Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Sep. 11, 2015 | |
Entity Registrant Name | Conifer Holdings, Inc. | |
Entity Central Index Key | 1,502,292 | |
Trading Symbol | cnfr | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 7,644,492 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | true | |
Amendment Description | Amendment No. 1 to the Form 10Q for Period Ended June 30, 2015. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Fixed maturity securities, at fair value (amortized cost $98,203 and $83,768 at June 30, 2015 and December 31, 2014, respectively) | $ 98,271 | $ 84,405 |
Equity securities, at fair value (cost $3,176 and $2,965 at June 30, 2015 and December 31, 2014, respectively) | 4,164 | 4,084 |
Short-term investments, at cost or amortized cost (approximates fair value) | 6,237 | 16,749 |
Total investment securities | 108,672 | 105,238 |
Cash | 8,598 | 18,488 |
Premiums and agents’ balances receivable, net | 15,434 | 14,478 |
Reinsurance recoverables on unpaid losses | 5,022 | 3,224 |
Reinsurance recoverables on paid losses | 1,249 | 1,915 |
Ceded unearned premiums | 10,613 | 9,510 |
Deferred policy acquisition costs | 7,659 | 5,679 |
Intangible assets, net | 1,135 | 1,171 |
Goodwill | 1,104 | 1,104 |
Other assets | 4,192 | 2,931 |
Total assets | 163,678 | 163,738 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 32,357 | 31,531 |
Unearned premiums | 44,484 | 43,381 |
Reinsurance premiums payable | 2,699 | 7,069 |
Senior debt | 27,462 | 27,562 |
Accounts payable and accrued expenses | 4,383 | 2,521 |
Other liabilities | 1,125 | 1,396 |
Total liabilities | $ 112,510 | 113,460 |
Redeemable preferred stock, 1,000,000 shares authorized; 60,600 shares issued and outstanding at December 31, 2014 | $ 6,119 | |
Shareholders’ equity: | ||
Preferred stock, 1,000,0000 shares authorized; 60,600 shares issued and outstanding at June 30, 2015 | $ 6,242 | |
Common stock, no par value, 12,240,000 shares authorized, issued and outstanding 4,050,042 shares and 3,995,013 shares at June 30, 2015 and December 31, 2014, respectively | 46,443 | $ 46,119 |
Accumulated deficit | (2,053) | (3,095) |
Accumulated other comprehensive income | 459 | 1,158 |
Total shareholders’ equity attributable to Conifer | 51,091 | 44,182 |
Noncontrolling interest | 77 | (23) |
Total equity | 51,168 | 44,159 |
Total liabilities and equity | $ 163,678 | $ 163,738 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fixed maturity securities, amortized cost | $ 98,203 | $ 83,768 |
Equity securities, amortized cost | $ 3,176 | $ 2,965 |
Redeemable preferred stock, shares authorized (in shares) | 1,000,000 | |
Redeemable preferred stock, shares issued (in shares) | 60,600 | |
Redeemable preferred stock, shares outstanding (in shares) | 60,600 | |
Preferred stock, shares authorized (in shares) | 1,000,000 | |
Preferred stock, shares issued (in shares) | 60,600 | |
Preferred stock, shares outstanding (in shares) | 60,600 | |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 12,240,000 | 12,240,000 |
Common stock, shares issued (in shares) | 4,050,042 | 3,995,013 |
Common stock, shares outstanding (in shares) | 4,050,042 | 3,995,013 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue | ||||
Gross written premiums | $ 23,059 | $ 19,001 | $ 44,263 | $ 36,668 |
Ceded | (7,117) | (2,309) | $ (14,655) | (3,267) |
Change in net unearned premiums | (827) | (2,735) | (6,769) | |
Net earned premiums | 15,115 | 13,957 | $ 29,608 | 26,632 |
Net investment income | 469 | 282 | 955 | 502 |
Net realized investment gains | 87 | 81 | 232 | 172 |
Other income | 480 | 505 | 969 | 1,037 |
Total revenue | 16,151 | 14,825 | 31,764 | 28,343 |
Expenses | ||||
Losses and loss adjustment expenses, net | 8,976 | 9,686 | 17,546 | 20,262 |
Policy acquisition costs | 2,639 | 3,519 | 5,234 | 6,750 |
Operating expenses | 3,619 | 3,213 | 7,311 | 6,107 |
Interest expense | 239 | 123 | 483 | 252 |
Total expenses | 15,473 | 16,541 | 30,574 | 33,371 |
Income (loss) before income taxes | 678 | (1,716) | 1,190 | (5,028) |
Income tax expense (benefit) | 48 | (191) | 48 | (309) |
Net income (loss) | 630 | (1,525) | 1,142 | (4,719) |
Less net income attributable to noncontrolling interest | 51 | 11 | 100 | 46 |
Total impact to net income (loss) | 579 | (1,536) | 1,042 | (4,765) |
Net income (loss) allocable to common shareholders | $ 366 | $ (1,552) | $ 616 | $ (4,792) |
Income (loss) per share allocable to common shareholders, basic and diluted (in dollars per share) | $ 0.09 | $ (0.66) | $ 0.15 | $ (2.13) |
Weighted average common shares, basic and diluted (in shares) | 4,050,042 | 2,357,220 | 4,045,482 | 2,248,599 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income (loss) | $ 630 | $ (1,525) | $ 1,142 | $ (4,719) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized investment gains (losses) during the period | $ (977) | 879 | $ (274) | 1,414 |
Income tax expense | 299 | 481 | ||
Unrealized investment gains (losses), net of tax | $ (977) | 580 | $ (274) | 933 |
Less: reclassification adjustments to: | ||||
Net realized investment gains included in net income (loss) | $ 208 | 318 | $ 425 | 506 |
Income tax expense (benefit) | 108 | 172 | ||
Total reclassifications included in net income (loss), net of tax | $ 208 | 210 | $ 425 | 334 |
Other comprehensive income (loss) | (769) | 370 | (699) | 599 |
Total comprehensive income (loss) | (555) | (1,155) | 443 | (4,120) |
Less comprehensive income attributable to noncontrolling interest | 51 | 11 | 100 | 46 |
Comprehensive income (loss) attributable to Conifer | $ (606) | $ (1,166) | $ 343 | $ (4,166) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes in Redeemable Preferred Stock and Equity (Unaudited) - USD ($) $ in Thousands | Redeemable Preferred Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2013 | 1,749,626 | |||||||
Balance at Dec. 31, 2013 | $ 16,883 | $ 3,851 | $ 536 | $ 21,270 | $ (19) | $ 21,251 | ||
Net income (loss) | (4,765) | (4,765) | 46 | (4,719) | ||||
Issuance of stock (in shares) | 64,000 | 682,349 | ||||||
Issuance of stock | $ 8,295 | 8,295 | $ 8,295 | |||||
Paid-in-kind dividends | ||||||||
Cash dividends paid on preferred stock | $ (16) | (11) | (27) | $ (27) | ||||
Net current period other comprehensive income (loss) | 599 | 599 | 599 | |||||
Balance (in shares) at Jun. 30, 2014 | 64,000 | 2,514,227 | ||||||
Balance at Jun. 30, 2014 | $ 640 | $ 26,162 | (925) | 1,135 | 27,012 | 27 | 27,039 | |
Conversion of note payable into shares of common stock (in shares) | 82,252 | |||||||
Conversion of note payable into shares of common stock | $ 1,000 | 1,000 | 1,000 | |||||
Issuance of stock | 640 | 640 | 640 | |||||
Balance (in shares) at Dec. 31, 2014 | 60,600 | 3,995,013 | ||||||
Balance at Dec. 31, 2014 | $ 6,119 | |||||||
Balance at Dec. 31, 2014 | $ 46,119 | (3,095) | 1,158 | 44,182 | (23) | 44,159 | ||
Net income (loss) | 1,042 | 1,042 | 100 | 1,142 | ||||
Issuance of stock (in shares) | 55,029 | |||||||
Issuance of stock | $ 750 | 750 | 750 | |||||
Paid-in-kind dividends | $ 61 | $ 62 | (123) | (61) | (123) | |||
Cash dividends paid on preferred stock | $ (303) | (303) | (303) | |||||
Reclassification of redeemable preferred stock to permanent equity (in shares) | (60,600) | 60,600 | ||||||
Reclassification of redeemable preferred stock to permanent equity | $ (6,180) | $ 6,180 | 6,180 | 6,180 | ||||
Net current period other comprehensive income (loss) | (699) | (699) | (699) | |||||
Balance (in shares) at Jun. 30, 2015 | 60,600 | 4,050,042 | ||||||
Balance at Jun. 30, 2015 | $ 6,242 | $ 46,443 | $ (2,053) | $ 459 | $ 51,091 | $ 77 | $ 51,168 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Cash Flows from Operating Activities | |||||
Net income (loss) | $ 630 | $ (1,525) | $ 1,142 | $ (4,719) | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||
Depreciation and amortization of property and equipment, and intangibles | 208 | 191 | |||
Amortization of bond premium and discount, net | 279 | 258 | |||
Gains on investments | $ (232) | (172) | |||
Deferred income taxes | (309) | ||||
Changes in operating assets and liabilities: | |||||
Premiums and agents’ balances receivable | $ (956) | (478) | |||
Reinsurance recoverables | (1,132) | (2,148) | |||
Ceded unearned premiums | (1,103) | 144 | |||
Deferred policy acquisition costs | (1,980) | (1,257) | |||
Other assets | (189) | (317) | |||
Unpaid losses and loss adjustment expenses | 825 | 2,925 | |||
Unearned premiums | 1,103 | 6,084 | |||
Reinsurance premiums payable | (4,370) | (989) | |||
Accounts payable and accrued expenses | 1,862 | 777 | |||
Other liabilities | (312) | (1,484) | |||
Net cash used in operating activities | (4,855) | (1,494) | |||
Cash Flows From Investing Activities | |||||
Fixed maturity securities | (19,059) | (16,049) | |||
Equity securities | (759) | (612) | |||
Short-term investments | (44,191) | (24,036) | |||
Proceeds from maturities and redemptions of investments: | |||||
Fixed maturity securities | 1,203 | 152 | |||
Proceeds from sales of investments: | |||||
Fixed maturity securities | 3,206 | 2,035 | |||
Equity securities | 717 | 556 | |||
Short-term investments | 54,703 | 27,671 | |||
Purchases of property and equipment | (91) | (288) | |||
Net cash used in investing activities | (4,271) | (10,571) | |||
Cash Flows From Financing Activities | |||||
Proceeds received from issuance of shares of common stock | $ 750 | 8,295 | |||
Proceeds from issuance of shares of preferred stock | $ 640 | ||||
Borrowings under Revolver | $ 900 | ||||
Repayment of borrowings under Revolver | (250) | ||||
Principal payments under term notes | (750) | $ (500) | |||
Dividends paid to preferred shareholders | (152) | (11) | |||
Payout of contingent consideration | (113) | $ (113) | |||
Payment of debt issuance costs | (35) | ||||
Payment of deferred offering costs | (1,114) | ||||
Net cash provided by (used in) financing activities | (764) | $ 8,311 | |||
Net decrease in cash | (9,890) | (3,754) | |||
Cash at beginning of period | 18,488 | 11,296 | $ 11,296 | ||
Cash at end of period | $ 8,598 | $ 7,542 | $ 8,598 | $ 7,542 | $ 18,488 |
Note 1 - Description of Busines
Note 1 - Description of Business | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. DESCRIPTION OF BUSINESS Conifer Holdings, Inc. and its subsidiaries (collectively, the “Company”) are engaged in the sale of property and casualty insurance products and has organized its principal operations into two types of insurance businesses: commercial lines and personal lines. The Company underwrites a variety of specialty insurance products, including property, general liability, commercial multi-peril, liquor liability, automobile, and homeowners and dwelling policies. The Company markets and sells its insurance products through a network of independent agents, including managing general agents, whereby policies are written in 49 states in the United States (“U.S.”). The Company’s corporate headquarters are located in Birmingham, Michigan with additional office facilities in Florida, Texas and Pennsylvania. In January 2015, the Company discontinued offering and writing new nonstandard personal automobile policies and stopped writing renewal policies by June, 2015. The Company will continue to service existing policies, pay claims and perform other administrative services until existing policies expire and all claims are paid (a process referred to as “run-off”). The run-off is expected to be substantially complete by the end of 2016. Initial Public Offering In August 2015, the Company completed its initial public offering (“IPO”) whereby it issued and sold 3,300,000 shares of common stock, which included 100,000 shares issued and sold to the Company’s Chief Executive Officer, at a public offering price of $10.50 per share. The Company received net proceeds of $30,625 after deducting underwriting discounts and commissions of $2,426 and other offering expenses of $1,599. A portion of the net proceeds was used to repay indebtedness, including accrued interest, under the revolving credit facility “Revolver”) of $17,038, repurchase outstanding shares of preferred stock and pay accrued preferred dividends, totaling $6,356. Concurrent with the closing of the IPO, the Company closed on a private placement transaction as further discussed in Note 12. In this separate transaction, the Company received proceeds of $3,092 from the sale of 294,481 shares of common stock to former holders of preferred stock. The Company plans to use the proceeds from the sale of shares of common stock, along with the remaining IPO proceeds of $7,231, to fund future growth and for general corporate purposes. Immediately prior to the IPO, the Company amended its articles of incorporation to change its authorized capital stock to consist of (i) 100,000,000 shares of common stock, no par value per share, and (ii) 10,000,000 shares of preferred stock, 60,600 designated as redeemable preferred stock. Following the IPO and the repurchase of all outstanding shares of preferred stock, the Company further amended its articles of incorporation to remove the preferred stock designations. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | 2. BASIS OF PRESENTATION Unaudited Condensed Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these unaudited condensed consolidated financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of items of a normal recurring nature, necessary for a fair presentation of the unaudited condensed consolidated financial statements, have been included. The results of operations for the three and six months ended June 30, 2015, are not necessarily indicative of the results that may be expected for any other interim period or for the year ended December 31, 2015. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2014, included in the Company’s final prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, with the SEC on August 13, 2015. The condensed consolidated balance sheet at December 31, 2014, was derived from the audited financial statements. Stock Split On July 22, 2015, the board of directors approved a stock split in the form of a stock dividend of 10.2 shares for each share of common stock which was effectuated immediately prior to the effectiveness of the IPO. Accordingly, all common share and per share amounts for all periods presented in these unaudited condensed consolidated financial statements and notes thereto, were adjusted retroactively to reflect the stock split. Principles of Consolidation The condensed consolidated financial statements include the accounts of Conifer Holdings, Inc. and its wholly owned subsidiaries, and a 50%-owned entity that the Company controls due to its majority representation on the entity’s board of directors. All intercompany transactions and accounts have been eliminated. Noncontrolling interest in a consolidated subsidiary in the consolidated balance sheets represents the noncontrolling shareholder’s proportionate share of the 50%-owned entity’s equity. Consolidated net income or loss is allocated to the Company and noncontrolling interest in proportion to their percentage ownership interests. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that differ from these estimates. |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company has made no material changes to its significant accounting policies as reported in the Company’s final prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, with the SEC on August 13, 2015. The following accounting policy has been added during the three months ended June 30, 2015: Deferred Offering Costs Offering costs, consisting of legal, accounting, printing and other incremental expenses, incurred in connection with the Company’s IPO are deferred and will be charged to common stock against the proceeds received from the offering in the third quarter of 2015. Such deferred costs, included in other assets in the condensed consolidated balance sheet, amounted to $1,114, at June 30, 2015. Recently Issued Accounting Guidance In May 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-09, Disclosures about Short-Duration Contracts (Topic 944) |
Note 4 - Investments
Note 4 - Investments | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 4. Investments The cost or amortized cost, gross unrealized gain or loss, and fair value of the fixed maturity and equity securities, by major security type, that are classified as available-for-sale securities, were as follows: June 30, 2015 Cost or Gross Unrealized Fair Cost Gain Loss Value Fixed maturity securities: U.S. Government obligations $ 4,991 $ 68 $ (5 ) $ 5,054 State and local government 14,586 122 (173 ) 14,535 Corporate debt 33,763 180 (105 ) 33,838 Commercial mortgage and asset-backed 44,863 257 (276 ) 44,844 Total fixed maturity securities 98,203 627 (559 ) 98,271 Equity securities, common stock 3,176 1,045 (57 ) 4,164 Total $ 101,379 $ 1,672 $ (616 ) $ 102,435 December 31, 2014 Cost or Gross Unrealized Fair Cost Gain Loss Value Fixed maturity securities: U.S. Government obligations $ 5,872 $ 85 $ (16 ) $ 5,941 State and local government 10,755 210 (4 ) 10,961 Corporate debt 30,818 237 (106 ) 30,949 Commercial mortgage and asset-backed 36,323 348 (117 ) 36,554 Total fixed maturity securities 83,768 880 (243 ) 84,405 Equity securities, common stock 2,965 1,158 (39 ) 4,084 Total $ 86,733 $ 2,038 $ (282 ) $ 88,489 The following table summarizes the aggregate fair value and gross unrealized losses, by security type, of the available-for-sale securities in unrealized loss positions. The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position, as follows: June 30, 2015 Less than Greater than Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities: U.S. Government obligations $ 126 $ (1 ) $ 1,330 $ (4 ) $ 1,456 $ (5 ) State and local government 8,435 (173 ) — — 8,435 (173 ) Corporate debt 14,865 (94 ) 862 (11 ) 15,727 (105 ) Commercial mortgage and asset-backed 21,143 (231 ) 1,074 (45 ) 22,217 (276 ) Total fixed maturity securities 44,569 (499 ) 3,266 (60 ) 47,835 (559 ) Equity securities, common stock 659 (57 ) — — 659 (57 ) Total $ 45,228 $ (556 ) $ 3,266 $ (60 ) $ 48,494 $ (616 ) December 31, 2014 Less than Greater than Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities: U.S. Government obligations $ — $ — $ 1,319 $ (16 ) $ 1,319 $ (16 ) State and local government 552 (1 ) 825 (3 ) 1,377 (4 ) Corporate debt 18,835 (98 ) 489 (8 ) 19,324 (106 ) Commercial mortgage and asset-backed 12,060 (34 ) 4,999 (83 ) 17,059 (117 ) Total fixed maturity securities 31,447 (133 ) 7,632 (110 ) 39,079 (243 ) Equity securities, common stock 347 (39 ) — — 347 (39 ) Total $ 31,794 $ (172 ) $ 7,632 $ (110 ) $ 39,426 $ (282 ) Substantially all of the Company’s fixed maturity securities are of investment grade with an average credit quality of AA. The fixed maturity securities are short in duration; approximately 3.5 years. The Company reviews its impaired securities for possible other-than-temporary impairment at each quarter end. A security has an impairment loss when its fair value is less than its cost or amortized cost at the balance sheet date. After considering its review procedures, the Company does not consider the $616 of gross unrealized losses in the portfolio at June 30, 2015, to be other-than-temporary impairments because (i) as of that date, all contractual interest and principal payments on the fixed maturity securities has been received, (ii) there is no intent to sell the securities, (iii) it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost or cost bases and (iv) the unrealized loss relates to non-credit factors, such as interest rate changes and fluctuations due to market conditions. The Company did not recognize any other-than-temporary impairment losses during the periods presented. The Company’s sources of net investment income are as follows: Three Months Six Months 2015 2014 2015 2014 Fixed maturity securities $ 532 $ 306 $ 1,063 $ 550 Equity securities 22 20 45 35 Cash and short-term investments 2 1 4 4 Total investment income 556 327 1,112 589 Investment expenses (87 ) (45 ) (157 ) (87 ) Net investment income $ 469 $ 282 $ 955 $ 502 The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale fixed maturity and equity securities, as follows: Three Months Six Months 2015 2014 2015 2014 Fixed maturity securities: Gross realized gains $ — $ 21 $ 68 $ 22 Gross realized losses (1 ) (4 ) (4 ) (28 ) (1 ) 17 64 (6 ) Equity securities: Gross realized gains 104 78 203 193 Gross realized losses (16 ) (14 ) (35 ) (15 ) 88 64 168 178 Net realized investment gains $ 87 $ 81 $ 232 $ 172 The following table summarizes the fair value and amortized cost of available-for-sale fixed maturity securities by contractual maturity at June 30, 2015, as follows: Amortized Fair Due in one year or less $ 3,922 $ 3,935 Due after one year through five years 32,338 32,484 Due after five years through ten years 7,550 7,602 Due after ten years 9,530 9,406 Securities with contractual maturities 53,340 53,427 Commercial mortgage and asset-backed 44,863 44,844 Total fixed maturity securities $ 98,203 $ 98,271 Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. At June 30, 2015 and December 31, 2014, the insurance companies had an aggregate of $7.0 million on deposit in a number of trust accounts to meet the deposit requirements of various state insurance departments. There are withdrawal and other restrictions on these deposits, including the type of investments that may be held, however the Company may generally invest in high-grade bonds and short-term investments and earn interest on the funds. |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 5. Fair Value Measurements The Company’s financial instruments include assets and liabilities carried at fair value, as well as assets and liabilities carried at cost or amortized cost but disclosed at fair value in these condensed consolidated financial statements. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principal most advantageous market for the asset or liability in an orderly transaction between market participants. In determining fair value, the Company applies the market approach, which uses prices and other relevant data based on market transactions involving identical or comparable assets and liabilities. The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Level 2 Level 3 The following tables present the fair value of the Company’s financial instruments that were carried or disclosed at fair value. Unless indicated, these items were carried at fair value on the consolidated balance sheets. June 30, 2015 Level 1 Level 2 Level 3 Total Fixed maturity securities: U.S. Government obligations $ — $ 5,054 $ — $ 5,054 State and local government — 14,535 — 14,535 Corporate debt — 33,838 — 33,838 Commercial mortgage and asset-backed — 44,844 — 44,844 Total fixed maturity securities — 98,271 — 98,271 Equity securities, common stock 4,164 — — 4,164 Short-term investments* 6,237 — — 6,237 Total assets measured at fair value $ 10,401 $ 98,271 $ — $ 108,672 Senior debt* $ — $ 27,462 $ — $ 27,462 Contingent consideration 58 58 Interest rate swap — 13 — 13 Total liabilities measured at fair value $ — $ 27,475 $ 58 $ 27,533 * Carried at cost or amortized cost on the condensed consolidated balance sheet December 31, 2014 Level 1 Level 2 Level 3 Total Fixed maturity securities: U.S. Government obligations $ — $ 5,941 $ — $ 5,941 State and local government — 10,961 — 10,961 Corporate debt — 30,949 — 30,949 Commercial mortgage and asset-backed — 36,554 — 36,554 Total fixed maturity securities — 84,405 — 84,405 Equity securities, common stock 4,084 — — 4,084 Short-term investments* 16,749 — — 16,749 Total assets measured at fair value $ 20,833 $ 84,405 $ — $ 105,238 Senior debt* $ — $ 27,562 $ — $ 27,562 Contingent consideration — — 168 168 Interest rate swap — 9 — 9 Total liabilities measured at fair value $ — $ 27,571 $ 168 $ 27,739 * Carried at cost or amortized cost on the condensed consolidated balance sheet Level 1 investments consist of equity securities traded in an active exchange market. The Company uses unadjusted quoted prices for identical instruments to measure fair value. Level 1 also includes money market funds and other interest-bearing deposits at banks, which are reported as short-term investments. Level 2 investments include fixed maturity securities, which consist of U.S. government agency securities, state and local municipal bonds (including those held as restricted securities), corporate debt securities, mortgage-backed and asset-backed securities. Fair value is measured for the majority of Level 2 investments using matrix pricing and observable market data, including benchmark securities or yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers, default rates, loss severity and other economic measures. The Company obtains pricing for each security from independent pricing services, investment managers or consultants to assist in determining fair value for its Level 2 investments. To validate that these quoted prices are reasonable estimates of fair value, the Company performs various quantitative and qualitative procedures, including (i) evaluation of the underlying methodologies, (ii) analysis of recent sales activity, (iii) analytical review of our fair values against current market prices and (iv) comparison of the pricing services’ fair value to other pricing services’ fair value for the same investment. No markets for the investments were determined to be inactive at period-ends. Based on these procedures, the Company did not adjust the prices or quotes provided from independent pricing services, investment managers or consultants. The Level 2 financial instruments also include our senior debt and an interest rate swap. The fair value of borrowings under the senior debt, consisting of the revolving credit facility and term loans, approximates its carrying amount because interest is based on a short-term, variable, market-based rate. At June 30, 2015 and December 31, 2014, the fair value of the interest rate swap was $13 and $9 (notional amounts of $3,250 and $3,750), respectively. The Level 3 financial instruments include the fair value of the Company’s contingent consideration arrangements that were entered into at the date of the respective acquisitions, which are classified within other liabilities in the consolidated balance sheets. The fair value of these liabilities were determined based on internally developed models that use assumptions or other data that are not readily observable from objective sources. The following table sets forth a roll-forward of the Level 3 measurements: Contingent Balance at December 31, 2013 $ 339 Change in fair value 11 Payout of contingent consideration (182 ) Balance at December 31, 2014 168 Change in fair value 3 Payout of contingent consideration (113 ) Balance at June 30, 2015 $ 58 |
Note 6 - Deferred Policy Acquis
Note 6 - Deferred Policy Acquisition Costs | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Deferred Policy Acquisition Costs [Text Block] | 6. Deferred Policy Acquisition Costs The Company defers costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business, net of corresponding amounts of ceded reinsurance commissions. Net deferred policy acquisition costs are amortized and charged to expense in proportion to premium earned over the estimated policy term. The Company anticipates that its deferred policy acquisition costs will be fully recoverable. The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows: Three Months Ended Six Months Ended 2015 2014 2015 2014 Balance at beginning of period $ 6,120 $ 6,322 $ 5,679 $ 5,747 Deferred policy acquisition costs 4,178 4,201 7,214 8,007 Amortization of policy acquisition costs (2,639 ) (3,519 ) (5,234 ) (6,750 ) Net change 1,539 682 1,980 1,257 Balance at end of period $ 7,659 $ 7,004 $ 7,659 $ 7,004 |
Note 7 - Intangible Assets
Note 7 - Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 7. Intangible Assets The following table reflects intangible assets and related accumulated amortization: As of June 30, 2015 Weighted (in years) Gross Accumulated Net Carrying Nonamortizing indefinite-lived, intangible assets—state insurance licenses $ 900 $ — $ 900 Amortizing definite-lived, intangible assets—customer lists 5 368 133 235 Total $ 1,268 $ 133 $ 1,135 As of December 31, 2014 Weighted (in years) Gross Accumulated Net Carrying Nonamortizing indefinite-lived intangible assets—state insurance licenses $ 900 $ — $ 900 Amortizing definite-lived, intangible assets—customer lists 5 368 97 271 Total $ 1,268 $ 97 $ 1,171 Amortization of intangible assets was $18 and $36 for the three and six months ended June 30, 2015 and 2014, respectively. Future amortization of definite-lived intangibles is as follows: remainder of 2015: $38, 2016: $74, 2017: $74 and 2018: $49. |
Note 8 - Unpaid Losses and Loss
Note 8 - Unpaid Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | 8. Unpaid Losses and Loss Adjustment Expenses The Company establishes a liability for unpaid losses and loss adjustment expenses which represents the estimated ultimate cost of all losses incurred that were both reported and unreported (i.e. incurred but not yet reported losses) and loss adjustment expenses incurred that remain unpaid at the balance sheet date. The estimation of the ultimate liability for unpaid losses and loss adjustment expenses is a complex, imprecise and inherently uncertain process, and therefore involves a considerable degree of judgment and expertise. The process for establishing the provision for loss and loss adjustment expense reserves reflects the uncertainties and significant judgmental factors inherent in predicting future results of both known and unknown loss events. The Company’s evaluation of the adequacy of loss and loss adjustment expense reserves includes a re-estimation of such liabilities relating to each preceding financial year compared to the liability that was previously established. The table below provides the changes in the liability for unpaid losses and loss adjustment expenses, net of recoverables from reinsurers (referred to as reserves), for the periods indicated as follows: Three Months Ended Six Months Ended 2015 2014 2015 2014 Gross reserves—beginning of period $ 32,987 $ 32,783 $ 31,531 $ 28,908 Less reinsurance recoverables on unpaid losses 4,590 6,255 3,224 3,953 Net reserves—beginning of period 28,397 26,528 28,307 24,955 Add: incurred losses and loss adjustment expenses, net of reinsurance: Current period 8,805 10,216 17,340 21,234 Prior periods 171 (530 ) 206 (972 ) Total net incurred losses and loss adjustment expenses 8,976 9,686 17,546 20,262 Deduct: loss and loss adjustment expense payments, net of reinsurance: Current period 5,029 4,934 6,794 8,462 Prior periods 5,009 3,654 11,724 9,129 Total net loss and loss adjustment expense payments 10,038 8,588 18,518 17,591 Net reserves—end of period 27,335 27,626 27,335 27,626 Plus: reinsurance recoverables on unpaid losses 5,022 4,207 5,022 4,207 Gross reserves—end of period $ 32,357 $ 31,833 $ 32,357 $ 31,833 The Company’s incurred losses during the three and six months ended June 30, 2015, reflect prior-year adverse reserve development of $171 and $206, respectively. In the second quarter of 2015, there was $340 and $262 of adverse reserve development in the commercial automobile and personal automobile lines, respectively. This adverse development was partially offset by favorable reserve development in other lines, including $270 and $95 of favorable reserve development in the commercial multi-peril and other liability lines, respectively. For the six months ended June 30, 2015, there was a similar result, with the adverse development being generated by the personal and commercial automobiles lines, totaling $331 and $535, respectively. This adverse development was partially offset by favorable development in other lines, including $274, $136 and $248 in the commercial multi-peril, other liability and workers’ compensation lines, respectively. The Company’s incurred losses during the three and six months ended June 30, 2014 reflect prior-year favorable reserve development of $530 and $972, respectively. In second quarter of 2014, there was $739 and $241 of favorable reserve development in the commercial multi-peril and other liability lines, respectively. This was partially offset by $307 of adverse development in our low-value dwelling line. For the six months ended June 30, 2014, there was a similar result, with the favorable development being generated primarily by the commercial multi-peril and other liability lines, totaling $786 and $390, respectively. This favorable development was partially offset by adverse development of $432 in the low-value dwelling line. |
Note 9 - Reinsurance
Note 9 - Reinsurance | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Reinsurance [Text Block] | 9. Reinsurance In the normal course of business, the Company seeks to minimize the loss that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with reinsurers. Although reinsurance does not discharge the direct insurer from liability to its policyholder, the insurance companies participate in such treaty and facultative reinsurance agreements in order to limit their loss exposure, protect them against catastrophic losses and diversify their business. The Company primarily ceded all specific risks in excess of $500 in 2015, and $300 in 2014. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors the concentration of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. To date, the Company has not experienced any significant difficulties in collecting reinsurance recoverables. Effective December 31, 2014, the Company entered into a quota share reinsurance agreement in which it cedes 25% of the subject premium, net of other reinsurance, and cedes 25% of the related losses within the Company’s retention which is between $0 and $500. The subject premium represents substantially all product lines other than the Florida homeowners and personal automobile policies. The Company recorded $4,123 and $8,957 of ceded written premiums during the three and six months ended June 30, 2015, respectively, under the quota share reinsurance agreement. This agreement was terminated by the Company in August 2015. The Beginning in December 2014, the Company assumed written premium of $5,483 under a policy assumption agreement with Citizens Property and Casualty Corporation (“Citizens”). Citizens is a Florida government-sponsored insurer that provides homeowners insurance to Florida residences that cannot find coverage in the voluntary market. Upon assuming this premium, the Company becomes the primary insurer to the policyholders. The Company is responsible for claims occurring on or after the effective date of the assumption. In the first quarter of 2015, another assumption from Citizens took place for $1,419, which was mostly offset by a return of $1,334 of assumed premiums from the 2014 assumption, as policyholders opted out. In the second quarter of 2015, the Company recorded a return of written premium of $662 to Citizens relating to the policyholders opting out of the first quarter assumption. In the second quarter of 2015, the Company assumed $2,211 of written premiums under insurance fronting arrangements with other insurers to write on behalf of the Company in markets that require a higher A.M. Best rating than the Company’s rating, the business is written in a state where the Company is not licensed or for other strategic reasons. The following table presents the effects of such reinsurance and assumption transactions on premiums, losses and loss adjustment expenses, and policy acquisition costs: Three Months Ended Six Months Ended 2015 2014 2015 2014 Written premiums: Direct $ 21,510 $ 19,001 $ 42,629 $ 36,668 Assumed 1,549 — 1,634 — Ceded (7,117 ) (2,309 ) (14,655 ) (3,267 ) Net written premiums $ 15,942 $ 16,692 $ 29,608 $ 33,401 Earned premiums: Direct $ 20,050 $ 16,139 $ 39,351 $ 30,620 Assumed 2,137 — 3,810 — Ceded (7,072 ) (2,182 ) (13,553 ) (3,988 ) Net earned premiums $ 15,115 $ 13,957 $ 29,608 $ 26,632 Loss and loss adjustment expenses: Direct $ 10,622 $ 10,296 $ 20,544 $ 23,430 Assumed 281 (50 ) 805 (2 ) Ceded (1,927 ) (560 ) (3,803 ) (3,166 ) Net loss and loss adjustment expenses $ 8,976 $ 9,686 $ 17,546 $ 20,262 Policy acquisition costs: Policy acquisition costs $ 4,129 $ 3,519 $ 8,175 $ 6,750 Ceding commissions (1,490 ) — (2,941 ) — Net policy acquisition costs $ 2,639 $ 3,519 $ 5,234 $ 6,750 |
Note 10 - Senior Debt
Note 10 - Senior Debt | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 10. Senior Debt A summary of the outstanding senior debt is as follows: June 30, December 31, Revolver $ 17,212 $ 16,562 Term Note 3,250 3,500 2014 Term Note 7,000 7,500 Total $ 27,462 $ 27,562 There have been no changes to the terms and conditions of the Amended Credit Agreement during the six months ended June 30, 2015, except as follows: On May 4, 2015, the Company entered into a first amendment to its Amended Credit Agreement which, among other things, revised the provision that the Company’s Chairman’s ownership interest be not less than 50% to not less than 33%. On June 29, 2015, the Company entered into a second amendment to its Amended Credit Agreement which, among other things, further revised the provision that the Company’s Chairman’s ownership interest be not less than 20% after the consummation of an IPO. The Company was in compliance with its debt covenants at June 30, 2015. During the six months ended June 30, 2015, the Company borrowed $900 on the Revolver to fund short-term working capital needs and repaid $250. The weighted-average interest rate on borrowings under the Revolver for the six months ended June 30, 2015, and for the year ended December 31, 2014, was 3.4% and 3.2%, respectively. As disclosed in Note 1, all outstanding borrowings under the Revolver were repaid from the proceeds received from the Company’s IPO, in August 2015. |
Note 11 - Shareholders' Equity
Note 11 - Shareholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 11. Shareholders’ Equity Common Stock In January 2015, the Company issued 55,029 shares of common stock to a Vice-President of the Company for cash of $750 ($13.63 per share). During the six months ended June 30, 2014, the Company initiated certain capital-raising activities whereby shares of common stock were issued to third-party investors, members of the board of directors, executive management and employees, along with their relatives. The Company raised proceeds of $8,295 from the issuance of 682,349 shares of common stock at $12.16 per share. Preferred Stock During the six months ended June 30, 2014, the Company issued 64,000 shares of preferred stock at $10.00 per share to certain investors. On October 1, 2014, the then-outstanding shares of preferred stock were exchanged for shares of redeemable preferred stock. |
Note 12 - Redeemable Preferred
Note 12 - Redeemable Preferred Stock | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Redeemable Preferred Stock [Text Block] | 12. Redeemable Preferred Stock At December 31, 2014, the Company had 60,600 shares of redeemable preferred stock outstanding. The shares of redeemable preferred stock were initially recorded at fair value and thereafter increased by accrued paid-in-kind dividends. The Company classified the shares of redeemable preferred within temporary equity on its consolidated balance sheet at December 31, 2014, due to its liquidation rights. The redeemable preferred stock was redeemable in cash upon a deemed liquation event (i.e., the sale of 50% or more of the outstanding shares of voting capital stock) that is not solely within the control of the Company. On March 25, 2015, the Company further amended its articles of incorporation with the consent of more than 80% of the holders of the preferred stock and a majority of the holders of the common stock to restrict the definition of a Liquidation Event to the liquidation, dissolution or winding up of the Company and to eliminate from that definition a change of control or a public offering of the Company. All or part of the preferred stock may be redeemed after one year from the date of issuance, at the option of the Company, by a cash payment of the original purchase price plus any accumulated and as yet unpaid preferred dividends and paid-in-kind dividends. On the effective date of the modification, the Company reclassified the carrying amount of its redeemable preferred stock from temporary equity to permanent equity as the redemption of the redeemable preferred stock was within the Company’s control. Pursuant to agreements effective on or before July 1, 2015, the holders of preferred stock agreed to allow the Company to repurchase their outstanding preferred shares at the original purchase price (i.e. $100 per share) plus all accrued and unpaid preferred dividends. In addition, the holders of 29,550 shares (or 48.8%) of preferred stock agreed to use such cash received from the Company’s repurchase of their preferred stock to purchase shares of common stock at the same per share price as the common stock offered in the Company’s IPO. The closing of these transactions were conditioned on the completion of the Company’s IPO. Following the closing of the Company’s IPO on August 18, 2015, the Company paid $6,356 to holders of shares of preferred stock to repurchase such shares and for the payment of accrued dividends. Additionally, the Company issued 294,481 shares of common stock to former holders of the preferred stock for proceeds of $3,092. There are no shares of preferred stock outstanding after the closing of the IPO. |
Note 13 - Other Comprehensive I
Note 13 - Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 13. Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) for unrealized gains and losses on available-for-sale securities: Three Months Ended Six Months Ended 2015 2014 2015 2014 Balance at beginning of period $ 1,644 $ 765 $ 1,158 $ 536 Other comprehensive income (loss) before reclassifications (977 ) 580 (274 ) 933 Amounts reclassified from accumulated other comprehensive income (loss) 208 210 425 334 Net current period other comprehensive income (loss) (769 ) 370 (699 ) 599 Balance at end of period $ 459 $ 1,135 $ 459 $ 1,135 The following table provides the impact of the reclassification adjustments to the respective line items in the statements of operations for the three and six months ended June 30, 2015 and 2014. Three Months Ended Six Months Ended 2015 2014 2015 2014 Net realized investment gains $ 208 $ 318 $ 425 $ 506 Income tax expense (benefit) — 108 — 172 Total impact to net income (loss) $ 208 $ 210 $ 425 $ 334 |
Note 14 - Income (Loss) Per Sha
Note 14 - Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 14. Income (Loss) Per Share Basic and diluted income (loss) per share are computed by dividing net income allocable to common shareholders by the weighted average number of common shares outstanding during the period. The dividends on preferred stock are deducted from the net income to arrive at net income allocable to common shareholders. In the period of a net loss, the dividends on preferred stock are added to the net loss to arrive at net loss allocable to common shareholders. The following table presents the calculation of basic and diluted income (loss) per common share, as follows: Three Months Ended Six Months Ended 2015 2014 2015 2014 Numerator: Net income (loss) attributable to Conifer $ 579 $ (1,536 ) $ 1,042 $ (4,765 ) Preferred stock dividends 151 16 303 27 Paid-in-kind dividends 62 — 123 — Net income (loss) allocable to common shareholders $ 366 $ (1,552 ) $ 616 $ (4,792 ) Denominator: Weighted average common shares, basic and diluted 4,050,042 2,357,220 4,045,482 2,248,599 Income (loss) per share allocable to common shareholders, basic and diluted $ 0.09 $ (0.66 ) $ 0.15 $ (2.13 ) |
Note 15 - Stock-based Compensat
Note 15 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 15. Stock-based Compensation In March 2015, the Company established a 2015 Omnibus Incentive Plan (“2015 Plan”), which permits the granting of stock options, stock appreciation rights, restricted stock units and other stock-based awards. The 2015 Plan authorizes up to 1,377,000 shares of common stock for awards to be issued to employees, directors or consultants of the Company. The stock-based awards will be issued at no less than the market price on the date the awards are granted. There were no awards outstanding under the 2015 Plan at June 30, 2015. |
Note 16 - Related Party Transac
Note 16 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 16. Related Party Transactions In December 2012, the Company entered into a short-term, unsecured note payable with an executive of the Company for $1 million. The note required quarterly interest-only payments at 12% per annum. The note was converted to equity of the Company in two separate transactions. On January 31, 2014, the Company issued 41,126 shares of common stock in satisfaction of $500 of the note balance. The remaining note balance was satisfied through the issuance of 41,126 shares of common stock on June 30, 2014. Interest expense recorded on the note was $15 and $35 for the three and six month period ended June 30, 2014, respectively. |
Note 17 - Commitments and Conti
Note 17 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 17. Commitments and Contingencies Legal proceedings The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. In the opinion of management, the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity. Commitment During 2010, the Company entered into an agreement with an unaffiliated party to design, develop, and implement a new policy administration, billing, and claims system for the Company. The Company is required to pay a minimum monthly fee of $40 with a fee schedule that is scalable with its premium volume. The contract expires on July 1, 2018, but it may be extended by mutual agreement by the respective parties. |
Note 18 - Statutory Financial I
Note 18 - Statutory Financial Information | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Insurance Disclosure [Text Block] | 18. Statutory Financial Information U.S. state insurance laws and regulations prescribe accounting practices for determining statutory net income and capital and surplus for insurance companies. In addition, state regulators may permit statutory accounting practices that differ from prescribed practices. Statutory accounting practices prescribed or permitted by regulatory authorities for the Company’s insurance subsidiaries differ from U.S. GAAP. The principal differences between Statutory Accounting Principles (“SAP”) and U.S. GAAP as they relate to the financial statements of the Company’s insurance subsidiaries are (i) policy acquisition costs are expensed as incurred under SAP, whereas they are deferred and amortized under U.S. GAAP, (ii) deferred tax assets are subject to more limitations regarding what amounts can be recorded under SAP and (iii) bonds are recorded at amortized cost under SAP and fair value under U.S. GAAP. For the six months ended June 30, 2015 and 2014, the Company’s insurance subsidiaries’ aggregate statutory net loss was $558 and $5,036, respectively. The Company’s insurance subsidiaries’ aggregate statutory capital and surplus was $65,464 and $66,585 at June 30, 2015 and December 31, 2014, respectively. Risk-Based Capital requirements as promulgated by the National Association of Insurance Commissioners (“NAIC”) require property and casualty insurers to maintain minimum capitalization levels determined based on formulas incorporating various business risks (i.e., investment risk, underwriting profitability, etc.) of the insurance subsidiaries. As of June 30, 2015, the insurance subsidiaries’ adjusted capital and surplus exceeded their authorized control level as determined by the NAIC’s risk-based capital models. |
Note 19 - Supplemental Informat
Note 19 - Supplemental Information | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 19. Supplemental Information Supplemental cash flow information is as follows: Six Months Ended 2015 2014 Interest paid $ 439 $ 282 Dividends declared but not paid at end of period 151 16 Paid-in-kind dividends accrued during period 123 — During the six months ended June 30, 2014, the Company converted the outstanding note payable issued to an executive to equity. Refer to Note 16, Related Party Transactions. |
Note 20 - Segment Information
Note 20 - Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 20. Segment Information The Company is engaged in the sale of property and casualty insurance products and has organized its principal operations into two types of insurance businesses: commercial lines and personal lines. Within these two insurance businesses, the Company offers various insurance products. Such insurance businesses are engaged in underwriting and marketing insurance coverages, and administering claims processing for such policies. The Company defines its operating segments as components of the business where separate financial information is available and used by the chief operating decision-making group in deciding how to allocate resources to its segments and in assessing its performance. In assessing performance of its operating segments, the Company’s chief operating decision-making group, comprised of key senior executives, review a number of financial measures including gross written premiums, net earned premiums, and loss and loss adjustment expenses, net of reinsurance recoveries. The primary measure used for making decisions about resources to be allocated to an operating segment and assessing its performance is segment underwriting gain or loss which is defined as segment revenues, consisting of net earned premiums and other income, less segment expenses, consisting of losses and loss adjustment expenses, policy acquisition costs and other underwriting and operating expenses of the operating segments. Other underwriting and operating expenses include primarily compensation and related benefits for underwriting personnel, licensing of policy issuance and claims systems, rent and utilities. The Company markets, distributes and sells its insurance products through its own insurance agencies and a network of independent agents. All of the Company’s insurance activities are conducted in the United States with a concentration of activity in Florida, Michigan and Pennsylvania. For the six months ended June 30, 2015 and 2014, gross written premiums attributable to these three states were 56% and 61%, respectively, of the Company’s total gross written premiums. The commercial lines and personal lines accounted for approximately 68% and 32%, respectively, of net earned premiums for the six months ended June 30, 2015, and approximately 55% and 45%, respectively, of net earned premiums for the six months ended June 30, 2014. Other income includes installment and policy fees charged to policyholders and commissions income from third party insurers on policies written through our agencies relating to our product lines. The following provides a description of the Company’s two insurance businesses and product offerings within these businesses: ● Commercial lines—offers coverage for property, liability, automobile and other miscellaneous coverage primarily to owner-operated small and mid-sized businesses, professional organizations and hospitality businesses such as restaurant, bars and taverns. Included within commercial insurance business are the following key products: ● Commercial multi-peril (“CMP”)—provides property and liability coverages in a package to the policyholder. ● Other liability—provides coverage for general liability and liquor liability on an individual policy. ● Automobile—provides coverage for commercial automobiles for businesses that supply to their employees company-owned vehicles. ● Other—includes primarily workers’ compensation coverage in narrowly selected areas. ● Personal lines—offers coverage for low-value dwelling, wind-exposed homeowners and automobile. Included within personal insurance business are the following key products: ● Low-value dwelling (previously known as Midwest homeowners)—provides coverage for nonstandard homeowners insurance and dwelling fire insurance products (property and basic perils coverage only) located primarily in Indiana and Illinois. ● Wind-exposed homeowners (previously known as Specialty homeowners)—provides coverage in niche homeowners markets that have special risk characteristics, including coastal exposure to wind, located primarily in Florida, Hawaii and Texas. ● Automobile—provides coverage for nonstandard private passenger automobile insurance policies primarily for individuals located in Florida and Illinois. Both the Florida and Illinois books of nonstandard auto business are currently in run-off. The Company renamed Midwest homeowners to low-value dwelling as the Company began to enter into other geographic areas in the U.S. which target the niche, low-value dwelling market that is similar to the product offering within Midwest homeowners. The Company also renamed specialty homeowners to wind-exposed homeowners to better describe the underlying business. In addition to the reportable segments, the Company maintains a Corporate and Other category to reconcile segment results to the consolidated totals. The Corporate and Other category includes: (i) corporate operating expenses such as salaries and related benefits of the Company’s executive management team and finance and information technology personnel, and other corporate headquarters expenses, (ii) interest expense on the Company’s senior debt obligations; (iii) depreciation and amortization on property and equipment, and (iv) all investment income activity. All investment income activity is reported within net investment income and net realized investment gains on the consolidated statements of operations. The Company’s assets on the consolidated balance sheet are not allocated to the reportable segments. The following tables present information by reportable segment: Commercial Lines Personal Lines Homeowners Three Months Ended CMP Other Auto Other Total Low- value Wind- Auto Total Corporate Total Gross written premiums $ 10,765 $ 4,297 $ 2,608 $ 656 $ 18,326 $ 1,460 $ 2,991 $ 282 $ 4,733 $ — $ 23,059 Net written premiums $ 6,855 $ 3,474 $ 1,762 $ 433 $ 12,524 $ 984 $ 2,152 $ 282 $ 3,418 $ — $ 15,942 Net earned premiums $ 6,465 $ 1,940 $ 1,751 $ 514 $ 10,670 $ 1,391 $ 2,194 $ 860 $ 4,445 $ — $ 15,115 Other income 271 48 6 — 325 52 32 24 108 47 480 Segment revenue 6,736 1,988 1,757 514 10,995 1,443 2,226 884 4,553 47 15,595 Loss and loss adjustment expenses, net 3,427 479 1,378 193 5,477 1,254 1,276 969 3,499 — 8,976 Policy acquisition costs 1,145 339 372 61 1,917 384 189 149 722 — 2,639 Operating expenses 869 189 102 51 1,211 84 120 6 210 2,198 3,619 Segment expense 5,441 1,007 1,852 305 8,605 1,722 1,585 1,124 4,431 2,198 15,234 Segment underwriting gain (loss) $ 1,295 $ 981 $ (95 ) $ 209 $ 2,390 $ (279 ) $ 641 $ (240 ) $ 122 (2,151 ) 361 Investment income 469 469 Net realized investment gains 87 87 Interest expense (239 ) (239 ) Income (loss) before income taxes $ (1,834 ) $ 678 Commercial Lines Personal Lines Homeowners Three Months Ended CMP Other Auto Other Total Low- value Wind- Auto Total Corporate Total Gross written premiums $ 8,845 $ 2,137 $ 2,837 $ 652 $ 14,471 $ 2,069 $ 639 $ 1,822 $ 4,530 $ — $ 19,001 Net written premiums $ 7,478 $ 1,929 $ 2,692 $ 595 $ 12,694 $ 1,775 $ 401 $ 1,822 $ 3,998 $ — $ 16,692 Net earned premiums $ 5,740 $ 1,330 $ 964 $ 356 $ 8,390 $ 1,572 $ 806 $ 3,189 $ 5,567 $ — 13,957 Other income 186 38 8 — 232 107 — 154 261 12 505 Segment revenue 5,926 1,368 972 356 8,622 1,679 806 3,343 5,828 12 14,462 Loss and loss adjustment expenses, net 3,262 261 829 270 4,622 2,147 488 2,429 5,064 — 9,686 Policy acquisition costs 1,458 340 243 72 2,113 485 267 654 1,406 — 3,519 Operating expenses 976 203 118 59 1,356 111 84 303 498 1,359 3,213 Segment expense 5,696 804 1,190 401 8,091 2,743 839 3,386 6,968 1,359 16,418 Segment underwriting gain (loss) $ 230 $ 564 $ (218 ) $ (45 ) $ 531 $ (1,064 ) $ (33 ) $ (43 ) $ (1,140 ) (1,347 ) (1,956 ) Investment income 282 282 Net realized investment gains 81 81 Interest expense (123 ) (123 ) Income (loss) before income taxes $ (1,107 ) $ (1,716 ) Commercial Lines Personal Lines Homeowners Six Months Ended CMP Other Auto Other Total Low- value Wind- Auto Total Corporate Total Gross written premiums $ 20,427 $ 6,595 $ 5,284 $ 1,762 $ 34,068 $ 3,048 $ 6,058 $ 1,089 $ 10,195 $ — $ 44,263 Net written premiums $ 12,673 $ 4,900 $ 3,577 $ 1,228 $ 22,378 $ 1,995 $ 4,146 $ 1,089 $ 7,230 $ — $ 29,608 Net earned premiums $ 12,591 $ 3,162 $ 3,361 $ 1,044 $ 20,158 $ 2,879 $ 4,289 $ 2,282 $ 9,450 $ — $ 29,608 Other income 577 86 11 — 674 115 41 80 236 59 969 Segment revenue 13,168 3,248 3,372 1,044 20,832 2,994 4,330 2,362 9,686 59 30,577 Loss and loss adjustment expenses, net 7,207 933 2,443 211 10,794 2,126 2,158 2,468 6,752 — 17,546 Policy acquisition costs 2,264 547 702 142 3,655 778 414 387 1,579 — 5,234 Operating expenses 1,901 443 216 123 2,683 185 235 203 623 4,005 7,311 Segment expense 11,372 1,923 3,361 476 17,132 3,089 2,807 3,058 8,954 4,005 30,091 Segment underwriting gain (loss) $ 1,796 $ 1,325 $ 11 $ 568 $ 3,700 $ (95 ) $ 1,523 $ (696 ) $ 732 (3,946 ) 486 Investment income 955 955 Net realized investment gains 232 232 Interest expense (483 ) (483 ) Income (loss) before income taxes $ (3,242 ) $ 1,190 Commercial Lines Personal Lines Homeowners Six Months Ended CMP Other Auto Other Total Low- value Wind- Auto Total Corporate Total Gross written premiums $ 15,111 $ 4,004 $ 4,247 $ 1,086 $ 24,448 $ 4,045 $ 3,061 $ 5,114 $ 12,220 $ — $ 36,668 Net written premiums $ 13,103 $ 3,671 $ 4,050 $ 989 $ 21,813 $ 3,710 $ 2,764 $ 5,114 $ 11,588 $ — $ 33,401 Net earned premiums $ 10,250 $ 2,455 $ 1,437 $ 610 $ 14,752 $ 2,955 $ 1,474 $ 7,451 $ 11,880 $ — $ 26,632 Other income 415 78 12 — 505 210 — 313 523 9 1,037 Segment revenue 10,665 2,533 1,449 610 15,257 3,165 1,474 7,764 12,403 9 27,669 Loss and loss adjustment expenses, net 8,153 696 965 431 10,245 3,480 748 5,789 10,017 — 20,262 Policy acquisition costs 2,685 638 376 107 3,806 879 494 1,571 2,944 — 6,750 Operating expenses 1,730 408 192 104 2,434 209 158 733 1,100 2,573 6,107 Segment expense 12,568 1,742 1,533 642 16,485 4,568 1,400 8,093 14,061 2,573 33,119 Segment underwriting gain (loss) $ (1,903 ) $ 791 $ (84 ) $ (32 ) $ (1,228 ) $ (1,403 ) $ 74 $ (329 ) $ (1,658 ) (2,564 ) (5,450 ) Investment income 502 502 Net realized investment gains 172 172 Interest expense (252 ) (252 ) Income (loss) before income taxes $ (2,142 ) $ (5,028 ) In January 2015, the Company notified its insurance regulator in the State of Florida of its intent to stop writing nonstandard personal automobile policies. The Company discontinued offering and writing new policies on January 27, 2015, but will continue to service existing policies, pay claims and perform other administrative services as needed until the run-off of the claims on such policies is complete. In early 2014, the Company discontinued writing nonstandard personal automobile business in Illinois. The Company has no plans to provide or write this insurance coverage in the future. By the end of May 2015, this exited product line was solely in run-off. The Company received approval to discontinue its offering of personal automobile insurance policies from the insurance regulators in April 2015, and had ceased all writings by June 1, 2015. As of June 30, 2015, the Company had 1,268 automobile policies in force. The personal automobile product line contributed $860 and $3,189 to net earned premiums and $(240) and $(43) to income (loss) before income taxes for the three months ended June 30, 2015 and 2014, respectively, and $2,282 and $7,451 to net earned premiums, and $(696) and $(329) to income (loss) before income taxes for the six months ended June 30, 2015 and 2014, respectively. The decision to stop writing personal automobile policies is the result of the Company’s change in strategic positioning and its desire to increase its personal homeowners product line and pursue existing commercial line opportunities. |
Note 21 - Subsequent Events
Note 21 - Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 21. Subsequent Events 2015 Omnibus Incentive Plan On August 12, 2015, the Company issued an aggregate of 380,952 restricted stock units to executive officers and other employees to be settled in shares of common stock. The total restricted stock units were valued at $4,000 on the date of grant. The grant-date fair value was determined using the fair value of the Company’s common stock as of the grant date. The awards vest in five annual installments, commencing on the first anniversary from the date of grant. The Company will expense the grant date fair value of the restricted stock units as compensation expense on a straight-line basis over the requisite service period. Upon vesting, each restricted stock unit will convert into one share of common stock. Amendment to Credit Agreement On August 6, 2015, the Company entered into a third amendment to its Amended Credit Agreement (“Third Amendment”). The Third Amendment, among other things, further revised the provision that the Company’s Chairman’s ownership interest shall not be less than 33%, or after consummation of an IPO, not less than 15%. Repurchase of Preferred Stock and Sale of Common Stock Following the closing of the Company’s IPO on August 18, 2015, the Company repurchased the outstanding shares of preferred stock. In addition, certain of these preferred shareholders agreed to use such cash received to purchase shares of common stock at the IPO price. Refer to Note 1, Description of Business, and Note 12, Redeemable Preferred Stock. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The condensed consolidated financial statements include the accounts of Conifer Holdings, Inc. and its wholly owned subsidiaries, and a 50%-owned entity that the Company controls due to its majority representation on the entity’s board of directors. All intercompany transactions and accounts have been eliminated. Noncontrolling interest in a consolidated subsidiary in the consolidated balance sheets represents the noncontrolling shareholder’s proportionate share of the 50%-owned entity’s equity. Consolidated net income or loss is allocated to the Company and noncontrolling interest in proportion to their percentage ownership interests. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that differ from these estimates. |
Deferred Offering Costs [Policy Text Block] | Deferred Offering Costs Offering costs, consisting of legal, accounting, printing and other incremental expenses, incurred in connection with the Company’s IPO are deferred and will be charged to common stock against the proceeds received from the offering in the third quarter of 2015. Such deferred costs, included in other assets in the condensed consolidated balance sheet, amounted to $1,114, at June 30, 2015. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Guidance In May 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-09, Disclosures about Short-Duration Contracts (Topic 944) |
Note 4 - Investments (Tables)
Note 4 - Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | June 30, 2015 Cost or Gross Unrealized Fair Cost Gain Loss Value Fixed maturity securities: U.S. Government obligations $ 4,991 $ 68 $ (5 ) $ 5,054 State and local government 14,586 122 (173 ) 14,535 Corporate debt 33,763 180 (105 ) 33,838 Commercial mortgage and asset-backed 44,863 257 (276 ) 44,844 Total fixed maturity securities 98,203 627 (559 ) 98,271 Equity securities, common stock 3,176 1,045 (57 ) 4,164 Total $ 101,379 $ 1,672 $ (616 ) $ 102,435 December 31, 2014 Cost or Gross Unrealized Fair Cost Gain Loss Value Fixed maturity securities: U.S. Government obligations $ 5,872 $ 85 $ (16 ) $ 5,941 State and local government 10,755 210 (4 ) 10,961 Corporate debt 30,818 237 (106 ) 30,949 Commercial mortgage and asset-backed 36,323 348 (117 ) 36,554 Total fixed maturity securities 83,768 880 (243 ) 84,405 Equity securities, common stock 2,965 1,158 (39 ) 4,084 Total $ 86,733 $ 2,038 $ (282 ) $ 88,489 |
Schedule of Unrealized Loss on Investments [Table Text Block] | June 30, 2015 Less than Greater than Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities: U.S. Government obligations $ 126 $ (1 ) $ 1,330 $ (4 ) $ 1,456 $ (5 ) State and local government 8,435 (173 ) — — 8,435 (173 ) Corporate debt 14,865 (94 ) 862 (11 ) 15,727 (105 ) Commercial mortgage and asset-backed 21,143 (231 ) 1,074 (45 ) 22,217 (276 ) Total fixed maturity securities 44,569 (499 ) 3,266 (60 ) 47,835 (559 ) Equity securities, common stock 659 (57 ) — — 659 (57 ) Total $ 45,228 $ (556 ) $ 3,266 $ (60 ) $ 48,494 $ (616 ) December 31, 2014 Less than Greater than Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities: U.S. Government obligations $ — $ — $ 1,319 $ (16 ) $ 1,319 $ (16 ) State and local government 552 (1 ) 825 (3 ) 1,377 (4 ) Corporate debt 18,835 (98 ) 489 (8 ) 19,324 (106 ) Commercial mortgage and asset-backed 12,060 (34 ) 4,999 (83 ) 17,059 (117 ) Total fixed maturity securities 31,447 (133 ) 7,632 (110 ) 39,079 (243 ) Equity securities, common stock 347 (39 ) — — 347 (39 ) Total $ 31,794 $ (172 ) $ 7,632 $ (110 ) $ 39,426 $ (282 ) |
Investment Income [Table Text Block] | Three Months Six Months 2015 2014 2015 2014 Fixed maturity securities $ 532 $ 306 $ 1,063 $ 550 Equity securities 22 20 45 35 Cash and short-term investments 2 1 4 4 Total investment income 556 327 1,112 589 Investment expenses (87 ) (45 ) (157 ) (87 ) Net investment income $ 469 $ 282 $ 955 $ 502 |
Realized Gain (Loss) on Investments [Table Text Block] | Three Months Six Months 2015 2014 2015 2014 Fixed maturity securities: Gross realized gains $ — $ 21 $ 68 $ 22 Gross realized losses (1 ) (4 ) (4 ) (28 ) (1 ) 17 64 (6 ) Equity securities: Gross realized gains 104 78 203 193 Gross realized losses (16 ) (14 ) (35 ) (15 ) 88 64 168 178 Net realized investment gains $ 87 $ 81 $ 232 $ 172 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Amortized Fair Due in one year or less $ 3,922 $ 3,935 Due after one year through five years 32,338 32,484 Due after five years through ten years 7,550 7,602 Due after ten years 9,530 9,406 Securities with contractual maturities 53,340 53,427 Commercial mortgage and asset-backed 44,863 44,844 Total fixed maturity securities $ 98,203 $ 98,271 |
Note 5 - Fair Value Measureme31
Note 5 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | June 30, 2015 Level 1 Level 2 Level 3 Total Fixed maturity securities: U.S. Government obligations $ — $ 5,054 $ — $ 5,054 State and local government — 14,535 — 14,535 Corporate debt — 33,838 — 33,838 Commercial mortgage and asset-backed — 44,844 — 44,844 Total fixed maturity securities — 98,271 — 98,271 Equity securities, common stock 4,164 — — 4,164 Short-term investments* 6,237 — — 6,237 Total assets measured at fair value $ 10,401 $ 98,271 $ — $ 108,672 Senior debt* $ — $ 27,462 $ — $ 27,462 Contingent consideration 58 58 Interest rate swap — 13 — 13 Total liabilities measured at fair value $ — $ 27,475 $ 58 $ 27,533 December 31, 2014 Level 1 Level 2 Level 3 Total Fixed maturity securities: U.S. Government obligations $ — $ 5,941 $ — $ 5,941 State and local government — 10,961 — 10,961 Corporate debt — 30,949 — 30,949 Commercial mortgage and asset-backed — 36,554 — 36,554 Total fixed maturity securities — 84,405 — 84,405 Equity securities, common stock 4,084 — — 4,084 Short-term investments* 16,749 — — 16,749 Total assets measured at fair value $ 20,833 $ 84,405 $ — $ 105,238 Senior debt* $ — $ 27,562 $ — $ 27,562 Contingent consideration — — 168 168 Interest rate swap — 9 — 9 Total liabilities measured at fair value $ — $ 27,571 $ 168 $ 27,739 |
Roll-forward of the Level 3 Measurements [Table Text Block] | Contingent Balance at December 31, 2013 $ 339 Change in fair value 11 Payout of contingent consideration (182 ) Balance at December 31, 2014 168 Change in fair value 3 Payout of contingent consideration (113 ) Balance at June 30, 2015 $ 58 |
Note 6 - Deferred Policy Acqu32
Note 6 - Deferred Policy Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Deferred Policy Acquisition Costs [Table Text Block] | Three Months Ended Six Months Ended 2015 2014 2015 2014 Balance at beginning of period $ 6,120 $ 6,322 $ 5,679 $ 5,747 Deferred policy acquisition costs 4,178 4,201 7,214 8,007 Amortization of policy acquisition costs (2,639 ) (3,519 ) (5,234 ) (6,750 ) Net change 1,539 682 1,980 1,257 Balance at end of period $ 7,659 $ 7,004 $ 7,659 $ 7,004 |
Note 7 - Intangible Assets (Tab
Note 7 - Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | As of June 30, 2015 Weighted (in years) Gross Accumulated Net Carrying Nonamortizing indefinite-lived, intangible assets—state insurance licenses $ 900 $ — $ 900 Amortizing definite-lived, intangible assets—customer lists 5 368 133 235 Total $ 1,268 $ 133 $ 1,135 As of December 31, 2014 Weighted (in years) Gross Accumulated Net Carrying Nonamortizing indefinite-lived intangible assets—state insurance licenses $ 900 $ — $ 900 Amortizing definite-lived, intangible assets—customer lists 5 368 97 271 Total $ 1,268 $ 97 $ 1,171 |
Note 8 - Unpaid Losses and Lo34
Note 8 - Unpaid Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | Three Months Ended Six Months Ended 2015 2014 2015 2014 Gross reserves—beginning of period $ 32,987 $ 32,783 $ 31,531 $ 28,908 Less reinsurance recoverables on unpaid losses 4,590 6,255 3,224 3,953 Net reserves—beginning of period 28,397 26,528 28,307 24,955 Add: incurred losses and loss adjustment expenses, net of reinsurance: Current period 8,805 10,216 17,340 21,234 Prior periods 171 (530 ) 206 (972 ) Total net incurred losses and loss adjustment expenses 8,976 9,686 17,546 20,262 Deduct: loss and loss adjustment expense payments, net of reinsurance: Current period 5,029 4,934 6,794 8,462 Prior periods 5,009 3,654 11,724 9,129 Total net loss and loss adjustment expense payments 10,038 8,588 18,518 17,591 Net reserves—end of period 27,335 27,626 27,335 27,626 Plus: reinsurance recoverables on unpaid losses 5,022 4,207 5,022 4,207 Gross reserves—end of period $ 32,357 $ 31,833 $ 32,357 $ 31,833 |
Note 9 - Reinsurance (Tables)
Note 9 - Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Effects of Reinsurance [Table Text Block] | Three Months Ended Six Months Ended 2015 2014 2015 2014 Written premiums: Direct $ 21,510 $ 19,001 $ 42,629 $ 36,668 Assumed 1,549 — 1,634 — Ceded (7,117 ) (2,309 ) (14,655 ) (3,267 ) Net written premiums $ 15,942 $ 16,692 $ 29,608 $ 33,401 Earned premiums: Direct $ 20,050 $ 16,139 $ 39,351 $ 30,620 Assumed 2,137 — 3,810 — Ceded (7,072 ) (2,182 ) (13,553 ) (3,988 ) Net earned premiums $ 15,115 $ 13,957 $ 29,608 $ 26,632 Loss and loss adjustment expenses: Direct $ 10,622 $ 10,296 $ 20,544 $ 23,430 Assumed 281 (50 ) 805 (2 ) Ceded (1,927 ) (560 ) (3,803 ) (3,166 ) Net loss and loss adjustment expenses $ 8,976 $ 9,686 $ 17,546 $ 20,262 Policy acquisition costs: Policy acquisition costs $ 4,129 $ 3,519 $ 8,175 $ 6,750 Ceding commissions (1,490 ) — (2,941 ) — Net policy acquisition costs $ 2,639 $ 3,519 $ 5,234 $ 6,750 |
Note 10 - Senior Debt (Tables)
Note 10 - Senior Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 30, December 31, Revolver $ 17,212 $ 16,562 Term Note 3,250 3,500 2014 Term Note 7,000 7,500 Total $ 27,462 $ 27,562 |
Note 13 - Other Comprehensive37
Note 13 - Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Three Months Ended Six Months Ended 2015 2014 2015 2014 Balance at beginning of period $ 1,644 $ 765 $ 1,158 $ 536 Other comprehensive income (loss) before reclassifications (977 ) 580 (274 ) 933 Amounts reclassified from accumulated other comprehensive income (loss) 208 210 425 334 Net current period other comprehensive income (loss) (769 ) 370 (699 ) 599 Balance at end of period $ 459 $ 1,135 $ 459 $ 1,135 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Three Months Ended Six Months Ended 2015 2014 2015 2014 Net realized investment gains $ 208 $ 318 $ 425 $ 506 Income tax expense (benefit) — 108 — 172 Total impact to net income (loss) $ 208 $ 210 $ 425 $ 334 |
Note 14 - Income (Loss) Per S38
Note 14 - Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended 2015 2014 2015 2014 Numerator: Net income (loss) attributable to Conifer $ 579 $ (1,536 ) $ 1,042 $ (4,765 ) Preferred stock dividends 151 16 303 27 Paid-in-kind dividends 62 — 123 — Net income (loss) allocable to common shareholders $ 366 $ (1,552 ) $ 616 $ (4,792 ) Denominator: Weighted average common shares, basic and diluted 4,050,042 2,357,220 4,045,482 2,248,599 Income (loss) per share allocable to common shareholders, basic and diluted $ 0.09 $ (0.66 ) $ 0.15 $ (2.13 ) |
Note 19 - Supplemental Inform39
Note 19 - Supplemental Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Six Months Ended 2015 2014 Interest paid $ 439 $ 282 Dividends declared but not paid at end of period 151 16 Paid-in-kind dividends accrued during period 123 — |
Note 20 - Segment Information (
Note 20 - Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Commercial Lines Personal Lines Homeowners Three Months Ended CMP Other Auto Other Total Low- value Wind- Auto Total Corporate Total Gross written premiums $ 10,765 $ 4,297 $ 2,608 $ 656 $ 18,326 $ 1,460 $ 2,991 $ 282 $ 4,733 $ — $ 23,059 Net written premiums $ 6,855 $ 3,474 $ 1,762 $ 433 $ 12,524 $ 984 $ 2,152 $ 282 $ 3,418 $ — $ 15,942 Net earned premiums $ 6,465 $ 1,940 $ 1,751 $ 514 $ 10,670 $ 1,391 $ 2,194 $ 860 $ 4,445 $ — $ 15,115 Other income 271 48 6 — 325 52 32 24 108 47 480 Segment revenue 6,736 1,988 1,757 514 10,995 1,443 2,226 884 4,553 47 15,595 Loss and loss adjustment expenses, net 3,427 479 1,378 193 5,477 1,254 1,276 969 3,499 — 8,976 Policy acquisition costs 1,145 339 372 61 1,917 384 189 149 722 — 2,639 Operating expenses 869 189 102 51 1,211 84 120 6 210 2,198 3,619 Segment expense 5,441 1,007 1,852 305 8,605 1,722 1,585 1,124 4,431 2,198 15,234 Segment underwriting gain (loss) $ 1,295 $ 981 $ (95 ) $ 209 $ 2,390 $ (279 ) $ 641 $ (240 ) $ 122 (2,151 ) 361 Investment income 469 469 Net realized investment gains 87 87 Interest expense (239 ) (239 ) Income (loss) before income taxes $ (1,834 ) $ 678 Commercial Lines Personal Lines Homeowners Three Months Ended CMP Other Auto Other Total Low- value Wind- Auto Total Corporate Total Gross written premiums $ 8,845 $ 2,137 $ 2,837 $ 652 $ 14,471 $ 2,069 $ 639 $ 1,822 $ 4,530 $ — $ 19,001 Net written premiums $ 7,478 $ 1,929 $ 2,692 $ 595 $ 12,694 $ 1,775 $ 401 $ 1,822 $ 3,998 $ — $ 16,692 Net earned premiums $ 5,740 $ 1,330 $ 964 $ 356 $ 8,390 $ 1,572 $ 806 $ 3,189 $ 5,567 $ — 13,957 Other income 186 38 8 — 232 107 — 154 261 12 505 Segment revenue 5,926 1,368 972 356 8,622 1,679 806 3,343 5,828 12 14,462 Loss and loss adjustment expenses, net 3,262 261 829 270 4,622 2,147 488 2,429 5,064 — 9,686 Policy acquisition costs 1,458 340 243 72 2,113 485 267 654 1,406 — 3,519 Operating expenses 976 203 118 59 1,356 111 84 303 498 1,359 3,213 Segment expense 5,696 804 1,190 401 8,091 2,743 839 3,386 6,968 1,359 16,418 Segment underwriting gain (loss) $ 230 $ 564 $ (218 ) $ (45 ) $ 531 $ (1,064 ) $ (33 ) $ (43 ) $ (1,140 ) (1,347 ) (1,956 ) Investment income 282 282 Net realized investment gains 81 81 Interest expense (123 ) (123 ) Income (loss) before income taxes $ (1,107 ) $ (1,716 ) Commercial Lines Personal Lines Homeowners Six Months Ended CMP Other Auto Other Total Low- value Wind- Auto Total Corporate Total Gross written premiums $ 20,427 $ 6,595 $ 5,284 $ 1,762 $ 34,068 $ 3,048 $ 6,058 $ 1,089 $ 10,195 $ — $ 44,263 Net written premiums $ 12,673 $ 4,900 $ 3,577 $ 1,228 $ 22,378 $ 1,995 $ 4,146 $ 1,089 $ 7,230 $ — $ 29,608 Net earned premiums $ 12,591 $ 3,162 $ 3,361 $ 1,044 $ 20,158 $ 2,879 $ 4,289 $ 2,282 $ 9,450 $ — $ 29,608 Other income 577 86 11 — 674 115 41 80 236 59 969 Segment revenue 13,168 3,248 3,372 1,044 20,832 2,994 4,330 2,362 9,686 59 30,577 Loss and loss adjustment expenses, net 7,207 933 2,443 211 10,794 2,126 2,158 2,468 6,752 — 17,546 Policy acquisition costs 2,264 547 702 142 3,655 778 414 387 1,579 — 5,234 Operating expenses 1,901 443 216 123 2,683 185 235 203 623 4,005 7,311 Segment expense 11,372 1,923 3,361 476 17,132 3,089 2,807 3,058 8,954 4,005 30,091 Segment underwriting gain (loss) $ 1,796 $ 1,325 $ 11 $ 568 $ 3,700 $ (95 ) $ 1,523 $ (696 ) $ 732 (3,946 ) 486 Investment income 955 955 Net realized investment gains 232 232 Interest expense (483 ) (483 ) Income (loss) before income taxes $ (3,242 ) $ 1,190 Commercial Lines Personal Lines Homeowners Six Months Ended CMP Other Auto Other Total Low- value Wind- Auto Total Corporate Total Gross written premiums $ 15,111 $ 4,004 $ 4,247 $ 1,086 $ 24,448 $ 4,045 $ 3,061 $ 5,114 $ 12,220 $ — $ 36,668 Net written premiums $ 13,103 $ 3,671 $ 4,050 $ 989 $ 21,813 $ 3,710 $ 2,764 $ 5,114 $ 11,588 $ — $ 33,401 Net earned premiums $ 10,250 $ 2,455 $ 1,437 $ 610 $ 14,752 $ 2,955 $ 1,474 $ 7,451 $ 11,880 $ — $ 26,632 Other income 415 78 12 — 505 210 — 313 523 9 1,037 Segment revenue 10,665 2,533 1,449 610 15,257 3,165 1,474 7,764 12,403 9 27,669 Loss and loss adjustment expenses, net 8,153 696 965 431 10,245 3,480 748 5,789 10,017 — 20,262 Policy acquisition costs 2,685 638 376 107 3,806 879 494 1,571 2,944 — 6,750 Operating expenses 1,730 408 192 104 2,434 209 158 733 1,100 2,573 6,107 Segment expense 12,568 1,742 1,533 642 16,485 4,568 1,400 8,093 14,061 2,573 33,119 Segment underwriting gain (loss) $ (1,903 ) $ 791 $ (84 ) $ (32 ) $ (1,228 ) $ (1,403 ) $ 74 $ (329 ) $ (1,658 ) (2,564 ) (5,450 ) Investment income 502 502 Net realized investment gains 172 172 Interest expense (252 ) (252 ) Income (loss) before income taxes $ (2,142 ) $ (5,028 ) |
Note 1 - Description of Busin41
Note 1 - Description of Business (Details Textual) $ / shares in Units, $ in Thousands | Aug. 18, 2015USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Aug. 31, 2015USD ($) | Jul. 31, 2015$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares |
Subsequent Event [Member] | IPO [Member] | Chief Executive Officer [Member] | ||||||
Stock Issued During Period, Shares, New Issues | 100,000 | |||||
Subsequent Event [Member] | IPO [Member] | ||||||
Stock Issued During Period, Shares, New Issues | 3,300,000 | |||||
Shares Issued, Price Per Share | $ / shares | $ 10.50 | |||||
Proceeds from Issuance of Common Stock | $ | $ 30,625 | |||||
Payments for Underwriting Discounts and Commisions | $ | 2,426 | |||||
Payments for Other Stock Issuance Expenses | $ | $ 1,599 | |||||
Cash | $ | $ 7,231 | |||||
Subsequent Event [Member] | Private Placement [Member] | ||||||
Stock Issued During Period, Shares, New Issues | 294,481 | |||||
Proceeds from Issuance of Common Stock | $ | $ 3,092 | |||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||||
Repayments of Lines of Credit | $ | 17,038 | |||||
Subsequent Event [Member] | Preferred Stock [Member] | ||||||
Payments of Dividends | $ | $ 6,356 | |||||
Subsequent Event [Member] | Redeemable Preferred Stock [Member] | ||||||
Temporary Equity, Shares Authorized | 60,600 | |||||
Subsequent Event [Member] | ||||||
Common Stock, No Par Value | $ / shares | $ 0 | |||||
Common Stock, Shares Authorized | 100,000,000 | |||||
Preferred Stock, Shares Authorized | 10,000,000 | |||||
Preferred Stock [Member] | ||||||
Stock Issued During Period, Shares, New Issues | 64,000 | |||||
Shares Issued, Price Per Share | $ / shares | $ 10 | |||||
Common Stock, No Par Value | $ / shares | $ 0 | $ 0 | ||||
Number of States in which Entity Operates | 49 | |||||
Proceeds from Issuance of Common Stock | $ | $ 750 | $ 8,295 | ||||
Cash | $ | $ 8,598 | $ 18,488 | ||||
Common Stock, Shares Authorized | 12,240,000 | 12,240,000 | ||||
Preferred Stock, Shares Authorized | 1,000,000 | |||||
Temporary Equity, Shares Authorized | 1,000,000 |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation (Details Textual) | Jul. 22, 2015 | Jun. 30, 2015 |
Subsequent Event [Member] | ||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 10.2 | |
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 50.00% |
Note 3 - Summary of Significa43
Note 3 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands | Jun. 30, 2015USD ($) |
Other Assets [Member] | |
Deferred Offering Costs | $ 1,114 |
Note 4 - Investments (Details T
Note 4 - Investments (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Deposits Held in Trust for State Insurance Departments | $ 7,000 | $ 7,000 |
Fixed Maturity Securities, Term | 3 years 182 days | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ 616 | $ 282 |
Note 4 - Investments - Availabl
Note 4 - Investments - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
US Government Agencies Debt Securities [Member] | ||
Fixed maturity securities, cost or amortized cost | $ 4,991 | $ 5,872 |
Fixed maturity securities, gross unrealized gain | 68 | 85 |
Fixed maturity securities, gross unrealized loss | (5) | (16) |
Total fixed maturity securities, fair value | 5,054 | 5,941 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fixed maturity securities, cost or amortized cost | 14,586 | 10,755 |
Fixed maturity securities, gross unrealized gain | 122 | 210 |
Fixed maturity securities, gross unrealized loss | (173) | (4) |
Total fixed maturity securities, fair value | 14,535 | 10,961 |
Corporate Debt Securities [Member] | ||
Fixed maturity securities, cost or amortized cost | 33,763 | 30,818 |
Fixed maturity securities, gross unrealized gain | 180 | 237 |
Fixed maturity securities, gross unrealized loss | (105) | (106) |
Total fixed maturity securities, fair value | 33,838 | 30,949 |
Commercial Mortgage and Asset-backed [Member] | ||
Fixed maturity securities, cost or amortized cost | 44,863 | 36,323 |
Fixed maturity securities, gross unrealized gain | 257 | 348 |
Fixed maturity securities, gross unrealized loss | (276) | (117) |
Total fixed maturity securities, fair value | 44,844 | 36,554 |
Common Stock [Member] | ||
Equity securities, cost or amortized cost | 3,176 | 2,965 |
Equity securities, gross unrealized gain | 1,045 | 1,158 |
Equity securities, gross unrealized loss | (57) | (39) |
Equity securities, fair value | 4,164 | 4,084 |
Fixed maturity securities, cost or amortized cost | 98,203 | 83,768 |
Fixed maturity securities, gross unrealized gain | 627 | 880 |
Fixed maturity securities, gross unrealized loss | (559) | (243) |
Total fixed maturity securities, fair value | 98,271 | 84,405 |
Equity securities, cost or amortized cost | 3,176 | 2,965 |
Equity securities, fair value | 4,164 | 4,084 |
Securities, cost or amortized cost | 101,379 | 86,733 |
Securities, gross unrealized gain | 1,672 | 2,038 |
Securities, gross unrealized loss | (616) | (282) |
Securities, fair value | $ 102,435 | $ 88,489 |
Note 4 - Investments - Availa46
Note 4 - Investments - Available-for-sale Securities in Unrealized Loss Positions (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
US Government Agencies Debt Securities [Member] | ||
Less than 12 months, fair value | $ 126 | |
Less than 12 months, unrealized losses | (1) | |
Greater than 12 months, fair value | 1,330 | $ 1,319 |
Greater than 12 months, unrealized losses | (4) | (16) |
Fair value | 1,456 | 1,319 |
Unrealized losses | (5) | (16) |
US States and Political Subdivisions Debt Securities [Member] | ||
Less than 12 months, fair value | 8,435 | 552 |
Less than 12 months, unrealized losses | $ (173) | (1) |
Greater than 12 months, fair value | 825 | |
Greater than 12 months, unrealized losses | (3) | |
Fair value | $ 8,435 | 1,377 |
Unrealized losses | (173) | (4) |
Corporate Debt Securities [Member] | ||
Less than 12 months, fair value | 14,865 | 18,835 |
Less than 12 months, unrealized losses | (94) | (98) |
Greater than 12 months, fair value | 862 | 489 |
Greater than 12 months, unrealized losses | (11) | (8) |
Fair value | 15,727 | 19,324 |
Unrealized losses | (105) | (106) |
Commercial Mortgage and Asset-backed [Member] | ||
Less than 12 months, fair value | 21,143 | 12,060 |
Less than 12 months, unrealized losses | (231) | (34) |
Greater than 12 months, fair value | 1,074 | 4,999 |
Greater than 12 months, unrealized losses | (45) | (83) |
Fair value | 22,217 | 17,059 |
Unrealized losses | (276) | (117) |
Debt Securities [Member] | ||
Less than 12 months, fair value | 44,569 | 31,447 |
Less than 12 months, unrealized losses | (499) | (133) |
Greater than 12 months, fair value | 3,266 | 7,632 |
Greater than 12 months, unrealized losses | (60) | (110) |
Fair value | 47,835 | 39,079 |
Unrealized losses | (559) | (243) |
Common Stock [Member] | ||
Less than 12 months, fair value | 659 | 347 |
Less than 12 months, unrealized losses | $ (57) | $ (39) |
Greater than 12 months, fair value | ||
Greater than 12 months, unrealized losses | ||
Fair value | $ 659 | $ 347 |
Unrealized losses | (57) | (39) |
Less than 12 months, fair value | 45,228 | 31,794 |
Less than 12 months, unrealized losses | (556) | (172) |
Greater than 12 months, fair value | 3,266 | 7,632 |
Greater than 12 months, unrealized losses | (60) | (110) |
Fair value | 48,494 | 39,426 |
Unrealized losses | $ (616) | $ (282) |
Note 4 - Investments - Net Inve
Note 4 - Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Debt Securities [Member] | ||||
Investment income | $ 532 | $ 306 | $ 1,063 | $ 550 |
Equity Securities [Member] | ||||
Investment income | 22 | 20 | 45 | 35 |
Cash and Cash Equivalents [Member] | ||||
Investment income | 2 | 1 | 4 | 4 |
Investment income | 556 | 327 | 1,112 | 589 |
Investment expenses | (87) | (45) | (157) | (87) |
Net investment income | $ 469 | $ 282 | $ 955 | $ 502 |
Note 4 - Investments - Gross Re
Note 4 - Investments - Gross Realized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Debt Securities [Member] | ||||
Gross realized gains | $ 21 | $ 68 | $ 22 | |
Gross realized losses | $ (1) | (4) | (4) | (28) |
Net realized investment gains | (1) | 17 | 64 | (6) |
Equity Securities [Member] | ||||
Gross realized gains | 104 | 78 | 203 | 193 |
Gross realized losses | (16) | (14) | (35) | (15) |
Net realized investment gains | 88 | 64 | 168 | 178 |
Net realized investment gains | $ 87 | $ 81 | $ 232 | $ 172 |
Note 4 - Investments - Availa49
Note 4 - Investments - Available-for-sale Fixed Maturity Securities by Contractual Maturity (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Due in one year or less, amortized cost | $ 3,922 |
Due in one year or less, fair value | 3,935 |
Due after one year through five years, amortized cost | 32,338 |
Due after one year through five years, fair value | 32,484 |
Due after five years through ten years, amortized cost | 7,550 |
Due after five years through ten years, fair value | 7,602 |
Due after ten years, amortized cost | 9,530 |
Due after ten years, fair value | 9,406 |
Securities with contractual maturities, amortized cost | 53,340 |
Securities with contractual maturities, fair value | 53,427 |
Commercial mortgage and asset-backed, amortized cost | 44,863 |
Commercial mortgage and asset-backed, fair value | 44,844 |
Fixed maturity securities, amortized cost | 98,203 |
Total fixed maturity securities, fair value | $ 98,271 |
Note 5 - Fair Value Measureme50
Note 5 - Fair Value Measurements (Details Textual) - Interest Rate Swap [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 2 [Member] | ||
Derivative Liability | $ 13 | $ 9 |
Derivative Liability, Notional Amount | 3,250 | 3,750 |
Derivative Liability | $ 13 | $ 9 |
Note 5 - Fair Value Measureme51
Note 5 - Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member] | ||
Fixed maturity securities | ||
Fair Value, Inputs, Level 1 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fixed maturity securities | ||
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | ||
Fixed maturity securities | ||
Fair Value, Inputs, Level 1 [Member] | Commercial Mortgage and Asset-backed [Member] | ||
Fixed maturity securities | ||
Fair Value, Inputs, Level 1 [Member] | Debt Securities [Member] | ||
Fixed maturity securities | ||
Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | ||
Equity securities | $ 4,164 | $ 4,084 |
Fair Value, Inputs, Level 1 [Member] | Senior Debt Obligations [Member] | ||
Senior debt | ||
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | ||
Interest rate swap | ||
Fair Value, Inputs, Level 1 [Member] | ||
Short-term investments | $ 6,237 | $ 16,749 |
Total assets measured at fair value | $ 10,401 | $ 20,833 |
Contingent consideration | ||
Total liabilities measured at fair value | ||
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ||
Fixed maturity securities | $ 5,054 | $ 5,941 |
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fixed maturity securities | 14,535 | 10,961 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fixed maturity securities | 33,838 | 30,949 |
Fair Value, Inputs, Level 2 [Member] | Commercial Mortgage and Asset-backed [Member] | ||
Fixed maturity securities | 44,844 | 36,554 |
Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member] | ||
Fixed maturity securities | $ 98,271 | $ 84,405 |
Fair Value, Inputs, Level 2 [Member] | Common Stock [Member] | ||
Equity securities | ||
Fair Value, Inputs, Level 2 [Member] | Senior Debt Obligations [Member] | ||
Senior debt | $ 27,462 | $ 27,562 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||
Interest rate swap | $ 13 | $ 9 |
Fair Value, Inputs, Level 2 [Member] | ||
Short-term investments | ||
Total assets measured at fair value | $ 98,271 | $ 84,405 |
Contingent consideration | ||
Total liabilities measured at fair value | $ 27,475 | $ 27,571 |
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member] | ||
Fixed maturity securities | ||
Fair Value, Inputs, Level 3 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fixed maturity securities | ||
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | ||
Fixed maturity securities | ||
Fair Value, Inputs, Level 3 [Member] | Commercial Mortgage and Asset-backed [Member] | ||
Fixed maturity securities | ||
Fair Value, Inputs, Level 3 [Member] | Debt Securities [Member] | ||
Fixed maturity securities | ||
Fair Value, Inputs, Level 3 [Member] | Common Stock [Member] | ||
Equity securities | ||
Fair Value, Inputs, Level 3 [Member] | Senior Debt Obligations [Member] | ||
Senior debt | ||
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | ||
Interest rate swap | ||
Fair Value, Inputs, Level 3 [Member] | ||
Short-term investments | ||
Total assets measured at fair value | ||
Contingent consideration | $ 58 | $ 168 |
Total liabilities measured at fair value | 58 | 168 |
US Government Agencies Debt Securities [Member] | ||
Fixed maturity securities | 5,054 | 5,941 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fixed maturity securities | 14,535 | 10,961 |
Corporate Debt Securities [Member] | ||
Fixed maturity securities | 33,838 | 30,949 |
Commercial Mortgage and Asset-backed [Member] | ||
Fixed maturity securities | 44,844 | 36,554 |
Debt Securities [Member] | ||
Fixed maturity securities | 98,271 | |
Common Stock [Member] | ||
Equity securities | 4,164 | 4,084 |
Senior Debt Obligations [Member] | ||
Senior debt | 27,462 | 27,562 |
Interest Rate Swap [Member] | ||
Interest rate swap | 13 | 9 |
Fixed maturity securities | 98,271 | 84,405 |
Equity securities | 4,164 | 4,084 |
Short-term investments | 6,237 | 16,749 |
Total assets measured at fair value | 108,672 | 105,238 |
Contingent consideration | 58 | 168 |
Total liabilities measured at fair value | $ 27,533 | $ 27,739 |
Note 5 - Fair Value Measureme52
Note 5 - Fair Value Measurements - Level 3 Roll-forward (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Inputs, Level 3 [Member] | ||
Balance | $ 168 | $ 339 |
Change in fair value | 3 | 11 |
Payout of contingent consideration | (113) | (182) |
Balance | 58 | 168 |
Balance | 168 | |
Payout of contingent consideration | (113) | |
Balance | $ 58 | $ 168 |
Note 6 - Deferred Policy Acqu53
Note 6 - Deferred Policy Acquisition Costs - Activity in Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Balance at beginning of period | $ 6,120 | $ 6,322 | $ 5,679 | $ 5,747 |
Deferred policy acquisition costs | 4,178 | 4,201 | 7,214 | 8,007 |
Amortization of policy acquisition costs | (2,639) | (3,519) | (5,234) | (6,750) |
Net change | 1,539 | 682 | 1,980 | 1,257 |
Balance at end of period | $ 7,659 | $ 7,004 | $ 7,659 | $ 7,004 |
Note 7 - Intangible Assets (Det
Note 7 - Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Amortization of Intangible Assets | $ 18 | $ 18 | $ 36 | $ 36 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 38 | 38 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 74 | 74 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 74 | 74 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | $ 49 | $ 49 |
Note 7 - Intangible Assets - In
Note 7 - Intangible Assets - Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Nonamortizing indefinite-lived, intangible assets, gross | $ 900 | $ 900 |
Weighted average amortization period | 5 years | 5 years |
Amortizing definite-lived, intangible assets, gross | $ 368 | $ 368 |
Intangible assets, accumulated amortization | 133 | 97 |
Amortizing definite-lived, intangible assets, net | 235 | 271 |
Intangible assets, gross | 1,268 | 1,268 |
Intangible assets, net | $ 1,135 | $ 1,171 |
Note 8 - Unpaid Losses and Lo56
Note 8 - Unpaid Losses and Loss Adjustment Expenses (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Commercial Automobile Line [Member] | ||||
Prior Year Claims and Claims Adjustment Expense | $ 340 | $ 331 | ||
Personal Automobile Line [Member] | ||||
Prior Year Claims and Claims Adjustment Expense | 262 | 535 | ||
Commercial Multi-peril [Member] | ||||
Prior Year Claims and Claims Adjustment Expense | (270) | $ (739) | (274) | $ (786) |
Other Insurance Product Line [Member] | ||||
Prior Year Claims and Claims Adjustment Expense | (95) | (241) | (136) | (390) |
Workers’ Compensation Line [Member] | ||||
Prior Year Claims and Claims Adjustment Expense | (248) | |||
Low-value Dwelling Line [Member] | ||||
Prior Year Claims and Claims Adjustment Expense | 307 | 432 | ||
Prior Year Claims and Claims Adjustment Expense | $ 171 | $ (530) | $ 206 | $ (972) |
Note 8 - Unpaid Losses and Lo57
Note 8 - Unpaid Losses and Loss Adjustment Expenses - Changes in the Liability for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Gross reserves—beginning of period | $ 32,987 | $ 32,783 | $ 31,531 | $ 28,908 |
Less reinsurance recoverables on unpaid losses | 4,590 | 6,255 | 3,224 | 3,953 |
Net reserves—beginning of period | 28,397 | 26,528 | 28,307 | 24,955 |
Loss and loss adjustment expenses: | ||||
Current period | 8,805 | 10,216 | 17,340 | 21,234 |
Prior periods | 171 | (530) | 206 | (972) |
Net loss and loss adjustment expenses | 8,976 | 9,686 | 17,546 | 20,262 |
Deduct: loss and loss adjustment expense payments, net of reinsurance: | ||||
Current period | 5,029 | 4,934 | 6,794 | 8,462 |
Prior periods | 5,009 | 3,654 | 11,724 | 9,129 |
Total net loss and loss adjustment expense payments | 10,038 | 8,588 | 18,518 | 17,591 |
Net reserves—end of period | 27,335 | 27,626 | 27,335 | 27,626 |
Plus: reinsurance recoverables on unpaid losses | 5,022 | 4,207 | 5,022 | 4,207 |
Gross reserves—end of period | $ 32,357 | $ 31,833 | $ 32,357 | $ 31,833 |
Note 9 - Reinsurance (Details T
Note 9 - Reinsurance (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Maximum [Member] | Quota Share Reinsurance Agreement [Member] | |||||||
Reinsurance Retention Policy, Amount Retained | $ 500,000 | ||||||
Maximum [Member] | |||||||
Reinsurance Retention Policy, Amount Retained | 500,000 | $ 300,000 | |||||
Minimum [Member] | Quota Share Reinsurance Agreement [Member] | |||||||
Reinsurance Retention Policy, Amount Retained | $ 0 | ||||||
Subject Premium [Member] | Quota Share Reinsurance Agreement [Member] | |||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 25.00% | ||||||
Related Losses Within Retention [Member] | Quota Share Reinsurance Agreement [Member] | |||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 25.00% | ||||||
Quota Share Reinsurance Agreement [Member] | |||||||
Ceded Premiums Written | $ 4,123,000 | $ 8,957,000 | |||||
Citizens Property and Casualty Corporation [Member] | |||||||
Assumed Premiums Written | $ 5,483,000 | $ 1,419,000 | |||||
Return of Premiums | 662,000 | $ 1,334,000 | |||||
Ceded Premiums Written | 7,117,000 | $ 2,309,000 | 14,655,000 | $ 3,267,000 | |||
Assumed Premiums Written | 1,549,000 | $ 1,634,000 | |||||
Assumed Premiums Written, Gross | $ 2,211,000 |
Note 9 - Reinsurance - Effects
Note 9 - Reinsurance - Effects of Reinsurance and Assumption Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Written premiums: | ||||
Direct | $ 21,510 | $ 19,001 | $ 42,629 | $ 36,668 |
Assumed | 1,549 | 1,634 | ||
Ceded | (7,117) | $ (2,309) | (14,655) | $ (3,267) |
Net written premiums | 15,942 | 16,692 | 29,608 | 33,401 |
Earned premiums: | ||||
Direct | 20,050 | $ 16,139 | 39,351 | $ 30,620 |
Assumed | 2,137 | 3,810 | ||
Ceded | (7,072) | $ (2,182) | (13,553) | $ (3,988) |
Net earned premiums | 15,115 | 13,957 | 29,608 | 26,632 |
Loss and loss adjustment expenses: | ||||
Direct | 10,622 | 10,296 | 20,544 | 23,430 |
Assumed | 281 | (50) | 805 | (2) |
Ceded | (1,927) | (560) | (3,803) | (3,166) |
Net loss and loss adjustment expenses | 8,976 | 9,686 | 17,546 | 20,262 |
Policy acquisition costs: | ||||
Policy acquisition costs | 4,129 | $ 3,519 | 8,175 | $ 6,750 |
Ceding commissions | (1,490) | (2,941) | ||
Net policy acquisition costs | $ 2,639 | $ 3,519 | $ 5,234 | $ 6,750 |
Note 10 - Senior Debt (Details
Note 10 - Senior Debt (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 29, 2015 | May. 04, 2015 | May. 03, 2015 | Dec. 31, 2014 | |
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Covenant Terms, Ownership Interest | 20.00% | 33.00% | 50.00% | |||
Proceeds from Long-term Lines of Credit | $ 900 | |||||
Repayments of Long-term Lines of Credit | $ 250 | |||||
Debt, Weighted Average Interest Rate | 3.40% | 3.20% | ||||
Proceeds from Long-term Lines of Credit | $ 900 | |||||
Repayments of Long-term Lines of Credit | $ 250 |
Note 10 - Senior Debt - Outstan
Note 10 - Senior Debt - Outstanding Senior Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Revolving Credit Facility [Member] | ||
Debt | $ 17,212 | $ 16,562 |
Term Note [Member] | ||
Debt | 3,250 | 3,500 |
2014 Term Note [Member] | ||
Debt | 7,000 | 7,500 |
Debt | $ 27,462 | $ 27,562 |
Note 11 - Shareholders' Equity
Note 11 - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Vice President [Member] | Common Stock [Member] | ||
Stock Issued During Period, Shares, New Issues | 55,029 | |
Proceeds from Issuance of Common Stock | $ 750 | |
Shares Issued, Price Per Share | $ 13.63 | |
Common Stock [Member] | ||
Stock Issued During Period, Shares, New Issues | 55,029 | 682,349 |
Proceeds from Issuance of Common Stock | $ 8,295 | |
Shares Issued, Price Per Share | $ 12.16 | |
Preferred Stock [Member] | ||
Stock Issued During Period, Shares, New Issues | 64,000 | |
Shares Issued, Price Per Share | $ 10 | |
Proceeds from Issuance of Common Stock | $ 750 | $ 8,295 |
Note 12 - Redeemable Preferre63
Note 12 - Redeemable Preferred Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Aug. 18, 2015 | Jul. 01, 2015 | Mar. 25, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Aug. 19, 2015 | Dec. 31, 2014 |
Redeemable Preferred Stock [Member] | |||||||
Temporary Equity, Shares Outstanding | 60,600 | ||||||
Preferred Stock [Member] | Subsequent Event [Member] | |||||||
Temporary Equity, Redemption Price Per Share | $ 100 | ||||||
Stock Repurchased During Period, Shares | 29,550 | ||||||
Stock Repurchased During Period, Percent | 48.80% | ||||||
Payments of Dividends | $ 6,356 | ||||||
Preferred Stock [Member] | |||||||
Stock Issued During Period, Shares, New Issues | 64,000 | ||||||
Subsequent Event [Member] | Private Placement [Member] | |||||||
Stock Issued During Period, Shares, New Issues | 294,481 | ||||||
Proceeds from Issuance of Common Stock | $ 3,092 | ||||||
Preferred Stock, Shares Outstanding | 60,600 | 0 | |||||
Temporary Equity, Shares Outstanding | 60,600 | ||||||
Redeemable Preferred Stock, Liquidation Event | 50.00% | ||||||
Holders of the Preferred Stock, Liquidation Event, Percentage | 80.00% | ||||||
Redeemable Preferred Stock, Term | 1 year | ||||||
Proceeds from Issuance of Common Stock | $ 750 | $ 8,295 |
Note 13 - Other Comprehensive64
Note 13 - Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Balance at beginning of period | $ 1,644 | $ 765 | $ 1,158 | $ 536 |
Other comprehensive income (loss) before reclassifications | (977) | 580 | (274) | 933 |
Amounts reclassified from accumulated other comprehensive income (loss) | 208 | 210 | 425 | 334 |
Net current period other comprehensive income (loss) | (769) | 370 | (699) | 599 |
Balance at end of period | $ 459 | $ 1,135 | $ 459 | $ 1,135 |
Note 13 - Other Comprehensive65
Note 13 - Other Comprehensive Income (Loss) - Reclassification Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Net realized investment gains | $ 208 | $ 318 | $ 425 | $ 506 |
Income tax expense (benefit) | 108 | 172 | ||
Total impact to net income (loss) | $ 208 | 210 | $ 425 | 334 |
Net realized investment gains | 87 | 81 | 232 | 172 |
Income tax expense (benefit) | 48 | (191) | 48 | (309) |
Total impact to net income (loss) | $ 579 | $ (1,536) | $ 1,042 | $ (4,765) |
Note 14 - Income (Loss) Per S66
Note 14 - Income (Loss) Per Share - Basic and Diluted Income (Loss) Per Common Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Net income (loss) attributable to Conifer | $ 579 | $ (1,536) | $ 1,042 | $ (4,765) |
Preferred stock dividends | 151 | $ 16 | 303 | $ 27 |
Paid-in-kind dividends | 62 | 123 | ||
Net income (loss) allocable to common shareholders | $ 366 | $ (1,552) | $ 616 | $ (4,792) |
Denominator: | ||||
Weighted average common shares, basic and diluted (in shares) | 4,050,042 | 2,357,220 | 4,045,482 | 2,248,599 |
Income (loss) per share allocable to common shareholders, basic and diluted (in dollars per share) | $ 0.09 | $ (0.66) | $ 0.15 | $ (2.13) |
Note 15 - Stock-based Compens67
Note 15 - Stock-based Compensation (Details Textual) - 2015 Omnibus Incentive Plan [Member] | Jun. 30, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,377,000 |
Note 16 - Related Party Trans68
Note 16 - Related Party Transactions (Details Textual) - Executive Officer [Member] - USD ($) $ in Thousands | Jun. 30, 2014 | Jan. 31, 2014 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 |
Debt Conversion, Original Debt, Amount | $ 500 | $ 500 | |||
Proceeds from Related Party Debt | $ 1,000 | ||||
Related Party Transaction, Rate | 12.00% | ||||
Debt Conversion, Converted Instrument, Shares Issued | 41,126 | 41,126 | |||
Interest Expense, Related Party | $ 15 | $ 35 |
Note 17 - Commitments and Con69
Note 17 - Commitments and Contingencies (Details Textual) | 12 Months Ended |
Dec. 31, 2010USD ($) | |
Commitment to Design, Develop, and Implement a New Policy Administration, Billing, and Claims System [Member] | Minimum [Member] | |
Commitment, Periodic Payment | $ 40,000 |
Note 18 - Statutory Financial70
Note 18 - Statutory Financial Information (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Statutory Accounting Practices, Statutory Net Loss Amount | $ 558 | $ 5,036 | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 65,464 | $ 66,585 |
Note 19 - Supplemental Inform71
Note 19 - Supplemental Information - Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Dividend Declared [Member] | ||
Dividends | $ 151 | $ 16 |
Paid-in-kind Dividends [Member] | ||
Dividends | 123 | |
Interest paid | $ 439 | $ 282 |
Note 20 - Segment Information72
Note 20 - Segment Information (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Gross Written Premiums [Domain] | Geographic Concentration Risk [Member] | Florida, Michigan and Pennsylvania [Member] | ||||
Concentration Risk, Percentage | 56.00% | 61.00% | ||
Net Earned Premiums [Member] | Commercial Lines [Member] | ||||
Concentration Risk, Percentage | 68.00% | 55.00% | ||
Net Earned Premiums [Member] | Personal Lines [Member] | ||||
Concentration Risk, Percentage | 32.00% | 45.00% | ||
Personal Lines [Member] | Auto [Member] | ||||
Premiums Earned, Net | $ 860 | $ 3,189 | $ 2,282 | $ 7,451 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | $ (240) | (43) | $ (696) | (329) |
Number of Reportable Segments | 2 | |||
Automobile Policies in Force | 1,268 | 1,268 | ||
Premiums Earned, Net | $ 15,115 | 13,957 | $ 29,608 | 26,632 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 678 | $ (1,716) | $ 1,190 | $ (5,028) |
Note 20 - Segment Information -
Note 20 - Segment Information - Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Segments [Member] | Commercial Lines [Member] | Commercial Multi-peril [Member] | ||||
Gross written premiums | $ 10,765 | $ 8,845 | $ 20,427 | $ 15,111 |
Net written premiums | 6,855 | 7,478 | 12,673 | 13,103 |
Premiums Earned, Net | 6,465 | 5,740 | 12,591 | 10,250 |
Other income | 271 | 186 | 577 | 415 |
Segment revenue | 6,736 | 5,926 | 13,168 | 10,665 |
Loss and loss adjustment expenses, net | 3,427 | 3,262 | 7,207 | 8,153 |
Policy acquisition costs | 1,145 | 1,458 | 2,264 | 2,685 |
Operating expenses | 869 | 976 | 1,901 | 1,730 |
Segment expense | 5,441 | 5,696 | 11,372 | 12,568 |
Segment underwriting gain (loss) | 1,295 | 230 | 1,796 | (1,903) |
Operating Segments [Member] | Commercial Lines [Member] | Other Liability [Member] | ||||
Gross written premiums | 4,297 | 2,137 | 6,595 | 4,004 |
Net written premiums | 3,474 | 1,929 | 4,900 | 3,671 |
Premiums Earned, Net | 1,940 | 1,330 | 3,162 | 2,455 |
Other income | 48 | 38 | 86 | 78 |
Segment revenue | 1,988 | 1,368 | 3,248 | 2,533 |
Loss and loss adjustment expenses, net | 479 | 261 | 933 | 696 |
Policy acquisition costs | 339 | 340 | 547 | 638 |
Operating expenses | 189 | 203 | 443 | 408 |
Segment expense | 1,007 | 804 | 1,923 | 1,742 |
Segment underwriting gain (loss) | 981 | 564 | 1,325 | 791 |
Operating Segments [Member] | Commercial Lines [Member] | Auto [Member] | ||||
Gross written premiums | 2,608 | 2,837 | 5,284 | 4,247 |
Net written premiums | 1,762 | 2,692 | 3,577 | 4,050 |
Premiums Earned, Net | 1,751 | 964 | 3,361 | 1,437 |
Other income | 6 | 8 | 11 | 12 |
Segment revenue | 1,757 | 972 | 3,372 | 1,449 |
Loss and loss adjustment expenses, net | 1,378 | 829 | 2,443 | 965 |
Policy acquisition costs | 372 | 243 | 702 | 376 |
Operating expenses | 102 | 118 | 216 | 192 |
Segment expense | 1,852 | 1,190 | 3,361 | 1,533 |
Segment underwriting gain (loss) | (95) | (218) | 11 | (84) |
Operating Segments [Member] | Commercial Lines [Member] | Other [Member] | ||||
Gross written premiums | 656 | 652 | 1,762 | 1,086 |
Net written premiums | 433 | 595 | 1,228 | 989 |
Premiums Earned, Net | 514 | 356 | 1,044 | 610 |
Segment revenue | 514 | 356 | 1,044 | 610 |
Loss and loss adjustment expenses, net | 193 | 270 | 211 | 431 |
Policy acquisition costs | 61 | 72 | 142 | 107 |
Operating expenses | 51 | 59 | 123 | 104 |
Segment expense | 305 | 401 | 476 | 642 |
Segment underwriting gain (loss) | 209 | (45) | 568 | (32) |
Operating Segments [Member] | Commercial Lines [Member] | ||||
Gross written premiums | 18,326 | 14,471 | 34,068 | 24,448 |
Net written premiums | 12,524 | 12,694 | 22,378 | 21,813 |
Premiums Earned, Net | 10,670 | 8,390 | 20,158 | 14,752 |
Other income | 325 | 232 | 674 | 505 |
Segment revenue | 10,995 | 8,622 | 20,832 | 15,257 |
Loss and loss adjustment expenses, net | 5,477 | 4,622 | 10,794 | 10,245 |
Policy acquisition costs | 1,917 | 2,113 | 3,655 | 3,806 |
Operating expenses | 1,211 | 1,356 | 2,683 | 2,434 |
Segment expense | 8,605 | 8,091 | 17,132 | 16,485 |
Segment underwriting gain (loss) | 2,390 | 531 | 3,700 | (1,228) |
Operating Segments [Member] | Personal Lines [Member] | Auto [Member] | ||||
Gross written premiums | 282 | 1,822 | 1,089 | 5,114 |
Net written premiums | 282 | 1,822 | 1,089 | 5,114 |
Premiums Earned, Net | 860 | 3,189 | 2,282 | 7,451 |
Other income | 24 | 154 | 80 | 313 |
Segment revenue | 884 | 3,343 | 2,362 | 7,764 |
Loss and loss adjustment expenses, net | 969 | 2,429 | 2,468 | 5,789 |
Policy acquisition costs | 149 | 654 | 387 | 1,571 |
Operating expenses | 6 | 303 | 203 | 733 |
Segment expense | 1,124 | 3,386 | 3,058 | 8,093 |
Segment underwriting gain (loss) | (240) | (43) | (696) | (329) |
Operating Segments [Member] | Personal Lines [Member] | Low-value Dwelling [Member] | ||||
Gross written premiums | 1,460 | 2,069 | 3,048 | 4,045 |
Net written premiums | 984 | 1,775 | 1,995 | 3,710 |
Premiums Earned, Net | 1,391 | 1,572 | 2,879 | 2,955 |
Other income | 52 | 107 | 115 | 210 |
Segment revenue | 1,443 | 1,679 | 2,994 | 3,165 |
Loss and loss adjustment expenses, net | 1,254 | 2,147 | 2,126 | 3,480 |
Policy acquisition costs | 384 | 485 | 778 | 879 |
Operating expenses | 84 | 111 | 185 | 209 |
Segment expense | 1,722 | 2,743 | 3,089 | 4,568 |
Segment underwriting gain (loss) | (279) | (1,064) | (95) | (1,403) |
Operating Segments [Member] | Personal Lines [Member] | Wind-exposed Homeowners [Member] | ||||
Gross written premiums | 2,991 | 639 | 6,058 | 3,061 |
Net written premiums | 2,152 | 401 | 4,146 | 2,764 |
Premiums Earned, Net | 2,194 | 806 | 4,289 | 1,474 |
Other income | 32 | 41 | ||
Segment revenue | 2,226 | 806 | 4,330 | 1,474 |
Loss and loss adjustment expenses, net | 1,276 | 488 | 2,158 | 748 |
Policy acquisition costs | 189 | 267 | 414 | 494 |
Operating expenses | 120 | 84 | 235 | 158 |
Segment expense | 1,585 | 839 | 2,807 | 1,400 |
Segment underwriting gain (loss) | 641 | (33) | 1,523 | 74 |
Operating Segments [Member] | Personal Lines [Member] | ||||
Gross written premiums | 4,733 | 4,530 | 10,195 | 12,220 |
Net written premiums | 3,418 | 3,998 | 7,230 | 11,588 |
Premiums Earned, Net | 4,445 | 5,567 | 9,450 | 11,880 |
Other income | 108 | 261 | 236 | 523 |
Segment revenue | 4,553 | 5,828 | 9,686 | 12,403 |
Loss and loss adjustment expenses, net | 3,499 | 5,064 | 6,752 | 10,017 |
Policy acquisition costs | 722 | 1,406 | 1,579 | 2,944 |
Operating expenses | 210 | 498 | 623 | 1,100 |
Segment expense | 4,431 | 6,968 | 8,954 | 14,061 |
Segment underwriting gain (loss) | 122 | (1,140) | 732 | (1,658) |
Operating Segments [Member] | Corporate and Other [Member] | ||||
Other income | 47 | 12 | 59 | 9 |
Segment revenue | 47 | 12 | 59 | 9 |
Operating expenses | 2,198 | 1,359 | 4,005 | 2,573 |
Segment expense | 2,198 | 1,359 | 4,005 | 2,573 |
Segment underwriting gain (loss) | (2,151) | (1,347) | (3,946) | (2,564) |
Operating Segments [Member] | ||||
Gross written premiums | 23,059 | 19,001 | 44,263 | 36,668 |
Net written premiums | 15,942 | 16,692 | 29,608 | 33,401 |
Premiums Earned, Net | 15,115 | 13,957 | 29,608 | 26,632 |
Other income | 480 | 505 | 969 | 1,037 |
Segment revenue | 15,595 | 14,462 | 30,577 | 27,669 |
Loss and loss adjustment expenses, net | 8,976 | 9,686 | 17,546 | 20,262 |
Policy acquisition costs | 2,639 | 3,519 | 5,234 | 6,750 |
Operating expenses | 3,619 | 3,213 | 7,311 | 6,107 |
Segment expense | 15,234 | 16,418 | 30,091 | 33,119 |
Segment underwriting gain (loss) | 361 | (1,956) | 486 | (5,450) |
Personal Lines [Member] | Auto [Member] | ||||
Premiums Earned, Net | 860 | 3,189 | 2,282 | 7,451 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (240) | (43) | (696) | (329) |
Corporate and Other [Member] | ||||
Investment income | 469 | 282 | 955 | 502 |
Net realized investment gains | 87 | 81 | 232 | 172 |
Interest expense | (239) | (123) | (483) | (252) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (1,834) | (1,107) | (3,242) | (2,142) |
Gross written premiums | 23,059 | 19,001 | 44,263 | 36,668 |
Net written premiums | 15,942 | 16,692 | 29,608 | 33,401 |
Premiums Earned, Net | 15,115 | 13,957 | 29,608 | 26,632 |
Other income | 480 | 505 | 969 | 1,037 |
Segment revenue | 16,151 | 14,825 | 31,764 | 28,343 |
Loss and loss adjustment expenses, net | 8,976 | 9,686 | 17,546 | 20,262 |
Policy acquisition costs | 2,639 | 3,519 | 5,234 | 6,750 |
Operating expenses | 3,619 | 3,213 | 7,311 | 6,107 |
Segment expense | 15,473 | 16,541 | 30,574 | 33,371 |
Investment income | 469 | 282 | 955 | 502 |
Net realized investment gains | 87 | 81 | 232 | 172 |
Interest expense | (239) | (123) | (483) | (252) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 678 | $ (1,716) | $ 1,190 | $ (5,028) |
Note 21 - Subsequent Events (De
Note 21 - Subsequent Events (Details Textual) - USD ($) $ in Millions | Aug. 12, 2015 | Aug. 06, 2015 | Jun. 29, 2015 | May. 04, 2015 | May. 03, 2015 |
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 380,952 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 4 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Shares Issued upon Conversion | 1 | ||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Covenant Terms, Ownership Interest | 33.00% | ||||
Line of Credit Facility, Covenant Terms, Ownership Interest After Consummation of an IPO | 15.00% | ||||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Covenant Terms, Ownership Interest | 20.00% | 33.00% | 50.00% |