarchy. | ||||||||||||||||
• | On a quarterly basis, the Company corroborates investment security prices received from its pricing vendors by obtaining pricing from a second pricing vendor for a sample of securities. | ||||||||||||||||
During the quarters ended March 31, 2014 and 2013, the Company has not adjusted quotes or prices obtained from the pricing vendors. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
5 | Income Taxes | ||||||||||||||||
The statutory income tax rates of the countries where the Company does business are 35.0% in the United States, 0.0% in Bermuda, 0.0% in the Cayman Islands, 0.0% in Gibraltar, 29.22% in the Duchy of Luxembourg, and 25.0% on non-trading income, 33.0% on capital gains and 12.5% on trading income in the Republic of Ireland. The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense. Total estimated annual income tax expense is divided by total estimated annual pre-tax income to determine the expected annual income tax rate used to compute the income tax provision. On an interim basis, the expected annual income tax rate is applied against interim pre-tax income, excluding net realized gains and losses and discrete items such as limited partnership distributions, and then that amount is added to income taxes on net realized gains and losses and discrete items. | |||||||||||||||||
The Company’s income before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries, including the results of the quota share and stop-loss agreements between Wind River Reinsurance and the Insurance Operations, for the quarters ended March 31, 2014 and 2013 were as follows: | |||||||||||||||||
Quarter Ended March 31, 2014: | Non-U.S. | U.S. | Eliminations | Total | |||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Gross premiums written | $ | 49,999 | $ | 52,992 | $ | (25,794 | ) | $ | 77,197 | ||||||||
Net premiums written | $ | 49,999 | $ | 22,862 | $ | — | $ | 72,861 | |||||||||
Net premiums earned | $ | 42,354 | $ | 25,190 | $ | — | $ | 67,544 | |||||||||
Net investment income | 7,651 | 5,420 | (4,787 | ) | 8,284 | ||||||||||||
Net realized investment gains | 1,252 | (2,065 | ) | — | (813 | ) | |||||||||||
Other income | 2 | 166 | — | 168 | |||||||||||||
Total revenues | 51,259 | 28,711 | (4,787 | ) | 75,183 | ||||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | 19,958 | 18,614 | — | 38,572 | |||||||||||||
Acquisition costs and other underwriting expenses | 17,794 | 8,691 | — | 26,485 | |||||||||||||
Corporate and other operating expenses | 1,367 | 1,594 | — | 2,961 | |||||||||||||
Interest expense | 240 | 4,738 | (4,787 | ) | 191 | ||||||||||||
Income before income taxes | $ | 11,900 | $ | (4,926 | ) | $ | — | $ | 6,974 | ||||||||
Quarter Ended March 31, 2013: | Non-U.S. | U.S. | Eliminations | Total | |||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Gross premiums written | $ | 48,683 | $ | 51,088 | $ | (24,832 | ) | $ | 74,939 | ||||||||
Net premiums written | $ | 48,682 | $ | 22,796 | $ | — | $ | 71,478 | |||||||||
Net premiums earned | $ | 34,394 | $ | 21,602 | $ | — | $ | 55,996 | |||||||||
Net investment income | 9,648 | 5,250 | (4,864 | ) | 10,034 | ||||||||||||
Net realized investment gains | 247 | 5,510 | — | 5,757 | |||||||||||||
Other income | (27 | ) | 81 | — | 54 | ||||||||||||
Total revenues | 44,262 | 32,443 | (4,864 | ) | 71,841 | ||||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | 16,350 | 15,438 | — | 31,788 | |||||||||||||
Acquisition costs and other underwriting expenses | 15,148 | 9,329 | — | 24,477 | |||||||||||||
Corporate and other operating expenses | 1,275 | 1,070 | — | 2,345 | |||||||||||||
Interest expense | 317 | 5,720 | (4,864 | ) | 1,173 | ||||||||||||
Income before income taxes | $ | 11,172 | $ | 886 | $ | — | $ | 12,058 | |||||||||
The following table summarizes the components of income tax (benefit): | |||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||
Current income tax expense (benefit): | |||||||||||||||||
Foreign | $ | 64 | $ | 37 | |||||||||||||
U.S. Federal | (270 | ) | (638 | ) | |||||||||||||
Total current income tax expense (benefit) | (206 | ) | (601 | ) | |||||||||||||
Deferred income tax expense (benefit): | |||||||||||||||||
U.S. Federal | (1,643 | ) | 294 | ||||||||||||||
Total deferred income tax expense (benefit) | (1,643 | ) | 294 | ||||||||||||||
Total income tax expense (benefit) | $ | (1,849 | ) | $ | (307 | ) | |||||||||||
The weighted average expected tax provision has been calculated using income before income taxes in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. | |||||||||||||||||
The following table summarizes the differences between the tax provisions under accounting guidance applicable to interim financial statement periods and the expected tax provision at the weighted average tax rate: | |||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||
Amount | % of Pre- | Amount | % of Pre- | ||||||||||||||
Tax Income | Tax Income | ||||||||||||||||
Expected tax provision at weighted average rate | $ | (1,662 | ) | (23.8 | %) | $ | 347 | 2.9 | % | ||||||||
Adjustments: | |||||||||||||||||
Tax exempt interest | (215 | ) | (3.1 | ) | (295 | ) | (2.4 | ) | |||||||||
Dividend exclusion | (478 | ) | (6.9 | ) | (252 | ) | (2.1 | ) | |||||||||
Effective tax rate adjustment | 501 | 7.2 | (109 | ) | (0.9 | ) | |||||||||||
Other | 5 | 0.1 | 2 | (0.1 | ) | ||||||||||||
Income tax expense (benefit) | $ | (1,849 | ) | (26.5 | %) | $ | (307 | ) | (2.6 | %) | |||||||
The effective income tax benefit rate for the quarter ended March 31, 2014 was 26.5%, compared to an effective income tax benefit rate of 2.6% for the quarter ended March 31, 2013. The increase in the effective tax benefit rate is primarily due to the capital loss on the Company’s derivative instrument in 2014. Any difference between the actual tax rate on an interim basis compared to the expected annual tax rate is reflected in the effective tax rate adjustment. The effective income tax benefit rate of 26.5% and 2.6% for the quarters ended March 31, 2014 and 2013, respectively, differed from the weighted average expected income tax benefit rate of 23.8% and weighted average income tax expense rate of 2.9% for the quarters ended March 31, 2014 and 2013, respectively, due to the fact that the Company records income tax expense on an interim basis using the projected annual effective tax rate, net of tax-exempt interest and dividends. | |||||||||||||||||
The Company had an alternative minimum tax credit carry forward of $9.9 million as of March 31, 2014 and December 31, 2013 which can be carried forward indefinitely. The company has a net operating loss (“NOL”) carryforward of $1.2 million as of March 31, 2014 and December 31, 2013 that expires in 2032. |
Liability_for_Unpaid_Losses_an
Liability for Unpaid Losses and Loss Adjustment Expenses | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Liability for Unpaid Losses and Loss Adjustment Expenses | ' | ||||||||
6 | Liability for Unpaid Losses and Loss Adjustment Expenses | ||||||||
Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: | |||||||||
Quarters Ended | |||||||||
March 31, | |||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
Balance at beginning of period | $ | 779,466 | $ | 879,114 | |||||
Less: Ceded reinsurance receivables | 192,491 | 240,546 | |||||||
Net balance at beginning of period | 586,975 | 638,568 | |||||||
Incurred losses and loss adjustment expenses related to: | |||||||||
Current year | 40,666 | 34,458 | |||||||
Prior years | (2,094 | ) | (2,670 | ) | |||||
Total incurred losses and loss adjustment expenses | 38,572 | 31,788 | |||||||
Paid losses and loss adjustment expenses related to: | |||||||||
Current year | 8,212 | 5,133 | |||||||
Prior years | 33,821 | 39,015 | |||||||
Total paid losses and loss adjustment expenses | 42,033 | 44,148 | |||||||
Net balance at end of period | 583,514 | 626,208 | |||||||
Plus: Ceded reinsurance receivables | 195,533 | 237,959 | |||||||
Balance at end of period | $ | 779,047 | $ | 864,167 | |||||
When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates. | |||||||||
In the first quarter of 2014, the Company reduced its prior accident year loss reserves by $2.1 million, which consisted of a $2.0 million decrease related to Insurance Operations and a $0.1 million decrease related to Reinsurance Operations. | |||||||||
The $2.0 million decrease related to Insurance Operations primarily consisted of the following: | |||||||||
• | General Liability: A $0.9 million decrease primarily driven by better than expected experience in the active general liability lines in accident years 2005 to 2011 offset by strengthening of environmental losses. | ||||||||
• | Professional Liability: A $1.8 million decrease primarily driven by better than expected experience in the runoff of the professional liability lines in accident years 2005 to 2011. | ||||||||
• | Other lines: increased $0.7 million mainly in the 2011 accident year due to higher than expected emergence for discontinued lines. As a result, management increased loss reserves. | ||||||||
The $0.1 million decrease related to Reinsurance Operations is primarily related to a reduction in accident years 2010 to 2013 for property treaties. | |||||||||
In the first quarter of 2013, the Company reduced its prior accident year loss reserves by $2.7 million, which consisted of a $2.8 million decrease related to Insurance Operations and a $0.1 million increase related to Reinsurance Operations. | |||||||||
The $2.8 million decrease related to Insurance Operations consisted of a reduction in property lines primarily driven by better than expected emergence for accident years 2008 through 2012. The $0.1 million increase related to Reinsurance Operations primarily consisted of worse than expected emergence on a marine treaty. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||
7 | Shareholders’ Equity | ||||||||||||||||
Repurchases of the Company’s A ordinary shares | |||||||||||||||||
The following table provides information with respect to the A ordinary shares that were surrendered or repurchased during the quarter ended March 31, 2014: | |||||||||||||||||
Period (1) | Total Number | Average | Total Number of Shares | Approximate Dollar Value | |||||||||||||
of Shares | Price Paid | Purchased as Part of | of Shares That May Yet Be | ||||||||||||||
Purchased | Per Share | Publicly Announced | Purchased Under the | ||||||||||||||
Plan or Program | Plan or Program (2) | ||||||||||||||||
January 1-31, 2014 | 3,644 | (3) | $ | 25.3 | — | $ | 16,857,963 | ||||||||||
February 1-28, 2014 | 362 | (3) | $ | 24 | — | $ | 16,857,963 | ||||||||||
March 1-31, 2014 | 1,438 | (3) | $ | 26.23 | — | $ | 16,857,963 | ||||||||||
Total | 5,444 | $ | 25.46 | — | |||||||||||||
-1 | Based on settlement date. | ||||||||||||||||
-2 | Approximate dollar value of shares that may yet be purchased is as of the last date of the applicable month. | ||||||||||||||||
-3 | Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. | ||||||||||||||||
The following table provides information with respect to the A ordinary shares that were surrendered or repurchased during the quarter ended March 31, 2013: | |||||||||||||||||
Period (1) | Total Number | Average | Total Number of Shares | Approximate Dollar Value | |||||||||||||
of Shares | Price Paid | Purchased as Part of | of Shares That May Yet Be | ||||||||||||||
Purchased | Per Share | Publicly Announced | Purchased Under the Plan | ||||||||||||||
Plan or Program | or Program (2) | ||||||||||||||||
January 1-31, 2013 | — | $ | — | — | $ | 16,857,963 | |||||||||||
February 1-28, 2013 | 362 | (3) | $ | 20.25 | — | $ | 16,857,963 | ||||||||||
March 1-31, 2013 | 891 | (3) | $ | 22.78 | — | $ | 16,857,963 | ||||||||||
Total | 1,253 | $ | 22.05 | — | |||||||||||||
-1 | Based on settlement date. | ||||||||||||||||
-2 | Approximate dollar value of shares that may yet be purchased is as of the last date of the applicable month. | ||||||||||||||||
-3 | Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. | ||||||||||||||||
Please see Note 14 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2013 Annual Report on Form 10-K for more information on the Company’s repurchase program. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Related Party Transactions | ' | ||||||||
8 | Related Party Transactions | ||||||||
Fox Paine & Company | |||||||||
As of March 31, 2014, Fox Paine & Company, LLC (“Fox Paine”) beneficially owned shares having approximately 93% of the Company’s total outstanding voting power. Fox Paine has the right to appoint a number of the Company’s Directors equal in aggregate to the pro rata percentage of the voting shares beneficially held by Fox Paine of the Company for so long as Fox Paine holds an aggregate of 25% or more of the voting power in the Company. Fox Paine controls the election of all of the Company’s Directors due to its controlling share ownership. The Company’s Chairman is a member of Fox Paine. The Company relies on Fox Paine to provide management services and other services related to the operations of the Company. | |||||||||
As of March 31, 2014 and December 31, 2013, Wind River Reinsurance was a limited partner in Fox Paine Capital Fund, II, which is managed by Fox Paine. This investment was originally made by United National Insurance Company in June 2000 and pre-dates the September 5, 2003 acquisition by Fox Paine of Wind River Investment Corporation, which was the predecessor holding company for United National Insurance Company. The Company’s investment in this limited partnership was valued at $3.4 million and $3.5 million at March 31, 2014 and December 31, 2013, respectively. At March 31, 2014, the Company had an unfunded capital commitment of $2.5 million to the partnership. There were no distributions received from the limited partnership during the first quarter of 2014 or 2013. | |||||||||
The Company incurred management fees of $0.5 million and $0.4 million during the quarters ended March 31, 2014 and 2013, respectively, as part of the annual management fee that is paid to Fox Paine. | |||||||||
Cozen O’Connor | |||||||||
The Company incurred $0.03 million and $0.02 million for legal services rendered by Cozen O’Connor during the quarters ended March 31, 2014 and 2013, respectively. Stephen A. Cozen, the chairman of Cozen O’Connor, is a member of the Company’s Board of Directors. | |||||||||
Crystal & Company | |||||||||
During each of the quarters ended March 31, 2014 and 2013, the Company incurred $0.1 million in brokerage fees to Crystal & Company, an insurance broker. James W. Crystal, the chairman and chief executive officer of Crystal & Company, is a member of the Company’s Board of Directors. | |||||||||
Hiscox Insurance Company (Bermuda) Ltd. | |||||||||
Wind River Reinsurance is a participant in a reinsurance agreement with Hiscox Insurance Company (Bermuda) Ltd. (“Hiscox Bermuda”) effective January 1, 2013. Steve Green, the President of Wind River Reinsurance, is a member of Hiscox Bermuda’s Board of Directors. The Company estimated that the following earned premium and incurred losses related to the agreement have been assumed by Wind River Reinsurance from Hiscox Bermuda: | |||||||||
Quarters Ended March 31, | |||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
Assumed earned premium | $ | 1,014 | $ | 354 | |||||
Assumed losses and loss adjustment expenses | 304 | 89 | |||||||
Net balances due to Wind River Reinsurance under this agreement are as follows: | |||||||||
(Dollars in thousands) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Net receivable balance | $ | 2,175 | $ | 3,337 |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Mar. 31, 2014 | ||
Commitments and Contingencies | ' | |
9 | Commitments and Contingencies | |
Legal Proceedings | ||
The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for such risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition. | ||
There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers’ have operations that are in runoff, and therefore, the Company closely monitors those relationships. The Company anticipates that, similar to the rest of the insurance and reinsurance industry, it will continue to be subject to litigation and arbitration proceedings in the ordinary course of business. |
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Share-Based Compensation Plans | ' | |||
10 | Share-Based Compensation Plans | |||
On February 9, 2014, the Company’s Board of Directors adopted, subject to shareholder approval, the Global Indemnity plc Share Incentive Plan (the “Plan”). If the Plan is approved by the Company’s shareholders, all officer, employee, consultant and non-employee director equity grants after the Annual General Meeting will be from the Plan. The Global Indemnity plc 2003 Share Incentive Plan expired pursuant to its terms on September 5, 2013 (the “2003 Share Incentive Plan”). | ||||
Options | ||||
During the quarter ended March 31, 2014, the Company awarded 25,000 Time-Based Options under the Plan. The Time-Based Options vest in February, 2017. No stock options were granted during the quarter ended March 31, 2013. | ||||
Restricted Shares | ||||
During the quarter ended March 31, 2014, key employees of the Company earned 90,023 A ordinary shares, with a weighted average grant date value of $25.30 per share. These shares have not yet been granted but are considered issued and outstanding for purposes of this financial statement and are subject to shareholder approval of the Company’s revised Plan at the Company’s 2014 annual shareholder meeting. | ||||
During the quarter ended March 31, 2013, the Company issued 81,587 A ordinary shares, at a weighted average grant date value of $22.13 per share, to key employees under the 2003 Share Incentive Plan. | ||||
These shares issued in 2014 and 2013 vest as follows: | ||||
• | 50% of granted stock vests 33 1/3% on each subsequent anniversary date of the award for a period of three years. | |||
• | 50% of granted stock vests 100% on the anniversary of the third year subject to accident year true-up of bonus year underwriting results and are subject to Board approval. | |||
During the quarter ended March 31, 2014, non-employee directors of the Company earned 8,928 A ordinary shares, with a weighted average grant date value of $26.34 per share. These shares have not yet been granted but are considered issued and outstanding for purposes of this financial statement and are subject to shareholder approval of the Company’s revised Plan at the Company’s 2014 annual shareholder meeting. During the quarter ended March 31, 2013, the Company issued 11,900 A ordinary shares, at a weighted average grant date value of $22.13 per share, to non-employee directors of the Company under the 2003 Share Incentive Plan. All of the shares issued in 2014 and 2013 were fully vested but subject to certain restrictions. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share | ' | ||||||||
11 | Earnings Per Share | ||||||||
Earnings per share have been computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period. | |||||||||
The following table sets forth the computation of basic and diluted earnings per share. | |||||||||
(Dollars in thousands, | Quarters Ended March 31, | ||||||||
except share and per share data) | 2014 | 2013 | |||||||
Net income | $ | 8,823 | $ | 12,365 | |||||
Basic earnings per share: | |||||||||
Weighted average shares outstanding-basic | 25,122,812 | 25,055,116 | |||||||
Net income per share | $ | 0.35 | $ | 0.49 | |||||
Diluted earnings per share: | |||||||||
Weighted average shares outstanding-diluted | 25,278,907 | 25,099,044 | |||||||
Net income per share | $ | 0.35 | $ | 0.49 | |||||
A reconciliation of weighted average shares for basic earnings per share to weighted average shares for diluted earnings per share is as follows: | |||||||||
Quarters Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Weighted average shares for basic earnings per share | 25,122,812 | 25,055,116 | |||||||
Non-vested restricted stock | 64,847 | 17,107 | |||||||
Options | 91,248 | 26,821 | |||||||
Weighted average shares for diluted earnings per share | 25,278,907 | 25,099,044 | |||||||
The weighted average shares outstanding used to determine dilutive earnings per share for the quarters ended March 31, 2014 and 2013 do not include 37,500 and 150,450 shares, respectively, which were deemed to be anti-dilutive. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Segment Information | ' | ||||||||||||
12 | Segment Information | ||||||||||||
The following are tabulations of business segment information for the quarters ended March 31, 2014 and 2013. | |||||||||||||
Quarter Ended March 31, 2014: | Insurance | Reinsurance | Total | ||||||||||
(Dollars in thousands) | Operations (1) | Operations (2) | |||||||||||
Revenues: | |||||||||||||
Gross premiums written | $ | 52,992 | $ | 24,205 | $ | 77,197 | |||||||
Net premiums written | $ | 48,656 | $ | 24,205 | $ | 72,861 | |||||||
Net premiums earned | $ | 53,313 | $ | 14,231 | $ | 67,544 | |||||||
Other income | 166 | 2 | 168 | ||||||||||
Total revenues | 53,479 | 14,233 | 67,712 | ||||||||||
Losses and Expenses: | |||||||||||||
Net losses and loss adjustment expenses | 33,597 | 4,975 | 38,572 | ||||||||||
Acquisition costs and other underwriting expenses | 21,718 | (3) | 4,767 | 26,485 | |||||||||
Income (loss) from segments | $ | (1,836 | ) | $ | 4,491 | 2,655 | |||||||
Unallocated Items: | |||||||||||||
Net investment income | 8,284 | ||||||||||||
Net realized investment losses | (813 | ) | |||||||||||
Corporate and other operating expenses | (2,961 | ) | |||||||||||
Interest expense | (191 | ) | |||||||||||
Income before income taxes | 6,974 | ||||||||||||
Income tax benefit | 1,849 | ||||||||||||
Net income | $ | 8,823 | |||||||||||
Total assets | $ | 1,256,009 | $668,080 | (4) | $ | 1,924,089 | |||||||
-1 | Includes business ceded to the Company’s Reinsurance Operations. | ||||||||||||
-2 | External business only, excluding business assumed from affiliates. | ||||||||||||
-3 | Includes federal excise tax of $280 relating to cessions from Insurance Operations to Reinsurance Operations. | ||||||||||||
-4 | Comprised of Wind River Reinsurance’s total assets less its investment in subsidiaries. | ||||||||||||
Quarter Ended March 31, 2013: | Insurance | Reinsurance | Total | ||||||||||
(Dollars in thousands) | Operations (1) | Operations (2) | |||||||||||
Revenues: | |||||||||||||
Gross premiums written | $ | 51,088 | $ | 23,851 | $ | 74,939 | |||||||
Net premiums written | $ | 47,628 | $ | 23,850 | $ | 71,478 | |||||||
Net premiums earned | $ | 45,241 | $ | 10,755 | $ | 55,996 | |||||||
Other income | 81 | (27 | ) | 54 | |||||||||
Total revenues | 45,322 | 10,728 | 56,050 | ||||||||||
Losses and Expenses: | |||||||||||||
Net losses and loss adjustment expenses | 28,742 | 3,046 | 31,788 | ||||||||||
Acquisition costs and other underwriting expenses | 20,407 | (3) | 4,070 | 24,477 | |||||||||
Income (loss) from segments | $ | (3,827 | ) | $ | 3,612 | (215 | ) | ||||||
Unallocated Items: | |||||||||||||
Net investment income | 10,034 | ||||||||||||
Net realized investment gains | 5,757 | ||||||||||||
Corporate and other operating expenses | (2,345 | ) | |||||||||||
Interest expense | (1,173 | ) | |||||||||||
Income before income taxes | 12,058 | ||||||||||||
Income tax benefit | 307 | ||||||||||||
Net income | $ | 12,365 | |||||||||||
Total assets | $ | 1,257,746 | $659,935 | (4) | $ | 1,917,681 | |||||||
-1 | Includes business ceded to the Company’s Reinsurance Operations. | ||||||||||||
-2 | External business only, excluding business assumed from affiliates. | ||||||||||||
-3 | Includes federal excise tax of $248 relating to cessions from Insurance Operations to Reinsurance Operations. | ||||||||||||
-4 | Comprised of Wind River Reinsurance’s total assets less its investment in subsidiaries. |
Principles_of_Consolidation_an1
Principles of Consolidation and Basis of Presentation (Policies) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Business Segments | ' | |||
The Company manages its business through two business segments: Insurance Operations, which includes the operations of United National Insurance Company, Diamond State Insurance Company, United National Specialty Insurance Company, Penn-America Insurance Company, Penn-Star Insurance Company, Penn-Patriot Insurance Company, American Insurance Adjustment Agency, Inc., Collectibles Insurance Services, LLC, Global Indemnity Insurance Agency, LLC, and J.H. Ferguson & Associates, LLC, and Reinsurance Operations, which includes the operations of Wind River Reinsurance Company, Ltd. (“Wind River Reinsurance”). | ||||
Interim Consolidated Financial statements | ' | |||
The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||
The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters ended March 31, 2014 and 2013 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2013 Annual Report on Form 10-K. | ||||
Intercompany Balances and Transactions | ' | |||
The consolidated financial statements include the accounts of Global Indemnity and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | ||||
Investments | ' | |||
The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each fixed maturity security in an unrealized loss position to assess whether the security is a candidate for credit loss. Specifically, the Company considers credit rating, market price, and issuer specific financial information, among other factors, to assess the likelihood of collection of all principal and interest as contractually due. Securities for which the Company determines that a credit loss is likely are subjected to further analysis through discounted cash flow testing to estimate the credit loss to be recognized in earnings, if any. The specific methodologies and significant assumptions used by asset class are discussed below. Upon identification of such securities and periodically thereafter, a detailed review is performed to determine whether the decline is considered other than temporary. This review includes an analysis of several factors, including but not limited to, the credit ratings and cash flows of the securities and the magnitude and length of time that the fair value of such securities is below cost. | ||||
For fixed maturities, the factors considered in reaching the conclusion that a decline below cost is other than temporary include, among others, whether: | ||||
-1 | the issuer is in financial distress; | |||
-2 | the investment is secured; | |||
-3 | a significant credit rating action occurred; | |||
-4 | scheduled interest payments were delayed or missed; | |||
-5 | changes in laws or regulations have affected an issuer or industry; | |||
-6 | the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity; and | |||
-7 | the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized. | |||
According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securities in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary impairment into two components: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses is recorded in other comprehensive income, net of taxes. | ||||
For equity securities, management carefully reviews all securities with unrealized losses to determine if a security should be impaired and further focuses on securities that have either: | ||||
-1 | persisted with unrealized losses for more than twelve consecutive months or | |||
-2 | the value of the investment has been 20% or more below cost for six continuous months or more. | |||
Derivatives Policy | ' | |||
The Company accounts for its interest rate swaps in accordance with accounting guidance under Financial Accounting Standards Codification (“ASC”) section 815, Derivatives and Hedging. The Company has designated the interest rate swaps as non-hedge instruments. Accordingly, the Company recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains in the consolidated statement of operations. The estimated fair value of the interest rate swaps, which is primarily derived from the forward interest rate curve, is based on the valuation received from a third party financial institution. | ||||
Fair Value Measurement Policy | ' | |||
The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards. | ||||
The Company’s invested assets are carried at their fair value and are categorized based upon a fair value hierarchy: | ||||
• | Level 1 - inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date. | |||
• | Level 2 - inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly. | |||
• | Level 3 - inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset. | |||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset. | ||||
Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains and losses for invested assets within the Level 3 category presented in the tables below may include changes in fair value that are attributed to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. | ||||
Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, security prices are derived through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recent reported trades, matrix or model processes are used to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the pricing of asset-backed securities, collateralized mortgage obligations, and mortgage-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral. For corporate loans, price quotes from multiple dealers along with recent reported trades for identical or similar securities are used to develop prices. The estimated fair value of the interest rate swaps is obtained from a third party financial institution who utilizes observable inputs such as the forward interest rate curve. | ||||
The Company’s pricing vendors provide prices for all investment categories except for investments in limited partnerships which are measured utilizing net asset values as a practical expedient. | ||||
The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value: | ||||
• | Equity prices are received from all primary and secondary exchanges. | |||
• | Corporate and agency bonds are evaluated by utilizing a multi-dimensional relational model. For bonds with early redemption options, an option adjusted spread model is utilized. Both asset classes use standard inputs and incorporate security set up, defined sector breakdown, benchmark yields, apply base spreads, yield to maturity, and adjust for corporate actions. | |||
• | A volatility-driven multi-dimensional spread table or an option-adjusted spread model and prepayment model is used for agency commercial mortgage obligations (“CMO”). For non-agency CMOs, a prepayment/spread/yield/price adjustment model is utilized. CMOs are categorized with mortgage-backed securities in the tables listed above. For ABSs, a multi-dimensional, collateral specific spread / prepayment speed tables is utilized. For both asset classes, evaluations utilize standard inputs plus new issue data, monthly payment information, and collateral performance. The evaluated pricing models incorporate security set-up, prepayment speeds, cash flows, and treasury swap curves and spread adjustments. | |||
• | For municipals, a multi-dimensional relational model is used to evaluate securities within this asset class. The evaluated pricing models for this asset class incorporate security set-up, benchmark yields, apply base spreads, yield to worst or market convention, ratings updates, prepayment schedules and adjustments for material events notices. | |||
• | U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including active market makers and inter-dealer brokers. | |||
• | For MBSs, a matrix model correlation to TBA (a forward MBS trade) or benchmarking is utilized to value a security. | |||
Statutory income tax rates | ' | |||
The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense. | ||||
Loss Reserves And Prior Year Development | ' | |||
When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates. | ||||
Earnings Per Share | ' | |||
Earnings per share have been computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period. |
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Schedule of Amortized Cost and Estimated Fair Value of Investments | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of investments were as follows as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Estimated | Other than | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | temporary | |||||||||||||||||||||
Gains | Losses | impairments | |||||||||||||||||||||||
recognized in | |||||||||||||||||||||||||
AOCI (1) | |||||||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. treasury and agency obligations | $ | 78,194 | $ | 3,134 | $ | (139 | ) | $ | 81,189 | $ | — | ||||||||||||||
Obligations of states and political subdivisions | 177,223 | 4,265 | (1,146 | ) | 180,342 | — | |||||||||||||||||||
Mortgage-backed securities | 218,786 | 3,961 | (2,123 | ) | 220,624 | (4 | ) | ||||||||||||||||||
Asset-backed securities | 183,471 | 1,258 | (168 | ) | 184,561 | (17 | ) | ||||||||||||||||||
Commercial mortgage-backed securities | 55,781 | 50 | (402 | ) | 55,429 | — | |||||||||||||||||||
Corporate bonds and loans | 389,483 | 6,771 | (450 | ) | 395,804 | — | |||||||||||||||||||
Foreign corporate bonds | 77,775 | 1,204 | (70 | ) | 78,909 | — | |||||||||||||||||||
Total fixed maturities | 1,180,713 | 20,643 | (4,498 | ) | 1,196,858 | (21 | ) | ||||||||||||||||||
Common stock | 197,088 | 62,100 | (1,248 | ) | 257,940 | — | |||||||||||||||||||
Other invested assets | 5,167 | 282 | (85 | ) | 5,364 | — | |||||||||||||||||||
Total | $ | 1,382,968 | $ | 83,025 | $ | (5,831 | ) | $ | 1,460,162 | $ | (21 | ) | |||||||||||||
-1 | Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). | ||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Estimated | Other than | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | temporary | |||||||||||||||||||||
Gains | Losses | impairments | |||||||||||||||||||||||
recognized in | |||||||||||||||||||||||||
AOCI (2) | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. treasury and agency obligations | $ | 78,510 | $ | 3,330 | $ | (166 | ) | $ | 81,674 | $ | — | ||||||||||||||
Obligations of states and political subdivisions | 178,705 | 4,472 | (2,241 | ) | 180,936 | — | |||||||||||||||||||
Mortgage-backed securities | 228,550 | 4,219 | (2,859 | ) | 229,910 | (5 | ) | ||||||||||||||||||
Asset-backed securities | 167,454 | 1,210 | (228 | ) | 168,436 | (19 | ) | ||||||||||||||||||
Commercial mortgage-backed securities | 54,822 | 9 | (856 | ) | 53,975 | — | |||||||||||||||||||
Corporate bonds and loans | 426,872 | 9,112 | (592 | ) | 435,392 | — | |||||||||||||||||||
Foreign corporate bonds | 52,772 | 1,269 | — | 54,041 | — | ||||||||||||||||||||
Total fixed maturities | 1,187,685 | 23,621 | (6,942 | ) | 1,204,364 | (24 | ) | ||||||||||||||||||
Common stock | 191,425 | 63,281 | (636 | ) | 254,070 | — | |||||||||||||||||||
Other invested assets | 3,065 | 424 | — | 3,489 | — | ||||||||||||||||||||
Total | $ | 1,382,175 | $ | 87,326 | $ | (7,578 | ) | $ | 1,461,923 | $ | (24 | ) | |||||||||||||
-2 | Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income (“AOCI”). | ||||||||||||||||||||||||
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities | ' | ||||||||||||||||||||||||
Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Estimated | |||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
Due in one year or less | $ | 123,488 | $ | 125,293 | |||||||||||||||||||||
Due in one year through five years | 505,853 | 517,147 | |||||||||||||||||||||||
Due in five years through ten years | 67,611 | 68,094 | |||||||||||||||||||||||
Due in ten years through fifteen years | 4,405 | 4,761 | |||||||||||||||||||||||
Due after fifteen years | 21,318 | 20,949 | |||||||||||||||||||||||
Mortgage-backed securities | 218,786 | 220,624 | |||||||||||||||||||||||
Asset-backed securities | 183,471 | 184,561 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 55,781 | 55,429 | |||||||||||||||||||||||
Total | $ | 1,180,713 | $ | 1,196,858 | |||||||||||||||||||||
Summary of Securities With Gross Unrealized Losses | ' | ||||||||||||||||||||||||
The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of March 31, 2014: | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer (1) | Total | |||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
US treasury and agency obligations | $ | 6,272 | $ | (139 | ) | $ | — | $ | — | $ | 6,272 | $ | (139 | ) | |||||||||||
Obligations of states and political subdivisions | 50,565 | (852 | ) | 9,862 | (294 | ) | 60,427 | (1,146 | ) | ||||||||||||||||
Mortgage-backed securities | 95,564 | (1,987 | ) | 3,087 | (136 | ) | 98,651 | (2,123 | ) | ||||||||||||||||
Asset-backed securities | 33,307 | (167 | ) | 2,703 | (1 | ) | 36,010 | (168 | ) | ||||||||||||||||
Commercial mortgage-backed securities | 29,721 | (402 | ) | — | — | 29,721 | (402 | ) | |||||||||||||||||
Corporate bonds and loans | 76,933 | (450 | ) | — | — | 76,933 | (450 | ) | |||||||||||||||||
Foreign corporate bonds | 20,681 | (70 | ) | — | — | 20,681 | (70 | ) | |||||||||||||||||
Total fixed maturities | 313,043 | (4,067 | ) | 15,652 | (431 | ) | 328,695 | (4,498 | ) | ||||||||||||||||
Common stock | 22,501 | (1,233 | ) | 134 | (15 | ) | 22,635 | (1,248 | ) | ||||||||||||||||
Other invested assets | 1,993 | (85 | ) | — | — | 1,993 | (85 | ) | |||||||||||||||||
Total | $ | 337,537 | $ | (5,385 | ) | $ | 15,786 | $ | (446 | ) | $ | 353,323 | $ | (5,831 | ) | ||||||||||
-1 | Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. | ||||||||||||||||||||||||
The following table contains an analysis of the Company’s securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2013: | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer (2) | Total | |||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. treasury and agency obligations | $ | 9,335 | $ | (166 | ) | $ | — | $ | — | $ | 9,335 | $ | (166 | ) | |||||||||||
Obligations of states and political subdivisions | 61,401 | (2,000 | ) | 9,922 | (241 | ) | 71,323 | (2,241 | ) | ||||||||||||||||
Mortgage-backed securities | 110,304 | (2,859 | ) | 2 | — | 110,306 | (2,859 | ) | |||||||||||||||||
Asset-backed securities | 42,247 | (228 | ) | 3 | — | 42,250 | (228 | ) | |||||||||||||||||
Commercial mortgage-backed securities | 45,642 | (856 | ) | — | — | 45,642 | (856 | ) | |||||||||||||||||
Corporate bonds and loans | 60,306 | (582 | ) | 376 | (10 | ) | 60,682 | (592 | ) | ||||||||||||||||
Total fixed maturities | 329,235 | (6,691 | ) | 10,303 | (251 | ) | 339,538 | (6,942 | ) | ||||||||||||||||
Common stock | 18,622 | (627 | ) | 140 | (9 | ) | 18,762 | (636 | ) | ||||||||||||||||
Total | $ | 347,857 | $ | (7,318 | ) | $ | 10,443 | $ | (260 | ) | $ | 358,300 | $ | (7,578 | ) | ||||||||||
-2 | Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. | ||||||||||||||||||||||||
Schedule of Other Than Temporary Impairments on Investments | ' | ||||||||||||||||||||||||
The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the quarters ended March 31, 2014 and 2013: | |||||||||||||||||||||||||
(Dollars in thousands) | Quarters Ended | ||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
OTTI losses, gross | $ | (25 | ) | $ | (43 | ) | |||||||||||||||||||
Portion of loss recognized in other comprehensive income (pre-tax) | — | — | |||||||||||||||||||||||
Net impairment losses on fixed maturities recognized in earnings | (25 | ) | (43 | ) | |||||||||||||||||||||
Equity securities | — | — | |||||||||||||||||||||||
Total | $ | (25 | ) | $ | (43 | ) | |||||||||||||||||||
Schedule of Credit Losses Recognized in Earnings | ' | ||||||||||||||||||||||||
The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company for the quarters ended March 31, 2014 and 2013 for which a portion of the OTTI loss was recognized in other comprehensive income. | |||||||||||||||||||||||||
(Dollars in thousands) | Quarters Ended | ||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Balance at beginning of period | $ | 54 | $ | 86 | |||||||||||||||||||||
Additions where no OTTI was previously recorded | — | — | |||||||||||||||||||||||
Additions where an OTTI was previously recorded | — | — | |||||||||||||||||||||||
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery | — | — | |||||||||||||||||||||||
Reductions reflecting increases in expected cash flows to be collected | — | — | |||||||||||||||||||||||
Reductions for securities sold during the period | — | — | |||||||||||||||||||||||
Balance at end of period | $ | 54 | $ | 86 | |||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income, Net of Tax | ' | ||||||||||||||||||||||||
Accumulated other comprehensive income, net of tax, as of March 31, 2014 and December 31, 2013 was as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Net unrealized gains (losses) from: | |||||||||||||||||||||||||
Fixed maturities | $ | 16,145 | $ | 16,679 | |||||||||||||||||||||
Common stock | 60,852 | 62,645 | |||||||||||||||||||||||
Other | (60 | ) | 184 | ||||||||||||||||||||||
Deferred taxes | (24,885 | ) | (25,480 | ) | |||||||||||||||||||||
Accumulated other comprehensive income, net of tax | $ | 52,052 | $ | 54,028 | |||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||
The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the quarter ended March 31, 2014 and 2013: | |||||||||||||||||||||||||
Quarter Ended March 31, 2014 | Unrealized Gains | Foreign Currency | Accumulated Other | ||||||||||||||||||||||
(Dollars in thousands) | and Losses on | Items, Net of Tax | Comprehensive | ||||||||||||||||||||||
Available for Sale | Income, Net of Tax | ||||||||||||||||||||||||
Securities, Net of | |||||||||||||||||||||||||
Tax | |||||||||||||||||||||||||
Beginning balance | $ | 53,950 | $ | 78 | $ | 54,028 | |||||||||||||||||||
Other comprehensive income before reclassification | 2,027 | 29 | 2,056 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (4,019 | ) | (13 | ) | (4,032 | ) | |||||||||||||||||||
Other comprehensive income (loss) | (1,992 | ) | 16 | (1,976 | ) | ||||||||||||||||||||
Ending balance | $ | 51,958 | $ | 94 | $ | 52,052 | |||||||||||||||||||
Quarter Ended March 31, 2013 | Unrealized Gains | Foreign Currency | Accumulated Other | ||||||||||||||||||||||
(Dollars in thousands) | and Losses on | Items, Net of Tax | Comprehensive | ||||||||||||||||||||||
Available for Sale | Income, Net of Tax | ||||||||||||||||||||||||
Securities, Net of | |||||||||||||||||||||||||
Tax | |||||||||||||||||||||||||
Beginning balance | $ | 53,435 | $ | (85 | ) | $ | 53,350 | ||||||||||||||||||
Other comprehensive income before reclassification | 11,366 | (89 | ) | 11,277 | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (3,885 | ) | 57 | (3,828 | ) | ||||||||||||||||||||
Other comprehensive income (loss) | 7,481 | (32 | ) | 7,449 | |||||||||||||||||||||
Ending balance | $ | 60,916 | $ | (117 | ) | $ | 60,799 | ||||||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||
The reclassifications out of accumulated other comprehensive income for the quarters ended March 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Amounts Reclassified from | ||||||||||||||||||||||||
Accumulated Other | |||||||||||||||||||||||||
Comprehensive Income | |||||||||||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||||||||||
Details about Accumulated Other Comprehensive | Affected Line Item in the | 2014 | 2013 | ||||||||||||||||||||||
Income Components | Consolidated Statements of | ||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||
Unrealized gains and losses on available for sale securities | Other net realized investment gains | $ | (5,534 | ) | $ | (5,888 | ) | ||||||||||||||||||
Other than temporary impairment losses on investments | 25 | 43 | |||||||||||||||||||||||
Total before tax | (5,509 | ) | (5,845 | ) | |||||||||||||||||||||
Income tax benefit | 1,490 | 1,960 | |||||||||||||||||||||||
Net of tax | $ | (4,019 | ) | $ | (3,885 | ) | |||||||||||||||||||
Foreign Currency Items | Other net realized investment gains | $ | (20 | ) | $ | 88 | |||||||||||||||||||
Income tax benefit | 7 | (31 | ) | ||||||||||||||||||||||
Net of tax | $ | (13 | ) | $ | 57 | ||||||||||||||||||||
Total reclassifications | Net of tax | $ | (4,032 | ) | $ | (3,828 | ) | ||||||||||||||||||
Components of Net Realized Investment Gains | ' | ||||||||||||||||||||||||
The components of net realized investment gains for the quarters ended March 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Gross realized gains | $ | 1,671 | $ | 386 | |||||||||||||||||||||
Gross realized losses | (131 | ) | (56 | ) | |||||||||||||||||||||
Net realized gains (losses) | 1,540 | 330 | |||||||||||||||||||||||
Common stock: | |||||||||||||||||||||||||
Gross realized gains | 4,007 | 5,481 | |||||||||||||||||||||||
Gross realized losses | (18 | ) | (54 | ) | |||||||||||||||||||||
Net realized gains (losses) | 3,989 | 5,427 | |||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Gross realized gains | — | — | |||||||||||||||||||||||
Gross realized losses | (6,342 | ) | — | ||||||||||||||||||||||
Net realized gains (losses) | (6,342 | ) | — | ||||||||||||||||||||||
Total net realized investment gains (losses) | $ | (813 | ) | $ | 5,757 | ||||||||||||||||||||
Proceeds from Sales of Available-for-Sale Securities | ' | ||||||||||||||||||||||||
The proceeds from sales of available for sale securities resulting in net realized investment gains for the quarters ended March 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Quarters Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Fixed maturities | $ | 95,289 | $ | 92,513 | |||||||||||||||||||||
Equity securities | 10,702 | 20,699 | |||||||||||||||||||||||
Schedule of Investment Income | ' | ||||||||||||||||||||||||
The sources of net investment income for the quarters ended March 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Fixed maturities | $ | 7,255 | $ | 9,827 | |||||||||||||||||||||
Equity securities | 2,140 | 1,292 | |||||||||||||||||||||||
Cash and cash equivalents | 18 | 50 | |||||||||||||||||||||||
Other invested assets | — | — | |||||||||||||||||||||||
Total investment income | 9,413 | 11,169 | |||||||||||||||||||||||
Investment expense | (1,129 | ) | (1,135 | ) | |||||||||||||||||||||
Net investment income | $ | 8,284 | $ | 10,034 | |||||||||||||||||||||
Schedule of Total Investment Return | ' | ||||||||||||||||||||||||
The Company’s total investment return on a pre-tax basis for the quarters ended March 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Net investment income | $ | 8,284 | $ | 10,034 | |||||||||||||||||||||
Net realized investment gains (losses) | (813 | ) | 5,757 | ||||||||||||||||||||||
Net unrealized investment gains (losses) | (2,571 | ) | 12,854 | ||||||||||||||||||||||
Net investment return | (3,384 | ) | 18,611 | ||||||||||||||||||||||
Total investment return | $ | 4,900 | $ | 28,645 | |||||||||||||||||||||
Total investment return % (1) | 0.3 | % | 1.9 | % | |||||||||||||||||||||
Average investment portfolio (2) | $ | 1,560,464 | $ | 1,534,743 | |||||||||||||||||||||
-1 | Not annualized. | ||||||||||||||||||||||||
-2 | Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period. | ||||||||||||||||||||||||
Municipal Bonds with and without Insurance | ' | ||||||||||||||||||||||||
The following table provides a breakdown of the ratings for these municipal bonds with and without insurance. | |||||||||||||||||||||||||
(Dollars in thousands) | Ratings | Ratings | |||||||||||||||||||||||
with | without | ||||||||||||||||||||||||
Rating | Insurance | Insurance | |||||||||||||||||||||||
AAA | $ | 8,842 | $ | — | |||||||||||||||||||||
AA | — | 8,842 | |||||||||||||||||||||||
A | 6,187 | 6,187 | |||||||||||||||||||||||
Total | $ | 15,029 | $ | 15,029 | |||||||||||||||||||||
Summary of Insurance Enhanced Municipal Bonds Backed by Financial Guarantors | ' | ||||||||||||||||||||||||
A summary of the Company’s insurance enhanced municipal bonds that are backed by financial guarantors, including the pre-refunded bonds that are escrowed in U.S. government obligations, as of March 31, 2014, is as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Total | Pre-refunded | Government | Exposure Net | |||||||||||||||||||||
Financial Guarantor | Securities | Guaranteed | of Pre-refunded | ||||||||||||||||||||||
Securities | & Government | ||||||||||||||||||||||||
Guaranteed | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Ambac Financial Group | $ | 2,283 | $ | 1,223 | $ | — | $ | 1,060 | |||||||||||||||||
Assured Guaranty Corporation | 9,050 | — | — | 9,050 | |||||||||||||||||||||
Municipal Bond Insurance Association | 4,007 | — | — | 4,007 | |||||||||||||||||||||
Gov’t National Housing Association | 672 | — | 672 | — | |||||||||||||||||||||
Permanent School Fund Guaranty | 8,842 | — | 8,842 | — | |||||||||||||||||||||
Total backed by financial guarantors | 24,854 | 1,223 | 9,514 | 14,117 | |||||||||||||||||||||
Other credit enhanced municipal bonds | 1,685 | 1,685 | — | — | |||||||||||||||||||||
Total | $ | 26,539 | $ | 2,908 | $ | 9,514 | $ | 14,117 | |||||||||||||||||
Summary of Estimated Fair Values of Bonds Held on Deposit | ' | ||||||||||||||||||||||||
The fair values were as follows as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||||
(Dollars in thousands) | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
On deposit with governmental authorities | $ | 35,992 | $ | 36,176 | |||||||||||||||||||||
Intercompany trusts held for the benefit of U.S. policyholders | 495,917 | 584,683 | |||||||||||||||||||||||
Held in trust pursuant to third party requirements | 124,026 | 129,339 | |||||||||||||||||||||||
Letter of credit held for third party requirements | 3,293 | — | |||||||||||||||||||||||
Securities held as collateral for borrowing arrangements (a) | 120,414 | 120,937 | |||||||||||||||||||||||
Total | $ | 779,642 | $ | 871,135 | |||||||||||||||||||||
(a) | Amount required to collateralize margin borrowing facility. |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Summarized Information of Location and Amount of Derivatives' Fair Value in Consolidated Balance Sheets | ' | ||||||||||||||||||
The following table summarizes information on the location and amount of the derivatives’ fair value on the consolidated balance sheets as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||
(Dollars in thousands) | March 31, 2014 | December 31, 2013 | |||||||||||||||||
Derivatives Not Designated as Hedging Instruments under ASC 815 | Balance Sheet | Notional | Fair Value | Notional | Fair Value | ||||||||||||||
Location | Amount | Amount | |||||||||||||||||
Interest rate swap agreements | Other liabilities | $ | 200,000 | $ | (3,266 | ) | — | — | |||||||||||
Interest rate swap agreements | Other assets | — | — | $ | 200,000 | $ | 1,668 | ||||||||||||
Summary of Net Gains Included in Consolidated Statement of Operations for Changes in Fair Value of Derivatives and Periodic net Interest Settlements Under Derivatives | ' | ||||||||||||||||||
The following table summarizes the net losses included in the consolidated statement of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters ended March 31, 2014 and 2013: | |||||||||||||||||||
Quarter Ended March 31, | |||||||||||||||||||
(Dollars in thousands) | Statement of Operations Line | 2014 | 2013 | ||||||||||||||||
Interest rate swap agreements | Net realized investment gains (losses) | $ | (6,342 | ) | N/A |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Company's Invested Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table presents information about the Company’s invested assets measured at fair value on a recurring basis as of March 31, 2014 and December 31, 2013, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. | |||||||||||||||||
As of March 31, 2014 | Fair Value Measurements | ||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Fixed maturities: | |||||||||||||||||
U.S. treasury and agency obligations | $ | 68,895 | $ | 12,294 | $ | — | $ | 81,189 | |||||||||
Obligations of states and political subdivisions | — | 180,342 | — | 180,342 | |||||||||||||
Mortgage-backed securities | — | 220,624 | — | 220,624 | |||||||||||||
Commercial mortgage-backed securities | — | 55,429 | — | 55,429 | |||||||||||||
Asset-backed securities | — | 184,561 | — | 184,561 | |||||||||||||
Corporate bonds and loans | — | 395,804 | — | 395,804 | |||||||||||||
Foreign corporate bonds | — | 78,909 | — | 78,909 | |||||||||||||
Total fixed maturities | 68,895 | 1,127,963 | — | 1,196,858 | |||||||||||||
Common stock | 257,940 | — | — | 257,940 | |||||||||||||
Other invested assets | — | — | 5,364 | 5,364 | |||||||||||||
Total assets measured at fair value | $ | 326,835 | $ | 1,127,963 | $ | 5,364 | $ | 1,460,162 | |||||||||
Liabilities: | |||||||||||||||||
Derivative instruments | $ | — | $ | 3,266 | $ | — | $ | 3,266 | |||||||||
Total liabilities measured at fair value | $ | — | $ | 3,266 | $ | — | $ | 3,266 | |||||||||
As of December 31, 2013 | Fair Value Measurements | ||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Fixed maturities: | |||||||||||||||||
U.S. treasury and agency obligations | $ | 71,294 | $ | 10,380 | $ | — | $ | 81,674 | |||||||||
Obligations of states and political subdivisions | — | 180,936 | — | 180,936 | |||||||||||||
Mortgage-backed securities | — | 229,910 | — | 229,910 | |||||||||||||
Commercial mortgage-backed securities | — | 53,975 | — | 53,975 | |||||||||||||
Asset-backed securities | — | 168,436 | — | 168,436 | |||||||||||||
Corporate bonds and loans | — | 435,392 | — | 435,392 | |||||||||||||
Foreign corporate bonds | — | 54,041 | — | 54,041 | |||||||||||||
Total fixed maturities | 71,294 | 1,133,070 | — | 1,204,364 | |||||||||||||
Common stock | 254,070 | — | — | 254,070 | |||||||||||||
Other invested assets | — | — | 3,489 | 3,489 | |||||||||||||
Derivative instruments | — | 1,668 | — | 1,668 | |||||||||||||
Total assets measured at fair value | $ | 325,364 | $ | 1,134,738 | $ | 3,489 | $ | 1,463,591 | |||||||||
Changes in Level 3 Investments Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||
The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters ended March 31, 2014 and 2013: | |||||||||||||||||
(Dollars in thousands) | Quarters Ended March 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Beginning balance | $ | 3,489 | $ | 3,132 | |||||||||||||
Total gains (losses) (realized / unrealized): | |||||||||||||||||
Included in accumulated other comprehensive income (loss) | (226 | ) | (37 | ) | |||||||||||||
Purchases | 2,101 | 10 | |||||||||||||||
Sales | — | — | |||||||||||||||
Ending balance | $ | 5,364 | $ | 3,105 | |||||||||||||
Fair Value and Future Funding Commitments Related to These Investments | ' | ||||||||||||||||
The following table provides the fair value and future funding commitments related to these investments at March 31, 2014 and December 31, 2013. | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
(Dollars in thousands) | Fair Value | Future | Fair Value | Future | |||||||||||||
Funding | Funding | ||||||||||||||||
Commitment | Commitment | ||||||||||||||||
Equity Fund, LP (1) | $ | 3,371 | $ | 2,465 | $ | 3,489 | $ | 2,490 | |||||||||
Real Estate Fund, LP (2) | — | — | — | — | |||||||||||||
European Non-Performing Loan Fund, LP (3) | 1,993 | 48,007 | — | — | |||||||||||||
Total | $ | 5,364 | $ | 50,472 | $ | 3,489 | $ | 2,490 | |||||||||
-1 | This limited partnership invests in companies from various business sectors whereby the partnership has acquired control of the operating business as a lead or organizing investor. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. | ||||||||||||||||
-2 | This limited partnership invests in real estate assets through a combination of direct or indirect investments in partnerships, limited liability companies, mortgage loans, and lines of credit. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company continues to hold an investment in this limited partnership and has written the fair value down to zero. | ||||||||||||||||
-3 | This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Income Before Income Taxes From its Non-U.S. Subsidiaries and U.S. Subsidiaries | ' | ||||||||||||||||
The Company’s income before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries, including the results of the quota share and stop-loss agreements between Wind River Reinsurance and the Insurance Operations, for the quarters ended March 31, 2014 and 2013 were as follows: | |||||||||||||||||
Quarter Ended March 31, 2014: | Non-U.S. | U.S. | Eliminations | Total | |||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Gross premiums written | $ | 49,999 | $ | 52,992 | $ | (25,794 | ) | $ | 77,197 | ||||||||
Net premiums written | $ | 49,999 | $ | 22,862 | $ | — | $ | 72,861 | |||||||||
Net premiums earned | $ | 42,354 | $ | 25,190 | $ | — | $ | 67,544 | |||||||||
Net investment income | 7,651 | 5,420 | (4,787 | ) | 8,284 | ||||||||||||
Net realized investment gains | 1,252 | (2,065 | ) | — | (813 | ) | |||||||||||
Other income | 2 | 166 | — | 168 | |||||||||||||
Total revenues | 51,259 | 28,711 | (4,787 | ) | 75,183 | ||||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | 19,958 | 18,614 | — | 38,572 | |||||||||||||
Acquisition costs and other underwriting expenses | 17,794 | 8,691 | — | 26,485 | |||||||||||||
Corporate and other operating expenses | 1,367 | 1,594 | — | 2,961 | |||||||||||||
Interest expense | 240 | 4,738 | (4,787 | ) | 191 | ||||||||||||
Income before income taxes | $ | 11,900 | $ | (4,926 | ) | $ | — | $ | 6,974 | ||||||||
Quarter Ended March 31, 2013: | Non-U.S. | U.S. | Eliminations | Total | |||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Gross premiums written | $ | 48,683 | $ | 51,088 | $ | (24,832 | ) | $ | 74,939 | ||||||||
Net premiums written | $ | 48,682 | $ | 22,796 | $ | — | $ | 71,478 | |||||||||
Net premiums earned | $ | 34,394 | $ | 21,602 | $ | — | $ | 55,996 | |||||||||
Net investment income | 9,648 | 5,250 | (4,864 | ) | 10,034 | ||||||||||||
Net realized investment gains | 247 | 5,510 | — | 5,757 | |||||||||||||
Other income | (27 | ) | 81 | — | 54 | ||||||||||||
Total revenues | 44,262 | 32,443 | (4,864 | ) | 71,841 | ||||||||||||
Losses and Expenses: | |||||||||||||||||
Net losses and loss adjustment expenses | 16,350 | 15,438 | — | 31,788 | |||||||||||||
Acquisition costs and other underwriting expenses | 15,148 | 9,329 | — | 24,477 | |||||||||||||
Corporate and other operating expenses | 1,275 | 1,070 | — | 2,345 | |||||||||||||
Interest expense | 317 | 5,720 | (4,864 | ) | 1,173 | ||||||||||||
Income before income taxes | $ | 11,172 | $ | 886 | $ | — | $ | 12,058 | |||||||||
Components of Income Tax (Benefit) | ' | ||||||||||||||||
The following table summarizes the components of income tax (benefit): | |||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||
Current income tax expense (benefit): | |||||||||||||||||
Foreign | $ | 64 | $ | 37 | |||||||||||||
U.S. Federal | (270 | ) | (638 | ) | |||||||||||||
Total current income tax expense (benefit) | (206 | ) | (601 | ) | |||||||||||||
Deferred income tax expense (benefit): | |||||||||||||||||
U.S. Federal | (1,643 | ) | 294 | ||||||||||||||
Total deferred income tax expense (benefit) | (1,643 | ) | 294 | ||||||||||||||
Total income tax expense (benefit) | $ | (1,849 | ) | $ | (307 | ) | |||||||||||
Differences in Tax and Estimated Tax Provisions at Weighted Average Tax Rate | ' | ||||||||||||||||
The following table summarizes the differences between the tax provisions under accounting guidance applicable to interim financial statement periods and the expected tax provision at the weighted average tax rate: | |||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||
Amount | % of Pre- | Amount | % of Pre- | ||||||||||||||
Tax Income | Tax Income | ||||||||||||||||
Expected tax provision at weighted average rate | $ | (1,662 | ) | (23.8 | %) | $ | 347 | 2.9 | % | ||||||||
Adjustments: | |||||||||||||||||
Tax exempt interest | (215 | ) | (3.1 | ) | (295 | ) | (2.4 | ) | |||||||||
Dividend exclusion | (478 | ) | (6.9 | ) | (252 | ) | (2.1 | ) | |||||||||
Effective tax rate adjustment | 501 | 7.2 | (109 | ) | (0.9 | ) | |||||||||||
Other | 5 | 0.1 | 2 | (0.1 | ) | ||||||||||||
Income tax expense (benefit) | $ | (1,849 | ) | (26.5 | %) | $ | (307 | ) | (2.6 | %) | |||||||
Liability_for_Unpaid_Losses_an1
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses | ' | ||||||||
Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: | |||||||||
Quarters Ended | |||||||||
March 31, | |||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
Balance at beginning of period | $ | 779,466 | $ | 879,114 | |||||
Less: Ceded reinsurance receivables | 192,491 | 240,546 | |||||||
Net balance at beginning of period | 586,975 | 638,568 | |||||||
Incurred losses and loss adjustment expenses related to: | |||||||||
Current year | 40,666 | 34,458 | |||||||
Prior years | (2,094 | ) | (2,670 | ) | |||||
Total incurred losses and loss adjustment expenses | 38,572 | 31,788 | |||||||
Paid losses and loss adjustment expenses related to: | |||||||||
Current year | 8,212 | 5,133 | |||||||
Prior years | 33,821 | 39,015 | |||||||
Total paid losses and loss adjustment expenses | 42,033 | 44,148 | |||||||
Net balance at end of period | 583,514 | 626,208 | |||||||
Plus: Ceded reinsurance receivables | 195,533 | 237,959 | |||||||
Balance at end of period | $ | 779,047 | $ | 864,167 | |||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Information with Respect to A Ordinary Shares that were Surrendered or Repurchased | ' | ||||||||||||||||
The following table provides information with respect to the A ordinary shares that were surrendered or repurchased during the quarter ended March 31, 2014: | |||||||||||||||||
Period (1) | Total Number | Average | Total Number of Shares | Approximate Dollar Value | |||||||||||||
of Shares | Price Paid | Purchased as Part of | of Shares That May Yet Be | ||||||||||||||
Purchased | Per Share | Publicly Announced | Purchased Under the | ||||||||||||||
Plan or Program | Plan or Program (2) | ||||||||||||||||
January 1-31, 2014 | 3,644 | (3) | $ | 25.3 | — | $ | 16,857,963 | ||||||||||
February 1-28, 2014 | 362 | (3) | $ | 24 | — | $ | 16,857,963 | ||||||||||
March 1-31, 2014 | 1,438 | (3) | $ | 26.23 | — | $ | 16,857,963 | ||||||||||
Total | 5,444 | $ | 25.46 | — | |||||||||||||
-1 | Based on settlement date. | ||||||||||||||||
-2 | Approximate dollar value of shares that may yet be purchased is as of the last date of the applicable month. | ||||||||||||||||
-3 | Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. | ||||||||||||||||
The following table provides information with respect to the A ordinary shares that were surrendered or repurchased during the quarter ended March 31, 2013: | |||||||||||||||||
Period (1) | Total Number | Average | Total Number of Shares | Approximate Dollar Value | |||||||||||||
of Shares | Price Paid | Purchased as Part of | of Shares That May Yet Be | ||||||||||||||
Purchased | Per Share | Publicly Announced | Purchased Under the Plan | ||||||||||||||
Plan or Program | or Program (2) | ||||||||||||||||
January 1-31, 2013 | — | $ | — | — | $ | 16,857,963 | |||||||||||
February 1-28, 2013 | 362 | (3) | $ | 20.25 | — | $ | 16,857,963 | ||||||||||
March 1-31, 2013 | 891 | (3) | $ | 22.78 | — | $ | 16,857,963 | ||||||||||
Total | 1,253 | $ | 22.05 | — | |||||||||||||
-1 | Based on settlement date. | ||||||||||||||||
-2 | Approximate dollar value of shares that may yet be purchased is as of the last date of the applicable month. | ||||||||||||||||
-3 | Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Premium and Losses | ' | ||||||||
Estimated Earned Premium and Incurred Losses, and Net Balances Due | ' | ||||||||
The Company estimated that the following earned premium and incurred losses related to the agreement have been assumed by Wind River Reinsurance from Hiscox Bermuda: | |||||||||
Quarters Ended March 31, | |||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
Assumed earned premium | $ | 1,014 | $ | 354 | |||||
Assumed losses and loss adjustment expenses | 304 | 89 | |||||||
Receivables | ' | ||||||||
Estimated Earned Premium and Incurred Losses, and Net Balances Due | ' | ||||||||
Net balances due to Wind River Reinsurance under this agreement are as follows: | |||||||||
(Dollars in thousands) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Net receivable balance | $ | 2,175 | $ | 3,337 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||
The following table sets forth the computation of basic and diluted earnings per share. | |||||||||
(Dollars in thousands, | Quarters Ended March 31, | ||||||||
except share and per share data) | 2014 | 2013 | |||||||
Net income | $ | 8,823 | $ | 12,365 | |||||
Basic earnings per share: | |||||||||
Weighted average shares outstanding-basic | 25,122,812 | 25,055,116 | |||||||
Net income per share | $ | 0.35 | $ | 0.49 | |||||
Diluted earnings per share: | |||||||||
Weighted average shares outstanding-diluted | 25,278,907 | 25,099,044 | |||||||
Net income per share | $ | 0.35 | $ | 0.49 | |||||
Reconciliation of Weighted Average Shares for Basic and Diluted Earnings Per Share | ' | ||||||||
A reconciliation of weighted average shares for basic earnings per share to weighted average shares for diluted earnings per share is as follows: | |||||||||
Quarters Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Weighted average shares for basic earnings per share | 25,122,812 | 25,055,116 | |||||||
Non-vested restricted stock | 64,847 | 17,107 | |||||||
Options | 91,248 | 26,821 | |||||||
Weighted average shares for diluted earnings per share | 25,278,907 | 25,099,044 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Summary of Business Segment Information | ' | ||||||||||||
The following are tabulations of business segment information for the quarters ended March 31, 2014 and 2013. | |||||||||||||
Quarter Ended March 31, 2014: | Insurance | Reinsurance | Total | ||||||||||
(Dollars in thousands) | Operations (1) | Operations (2) | |||||||||||
Revenues: | |||||||||||||
Gross premiums written | $ | 52,992 | $ | 24,205 | $ | 77,197 | |||||||
Net premiums written | $ | 48,656 | $ | 24,205 | $ | 72,861 | |||||||
Net premiums earned | $ | 53,313 | $ | 14,231 | $ | 67,544 | |||||||
Other income | 166 | 2 | 168 | ||||||||||
Total revenues | 53,479 | 14,233 | 67,712 | ||||||||||
Losses and Expenses: | |||||||||||||
Net losses and loss adjustment expenses | 33,597 | 4,975 | 38,572 | ||||||||||
Acquisition costs and other underwriting expenses | 21,718 | (3) | 4,767 | 26,485 | |||||||||
Income (loss) from segments | $ | (1,836 | ) | $ | 4,491 | 2,655 | |||||||
Unallocated Items: | |||||||||||||
Net investment income | 8,284 | ||||||||||||
Net realized investment losses | (813 | ) | |||||||||||
Corporate and other operating expenses | (2,961 | ) | |||||||||||
Interest expense | (191 | ) | |||||||||||
Income before income taxes | 6,974 | ||||||||||||
Income tax benefit | 1,849 | ||||||||||||
Net income | $ | 8,823 | |||||||||||
Total assets | $ | 1,256,009 | $668,080 | (4) | $ | 1,924,089 | |||||||
-1 | Includes business ceded to the Company’s Reinsurance Operations. | ||||||||||||
-2 | External business only, excluding business assumed from affiliates. | ||||||||||||
-3 | Includes federal excise tax of $280 relating to cessions from Insurance Operations to Reinsurance Operations. | ||||||||||||
-4 | Comprised of Wind River Reinsurance’s total assets less its investment in subsidiaries. | ||||||||||||
Quarter Ended March 31, 2013: | Insurance | Reinsurance | Total | ||||||||||
(Dollars in thousands) | Operations (1) | Operations (2) | |||||||||||
Revenues: | |||||||||||||
Gross premiums written | $ | 51,088 | $ | 23,851 | $ | 74,939 | |||||||
Net premiums written | $ | 47,628 | $ | 23,850 | $ | 71,478 | |||||||
Net premiums earned | $ | 45,241 | $ | 10,755 | $ | 55,996 | |||||||
Other income | 81 | (27 | ) | 54 | |||||||||
Total revenues | 45,322 | 10,728 | 56,050 | ||||||||||
Losses and Expenses: | |||||||||||||
Net losses and loss adjustment expenses | 28,742 | 3,046 | 31,788 | ||||||||||
Acquisition costs and other underwriting expenses | 20,407 | (3) | 4,070 | 24,477 | |||||||||
Income (loss) from segments | $ | (3,827 | ) | $ | 3,612 | (215 | ) | ||||||
Unallocated Items: | |||||||||||||
Net investment income | 10,034 | ||||||||||||
Net realized investment gains | 5,757 | ||||||||||||
Corporate and other operating expenses | (2,345 | ) | |||||||||||
Interest expense | (1,173 | ) | |||||||||||
Income before income taxes | 12,058 | ||||||||||||
Income tax benefit | 307 | ||||||||||||
Net income | $ | 12,365 | |||||||||||
Total assets | $ | 1,257,746 | $659,935 | (4) | $ | 1,917,681 | |||||||
-1 | Includes business ceded to the Company’s Reinsurance Operations. | ||||||||||||
-2 | External business only, excluding business assumed from affiliates. | ||||||||||||
-3 | Includes federal excise tax of $248 relating to cessions from Insurance Operations to Reinsurance Operations. | ||||||||||||
-4 | Comprised of Wind River Reinsurance’s total assets less its investment in subsidiaries. |
Principles_of_Consolidation_an2
Principles of Consolidation and Basis of Presentation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Organization And Basis Of Presentation [Line Items] | ' |
Date of incorporation | 9-Mar-10 |
State of incorporation | 'Ireland |
Kind of listing | 'A ordinary shares |
Number of business segments | 2 |
Schedule_of_Amortized_Cost_and
Schedule of Amortized Cost and Estimated Fair Value of Investments (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | $1,382,968 | $1,382,175 | ||
Gross Unrealized Gains | 83,025 | 87,326 | ||
Gross Unrealized Losses | -5,831 | -7,578 | ||
Estimated Fair Value | 1,460,162 | 1,461,923 | ||
Other than temporary impairments recognized in AOCI | -21 | [1] | -24 | [1] |
Common Shares | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 197,088 | 191,425 | ||
Gross Unrealized Gains | 62,100 | 63,281 | ||
Gross Unrealized Losses | -1,248 | -636 | ||
Estimated Fair Value | 257,940 | 254,070 | ||
Other Invested Assets | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 5,167 | 3,065 | ||
Gross Unrealized Gains | 282 | 424 | ||
Gross Unrealized Losses | -85 | ' | ||
Estimated Fair Value | 5,364 | 3,489 | ||
Fixed Maturities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 1,180,713 | 1,187,685 | ||
Gross Unrealized Gains | 20,643 | 23,621 | ||
Gross Unrealized Losses | -4,498 | -6,942 | ||
Estimated Fair Value | 1,196,858 | 1,204,364 | ||
Other than temporary impairments recognized in AOCI | -21 | [1] | -24 | [1] |
Fixed Maturities | U.S. Treasury And Agency Obligations | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 78,194 | 78,510 | ||
Gross Unrealized Gains | 3,134 | 3,330 | ||
Gross Unrealized Losses | -139 | -166 | ||
Estimated Fair Value | 81,189 | 81,674 | ||
Fixed Maturities | Obligations of States and Political Subdivisions | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 177,223 | 178,705 | ||
Gross Unrealized Gains | 4,265 | 4,472 | ||
Gross Unrealized Losses | -1,146 | -2,241 | ||
Estimated Fair Value | 180,342 | 180,936 | ||
Fixed Maturities | Mortgage Backed Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 218,786 | 228,550 | ||
Gross Unrealized Gains | 3,961 | 4,219 | ||
Gross Unrealized Losses | -2,123 | -2,859 | ||
Estimated Fair Value | 220,624 | 229,910 | ||
Other than temporary impairments recognized in AOCI | -4 | [1] | -5 | [1] |
Fixed Maturities | Asset-backed Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 183,471 | 167,454 | ||
Gross Unrealized Gains | 1,258 | 1,210 | ||
Gross Unrealized Losses | -168 | -228 | ||
Estimated Fair Value | 184,561 | 168,436 | ||
Other than temporary impairments recognized in AOCI | -17 | [1] | -19 | [1] |
Fixed Maturities | Commercial Mortgage-Backed Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 55,781 | 54,822 | ||
Gross Unrealized Gains | 50 | 9 | ||
Gross Unrealized Losses | -402 | -856 | ||
Estimated Fair Value | 55,429 | 53,975 | ||
Fixed Maturities | Corporate bonds and loans | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 389,483 | 426,872 | ||
Gross Unrealized Gains | 6,771 | 9,112 | ||
Gross Unrealized Losses | -450 | -592 | ||
Estimated Fair Value | 395,804 | 435,392 | ||
Fixed Maturities | Foreign Corporate Bonds | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 77,775 | 52,772 | ||
Gross Unrealized Gains | 1,204 | 1,269 | ||
Gross Unrealized Losses | -70 | ' | ||
Estimated Fair Value | $78,909 | $54,041 | ||
[1] | Represents the total amount of other than temporary impairment losses relating to factors other than credit losses recognized in accumulated other comprehensive income ("AOCI"). |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross unrealized losses less than 12 months | $5,385,000 | $7,318,000 | ||
Gross Unrealized Losses | 5,831,000 | 7,578,000 | ||
Gross unrealized losses for 12 months or greater | 446,000 | [1] | 260,000 | [1] |
Investments in insurance enhanced municipal bonds | 26,539,000 | ' | ||
Ratings without insurance | 15,029,000 | ' | ||
Insurance enhanced asset-backed and credit securities as a percentage of total cash and invested assets | 0.90% | ' | ||
Investments in insurance enhanced asset backed and credit securities | 14,200,000 | ' | ||
AA- Rating | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Investments in insurance enhanced municipal bonds | 26,500,000 | ' | ||
Insurance enhanced municipal bonds as a percentage of total cash and invested assets | 1.70% | ' | ||
Insurance enhanced municipal bonds | 23,600,000 | ' | ||
Maximum | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Debt or equity investments in a single issuer as a percentage of shareholders' equity | 4.00% | 4.00% | ||
Financial Guarantors | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Investments in insurance enhanced municipal bonds | 24,854,000 | ' | ||
Pre-Refunded Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Investments in insurance enhanced municipal bonds | 2,908,000 | ' | ||
Pre-Refunded Securities | Financial Guarantors | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Investments in insurance enhanced municipal bonds | 1,223,000 | ' | ||
A Rating | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Ratings without insurance | 6,187,000 | ' | ||
AA Rating | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Ratings without insurance | 8,842,000 | ' | ||
Municipal Bond Insurance Association | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Investments in insurance enhanced asset backed and credit securities | 6,800,000 | ' | ||
Ambac Financial Group | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Investments in insurance enhanced asset backed and credit securities | 1,000,000 | ' | ||
Assured Guaranty Corporation | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Investments in insurance enhanced asset backed and credit securities | 6,400,000 | ' | ||
U.S. Treasury And Agency Obligations | AA+ Rating | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross unrealized losses less than 12 months | 139,000 | ' | ||
Obligations of States and Political Subdivisions | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross Unrealized Losses | 1,146,000 | ' | ||
Obligations of States and Political Subdivisions | A- Rating | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross unrealized losses for 12 months or greater | 294,000 | ' | ||
Mortgage Backed Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross Unrealized Losses | 2,123,000 | ' | ||
Mortgage Backed Securities | AA+ Rating | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross unrealized losses for 12 months or greater | 136,000 | ' | ||
Asset-backed Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross Unrealized Losses | 168,000 | ' | ||
Weighted average credit enhancement | 23.90% | ' | ||
Asset-backed Securities | A Rating | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross unrealized losses for 12 months or greater | 1,000 | ' | ||
Corporate bonds and loans | Investment grade Rating | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross unrealized losses less than 12 months | 450,000 | ' | ||
Foreign Corporate Bonds | Investment grade Rating | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross unrealized losses less than 12 months | 70,000 | ' | ||
Common Shares | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross unrealized losses less than 12 months | 1,233,000 | 627,000 | ||
Gross Unrealized Losses | 1,248,000 | 636,000 | ||
Gross unrealized losses for 12 months or greater | 15,000 | [1] | 9,000 | [1] |
Other Invested Assets | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross unrealized losses less than 12 months | 85,000 | ' | ||
Gross Unrealized Losses | 85,000 | ' | ||
Commercial Mortgage-Backed Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Weighted average credit enhancement | 31.10% | ' | ||
Commercial Mortgage-Backed Securities | AA Rating | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Gross unrealized losses less than 12 months | $402,000 | ' | ||
[1] | Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. |
Summary_of_Amortized_Cost_and_
Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Due in one year or less, Amortized Cost | $123,488 | ' |
Due in one year through five years, Amortized Cost | 505,853 | ' |
Due in five years through ten years, Amortized Cost | 67,611 | ' |
Due in ten years through fifteen years, Amortized Cost | 4,405 | ' |
Due after fifteen years, Amortized Cost | 21,318 | ' |
Fixed maturities, amortized cost | 1,180,713 | 1,187,685 |
Due in one year or less, Estimated Fair value | 125,293 | ' |
Due in one year through five years, Estimated Fair value | 517,147 | ' |
Due in five years through ten years, Estimated Fair value | 68,094 | ' |
Due in ten years through fifteen years, Estimated Fair value | 4,761 | ' |
Due after fifteen years, Estimated Fair value | 20,949 | ' |
Fixed Maturities, estimated fair value | 1,196,858 | 1,204,364 |
Mortgage Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 218,786 | ' |
Estimated Fair value | 220,624 | ' |
Asset-backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 183,471 | ' |
Estimated Fair value | 184,561 | ' |
Commercial Mortgage-Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 55,781 | ' |
Estimated Fair value | $55,429 | ' |
Summary_of_Securities_with_Gro
Summary of Securities with Gross Unrealized Losses (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Less than 12 months, Fair Value | $337,537 | $347,857 | ||
Less than 12 months, Gross Unrealized Losses | -5,385 | -7,318 | ||
12 months or longer, Fair Value | 15,786 | [1] | 10,443 | [1] |
12 months or longer, Gross Unrealized Losses | -446 | [1] | -260 | [1] |
Total, Fair Value | 353,323 | 358,300 | ||
Total, Gross Unrealized Losses | -5,831 | -7,578 | ||
Obligations of States and Political Subdivisions | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Total, Gross Unrealized Losses | -1,146 | ' | ||
Mortgage Backed Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Total, Gross Unrealized Losses | -2,123 | ' | ||
Asset-backed Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Total, Gross Unrealized Losses | -168 | ' | ||
Common Shares | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Less than 12 months, Fair Value | 22,501 | 18,622 | ||
Less than 12 months, Gross Unrealized Losses | -1,233 | -627 | ||
12 months or longer, Fair Value | 134 | [1] | 140 | [1] |
12 months or longer, Gross Unrealized Losses | -15 | [1] | -9 | [1] |
Total, Fair Value | 22,635 | 18,762 | ||
Total, Gross Unrealized Losses | -1,248 | -636 | ||
Other Invested Assets | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Less than 12 months, Fair Value | 1,993 | ' | ||
Less than 12 months, Gross Unrealized Losses | -85 | ' | ||
Total, Fair Value | 1,993 | ' | ||
Total, Gross Unrealized Losses | -85 | ' | ||
Fixed Maturities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Less than 12 months, Fair Value | 313,043 | 329,235 | ||
Less than 12 months, Gross Unrealized Losses | -4,067 | -6,691 | ||
12 months or longer, Fair Value | 15,652 | [1] | 10,303 | [1] |
12 months or longer, Gross Unrealized Losses | -431 | [1] | -251 | [1] |
Total, Fair Value | 328,695 | 339,538 | ||
Total, Gross Unrealized Losses | -4,498 | -6,942 | ||
Fixed Maturities | U.S. Treasury And Agency Obligations | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Less than 12 months, Fair Value | 6,272 | 9,335 | ||
Less than 12 months, Gross Unrealized Losses | -139 | -166 | ||
Total, Fair Value | 6,272 | 9,335 | ||
Total, Gross Unrealized Losses | -139 | -166 | ||
Fixed Maturities | Obligations of States and Political Subdivisions | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Less than 12 months, Fair Value | 50,565 | 61,401 | ||
Less than 12 months, Gross Unrealized Losses | -852 | -2,000 | ||
12 months or longer, Fair Value | 9,862 | [1] | 9,922 | [1] |
12 months or longer, Gross Unrealized Losses | -294 | [1] | -241 | [1] |
Total, Fair Value | 60,427 | 71,323 | ||
Total, Gross Unrealized Losses | -1,146 | -2,241 | ||
Fixed Maturities | Mortgage Backed Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Less than 12 months, Fair Value | 95,564 | 110,304 | ||
Less than 12 months, Gross Unrealized Losses | -1,987 | -2,859 | ||
12 months or longer, Fair Value | 3,087 | [1] | 2 | [1] |
12 months or longer, Gross Unrealized Losses | -136 | [1] | ' | |
Total, Fair Value | 98,651 | 110,306 | ||
Total, Gross Unrealized Losses | -2,123 | -2,859 | ||
Fixed Maturities | Asset-backed Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Less than 12 months, Fair Value | 33,307 | 42,247 | ||
Less than 12 months, Gross Unrealized Losses | -167 | -228 | ||
12 months or longer, Fair Value | 2,703 | [1] | 3 | [1] |
12 months or longer, Gross Unrealized Losses | -1 | [1] | ' | |
Total, Fair Value | 36,010 | 42,250 | ||
Total, Gross Unrealized Losses | -168 | -228 | ||
Fixed Maturities | Commercial Mortgage-Backed Securities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Less than 12 months, Fair Value | 29,721 | 45,642 | ||
Less than 12 months, Gross Unrealized Losses | -402 | -856 | ||
Total, Fair Value | 29,721 | 45,642 | ||
Total, Gross Unrealized Losses | -402 | -856 | ||
Fixed Maturities | Corporate bonds and loans | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Less than 12 months, Fair Value | 76,933 | 60,306 | ||
Less than 12 months, Gross Unrealized Losses | -450 | -582 | ||
12 months or longer, Fair Value | ' | 376 | [1] | |
12 months or longer, Gross Unrealized Losses | ' | -10 | [1] | |
Total, Fair Value | 76,933 | 60,682 | ||
Total, Gross Unrealized Losses | -450 | -592 | ||
Fixed Maturities | Foreign Corporate Bonds | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Less than 12 months, Fair Value | 20,681 | ' | ||
Less than 12 months, Gross Unrealized Losses | -70 | ' | ||
Total, Fair Value | 20,681 | ' | ||
Total, Gross Unrealized Losses | ($70) | ' | ||
[1] | Fixed maturities in a gross unrealized loss position for twelve months or longer are primarily comprised of non-credit losses on investment grade securities where management does not intend to sell, and it is more likely than not that the Company will not be forced to sell the security before recovery. The Company has analyzed these securities and has determined that they are not other than temporarily impaired. |
Schedule_of_Other_Than_Tempora
Schedule of Other Than Temporary Impairments on Investments (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
OTTI losses, gross | ($25) | ($43) |
Portion of loss recognized in other comprehensive income (pre-tax) | ' | ' |
Net impairment losses on fixed maturities recognized in earnings | -25 | -43 |
Equity securities | ' | ' |
Total | ($25) | ($43) |
Schedule_of_Credit_Losses_Reco
Schedule of Credit Losses Recognized in Earnings (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Balance at beginning of period | $54 | $86 |
Additions where no OTTI was previously recorded | ' | ' |
Additions where an OTTI was previously recorded | ' | ' |
Reductions for securities for which the company intends to sell or more likely than not will be required to sell before recovery | ' | ' |
Reductions reflecting increases in expected cash flows to be collected | ' | ' |
Reductions for securities sold during the period | ' | ' |
Balance at end of period | $54 | $86 |
Schedule_of_Accumulated_Other_
Schedule of Accumulated Other Comprehensive Income, Net of Tax (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Deferred taxes | ($24,885) | ($25,480) | ' | ' |
Accumulated other comprehensive income, net of tax | 52,052 | 54,028 | 60,799 | 53,350 |
Fixed Maturities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Net unrealized gains | 16,145 | 16,679 | ' | ' |
Common Shares | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Net unrealized gains | 60,852 | 62,645 | ' | ' |
Other | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Net unrealized gains | ($60) | $184 | ' | ' |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | $54,028 | $53,350 |
Other comprehensive income before reclassification | 2,056 | 11,277 |
Amounts reclassified from accumulated other comprehensive income | -4,032 | -3,828 |
Other comprehensive income (loss), net of taxes | -1,976 | 7,449 |
Ending balance | 52,052 | 60,799 |
Unrealized Gains and Losses on Available for Sale Securities | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | 53,950 | 53,435 |
Other comprehensive income before reclassification | 2,027 | 11,366 |
Amounts reclassified from accumulated other comprehensive income | -4,019 | -3,885 |
Other comprehensive income (loss), net of taxes | -1,992 | 7,481 |
Ending balance | 51,958 | 60,916 |
Foreign Currency Items | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | 78 | -85 |
Other comprehensive income before reclassification | 29 | -89 |
Amounts reclassified from accumulated other comprehensive income | -13 | 57 |
Other comprehensive income (loss), net of taxes | 16 | -32 |
Ending balance | $94 | ($117) |
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Other net realized investment gains | ($788) | $5,800 |
Other than temporary impairment losses on investments | -25 | -43 |
Income before income taxes | 6,974 | 12,058 |
Income tax benefit | 1,849 | 307 |
Net income | 8,823 | 12,365 |
Reclassification out of Accumulated Other Comprehensive Income | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Net income | -4,032 | -3,828 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available for Sale Securities | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Other net realized investment gains | -5,534 | -5,888 |
Other than temporary impairment losses on investments | 25 | 43 |
Income before income taxes | -5,509 | -5,845 |
Income tax benefit | 1,490 | 1,960 |
Net income | -4,019 | -3,885 |
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Items | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Other net realized investment gains | -20 | 88 |
Income tax benefit | 7 | -31 |
Net income | ($13) | $57 |
Components_of_Net_Realized_Inv
Components of Net Realized Investment Gains (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total net realized investment gains (losses) | ($813) | $5,757 |
Not Designated as Hedging Instrument | Interest Rate Swap | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross realized losses | -6,342 | ' |
Total net realized investment gains (losses) | -6,342 | ' |
Fixed Maturities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross realized gains | 1,671 | 386 |
Gross realized losses | -131 | -56 |
Total net realized investment gains (losses) | 1,540 | 330 |
Common Shares | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross realized gains | 4,007 | 5,481 |
Gross realized losses | -18 | -54 |
Total net realized investment gains (losses) | $3,989 | $5,427 |
Schedule_of_Proceeds_From_Sale
Schedule of Proceeds From Sales of Available for Sale Securities (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fixed maturities | $95,289 | $92,513 |
Equity securities | $10,702 | $20,699 |
Schedule_of_Investment_Income_
Schedule of Investment Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investment income | $9,413 | $11,169 |
Investment expense | -1,129 | -1,135 |
Net investment income | 8,284 | 10,034 |
Fixed Maturities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investment income | 7,255 | 9,827 |
Equity Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investment income | 2,140 | 1,292 |
Cash and Cash Equivalents | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investment income | $18 | $50 |
Schedule_of_Total_Investment_R
Schedule of Total Investment Return (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Net Investment Income [Line Items] | ' | ' | ||
Net investment income | $8,284 | $10,034 | ||
Net realized investment gains (losses) | -813 | 5,757 | ||
Net unrealized investment gains (losses) | -2,571 | 12,854 | ||
Net investment return | -3,384 | 18,611 | ||
Total investment return | 4,900 | 28,645 | ||
Total investment return % | 0.30% | [1] | 1.90% | [1] |
Average investment portfolio | $1,560,464 | [2] | $1,534,743 | [2] |
[1] | Not annualized. | |||
[2] | Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period. |
Municipal_Bonds_with_and_witho
Municipal Bonds with and without Insurance (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Financial Statement Details [Line Items] | ' |
Ratings with insurance | $15,029 |
Ratings without insurance | 15,029 |
AAA Rating | ' |
Financial Statement Details [Line Items] | ' |
Ratings with insurance | 8,842 |
AA Rating | ' |
Financial Statement Details [Line Items] | ' |
Ratings without insurance | 8,842 |
A Rating | ' |
Financial Statement Details [Line Items] | ' |
Ratings with insurance | 6,187 |
Ratings without insurance | $6,187 |
Summary_of_Insurance_Enhanced_
Summary of Insurance Enhanced Municipal Bonds Backed by Financial Guarantors (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | $26,539 |
Ambac Financial Group | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 2,283 |
Assured Guaranty Corporation | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 9,050 |
Municipal Bond Insurance Association | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 4,007 |
Gov't National Housing Association | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 672 |
Permanent School Fund Guaranty | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 8,842 |
Financial Guarantors | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 24,854 |
Other Credit Enhanced Municipal Bonds | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 1,685 |
Pre-Refunded Securities | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 2,908 |
Pre-Refunded Securities | Ambac Financial Group | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 1,223 |
Pre-Refunded Securities | Financial Guarantors | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 1,223 |
Pre-Refunded Securities | Other Credit Enhanced Municipal Bonds | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 1,685 |
Government Guaranteed Securities | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 9,514 |
Government Guaranteed Securities | Gov't National Housing Association | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 672 |
Government Guaranteed Securities | Permanent School Fund Guaranty | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 8,842 |
Government Guaranteed Securities | Financial Guarantors | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 9,514 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 14,117 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Ambac Financial Group | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 1,060 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Assured Guaranty Corporation | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 9,050 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Municipal Bond Insurance Association | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | 4,007 |
Exposure Net Of Pre-refunded & Government Guaranteed Securities | Financial Guarantors | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in insurance enhanced municipal bonds | $14,117 |
Summary_of_Estimated_Fair_Valu
Summary of Estimated Fair Values of Bonds Held on Deposit (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Estimated Fair Value | $779,642 | $871,135 | ||
On Deposit With Governmental Authorities | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Estimated Fair Value | 35,992 | 36,176 | ||
Intercompany Trusts Held For Benefit Of U.S. Policyholders | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Estimated Fair Value | 495,917 | 584,683 | ||
Held In Trust Pursuant To Third Party Requirements | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Estimated Fair Value | 124,026 | 129,339 | ||
Letter Of Credit Held For Third Party Requirements | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Estimated Fair Value | 3,293 | ' | ||
Securities held as collateral for borrowing arrangements | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Estimated Fair Value | $120,414 | [1] | $120,937 | [1] |
[1] | Amount required to collateralize margin borrowing facility. |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' |
Collateral posted for derivatives | $4.90 |
Summarized_Information_of_Loca
Summarized Information of Location and Amount of Derivatives' Fair Value in Consolidated Balance Sheets (Detail) (Not Designated as Hedging Instrument, Interest Rate Swap, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Other Liabilities | Other Assets |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | $200,000 | $200,000 |
Fair Value | -3,266 | ' |
Fair Value | ' | $1,668 |
Summary_of_Net_Gains_Included_
Summary of Net Gains Included in Consolidated Statement of Operations for Changes in Fair Value of Derivatives and Periodic net Interest Settlements Under Derivatives (Detail) (Interest Rate Swap, Net Realized Investments Gain Loss, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Interest Rate Swap | Net Realized Investments Gain Loss | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' |
Net gain (loss) for changes in fair value and net settlements of derivatives | ($6,342) |
Companys_Invested_Assets_Measu
Company's Invested Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | Common Shares | Common Shares | Other Invested Assets | Other Invested Assets | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | ||
U.S. Treasury And Agency Obligations | U.S. Treasury And Agency Obligations | Obligations of States and Political Subdivisions | Obligations of States and Political Subdivisions | Mortgage Backed Securities | Mortgage Backed Securities | Commercial Mortgage-Backed Securities | Commercial Mortgage-Backed Securities | Asset-backed Securities | Asset-backed Securities | Corporate bonds and loans | Corporate bonds and loans | Foreign Corporate Bonds | Foreign Corporate Bonds | Derivative instruments | Common Shares | Common Shares | Other Invested Assets | Other Invested Assets | Derivative instruments | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | |||||||||||
U.S. Treasury And Agency Obligations | U.S. Treasury And Agency Obligations | Obligations of States and Political Subdivisions | Obligations of States and Political Subdivisions | Mortgage Backed Securities | Mortgage Backed Securities | Commercial Mortgage-Backed Securities | Commercial Mortgage-Backed Securities | Asset-backed Securities | Asset-backed Securities | Corporate bonds and loans | Corporate bonds and loans | Foreign Corporate Bonds | Foreign Corporate Bonds | Common Shares | Common Shares | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Derivative instruments | Derivative instruments | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Other Invested Assets | Other Invested Assets | |||||||||||||||||||||||||||||||||||||||
U.S. Treasury And Agency Obligations | U.S. Treasury And Agency Obligations | U.S. Treasury And Agency Obligations | U.S. Treasury And Agency Obligations | Obligations of States and Political Subdivisions | Obligations of States and Political Subdivisions | Mortgage Backed Securities | Mortgage Backed Securities | Commercial Mortgage-Backed Securities | Commercial Mortgage-Backed Securities | Asset-backed Securities | Asset-backed Securities | Corporate bonds and loans | Corporate bonds and loans | Foreign Corporate Bonds | Foreign Corporate Bonds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total invested assets | $1,460,162 | $1,461,923 | $257,940 | $254,070 | $5,364 | $3,489 | $1,196,858 | $1,204,364 | $81,189 | $81,674 | $180,342 | $180,936 | $220,624 | $229,910 | $55,429 | $53,975 | $184,561 | $168,436 | $395,804 | $435,392 | $78,909 | $54,041 | $1,460,162 | $1,463,591 | ' | $257,940 | $254,070 | $5,364 | $3,489 | $1,668 | $1,196,858 | $1,204,364 | $81,189 | $81,674 | $180,342 | $180,936 | $220,624 | $229,910 | $55,429 | $53,975 | $184,561 | $168,436 | $395,804 | $435,392 | $78,909 | $54,041 | $326,835 | $325,364 | $257,940 | $254,070 | $68,895 | $71,294 | $68,895 | $71,294 | $1,127,963 | $1,134,738 | ' | $1,668 | $1,127,963 | $1,133,070 | $12,294 | $10,380 | $180,342 | $180,936 | $220,624 | $229,910 | $55,429 | $53,975 | $184,561 | $168,436 | $395,804 | $435,392 | $78,909 | $54,041 | $5,364 | $3,489 | $5,364 | $3,489 |
Total invested liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,266 | ' | $3,266 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,266 | ' | $3,266 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes_in_Level_3_Investments
Changes in Level 3 Investments Measured at Fair Value on Recurring Basis (Detail) (Other Invested Assets, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Invested Assets | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | $3,489 | $3,132 |
Included in accumulated other comprehensive income (loss) | -226 | -37 |
Purchases | 2,101 | 10 |
Sales | ' | ' |
Ending balance | $5,364 | $3,105 |
Fair_Value_and_Future_Funding_
Fair Value and Future Funding Commitments Related to These Investments (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair Value | $5,364 | $3,489 | ||
Future Funding Commitments | 50,472 | 2,490 | ||
Equity Fund, LP | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair Value | 3,371 | [1] | 3,489 | [1] |
Future Funding Commitments | 2,465 | [1] | 2,490 | [1] |
European Non-Performing Loan Fund, LP | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair Value | 1,993 | [2] | ' | |
Future Funding Commitments | $48,007 | [2] | ' | |
[1] | This limited partnership invests in companies from various business sectors whereby the partnership has acquired control of the operating business as a lead or organizing investor. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. | |||
[2] | This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. |
Disclosure_Fair_Value_and_Futu
Disclosure - Fair Value and Future Funding Commitments Related to These Investments (Parenthetical) (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Fair value written down | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Income Tax [Line Items] | ' | ' | ' |
Effective income tax rate | -26.50% | -2.60% | ' |
Weighted average expected income tax expense (benefit) rate | -23.80% | 2.90% | ' |
Alternative minimum tax credit carry forward | $9.90 | ' | $9.90 |
Net operating loss carryforwards | $1.20 | ' | $1.20 |
Net operating loss carryforwards, expiration year | '2032 | ' | ' |
UNITED STATES | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Statutory income tax rates | 35.00% | ' | ' |
BERMUDA | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Statutory income tax rates | 0.00% | ' | ' |
CAYMAN ISLANDS | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Statutory income tax rates | 0.00% | ' | ' |
GIBRALTAR | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Statutory income tax rates | 0.00% | ' | ' |
LUXEMBOURG | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Statutory income tax rates | 29.22% | ' | ' |
IRELAND | Non Trading Income | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Statutory income tax rates | 25.00% | ' | ' |
IRELAND | Capital Gain | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Statutory income tax rates | 33.00% | ' | ' |
IRELAND | Trading Income | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Statutory income tax rates | 12.50% | ' | ' |
Income_Before_Income_Taxes_fro
Income Before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Gross premiums written | $77,197 | $74,939 |
Net premiums written | 72,861 | 71,478 |
Net premiums earned | 67,544 | 55,996 |
Net investment income | 8,284 | 10,034 |
Net realized investment gains | -813 | 5,757 |
Other income (loss) | 168 | 54 |
Total revenues | 75,183 | 71,841 |
Losses and Expenses: | ' | ' |
Net losses and loss adjustment expenses | 38,572 | 31,788 |
Acquisition costs and other underwriting expenses | 26,485 | 24,477 |
Corporate and other operating expenses | 2,961 | 2,345 |
Interest expense | 191 | 1,173 |
Income (loss) before income taxes | 6,974 | 12,058 |
Non-U.S. Subsidiaries | ' | ' |
Revenues: | ' | ' |
Gross premiums written | 49,999 | 48,683 |
Net premiums written | 49,999 | 48,682 |
Net premiums earned | 42,354 | 34,394 |
Net investment income | 7,651 | 9,648 |
Net realized investment gains | 1,252 | 247 |
Other income (loss) | 2 | -27 |
Total revenues | 51,259 | 44,262 |
Losses and Expenses: | ' | ' |
Net losses and loss adjustment expenses | 19,958 | 16,350 |
Acquisition costs and other underwriting expenses | 17,794 | 15,148 |
Corporate and other operating expenses | 1,367 | 1,275 |
Interest expense | 240 | 317 |
Income (loss) before income taxes | 11,900 | 11,172 |
U.S. Subsidiaries | ' | ' |
Revenues: | ' | ' |
Gross premiums written | 52,992 | 51,088 |
Net premiums written | 22,862 | 22,796 |
Net premiums earned | 25,190 | 21,602 |
Net investment income | 5,420 | 5,250 |
Net realized investment gains | -2,065 | 5,510 |
Other income (loss) | 166 | 81 |
Total revenues | 28,711 | 32,443 |
Losses and Expenses: | ' | ' |
Net losses and loss adjustment expenses | 18,614 | 15,438 |
Acquisition costs and other underwriting expenses | 8,691 | 9,329 |
Corporate and other operating expenses | 1,594 | 1,070 |
Interest expense | 4,738 | 5,720 |
Income (loss) before income taxes | -4,926 | 886 |
Inter Geographical Elimination | ' | ' |
Revenues: | ' | ' |
Gross premiums written | -25,794 | -24,832 |
Net investment income | -4,787 | -4,864 |
Total revenues | -4,787 | -4,864 |
Losses and Expenses: | ' | ' |
Interest expense | ($4,787) | ($4,864) |
Components_of_Income_Tax_Expen
Components of Income Tax Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Current income tax expense (benefit): | ' | ' |
Foreign | $64 | $37 |
U.S. Federal | -270 | -638 |
Total current income tax expense (benefit) | -206 | -601 |
Deferred income tax expense (benefit): | ' | ' |
U.S. Federal | -1,643 | 294 |
Total deferred income tax expense (benefit) | -1,643 | 294 |
Total income tax expense (benefit) | ($1,849) | ($307) |
Differences_in_Tax_and_Estimat
Differences in Tax and Estimated Tax Provisions at Weighted Average Tax Rate (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax [Line Items] | ' | ' |
Expected tax provision at weighted average, Amount | ($1,662) | $347 |
Adjustments: | ' | ' |
Tax exempt interest, Amount | -215 | -295 |
Dividend exclusion, Amount | -478 | -252 |
Effective tax rate adjustment, Amount | 501 | -109 |
Other, Amount | 5 | 2 |
Total income tax expense (benefit) | ($1,849) | ($307) |
Expected tax provision at weighted average, % of Pre-Tax Income | -23.80% | 2.90% |
Adjustments: | ' | ' |
Tax exempt interest, % of Pre-Tax Income | -3.10% | -2.40% |
Dividend exclusion, % of Pre-Tax Income | -6.90% | -2.10% |
Effective tax rate adjustment, % of Pre-Tax Income | 7.20% | -0.90% |
Other, % of Pre-Tax Income | 0.10% | -0.10% |
Actual taxes on continuing operations, % of Pre-Tax Income | -26.50% | -2.60% |
Summarized_Activity_in_Liabili
Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustment of Opening Balance [Line Items] | ' | ' |
Balance at beginning of period | $779,466 | $879,114 |
Ceded reinsurance receivables | 192,491 | 240,546 |
Net balance at beginning of period | 586,975 | 638,568 |
Incurred losses and loss adjustment expenses related to: | ' | ' |
Current year | 40,666 | 34,458 |
Prior years | -2,094 | -2,670 |
Total incurred losses and loss adjustment expenses | 38,572 | 31,788 |
Paid losses and loss adjustment expenses related to: | ' | ' |
Current year | 8,212 | 5,133 |
Prior years | 33,821 | 39,015 |
Total paid losses and loss adjustment expenses | 42,033 | 44,148 |
Net balance at end of period | 583,514 | 626,208 |
Ceded reinsurance receivables | 195,533 | 237,959 |
Balance at end of period | $779,047 | $864,167 |
Liability_for_Unpaid_Losses_an2
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ' | ' |
Increase (reduction) in prior year accident loss reserves | ($2,094,000) | ($2,670,000) |
Insurance Operations | ' | ' |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ' | ' |
Changes in prior year reserve | -2,000,000 | -2,800,000 |
Insurance Operations | General Liability | Accident Years 2005 to 2011 | ' | ' |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ' | ' |
Changes in prior year reserve | -900,000 | ' |
Insurance Operations | Professional Liability Lines | Accident Years 2005 to 2011 | ' | ' |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ' | ' |
Changes in prior year reserve | -1,800,000 | ' |
Insurance Operations | Other Lines | Accident Year 2011 | ' | ' |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ' | ' |
Changes in prior year reserve | 700,000 | ' |
Insurance Operations | Property Lines | Accident Years 2008 Through 2012 | ' | ' |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ' | ' |
Changes in prior year reserve | ' | -2,800,000 |
Reinsurance Operations | ' | ' |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ' | ' |
Changes in prior year reserve | -100,000 | 100,000 |
Reinsurance Operations | Property Lines | Accident Years 2010 to 2013 | ' | ' |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ' | ' |
Changes in prior year reserve | -100,000 | ' |
Reinsurance Operations | Marine | ' | ' |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ' | ' |
Changes in prior year reserve | ' | $100,000 |
Information_with_Respect_to_Or
Information with Respect to Ordinary Shares that were Surrendered or Repurchased (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | |||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ||
Total Number of Shares Purchased | 5,444 | [1] | 1,253 | [1] |
Average Price Paid Per Share | $25.46 | [1] | $22.05 | [1] |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | ' | [1] | ' | [1] |
January 1-31, 2014 | ' | ' | ||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ||
Total Number of Shares Purchased | 3,644 | [1],[2] | ' | |
Average Price Paid Per Share | $25.30 | [1] | ' | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | ' | [1] | ' | |
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan or Program | $16,857,963 | [1],[3] | ' | |
February 1-28, 2014 | ' | ' | ||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ||
Total Number of Shares Purchased | 362 | [1],[2] | ' | |
Average Price Paid Per Share | $24 | [1] | ' | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | ' | [1] | ' | |
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan or Program | 16,857,963 | [1],[3] | ' | |
March 1-31, 2014 | ' | ' | ||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ||
Total Number of Shares Purchased | 1,438 | [1],[2] | ' | |
Average Price Paid Per Share | $26.23 | [1] | ' | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | ' | [1] | ' | |
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan or Program | 16,857,963 | [1],[3] | ' | |
January 1-31, 2013 | ' | ' | ||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ||
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | ' | ' | [1] | |
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan or Program | ' | 16,857,963 | [1],[3] | |
February 1-28, 2013 | ' | ' | ||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ||
Total Number of Shares Purchased | ' | 362 | [1],[2] | |
Average Price Paid Per Share | ' | $20.25 | [1] | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | ' | ' | [1] | |
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan or Program | ' | 16,857,963 | [1],[3] | |
March 1-31, 2013 | ' | ' | ||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ||
Total Number of Shares Purchased | ' | 891 | [1],[2] | |
Average Price Paid Per Share | ' | $22.78 | [1] | |
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | ' | ' | [1] | |
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan or Program | ' | $16,857,963 | [1],[3] | |
[1] | Based on settlement date. | |||
[2] | Surrendered by employees as payment of taxes withheld on the vesting of restricted stock. | |||
[3] | Approximate dollar value of shares that may yet be purchased is as of the last date of the applicable month. |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Fox Paine & Company, LLC | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Company's total outstanding voting power | 93.00% | ' | ' |
Minimum voting power required to nominate Directors | 25.00% | ' | ' |
Management fees | $0.50 | $0.40 | ' |
Fox Paine Capital Fund II Limited Partner | Wind River Reinsurance | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Company's investment in limited partnership | 3.4 | ' | 3.5 |
Unfunded capital commitment | 2.5 | ' | ' |
Distribution received from the limited partnership | 0 | 0 | ' |
Cozen O'Connor | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Cost incurred for legal services rendered | 0.03 | 0.02 | ' |
Crystal & Company | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Brokerage fee incurred | $0.10 | $0.10 | ' |
Estimated_Earned_Premium_and_I
Estimated Earned Premium and Incurred Losses (Detail) (Hiscox Bermuda, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Hiscox Bermuda | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Assumed earned premium | $1,014 | $354 |
Assumed losses and loss adjustment expenses | $304 | $89 |
Net_Balances_due_to_Wind_River
Net Balances due to Wind River Reinsurance (Detail) (Hiscox Bermuda, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Hiscox Bermuda | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Net receivable balance | $2,175 | $3,337 |
ShareBased_Compensation_Plans_
Share-Based Compensation Plans - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Ordinary Shares A | Key Employees | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of shares issued | 90,023 | ' |
Weighted average grant date value of shares earned not granted | $25.30 | ' |
Number of shares issued | ' | 81,587 |
Weighted average grant date value of shares granted | ' | $22.13 |
Ordinary Shares A | Non Employee Director | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of shares issued | 8,928 | ' |
Weighted average grant date value of shares earned not granted | $26.34 | ' |
Number of shares issued | ' | 11,900 |
Weighted average grant date value of shares granted | ' | $22.13 |
Time Based Option Award | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock options awarded | 25,000 | 0 |
Restricted Stock | Key Employees | Vesting Schedule One | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percentage of shares vested on each anniversary of the grant date | 33.33% | 33.33% |
Vesting period | '3 years | '3 years |
Restricted Stock | Key Employees | Vesting Schedule Two | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percentage of shares vested on each anniversary of the grant date | 100.00% | 100.00% |
Vesting period | '3 years | '3 years |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings (Loss) Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ' | ' |
Net income | $8,823 | $12,365 |
Weighted average shares outstanding-basic | 25,122,812 | 25,055,116 |
Net income per share | $0.35 | $0.49 |
Weighted average shares outstanding-diluted | 25,278,907 | 25,099,044 |
Net income per share | $0.35 | $0.49 |
Reconciliation_of_Weighted_Ave
Reconciliation of Weighted Average Shares for Basic and Diluted Earnings Per Share (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | ' | ' |
Weighted average shares for basic earnings per share | 25,122,812 | 25,055,116 |
Weighted average shares for diluted earnings per share | 25,278,907 | 25,099,044 |
Restricted Stock | ' | ' |
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | ' | ' |
Non-vested restricted stock and options | 64,847 | 17,107 |
Stock Options | ' | ' |
Reconciliation Of Basic Weighted Average Shares To Diluted Weighted Average Shares [Line Items] | ' | ' |
Non-vested restricted stock and options | 91,248 | 26,821 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Line Items] | ' | ' |
Shares excluded from calculation of diluted earnings per share | 37,500 | 150,450 |
Summary_of_Business_Segment_In
Summary of Business Segment Information (Detail) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Revenues: | ' | ' | ' | ||
Gross premiums written | $77,197 | $74,939 | ' | ||
Net premiums written | 72,861 | 71,478 | ' | ||
Net premiums earned | 67,544 | 55,996 | ' | ||
Other income (loss) | 168 | 54 | ' | ||
Total revenues | 67,712 | 56,050 | ' | ||
Losses and Expenses: | ' | ' | ' | ||
Net losses and loss adjustment expenses | 38,572 | 31,788 | ' | ||
Acquisition costs and other underwriting expenses | 26,485 | 24,477 | ' | ||
Income (loss) from segments | 2,655 | -215 | ' | ||
Unallocated Items: | ' | ' | ' | ||
Net investment income | 8,284 | 10,034 | ' | ||
Net realized investment gains | -813 | 5,757 | ' | ||
Corporate and other operating expenses | -2,961 | -2,345 | ' | ||
Interest expense | -191 | -1,173 | ' | ||
Income before income taxes | 6,974 | 12,058 | ' | ||
Income tax benefit | 1,849 | 307 | ' | ||
Net income (loss) | 8,823 | 12,365 | ' | ||
Total assets | 1,924,089 | 1,917,681 | 1,911,779 | ||
Insurance Operations | ' | ' | ' | ||
Revenues: | ' | ' | ' | ||
Gross premiums written | 52,992 | [1] | 51,088 | [1] | ' |
Net premiums written | 48,656 | [1] | 47,628 | [1] | ' |
Net premiums earned | 53,313 | [1] | 45,241 | [1] | ' |
Other income (loss) | 166 | [1] | 81 | [1] | ' |
Total revenues | 53,479 | [1] | 45,322 | [1] | ' |
Losses and Expenses: | ' | ' | ' | ||
Net losses and loss adjustment expenses | 33,597 | [1] | 28,742 | [1] | ' |
Acquisition costs and other underwriting expenses | 21,718 | [1],[2] | 20,407 | [1],[3] | ' |
Income (loss) from segments | -1,836 | [1] | -3,827 | [1] | ' |
Unallocated Items: | ' | ' | ' | ||
Total assets | 1,256,009 | [1] | 1,257,746 | [1] | ' |
Reinsurance Operations | ' | ' | ' | ||
Revenues: | ' | ' | ' | ||
Gross premiums written | 24,205 | [4] | 23,851 | [4] | ' |
Net premiums written | 24,205 | [4] | 23,850 | [4] | ' |
Net premiums earned | 14,231 | [4] | 10,755 | [4] | ' |
Other income (loss) | 2 | [4] | -27 | [4] | ' |
Total revenues | 14,233 | [4] | 10,728 | [4] | ' |
Losses and Expenses: | ' | ' | ' | ||
Net losses and loss adjustment expenses | 4,975 | [4] | 3,046 | [4] | ' |
Acquisition costs and other underwriting expenses | 4,767 | [4] | 4,070 | [4] | ' |
Income (loss) from segments | 4,491 | [4] | 3,612 | [4] | ' |
Unallocated Items: | ' | ' | ' | ||
Total assets | $668,080 | [4],[5] | $659,935 | [4],[5] | ' |
[1] | Includes business ceded to the Company's Reinsurance Operations. | ||||
[2] | Includes federal excise tax of $280 relating to cessions from Insurance Operations to Reinsurance Operations. | ||||
[3] | Includes federal excise tax of $248 relating to cessions from Insurance Operations to Reinsurance Operations. | ||||
[4] | External business only, excluding business assumed from affiliates. | ||||
[5] | Comprised of Wind River Reinsurance's total assets less its investment in subsidiaries. |
Summary_of_Business_Segment_In1
Summary of Business Segment Information (Parenthetical) (Detail) (Insurance Operations, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Insurance Operations | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Federal excise tax relating to cessions from Insurance Operations to Reinsurance Operations | $280 | $248 |