Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 13, 2019 | Jun. 30, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | Conifer Holdings, Inc. | ||
Entity Central Index Key | 0001502292 | ||
Trading Symbol | CNFR | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 8,478,202 | ||
Entity Public Float | $ 0 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Debt securities, at fair value (amortized cost of $122,678 and $137,004, respectively) | $ 120,440 | $ 136,536 |
Equity securities, at fair value (cost of $9,559 and $8,629, respectively) | 10,737 | |
Equity securities, at fair value (cost of $9,559 and $8,629, respectively) | 9,687 | |
Short-term investments, at fair value | 8,925 | 11,427 |
Total investments | 140,102 | 157,650 |
Cash | 10,792 | 11,868 |
Premiums and agents' balances receivable, net | 21,247 | 22,845 |
Receivable from Affiliate | 3,582 | 1,195 |
Reinsurance recoverables on unpaid losses | 29,685 | 20,066 |
Reinsurance recoverables on paid losses | 5,060 | 4,473 |
Prepaid reinsurance premiums | 1,829 | 1,081 |
Deferred policy acquisition costs | 12,011 | 12,781 |
Other assets | 8,444 | 7,073 |
Total assets | 232,752 | 239,032 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 92,807 | 87,896 |
Unearned premiums | 52,852 | 57,672 |
Reinsurance premiums payable | 0 | 3,299 |
Debt | 33,502 | 29,027 |
Deferred gain on ADC | 5,677 | 0 |
Accounts payable and accrued expenses | 5,751 | 8,312 |
Total liabilities | 190,589 | 186,206 |
Commitment and contingencies | 0 | 0 |
Shareholders' equity: | ||
Common stock, no par value (100,000,000 shares authorized; 8,478,202 and 8,520,328 issued and outstanding, respectively) | 86,533 | 86,199 |
Accumulated deficit | (41,758) | (33,010) |
Accumulated other comprehensive income (loss) | (2,612) | (363) |
Total shareholders' equity | 42,163 | 52,826 |
Total liabilities and shareholders' equity | $ 232,752 | $ 239,032 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturity securities, amortized cost | $ 122,678 | $ 137,004 |
Equity securities, amortized cost | $ 9,559 | $ 8,629 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 8,478,202 | 8,520,328 |
Common stock, shares outstanding (in shares) | 8,478,202 | 8,520,328 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | |||
Gross earned premiums | $ 109,188 | $ 114,737 | $ 104,713 |
Ceded earned premiums | (15,377) | (23,008) | (15,086) |
Net earned premiums | 93,811 | 91,729 | 89,627 |
Net investment income | 3,336 | 2,728 | 2,173 |
Net realized investment gains | 61 | 70 | 1,365 |
Change in fair value of equity securities | 121 | 0 | 0 |
Other gains (losses) | 0 | 750 | (400) |
Other income | 1,582 | 1,560 | 1,118 |
Total revenue | 98,911 | 96,837 | 93,883 |
Expenses | |||
Losses and loss adjustment expenses, net | 62,515 | 73,917 | 59,003 |
Policy acquisition costs | 25,534 | 26,245 | 25,280 |
Operating expenses | 17,683 | 17,367 | 17,596 |
Interest expense | 2,644 | 1,362 | 647 |
Total expenses | 108,376 | 118,891 | 102,526 |
Income (loss) before income taxes | (9,465) | (22,054) | (8,643) |
Income tax expense (benefit) | 52 | (447) | (77) |
Equity earnings (losses) in affiliates, net of tax | 290 | 65 | 129 |
Net income (loss) | $ (9,227) | $ (21,542) | $ (8,437) |
Net income (loss) per share, basic and diluted (in dollars per share) | $ (1.08) | $ (2.74) | $ (1.11) |
Weighted average common shares outstanding, basic and diluted (in shares) | 8,543,876 | 7,867,344 | 7,618,588 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (9,227) | $ (21,542) | $ (8,437) |
Unrealized investment gains (losses): | |||
Unrealized investment gains (losses) during the period | (1,825) | 1,151 | (2,139) |
Income tax expense (benefit) | 0 | 356 | 0 |
Unrealized investment gains (losses), net of tax | (1,825) | 795 | (2,139) |
Less: reclassification adjustments to: | |||
Net realized investment gains (losses) included in net income (loss) | (55) | 78 | (877) |
Income tax expense (benefit) | 0 | 0 | 0 |
Total reclassifications included in net income (loss), net of tax | (55) | 78 | (877) |
Other comprehensive income (loss) | (1,770) | 717 | (1,262) |
Total comprehensive income (loss) | $ (10,997) | $ (20,825) | $ (9,699) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | No Par, Common Stock | Retained Earnings (Accumulated deficit) | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Dec. 31, 2015 | 7,644,492 | |||
Balance at beginning of period at Dec. 31, 2015 | $ 77,262 | $ 80,111 | $ (3,031) | $ 182 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (8,437) | (8,437) | ||
Repurchase of common stock (in shares) | (88,650) | |||
Repurchase of common stock | (625) | $ (625) | ||
Restricted stock units expense (in shares) | 77,228 | |||
Restricted stock units expense | 856 | $ 856 | ||
Other comprehensive income (loss) | (1,262) | (1,262) | ||
Balance (in shares) at Dec. 31, 2016 | 7,633,070 | |||
Balance at end of period at Dec. 31, 2016 | 67,794 | $ 80,342 | (11,468) | (1,080) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (21,542) | (21,542) | ||
Issuance of common stock in private placement (in shares) | 800,000 | |||
Issuance of common stock in private placement | 5,000 | $ 5,000 | ||
Common stock issuance costs | (38) | $ (38) | ||
Restricted stock units expense (in shares) | 87,258 | |||
Restricted stock units expense | 895 | $ 895 | ||
Other comprehensive income (loss) | 717 | 717 | ||
Balance (in shares) at Dec. 31, 2017 | 8,520,328 | |||
Balance at end of period at Dec. 31, 2017 | 52,826 | $ 86,199 | (33,010) | (363) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (9,227) | (9,227) | ||
Repurchase of common stock (in shares) | (137,228) | |||
Repurchase of common stock | (636) | $ (636) | ||
Restricted stock units expense (in shares) | 95,102 | |||
Restricted stock units expense | 970 | $ 970 | ||
Other comprehensive income (loss) | (1,770) | (1,770) | ||
Balance (in shares) at Dec. 31, 2018 | 8,478,202 | |||
Balance at end of period at Dec. 31, 2018 | $ 42,163 | $ 86,533 | $ (41,758) | (2,612) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balances after cumulative effects | $ (842) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ (9,227) | $ (21,542) | $ (8,437) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 386 | 372 | 401 |
Amortization of bond premium and discount, net | 455 | 532 | 589 |
Net realized investment gains | (61) | ||
Net realized investment gains | (70) | (1,365) | |
Change in fair value of equity securities | (121) | 0 | 0 |
Restricted stock unit expenses | 970 | 895 | 856 |
Other | (290) | (484) | 123 |
Changes in operating assets and liabilities: | |||
Premiums, agents' balances and other receivables | (789) | 2,249 | (6,487) |
Reinsurance recoverables | (10,206) | (17,041) | (454) |
Prepaid reinsurance premiums | (748) | 3,039 | (637) |
Deferred policy acquisition costs | 770 | 509 | (1,188) |
Other assets | (1,252) | 4,239 | (7,139) |
Unpaid losses and loss adjustment expenses | 4,911 | 33,245 | 19,229 |
Unearned premiums | (4,820) | (454) | 10,210 |
Reinsurance premiums payable | (3,299) | 3,299 | (1,069) |
Accounts payable and other liabilities | 6,313 | 302 | 1,534 |
Net cash provided by (used in) operating activities | (17,008) | 9,090 | 6,166 |
Cash Flows From Investing Activities | |||
Purchases of investments | (91,293) | (218,492) | (166,965) |
Proceeds from maturities and redemptions of investments | 22,827 | 25,213 | 13,730 |
Proceeds from sales of investments | 80,774 | 167,338 | 142,679 |
Purchases of property and equipment | (86) | (13) | (195) |
Net cash provided by (used in) investing activities | 12,222 | (25,954) | (10,751) |
Cash Flows From Financing Activities | |||
Proceeds received from issuance of shares of common stock | 0 | 5,000 | 0 |
Repurchase of common stock | (636) | 0 | (625) |
Borrowings under debt arrangements | 25,300 | 32,000 | 7,000 |
Repayment of borrowings under debt arrangements | (19,500) | (19,750) | (2,000) |
Stock and debt issuance costs | (1,454) | (1,011) | 0 |
Net cash provided by financing activities | 3,710 | 16,239 | 4,375 |
Net increase (decrease) in cash | (1,076) | (625) | (210) |
Cash at beginning of period | 11,868 | 12,493 | 12,703 |
Cash at end of period | 10,792 | 11,868 | 12,493 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid | 3,116 | 876 | 641 |
Net income taxes paid (refunded) | (83) | 0 | 0 |
Increase (decrease) in net payable for securities | $ (3,642) | $ 2,691 | $ 486 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Management Representation The consolidated financial statements include accounts, after elimination of intercompany accounts and transactions, of Conifer Holdings, Inc. (the “Company” or “Conifer”), its wholly owned subsidiaries Conifer Insurance Company ("CIC"), Red Cedar Insurance Company ("RCIC"), White Pine Insurance Company ("WPIC"), Sycamore Insurance Agency, Inc. ("SIA") and American Colonial Insurance Services, Inc. CIC, WPIC, and RCIC are collectively referred to as the "Insurance Company Subsidiaries." On a stand-alone basis Conifer Holdings, Inc is referred to as the "Parent Company." On December 30, 2016, the Company's wholly owned subsidiary, American Colonial Insurance Company ("ACIC") was merged into WPIC. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which differ from statutory accounting practices prescribed or permitted for insurance companies by regulatory authorities. Business 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. 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 all 50 states in the United States (“U.S.”). The Company’s corporate headquarters are located in Birmingham, Michigan with additional office facilities in Florida, Pennsylvania, and Tennessee. Public Debt Offering In September and October of 2018, the Company completed a public debt offering of $25.3 million of senior unsecured notes. Refer to Note 7 ~ Debt for further details. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes the amounts included in the consolidated financial statements reflect management's best estimates and assumptions, actual results may differ from these estimates. Cash and Short-term Investments Cash consists of cash deposits in banks, generally in operating accounts. Short-term investments, consisting of money-market funds, are classified as investments in the consolidated balance sheets as they relate principally to the Company’s investment activities. The Company maintains its cash deposits in major banks and invests short-term funds in institutional money-market funds and short-term financial instruments. These securities typically mature within three months or less. Investment Securities Debt securities are classified as available-for-sale and reported at fair value. The Company determines the fair value using the market approach, which uses quoted prices or other relevant data based on market transactions involving identical or comparable assets. The Company purchases the available-for-sale debt securities with the expectation that they will be held to maturity, however the Company may sell them if market conditions or credit‑related risk warrant earlier sales. The Company does not have any securities classified as held-to-maturity or trading. The change in unrealized gain and loss on debt securities is recorded as a component of accumulated other comprehensive income (loss), net of the related deferred tax effect, until realized. The debt securities portfolio includes mortgage-backed and asset-backed securities. The Company recognizes income from these securities using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from anticipated prepayments, the estimated economic life is recalculated and the remaining unamortized premium or discount is amortized prospectively over the remaining economic life. Premiums and discounts on mortgage-backed and asset-backed securities are amortized or accreted over the life of the related available‑for‑sale security as an adjustment to yield using the effective interest method. Such amortization and accretion is included in interest income in the consolidated statements of operations. Dividend and interest income are recognized when earned. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis and included in earnings on the trade date. Equity securities that do not result in consolidation and are not accounted for under the equity method are measured at fair value and any changes in fair value are recognized in net income in the Consolidated Statements of Operations. Mutual fund and similar investments are measured at their net asset value, which approximates fair value. Any changes in the net asset value are recognized in net income in the Consolidated Statements of Operations. The Company carries other equity investments that do not have a readily determinable fair value at cost, less impairment and adjusted for observable price changes under the measurement alternative provided under GAAP. We review these investments for impairment during each reporting period. These investments are a component of Other Assets in the Consolidated Balance Sheets. Other-than-Temporary Impairments The Company reviews its impaired securities for possible other-than-temporary impairment ("OTTI") 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. The Company considers the following factors in performing its review: (i) the amount by which the security’s fair value is less than its cost, (ii) length of time the security has been impaired, (iii) whether management has the intent to sell the security, (iv) if it is more likely than not that management will be required to sell the security before recovery of its amortized cost basis, (v) whether the impairment is due to an issuer‑specific event, credit issues or change in market interest rates, (vi) the security’s credit rating and any recent downgrades or (vii) stress testing of expected cash flows under different scenarios. If the Company determines that a security has experienced an OTTI, the impairment is recognized as a realized investment loss in the consolidated statements of operations. For each impaired security, the Company determines if: (i) it does not intend to sell the security and (ii) it is not "more likely than not" that the Company will be required to sell the security before recovery of its amortized cost basis. If the Company cannot assert these conditions, an OTTI loss is recorded through the consolidated statements of operations in the current period. For all other impaired securities, the Company will assess whether the net present value of the cash flows expected to be collected from the security is less than its amortized cost basis. Such a shortfall in cash flows is referred to as a “credit loss.” For any such security, the Company separates the impairment loss into: (i) the credit loss and (ii) the non-credit loss, which is the amount related to all other factors such as interest rate changes, fluctuations in exchange rates and market conditions. The credit loss charge is recorded to the current period statements of operations and the non-credit loss is recorded to accumulated other comprehensive income (loss), within shareholders’ equity, on an after-tax basis. A security’s cost basis is permanently reduced by the amount of a credit loss. Income is accreted over the remaining life of a security based on the interest rate necessary to discount the expected future cash flows to the new basis. If the security is non-income producing, any cash proceeds are applied as a reduction of principal when received. Recognition of Premium Revenues All of the property and casualty policies written by our insurance companies are considered short-duration contracts. These policy premiums are earned on a daily pro-rata basis, net of reinsurance, over the term of the policy, which are six or twelve months in duration. The portion of premiums written that relate to the unexpired terms of policies in force are deferred and reported as unearned premium at the balance sheet date. Reinsurance Reinsurance premiums, commissions, losses and loss adjustment expenses ("LAE") on reinsured business are accounted for on a basis consistent with that used in accounting for the original policies issued and the terms of the reinsurance contracts. The amounts reported as reinsurance recoverables include amounts billed to reinsurers on losses and LAE paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities that have not yet been paid. Reinsurance recoverables on unpaid losses and LAE are estimated based upon assumptions consistent with those used in establishing the gross liabilities as they are applied to the underlying reinsured contracts. The Company records an allowance for uncollectible reinsurance recoverables based on an assessment of the reinsurer’s creditworthiness and collectability of the recorded amounts. Management believes an allowance for uncollectible recoverable from its reinsurers was not necessary for the periods presented. The Company receives ceding commissions in connection with certain ceded reinsurance. The ceding commissions are recorded as a reduction of operating expenses. In 2017, the Company entered into an adverse development cover reinsurance agreement (the "ADC"). The ADC is a retroactive reinsurance contract. If the cumulative claim and allocated claim adjustment expenses ceded under the ADC exceed the consideration paid, the resulting gain from such excess is deferred and amortized into earnings in future periods using the interest method. In any period in which there is a gain position and a revised estimate of claim and allocated claim adjustment expenses, a portion of the deferred gain is cumulatively recognized in earnings as if the revised estimate was available at the inception date of the ADC. Deferred Policy Acquisition Costs Costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business is deferred. These deferred costs consist of commissions paid to agents, premium taxes, and underwriting costs, including compensation and payroll related benefits. Proceeds from reinsurance transactions that represent recovery of acquisition costs reduce applicable unamortized acquisition costs in such a manner that net acquisition costs are capitalized and charged to expense. Amortization of such policy acquisition costs is charged to expense in proportion to premium earned over the estimated policy term. To the extent that unearned premiums on existing policies are not adequate to cover the sum of expected losses and LAE, unamortized acquisition costs and policy maintenance costs, unamortized deferred policy acquisition costs are charged to expense to the extent required to eliminate the premium deficiency. If the premium deficiency is greater than the unamortized policy acquisition costs, a liability is recorded for any such deficiency. The Company considers anticipated investment income in determining whether a premium deficiency exists. Management performs this evaluation at each insurance product line level. Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and LAE in the consolidated balance sheets represents the Company’s estimate of the amount it expects to pay for the ultimate cost of all losses and LAE incurred that remain unpaid at the balance sheet date. The liability is recorded on an undiscounted basis, except for the liability for unpaid losses and LAE assumed related to acquired companies which are initially recorded at fair value. The process of estimating the liability for unpaid losses and LAE is a complex process that requires a high degree of judgment. The liability for unpaid losses and LAE represent the accumulation of individual case estimates for reported losses and LAE, and actuarially determined estimates for incurred but not reported losses and LAE. The liability for unpaid losses and LAE is intended to include the ultimate net cost of all losses and LAE incurred but unpaid as of the balance sheet date. The liability is stated net of anticipated deductibles, salvage and subrogation, and gross of reinsurance ceded. The estimate of the unpaid losses and LAE liability is continually reviewed and updated. Although management believes the liability for losses and LAE is reasonable, the ultimate liability may be more or less than the current estimate. The estimation of ultimate liability for unpaid losses and LAE is a complex, imprecise and inherently uncertain process, and therefore involves a considerable degree of judgment and expertise. The Company utilizes various actuarially‑accepted reserving methodologies in deriving the continuum of expected outcomes and ultimately determining its estimated liability amount. These methodologies utilize various inputs, including but not limited to written and earned premiums, paid and reported losses and LAE, expected initial loss and LAE ratio, which is the ratio of incurred losses and LAE to earned premiums, and expected claim reporting and payout patterns (including company-specific and industry data). The liability for unpaid loss and LAE does not represent an exact measurement of liability, but is an estimate that is not directly or precisely quantifiable, particularly on a prospective basis, and is subject to a significant degree of variability over time. In addition, the establishment of the liability for unpaid losses and LAE makes no provision for the broadening of coverage by legislative action or judicial interpretation or for the extraordinary future emergence of new types of losses not sufficiently represented in the Company’s historical experience or which cannot yet be quantified. As a result, an integral component of estimating the liability for unpaid losses and LAE is the use of informed subjective estimates and judgments about the ultimate exposure to unpaid losses and LAE. The effects of changes in the estimated liability are included in the results of operations in the period in which the estimates are revised. The Company allocates the applicable portion of the unpaid losses and LAE to amounts recoverable from reinsurers under reinsurance contracts and reports those amounts separately as assets on the consolidated balance sheets. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax-credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized to the extent that there is sufficient positive evidence, as allowed under the Accounting Standard Codification ("ASC") 740, Income Taxes, to support the recoverability of those deferred tax assets. The Company establishes a valuation allowance to the extent that there is insufficient evidence to support the recoverability of the deferred tax asset under ASC 740. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax‑planning strategies, and results of recent operations. If it is determined that the deferred tax assets would be realizable in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. As of December 31, 2018 and 2017 , the Company did not have any unrecognized tax benefits and had no accrued interest or penalties related to uncertain tax positions. Other Income Other income consists primarily of fees charged to policyholders by the Company for services outside of the premium charge, such as installment billings or policy issuance costs. Commission income is also received by the Company’s insurance agencies for writing policies for third party insurance companies. The Company recognizes commission income on the later of the effective date of the policy, the date when the premium can be reasonably established, or the date when substantially all services related to the insurance placement have been rendered. Operating Expenses Operating expenses consist primarily of other underwriting, compensation and benefits, information technology, facility and other administrative expenses. Recently Issued Accounting Guidance Effective January 1, 2018, the Company adopted FASB Accounting Standards Update ("ASU") No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities . As a result of adoption of this ASU, equity instruments that do not result in consolidation and are not accounted for under the equity method are measured at fair value and any changes in fair value are recognized in net income. In addition, the Company's equity securities that do not have a readily determinable fair value are recorded at cost, less impairment and adjusted for observable price changes under the measurement alternative provided under GAAP. Previously, the Company’s equity securities were classified as available-for-sale and changes in fair value were recorded in other comprehensive income. Upon adoption of this ASU, cumulative net unrealized gains on equity securities of $1.1 million , net of deferred income taxes of $0.5 million , were reclassified from accumulated other comprehensive income into accumulated deficit. Prior periods have not been recast to conform to the current presentation. See Note 2 ~ Investments for details regarding the change in net unrealized gains on equity securities included in net income for the year ended December 31, 2018 . Effective January 1, 2018, the Company early adopted ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The ASU provides an option to reclassify tax effects remaining in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (TCJA) to retained earnings. Upon enactment of the TCJA, the U.S. corporate tax rate was reduced from 35% to 21% and the Company's U.S. deferred tax balances were remeasured to the lower enacted U.S. corporate tax rate. GAAP requires the effects of changes in tax rates and laws on deferred tax balances to be recorded as a component of income tax expense in the period of enactment, even if the assets and liabilities relate to items of accumulated other comprehensive income. As a result of adopting the ASU, the Company reclassified $77,000 of previously recognized deferred taxes from accumulated other comprehensive income into accumulated deficit as of January 1, 2018. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which addresses the financial reporting of leasing transactions. This update will require the recognition of a right-of-use asset and a corresponding lease liability, discounted to the present value, for all leases that extend beyond 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the consolidated statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the consolidated statement of operations and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the consolidated statement of cash flows. This ASU is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. We do not have any financing leases. If the standard were adopted as of December 31, 2018 , approximately $4.3 million of future lease liabilities would be added to our balance sheet with a corresponding right-of-use asset. We have approximately $1.2 million of operating lease expenses as of December 31, 2018 , and do not expect that there would be a materially different expense upon adoption. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), which amends the current methodology and timing for recognizing credit losses. This amendment will replace the current GAAP "incurred loss" methodology for credit losses with a methodology based on expected credit losses. The new guidance will also require expanded consideration of a broader range of reasonable and increased supportable information for the credit loss estimates. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Management is currently evaluating the impact of the guidance. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments, or ASU 2016-15. This update addresses the presentation and classification on the statement of cash flows for eight specific items, with the objective of reducing existing diversity in practice in how certain cash receipts and cash payments are presented and classified. The Company adopted ASU 2016-15 as of January 1, 2018. The adoption of the new guidance did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) , which modifies the disclosure requirements for assets and liabilities measured at fair value. The requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements have all been removed. However, the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period must be disclosed along with the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements (or other quantitative information if it is more reasonable). Finally, for investments measured at net asset value, the requirements have been modified so that the timing of liquidation and the date when restrictions from redemption might lapse are only disclosed if the investee has communicated the timing to the entity or announced the timing publicly. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted upon the issuance of this update. Management is currently evaluating the impact of the guidance. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The cost or amortized cost, gross unrealized gain or loss, and estimated fair value of the investments in securities classified as available-for-sale at December 31, 2018 and 2017 were as follows (dollars in thousands): December 31, 2018 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt securities: U.S. Government $ 15,360 $ 3 $ (178 ) $ 15,185 State and local government 15,847 115 (174 ) 15,788 Corporate debt 30,423 74 (651 ) 29,846 Asset-backed securities 24,468 24 (208 ) 24,284 Mortgage-backed securities 30,377 18 (1,155 ) 29,240 Commercial mortgage-backed securities 4,025 5 (77 ) 3,953 Collateralized mortgage obligations 2,178 9 (43 ) 2,144 Total debt securities available for sale $ 122,678 $ 248 $ (2,486 ) $ 120,440 December 31, 2017 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt securities: U.S. Government $ 17,179 $ 10 $ (99 ) $ 17,090 State and local government 17,302 255 (54 ) 17,503 Corporate debt 38,947 170 (209 ) 38,908 Asset-backed securities 23,539 36 (35 ) 23,540 Mortgage-backed securities 33,942 38 (522 ) 33,458 Commercial mortgage-backed securities 3,532 3 (44 ) 3,491 Collateralized mortgage obligations 2,563 19 (36 ) 2,546 Total debt securities available for sale 137,004 531 (999 ) 136,536 Equity Securities (1) 8,629 1,240 (182 ) 9,687 Total securities available for sale $ 145,633 $ 1,771 $ (1,181 ) $ 146,223 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale. Prior periods have not been recast to conform to the current presentation. Refer to Note 1 ~ Summary of Significant Accounting Policies for further details. 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 (dollars in thousands): December 31, 2018 Less than 12 months Greater than 12 months Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt securities: U.S. Government 1 $ 2,470 $ (24 ) 16 $ 11,725 $ (154 ) 17 $ 14,195 $ (178 ) State and local government 21 4,935 (40 ) 16 4,273 (134 ) 37 9,208 (174 ) Corporate debt 36 12,096 (140 ) 25 11,993 (511 ) 61 24,089 (651 ) Asset-backed securities 25 17,743 (148 ) 9 4,166 (60 ) 34 21,909 (208 ) Mortgage-backed securities 20 5,474 (138 ) 30 21,715 (1,017 ) 50 27,189 (1,155 ) Commercial mortgage-backed securities 4 1,082 (12 ) 3 2,632 (65 ) 7 3,714 (77 ) Collateralized mortgage obligations 4 116 (1 ) 6 1,587 (42 ) 10 1,703 (43 ) Total debt securities available for sale 111 $ 43,916 $ (503 ) 105 $ 58,091 $ (1,983 ) 216 $ 102,007 $ (2,486 ) December 31, 2017 Less than 12 months Greater than 12 months Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt securities: U.S. Government 12 $ 11,555 $ (64 ) 7 $ 2,207 $ (35 ) 19 $ 13,762 $ (99 ) State and local government 10 3,511 (20 ) 7 1,424 (34 ) 17 4,935 (54 ) Corporate debt 38 15,236 (46 ) 10 6,555 (163 ) 48 21,791 (209 ) Asset-backed securities 20 13,948 (29 ) 3 915 (6 ) 23 14,863 (35 ) Mortgage-backed securities 6 4,935 (19 ) 26 24,939 (503 ) 32 29,874 (522 ) Commercial mortgage-backed securities 3 2,026 (12 ) 2 722 (32 ) 5 2,748 (44 ) Collateralized mortgage obligations 8 1,870 (36 ) — — — 8 1,870 (36 ) Total debt securities available for sale 97 53,081 (226 ) 55 36,762 (773 ) 152 89,843 (999 ) Equity Securities (1) 13 436 (75 ) 4 266 (107 ) 17 702 (182 ) Total securities 110 $ 53,517 $ (301 ) 59 $ 37,028 $ (880 ) 169 $ 90,545 $ (1,181 ) (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale. Prior periods have not been recast to conform to the current presentation. Refer to Note 1 ~ Summary of Significant Accounting Policies for further details. The Company analyzed its investment portfolio in accordance with its OTTI review procedures and determined the Company did not need to record a credit-related OTTI loss, nor recognize a non credit-related OTTI loss in other comprehensive income for the years ended December 31, 2018 , 2017 , and 2016. The Company’s sources of net investment income are as follows (dollars in thousands): December 31, 2018 2017 2016 Debt securities $ 3,419 $ 2,757 $ 2,370 Equity securities 129 124 98 Cash and short-term investments 85 122 21 Total investment income 3,633 3,003 2,489 Investment expenses (297 ) (275 ) (316 ) Net investment income $ 3,336 $ 2,728 $ 2,173 The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale debt securities and equity securities, as follows (dollars in thousands): December 31, 2018 2017 2016 Debt securities: Gross realized gains $ 54 $ 32 $ 587 Gross realized losses (256 ) (8 ) (24 ) Total debt securities (202 ) 24 563 Equity securities: Gross realized gains 337 76 1,198 Gross realized losses (74 ) (30 ) (396 ) Total equity securities 263 46 802 Total net investment realized gains $ 61 $ 70 $ 1,365 Proceeds from the sales of available-for-sale securities were $14.6 million , $1.8 million and $30.8 million for the year s ended December 31, 2018 , 2017 and 2016 , respectively. Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in fair value of equity securities are now recognized in net income. The change in fair value of equity securities included in net income as of December 31, 2018 was a $121,000 gain. Prior periods have not been recast for the adoption of this guidance. The Company carries other equity investments that do not have a readily determinable fair value at cost, less impairment or observable changes in price. We review these investments for impairment during each reporting period. There was no impairment or observable changes in price recorded during 2018 related to the Company's equity securities without readily determinable fair value. These investments are a component of Other Assets in the Consolidated Balance Sheets . The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at December 31, 2018 . 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 (dollars in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 9,206 $ 9,153 Due after one year through five years 33,028 32,667 Due after five years through ten years 11,568 11,279 Due after ten years 7,828 7,720 Securities with contractual maturities 61,630 60,819 Asset-backed securities 24,468 24,284 Mortgage-backed securities 30,377 29,240 Commercial mortgage-backed securities 4,025 3,953 Collateralized mortgage obligations 2,178 2,144 Total debt securities $ 122,678 $ 120,440 At December 31, 2018 and 2017 , the Insurance Companies Subsidiaries had an aggregate of $8.5 million and $8.2 million , respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At December 31, 2018 and 2017 , the Company had $45.4 million and $18.4 million held in trust accounts to meet collateral requirements with other third-party insurers, relating to various fronting arrangements. 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. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s financial instruments include assets carried at fair value, as well as debt carried at face value, net of unamortized debt issuance costs, but disclosed at fair value in this note. 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 from sources independent of the reporting entity (“observable inputs”) and the lowest priority to prices determined by the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (“unobservable inputs”). The fair value hierarchy is as follows: Level 1 —Valuations that are based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 —Valuations that are based on observable inputs (other than Level 1 prices) such as quoted prices for similar assets or liabilities at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 —Unobservable inputs that are supported by little or no market activity. The unobservable inputs represent the Company’s best assumption of how market participants would price the assets or liabilities. NAV —The fair values of investment company limited partnership investments are based on the capital account balances reported by the investment funds subject to their management review and adjustment. These capital account balances reflect the fair value of the investment funds. The following tables present the Company’s assets and liabilities measured at fair value, classified by the valuation hierarchy as of December 31, 2018 and 2017 (dollars in thousands): December 31, 2018 Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt Securities: U.S. Government $ 15,185 $ — $ 15,185 $ — State and local government 15,788 — 15,788 — Corporate debt 29,846 — 29,846 — Asset-backed securities 24,284 — 24,284 — Mortgage-backed securities 29,240 — 29,240 — Commercial mortgage-backed securities 3,953 — 3,953 — Collateralized mortgage obligations 2,144 — 2,144 — Total debt securities 120,440 — 120,440 — Equity Securities 6,587 6,323 264 — Short-term investments 8,925 8,925 — Total marketable investments measured at fair value $ 135,952 $ 15,248 $ 120,704 $ — Investments measured at NAV: Investment in limited partnership $ 4,150 Total investments measured at NAV $ 4,150 Total assets measured at fair value $ 140,102 Liabilities: Senior Unsecured Notes * $ 21,252 $ — $ 21,252 $ — Subordinated Notes * 10,640 — — 10,640 Total Liabilities measured at fair value $ 31,892 $ — $ 21,252 $ 10,640 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheet December 31, 2017 Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt Securities: U.S. Government $ 17,090 $ — $ 17,090 $ — State and local government 17,503 — 17,503 — Corporate debt 38,908 — 38,908 — Asset-backed securities 23,540 — 23,540 — Mortgage-backed securities 33,458 — 33,458 — Commercial mortgage-backed securities 3,491 — 3,491 — Collateralized mortgage-backed securities 2,546 — 2,546 — Total debt securities 136,536 — 136,536 — Equity Securities 5,627 5,381 246 — Short-term investments 11,427 8,429 2,998 — Total investments measured at fair value $ 153,590 $ 13,810 $ 139,780 $ — Investments measured at NAV: Investment in limited partnership $ 4,060 Total investments measured at NAV $ 4,060 Total assets measured at fair value $ 157,650 Liabilities: Subordinated Notes * $ 29,888 $ — $ — $ 29,888 Total Liabilities measured at fair value $ 29,888 $ — $ — $ 29,888 * Carried at face value of debt net of unamortized debt issuance costs on the 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. The fair value measurements that were based on Level 1 inputs comprise 10.8% of the fair value of the total investment portfolio as of December 31, 2018 . Level 2 investments include debt 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. The fair value of securities included in the Level 2 category were based on the market values obtained from a third party pricing service that were evaluated using pricing models that vary by asset class and incorporate available trade, bid and other observable market information. The third party pricing service monitors market indicators, as well as industry and economic events. The fair value measurements that were based on Level 2 inputs comprise 86.1% of the fair value of the total investment portfolio as of December 31, 2018 . 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, such as (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. As of December 31, 2018 , Level 3 liabilities are entirely comprised of the Company's subordinated debt. In determining the fair value of the subordinated debt outstanding at December 31, 2018 , the security attributes (issue date, maturity, coupon, calls, etc.) and market rates on September 24, 2018 (the date of the restated and amended agreement which was repriced at that time) were fed into a valuation model. A lognormal trinomial interest rate lattice was created within the model to compute the option adjusted spread (“OAS”) which is the amount, in basis points, of interest rate required to be paid under the debt agreement over the risk-free U.S. Treasury rates. The OAS was then fed back into the model along with the December 31, 2018 , U.S. Treasury rates. A new lattice was generated and the fair value was computed from the OAS. There were no changes in assumptions of credit risk from the issuance date. As of December 31, 2017 , Level 3 liabilities are entirely comprised of the Company's subordinated debt. In determining the fair value of the subordinated debt outstanding at December 31, 2017, the security attributes (issue date, maturity, coupon, calls, etc.) and market rates on September 29, 2017 (the date of issuance) were fed into a valuation model. A lognormal trinomial interest rate lattice was created within the model to compute the option adjusted spread (“OAS”) which is the amount, in basis points, of interest rate required to be paid under the debt agreement over the risk-free U.S. Treasury rates. The OAS was then fed back into the model along with the December 31, 2017, U.S. Treasury rates. A new lattice was generated and the fair value was computed from the OAS. There were no changes in assumptions of credit risk from the issuance date. The Company’s policy on recognizing transfers between hierarchy levels is applied at the end of each reporting period. There were no transfers between Levels 1, 2 and 3 for the years ended December 31, 2018 and 2017 , respectively. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | 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 and there were no premium deficiencies for the years December 31, 2018 , 2017 and 2016 . The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands): December 31, 2018 2017 2016 Balance at beginning of period $ 12,781 $ 13,290 $ 12,102 Deferred policy acquisition costs 24,764 25,736 26,468 Amortization of policy acquisition costs (25,534 ) (26,245 ) (25,280 ) Net change (770 ) (509 ) 1,188 Balance at end of period $ 12,011 $ 12,781 $ 13,290 |
Unpaid Losses and Loss Adjustme
Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Loss Reserves [Abstract] | |
Unpaid Losses and Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses The Company establishes reserves for unpaid losses and LAE which represent the estimated ultimate cost of all losses incurred that were both reported and unreported (i.e., incurred but not yet reported losses, or “IBNR”) and LAE incurred that remain unpaid at the balance sheet date. The Company’s reserving process takes into account known facts and interpretations of circumstances and factors including the Company’s experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, changes in law and regulation, judicial decisions, and economic conditions. In the normal course of business, the Company may also supplement its claims processes by utilizing third party adjusters, appraisers, engineers, inspectors, and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process. Reserves are estimates of unpaid portions of losses that have occurred, including IBNR losses, therefore the establishment of appropriate reserves, is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. The highest degree of uncertainty is associated with reserves for losses incurred in the current reporting period as it contains the greatest proportion of losses that have not been reported or settled. The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported in the results of operations in the period such changes are determined to be needed and recorded. Management believes that the reserve for losses and LAE, net of reinsurance recoverables, is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the consolidated financial statements based on available facts and in accordance with applicable laws and regulations. The table below provides the changes in the reserves for losses and LAE, net of recoverables from reinsurers, for the periods indicated (dollars in thousands): 2018 2017 2016 Gross reserves - beginning of period $ 87,896 $ 54,651 $ 35,422 Less: reinsurance recoverables on unpaid losses 20,066 6,658 5,405 Net reserves - beginning of period 67,830 47,993 30,017 Add: incurred losses and loss adjustment expenses, net of reinsurance Current period 53,482 64,458 48,782 Prior period 9,033 9,459 10,221 Total net incurred losses and loss adjustment expenses 62,515 73,917 59,003 Deduct: loss and loss adjustment expense payments, net of reinsurance Current period 17,025 24,547 20,828 Prior period 44,521 29,533 20,199 Total net loss and loss adjustment expense payments 61,546 54,080 41,027 Net reserves - end of period 68,799 67,830 47,993 Plus: reinsurance recoverables on unpaid losses 29,685 20,066 6,658 Less: deferred gain on ADC (5,677 ) — — Gross reserves - end of period $ 92,807 $ 87,896 $ 54,651 There was $9.0 million , $9.5 million , and $10.2 million of adverse development on prior accident year reserves in 2018 , 2017 and 2016 , respectively. There were no significant changes in the key methods utilized in the analysis and calculations of the Company’s reserves during 2018 , 2017 or 2016 . In 2018, the adverse development consisted of $6.2 million from commercial lines and $2.8 million from personal lines. Of the $6.2 million of adverse development in commercial lines, $4.2 million was related to the commercial liability business. Of the $2.8 million of adverse development in personal lines, $2.0 million and $727,000 were related to the Florida homeowners and Texas homeowners business, respectively. This included $960,000 of adverse development related to hurricanes Harvey and Irma. In 2017, the adverse development consisted of $7.2 million from commercial lines and $2.3 million from personal lines and was mostly related to the 2016 and 2015 accident years. This development consisted of $5.1 million from the commercial liability business, $1.6 million from commercial property, $1.7 million from Florida homeowners and $0.5 million from commercial auto business. In 2016, there was $10.2 million of adverse development, which consisted of $4.1 million in the commercial liability business, $2.7 million in the commercial auto business, $2.7 million in the wind-exposed homeowners' line and $0.8 million in the run-off personal auto business. On September 28, 2017, the Company entered into an adverse development cover reinsurance agreement to cover loss development of up to $17.5 million in excess of stated reserves as of June 30, 2017, for accident years 2005 through 2016. The agreement attaches when net losses exceed $1.4 million of the $36.6 million carried reserves at June 30, 2017, and extends to $19.5 million in coverage up to $57.5 million . The company retains a 10% co-participation for any development in excess of the retention. In 2018, the Company ceded $10.3 million of losses under the ADC. Of the $10.3 million , $4.6 million was recognized as a benefit, reducing losses and LAE expense, and $5.7 million was deferred (recorded as a liability on the balance sheet) and will be amortized into income as a benefit in future periods. As of December 31, 2018, the Company has ceded to the limit of the ADC. In 2017, $7.2 million of adverse development was ceded to the ADC. Discussion of adverse development is net of benefits recognized under the ADC in that period. Incurred losses during 2018 also included $583,000 in net catastrophe losses in the current calendar year related to Hurricane Harvey in Texas. Of the $583,000 in net catastrophe losses, personal lines accounted for $960,000 of the losses while commercial lines saw $377,000 of favorable development in calendar year 2018. Losses from Hurricane Irma were in excess of the Company’s $4.0 million retention on its catastrophe reinsurance treaty which resulted in $10.0 million of losses being ceded to the treaty during 2018. This also resulted in a $1.0 million charge for catastrophe reinstatement premiums which was recorded as ceded premiums in 2018. In 2017, incurred losses included $5.4 million in net catastrophe losses related to Hurricane Harvey in Texas and Hurricane Irma in Florida. Approximately 34% of the losses were generated in Commercial Lines and 66% in Personal lines. Losses from Hurricane Irma were in excess of the Company’s $4.0 million retention on its catastrophe reinsurance treaty which resulted in $5.2 million of losses being ceded to the treaty as of December 31, 2017. This also resulted in a $806,000 charge for catastrophe reinstatement premiums which was recorded as ceded premiums in 2017. Loss Development Tables The following tables represent cumulative incurred loss and allocated loss adjustment expenses ("ALAE"), net of reinsurance, by accident year and cumulative paid loss and ALAE, net of reinsurance, by accident year, for the years ended December 31, 2009 to 2018, as well as total IBNR and the cumulative number of reported claims for the year ended December 31, 2018, by reportable segment and accident year (dollars in thousands). Commercial Lines Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims Accident Year 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2018 2018 2009 $ 11,400 $ 12,066 $ 10,312 $ 8,943 $ 8,232 $ 8,403 $ 8,359 $ 8,414 $ 8,442 $ 8,441 $ — 877 2010 7,346 8,568 7,255 6,357 6,170 6,074 6,207 6,292 6,312 — 771 2011 6,753 5,758 5,326 5,049 4,932 4,903 4,935 4,933 — 590 2012 7,745 6,421 6,288 6,384 6,253 6,190 6,209 — 560 2013 10,018 9,435 9,893 10,237 11,252 11,218 50 605 2014 19,709 19,907 22,711 26,367 28,145 282 1,749 2015 22,442 26,633 31,861 34,478 612 2,346 2016 32,396 34,935 40,440 1,822 3,526 2017 44,251 44,495 9,145 5,686 2018 42,624 21,199 5,572 Total $ 227,295 $ 33,110 Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2009 $ 4,436 $ 5,942 $ 6,410 $ 7,233 $ 7,800 $ 7,867 $ 7,933 $ 8,321 $ 8,441 $ 8,441 2010 3,066 4,488 5,219 5,910 6,040 6,065 6,166 6,258 6,312 2011 2,645 3,534 3,964 4,449 4,641 4,744 4,872 4,903 2012 2,325 3,703 4,696 5,558 5,994 6,065 6,209 2013 3,979 6,211 7,643 8,622 10,147 10,650 2014 8,715 13,977 17,458 22,446 25,609 2015 10,470 17,817 22,549 30,475 2016 10,255 19,135 27,785 2017 12,448 23,020 2018 10,375 Total $ 153,779 Unpaid losses and ALAE - years 2009 through 2018 $ 73,516 Unpaid losses and ALAE - prior to 2009 (1)* 45 Unpaid ADC (16,849 ) Unpaid losses and ALAE, net of reinsurance $ 56,712 * Presented as unaudited required supplementary information. (1) The Company's formation was in 2009, however, as a result of the acquisition of WPIC in 2010, incurred losses prior to the 2009 accident year remain outstanding. Personal Lines Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims Accident Year For the years ended December 31, 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2018 2018 2009 $ 667 $ 639 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ — 65 2010 320 188 184 184 184 184 184 184 184 — 77 2011 1,678 1,758 1,981 2,031 2,030 2,045 2,027 2,024 — 717 2012 9,960 11,690 11,740 12,159 12,390 12,365 12,357 — 3,338 2013 18,034 17,996 18,925 19,138 19,167 19,202 4 5,195 2014 17,951 17,471 17,735 17,880 17,929 24 3,700 2015 10,877 13,445 14,721 15,285 12 2,128 2016 11,619 13,418 14,949 — 1,810 2017 14,058 13,550 48 2,769 2018 5,893 584 741 Total $ 102,007 $ 672 Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2009 $ 537 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 2010 151 174 184 184 184 184 184 184 184 2011 787 1,292 1,633 1,859 1,983 2,021 2,024 2,024 2012 5,665 9,251 10,844 11,777 12,202 12,306 12,329 2013 9,955 15,883 18,052 18,600 19,014 19,174 2014 12,819 16,515 17,260 17,746 17,855 2015 7,771 11,873 13,844 15,159 2016 7,119 11,238 14,442 2017 8,320 12,944 2018 4,296 Total $ 99,041 Unpaid losses and ALAE - years 2009 through 2018 $ 2,966 Unpaid losses and ALAE - prior to 2009 (1)* — Unpaid ADC (701 ) Unpaid losses and ALAE, net of reinsurance $ 2,265 * Presented as unaudited required supplementary information. Total Lines Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims Accident Year For the years ended December 31, 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2018 2018 2009 $12,066 $12,705 $10,946 $9,577 $8,866 $9,037 $8,993 $9,048 $9,076 $9,075 — 942 2010 7,666 8,756 7,439 6,541 6,354 6,258 6,391 6,476 6,496 — 848 2011 8,431 7,517 7,307 7,081 6,963 6,949 6,964 6,957 — 1,307 2012 17,705 18,111 18,028 18,544 18,642 18,554 18,566 — 3,898 2013 28,052 27,431 28,817 29,375 30,419 30,420 54 5,800 2014 37,660 37,378 40,446 44,247 46,074 306 5,449 2015 33,319 40,078 46,581 49,763 624 4,474 2016 44,015 48,353 55,389 1,822 5,336 2017 58,309 58,045 9,193 8,455 2018 48,517 21,783 6,313 Total $329,302 $ 33,782 Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2009 $4,973 $6,576 $7,043 $7,867 $8,434 $8,501 $8,567 $8,955 $9,075 $9,075 2010 3,217 4,662 5,403 6,094 6,223 6,248 6,350 6,442 6,496 2011 3,432 4,826 5,597 6,308 6,624 6,766 6,897 6,927 2012 7,990 12,954 15,540 17,335 18,195 18,369 18,538 2013 13,934 22,094 25,695 27,223 29,162 29,824 2014 21,534 30,492 34,718 40,192 43,464 2015 18,241 29,690 36,393 45,634 2016 17,374 30,373 42,227 2017 20,768 35,964 2018 14,671 Total $ 252,820 Unpaid losses and ALAE - years 2009 through 2018 $ 76,482 Unpaid losses and ALAE - prior to 2009 (1)* 45 Unpaid ADC (17,550 ) Unpaid losses and ALAE, net of reinsurance $58,977 * Presented as unaudited required supplementary information. The following table reconciles the claim development information to the consolidated balance sheet for the year ended December 31, 2018 , by reportable segment (dollars in thousands). December 31, 2018 Net outstanding liabilities for unpaid claims and ALAE Commercial Lines $ 56,712 Personal Lines 2,265 Liabilities for unpaid claims and ALAE, net of reinsurance 58,977 Reinsurance recoverable on unpaid claims Commercial Lines 26,919 Personal Lines 2,766 Total reinsurance recoverable on unpaid claims 29,685 ULAE Expense 4,145 Total gross liability for unpaid claims and LAE $ 92,807 Loss Duration Disclosure (unaudited) The following table represents the average annual percentage payout of incurred losses by age, net of reinsurance, for each reportable segment. Average annual percentage payout of incurred losses by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10+ Commercial Lines 30.5 % 24.0 % 19.4 % 13.5 % 6.7 % 3.0 % 1.5 % 0.8 % 0.5 % 0.1 % Personal Lines 64.2 % 21.3 % 7.7 % 3.9 % 2.5 % 0.4 % — % — % — % — % Total Lines 32.2 % 23.9 % 18.8 % 13.0 % 6.4 % 2.9 % 1.5 % 0.8 % 0.5 % 0.1 % |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance In the normal course of business, the Company participates in reinsurance agreements in order to limit losses that may arise from catastrophes or other individually severe events. The Company primarily ceded all specific commercial liability risks in excess of $500,000 in 2018 , 2017 , and 2016 , and ceded all specific commercial property risks in excess of $300,000 in 2018, and $500,000 in 2017 and 2016. The Company ceded homeowners specific risks in excess of $300,000 in 2018, 2017 and 2016. A "treaty" is a reinsurance agreement in which coverage is provided for a class of risks and does not require policy by policy underwriting of the reinsurer. "Facultative" reinsurance is where a reinsurer negotiates an individual reinsurance agreement for every policy it will reinsure on a policy by policy basis. Reinsurance does not discharge the Company, as the direct insurer, from liability to its policyholders. 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. The Company's current reinsurance structure includes the following primary categories: Casualty Clash • The Company is party to a workers' compensation and casualty clash reinsurance treaty with limits up to $18.0 million in excess of a $2.0 million retention. Clash coverage is a type of reinsurance that provides additional coverage in the event that one casualty loss event results in two or more claims and recovery under the reinsurance treaties may otherwise be limited due to the amount, type or number of claims. Clash reinsurance further protects the balance sheet as it reduces the potential maximum loss on either a single risk or a large number of risks. Facultative • The Company has a facultative agreement with a large reinsurer for property risks with total insured values above the other reinsurance treaty limits. Property • Effective November 1, 2014, the Company entered into an excess of loss reinsurance treaty for personal property coverage with limits up to $2.7 million in excess of $300,000 , for homeowners' and dwelling fire business. This treaty remained in effect through 2018 . • Effective January 1, 2018, the Company entered into an excess of loss reinsurance treaty for commercial property coverage with limits up to $200,000 in excess of $300,000 . This treaty remained in effect through 2018. • Effective July 1, 2015, the Company entered into an excess of loss treaty for commercial property coverage with limits up to $2.0 million in excess of $2.0 million . This treaty remained in effect throughout 2018 . • At December 31, 2018 , the Company is covered for property catastrophe losses up to $96.0 million in excess of a $4.0 million retention for the first event. The treaty renews June 1, 2019 . Multiple Line • Effective January 1, 2015, the Company entered into an excess of loss multi-line treaty that covers commercial property and casualty losses up to $1.5 million in excess of a $500,000 retention. This treaty remained in effect through 2018 . Quota Share • The Company has commercial umbrella treaties for commercial lines business in the form of a 90% to 100% quota share. A quota share agreement is an agreement between an insurer and a reinsurer whereby the reinsurer pays an agreed-upon percentage of all losses the insurer sustains. In turn, the insurer compensates the reinsurer for this agreement in the form of a percentage of the premiums for the applicable lines covered and reinsurance period. • Effective December 31, 2014, the Company entered into a 25% quota share arrangement with a reinsurer for coverage net of the other reinsurance arrangements and within the Company's retention of $500,000 for commercial lines and $300,000 for homeowners lines. The Company terminated the agreement on August 1, 2015. The purpose of the quota share arrangement was to reduce the capital requirements necessary to support premium growth initiatives. The IPO provided sufficient capital to support growth initiatives, and the quota share was no longer deemed necessary. Adverse Development Cover • Effective September 28, 2017, the Company entered into an ADC to cover loss development of up to $17.5 million in excess of stated reserves as of June 30, 2017. The consideration for the ADC was $7.2 million , which resulted in a one-time charge to ceded premiums fully earned in the third quarter. The agreement provides up to $17.5 million of reinsurance for adverse net loss reserve development for accident years 2005 through 2016. The agreement attaches when net losses exceed $1.4 million of the $36.6 million carried reserves at June 30, 2017, and extends to $19.5 million in coverage up to $57.5 million (inclusive of a 10% co-participation). As of December 31, 2018 , the Company has fully utilized the ADC. There is a 35% contingent recovery depending on the performance of the reserves over time. No contingent recovery is currently reflected in the financial statements. Equipment Breakdown, Employment Practice Liability, and Data Compromise and Identity Recovery • The Company has a 100% quota share arrangement with a reinsurer for a small number of equipment breakdown, employment practices liability, and data compromise coverages that are occasionally bundled with other products. The Company assumes written premiums under a few fronting arrangements. The fronting arrangements are with unaffiliated insurers who write on behalf of the Company in markets that require a higher A.M. Best rating than the Company’s rating, or where the policies are written in a state where the Company is not licensed or for other strategic reasons. Assumed premiums are comprised entirely of these arrangements other than where there are premiums assumed from Citizens Property and Casualty Corporation (“Citizens”). The Company assumed $31.1 million , $28.0 million, and $25.0 million of written premiums under the insurance fronting arrangements for the years ended December 31, 2018 , 2017 , and 2016 , respectively. The following table presents the effects of reinsurance and assumption transactions on written premiums, earned premiums and losses and LAE (dollars in thousands). The 2018 and 2017 ceded written and earned premium amounts include $1.0 million and $806,000 of reinsurance reinstatement costs relating to Hurricane Irma, respectively. Year Ended December 31, 2018 2017 2016 Written premiums: Direct $ 73,290 $ 86,251 $ 89,915 Assumed 31,078 28,033 25,008 Ceded (15,282 ) (23,044 ) (14,994 ) Net written premiums $ 89,086 $ 91,240 $ 99,929 Earned premiums: Direct $ 80,691 $ 87,656 $ 90,660 Assumed 28,497 27,081 14,053 Ceded (15,377 ) (23,008 ) (15,086 ) Net earned premiums $ 93,811 $ 91,729 $ 89,627 Loss and loss adjustment expenses: Direct $ 65,284 $ 79,035 $ 59,940 Assumed 20,671 19,524 11,955 Ceded (23,440 ) (24,642 ) (12,892 ) Net Loss and loss adjustment expenses $ 62,515 $ 73,917 $ 59,003 Percentage of Assumed Written Premiums to Net Written Premiums 34.9 % 30.7 % 25.0 % |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt At December 31, 2018 the Company's debt was comprised of three instruments: $ 25.3 million of publicly traded senior unsecured notes which were issued in September and October of 2018, a $10.0 million line of credit which commenced in June 2018, and $10.5 million of privately placed subordinated notes (the “Subordinated Notes”). At December 31, 2017, the only debt was $30.0 million of Subordinated Notes. A summary of the Company's outstanding debt is as follows (dollars in thousands): December 31, 2018 2017 Senior unsecured notes $ 24,018 $ — Subordinated notes 9,484 29,027 Line of credit — — Total $ 33,502 $ 29,027 On September 24, 2018, the Company issued $22.0 million of public senior unsecured notes (the "Notes"). Maturing on September 30, 2023, the Notes bear interest at a rate of 6.75% per annum, payable quarterly at the end of March, June, September and December. The Company may redeem the Notes, in whole or in part, at face value at any time after September 30, 2021. On October 12, 2018 the Company issued an additional $3.3 million of the Notes as the underwriters fully exercised their over-allotment option. The total aggregate principal amount of Notes sold by the Company in the public offering increased to $ 25.3 million . Proceeds from the Notes were primarily used to pay down $19.5 million of the Subordinated Notes. Effective September 24, 2018, the Company amended the terms of the Subordinated Notes to reduce the principle value to $10.5 million , change the maturity to September 30, 2038 and modify the call provisions. The amended Subordinated Notes bear interest at a rate of 7.5% per annum until September 30, 2023, and 12.5% thereafter, and allow for four quarterly interest payment deferrals. Interest is payable quarterly at the end of March, June, September and December. Beginning September 30, 2021, the Company may redeem the Subordinated Notes, in whole or in part, for a call premium of $1.1 million . The call premium escalates each quarter to ultimately $1.75 million on September 30, 2023, then steps up to $3.05 million on December 31, 2023, and increases quarterly at a 12.5% per annum rate thereafter. The debt covenants are consistent with the original Subordinated Note terms. The Company paid a $105,000 loan origination fee on the effective date. The company recorded the Subordinated Notes amendment as a debt modification and retained the unamortized debt issuance costs from the original loan which will be amortized over the 20 -year life of the amended Subordinated Notes in conjunction with the $105,000 origination fee. The carrying value of the Notes and Subordinated Notes are offset by $ 1.3 million and $ 1.0 million of debt issuance costs, respectively. The debt issuance costs will be amortized through interest expense over the life of the loans. The Subordinated Notes contain various restrictive covenants that relate to the Company’s tangible net worth, fixed-charge coverage ratios, dividend paying capacity, reinsurance retentions, and risk-based capital ratios. At December 31, 2018 , the Company was in compliance with all of its debt financial covenants. On June 21, 2018, the Company entered into a $10.0 million line of credit. The agreement has a maturity date of June 21, 2019 and bears interest at the London Interbank rate ("LIBOR") plus 2.75% per annum, payable monthly. The agreement includes several covenants, including but not limited to a minimum tangible net worth, a minimum fixed-charge coverage ratio, and minimum statutory risk-based capital levels. As of December 31, 2018 , the Company has not drawn down on the line of credit and was in compliance with all of its debt financial covenants. On September 29, 2017, the Company executed 30.0 million of Subordinated Notes. These Subordinated Notes were amended as described, above. These Subordinated Notes had a maturity date of September 29, 2032, bore interest, payable quarterly at a fixed annual rate of 8.0% , and allowed for up to four quarterly interest deferrals. On the fifth and tenth anniversary of the notes, the interest rate reset to 1,250 basis points and 1,500 basis points, respectively, above the 5 -year mid-swap rate. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At December 31, 2018 and 2017 , the Company had current income taxes receivable of $79,000 and $214,000 , respectively, included in other assets in the consolidated balance sheets. The income tax expense (benefit) is comprised of the following (dollars in thousands): Year Ended December 31, 2018 2017 2016 Current tax expense (benefit) $ 52 $ (28 ) $ 70 Deferred tax expense (benefit) — (419 ) (147 ) Total income tax expense (benefit) $ 52 $ (447 ) $ (77 ) The income tax expense (benefit) differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% in 2018, and 34% in 2017 and 2016, to pretax income as a result of the following (dollars in thousands): Year Ended December 31, 2018 2017 2016 Income (loss) before income taxes $ (9,465 ) $ (22,054 ) $ (8,643 ) Statutory U.S. federal income tax rate (1,988 ) (7,498 ) (2,939 ) State income taxes, net of federal benefit (156 ) (106 ) (3 ) Tax‑exempt investment income and dividend received deduction (70 ) (123 ) (106 ) Nondeductible meals and entertainment 38 54 61 Valuation allowance on deferred tax assets 2,331 1,515 2,808 Change in federal tax rate — 5,612 — Other (103 ) 99 102 Income tax expense (benefit) $ 52 $ (447 ) $ (77 ) Effective tax rate (0.5 )% 2.0 % 0.9 % On December 22, 2017, the U.S. federal government enacted H.R. 1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “Act”). The Act provided for significant changes to corporate taxation including the decrease of the corporate tax rate from 34% to 21%. In 2017, the Company completed an analysis of the impact of the Act and followed the additional guidance provided by the Security and Exchange Commission’s Staff Accounting Bulletin No. 118 (“SAB 118”). There were no material provisional balances as of December 31, 2017. In 2018, the Company recognized a measurement period adjustment of $42,735 related to loss reserve discounting, which reduced deferred tax expense. The Company also recognized a measurement period adjustment of $42,735 related to the loss reserve discounting transitional adjustment, which increased deferred tax expense. The measurement period adjustments were based upon obtaining additional information about facts and circumstances that existed as of the enactment date that, if known, would have affected the income tax effects initially reported as provisional amounts under the Act. The measurement period adjustments had no effect on the effective tax rate for the year ending December 31, 2018. The accounting for the income tax effects of the Act pursuant to SAB 118 has been completed as of the end of the December 22, 2018, measurement period and for the year ending December 31, 2018. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (dollars in thousands): December 31, 2018 2017 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 937 $ 1,026 Unearned premiums 2,329 2,576 Net operating loss carryforwards 10,144 9,147 Net unrealized losses on investments 222 — State net operating loss carryforwards 567 385 Deferred gain from ADC 1,254 — Other 123 135 Gross deferred tax assets 15,576 13,269 Less valuation allowance (12,606 ) (9,904 ) Total deferred tax assets, net of allowance 2,970 3,365 Deferred tax liabilities: Investment basis difference 22 19 Net unrealized gains on investments — 124 Deferred policy acquisition costs 2,522 2,684 Intangible assets 112 107 Property and equipment 63 85 Other 366 461 Total deferred tax liabilities 3,085 3,480 Net deferred tax liability $ (115 ) $ (115 ) The net deferred tax liability is recorded in Accounts payable and accrued expenses in the consolidated balance sheets. As of December 31, 2018 , the Company has net operating loss carryforwards for federal income tax purposes of $48.3 million , of which $43.3 million expire in tax years 2019 through 2038 and $5 million never expire. Of this amount, $14.1 million are limited in the amount that can be utilized in any one year and may expire before they are realized under Section 382 of the Internal Revenue Code. The Company has state net operating loss carryforwards of $11.9 million , which expire in tax years 2021 through 2038. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing deferred tax assets under the guidance of ASC 740. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three‑year period ended December 31, 2018 . Such objective evidence limits the Company's ability to consider other subjective evidence, such as management's projections for future growth. Based on its evaluation, the Company has recorded a valuation allowance of $12.6 million and $9.9 million at December 31, 2018 and 2017 , respectively, to reduce the deferred tax assets to an amount that is more likely than not to be realized based on the provisions in ASC 740. The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or if objective negative evidence in the form of cumulative losses is no longer present, and additional weight may be given to subjective evidence, such as the Company’s projections for growth. The Company files consolidated federal income tax returns. For the years before 2015 , the Company is no longer subject to U.S. federal examinations; however, the Internal Revenue Service has the ability to review years prior to 2015 to the extent the Company utilized tax attributes carried forward from those prior years. The statute of limitations on state filings is generally three to four years. |
Statutory Financial Data, Risk-
Statutory Financial Data, Risk-Based Capital and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Statutory Financial Data, Risk-Based Capital and Dividend Restrictions | Statutory Financial Data, Risk-Based Capital and Dividend Restrictions 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 Company Subsidiaries differ from GAAP. The principal differences between statutory accounting practices ("SAP") and GAAP as they relate to the financial statements of the Company’s Insurance Company Subsidiaries are (i) policy acquisition costs are expensed as incurred under SAP, whereas they are deferred and amortized under 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 GAAP. Risk-Based Capital ("RBC") 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 (e.g., investment risk, underwriting profitability, etc.) of the Insurance Company Subsidiaries. As of December 31, 2018 , 2017 and 2016 , the Insurance Company Subsidiaries’ adjusted capital and surplus exceeded their authorized control level as determined by the NAIC’s risk-based capital models. Summarized 2018 , 2017 and 2016 statutory basis information for the non-captive Insurance Company Subsidiaries, which differs from generally accepted accounting principles, is as follows (dollars in thousands). CIC WPIC 2018 Statutory capital and surplus $ 47,121 $ 26,588 RBC authorized control level 11,901 4,682 Statutory net income (loss) 1,244 834 RBC % 396 % 568 % CIC WPIC 2017 Statutory capital and surplus $ 35,848 $ 26,075 RBC authorized control level 8,873 6,224 Statutory net income (loss) (6,993 ) (13,737 ) RBC % 404 % 419 % CIC WPIC 2016 Statutory capital and surplus $ 29,539 $ 32,391 RBC authorized control level 6,676 6,583 Statutory net income (loss) (2,782 ) (1,209 ) RBC % 442 % 492 % Dividend Restrictions The state insurance statutes in which the Insurance Company Subsidiaries are domiciled limit the amount of dividends that they may pay annually without first obtaining regulatory approval. Generally, the limitations are based on the greater of statutory net income for the preceding year or 10% of statutory surplus at the end of the preceding year. The Company must receive regulatory approval in order to pay dividends to the Parent Company from its Insurance Company Subsidiaries in 2018 . |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Common Stock On December 5, 2018, the Company's Board of Directors authorized a stock repurchase program, under which the Company may repurchase up to one million shares of the Company's common stock. Shares may be purchased in the open market or through negotiated transactions. The program may be terminated or suspended at any time, at the discretion of the Company. The Company may in the future enter into a Rule 10b5-1 trading plan to effect a portion of the authorized purchases, if criteria set forth in the plan are met. Such a plan would enable the Company to repurchase its shares during periods outside of its normal trading windows, when the Company typically would not be active in the market. The timing of purchases, and the exact number of any shares to be purchased, will depend on market conditions. The repurchase program does not include specific price targets or timetables. For the year ended December 31, 2018 the Company had repurchased 129,175 shares of stock valued at approximately $584,000 related to the stock repurchase program. The Company also repurchased 8,053 shares of stock valued at approximately $52,000 related to the vesting of the Company’s restricted stock unit s. Upon the repurchase of the Company's shares, the shares remain authorized, but not issued or outstanding. In September 2017, the Company issued $5.0 million of common equity through a private placement for 800,000 shares priced at $6.25 . The participants in the private placement consisted mainly of members of the Company’s management team and insiders, including Chairman and CEO James Petcoff. The Company used the proceeds to strengthen its balance sheet through contributions to the Insurance Company Subsidiaries to support their future growth, and to cover the cost of the ADC and reserve strengthening. On February 25, 2016, the Company's Board of Directors authorized a stock repurchase program, under which the Company may repurchase up to $2.1 million of its outstanding common stock. Under this program, management is authorized to repurchase shares at prevailing market prices through open market purchases, privately negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b5-1 and 10b-18 of the Securities Exchange Act of 1934, as amended. The actual timing, number and value of shares repurchased under the program was determined by management in its discretion and depended on a number of factors, including the market price of the Company’s stock, general market conditions, and other factors. For the year ended December 31, 2017 , the Company had not repurchased any shares of stock. For the year ended December 31, 2016 , the Company had repurchased and retired 88,650 shares of stock valued at approximately $625,000 . Repurchased shares remain authorized but not issued or outstanding, and are available to be reissued in the future. As of December 31, 2018 , 2017 and 2016 the Company had 8,478,202 , 8,520,328 , and 7,633,070 issued and outstanding shares of common stock, respectively. Holders of common stock are entitled to one vote per share and to receive dividends only when and if declared by the board of directors. The holders have no preemptive, conversion or subscription rights. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated 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 (in thousands): Year Ended 2018 2017 Balance at beginning of period $ (363 ) $ (1,080 ) Cumulative effect of adoption of ASU No. 2016-01, net of taxes (556 ) — Cumulative effect of adoption of ASU No. 2018-02, net of taxes 77 — Balance after cumulative effects (842 ) (1,080 ) Other comprehensive income (loss) before reclassifications (1,825 ) 795 Less: amounts reclassified from accumulated other comprehensive income (loss) (55 ) 78 Net current period other comprehensive income (loss) (1,770 ) 717 Balance at end of period $ (2,612 ) $ (363 ) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted earnings (loss) per share are computed by dividing net income by the weighted average number of common shares outstanding during the period. The following table presents the calculation of basic and diluted earnings (loss) per common share, as follows (in thousands, except share and per share amounts): Year Ended 2018 2017 2016 Net income (loss) $ (9,227 ) $ (21,542 ) $ (8,437 ) Weighted average common shares, basic and diluted* 8,543,876 7,867,344 7,618,588 Earnings (loss) per share, basic and diluted $ (1.08 ) $ (2.74 ) $ (1.11 ) * The non-vested shares of the restricted stock units were anti-dilutive as of December 31, 2018 , 2017 , and 2016 . Therefore, the basic and diluted weighted average common shares are equal as of December 31, 2018 , 2017 , and 2016 . |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation In 2015, the Company established the Conifer Holdings, Inc. 2015 Omnibus Incentive Plan (“2015 Plan”), which permits the granting of stock options, stock appreciation rights, restricted stock units ("RSU") 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 RSUs are issued at no less than the market price on the date the awards are granted. 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 RSUs as compensation expense on a straight-line basis over the requisite service period. Upon vesting, each RSU will convert into one share of common stock. The unvested RSUs are subject to forfeiture in the event the employee is involuntarily or voluntarily terminated. If the employee is terminated by the Company for cause, the Company has the option to forfeit the terminated employees’ vested shares for no consideration and to cause the employee to have no further rights or interest in the vested RSUs. The following summarizes our RSU activity (units in thousands): Number of Units Weighted Average Grant-Date Fair Value Outstanding at August 12, 2015 (IPO) — $ — Units granted 390 10.48 Outstanding at December 31, 2015 390 $ 10.48 Units granted 111 8.17 Units vested (77 ) 10.48 Units forfeited (8 ) 9.95 Outstanding at December 31, 2016 416 $ 9.87 Units granted — — Units vested (95 ) 9.97 Units forfeited (14 ) 9.94 Outstanding at December 31, 2017 307 $ 9.84 Units granted 70 5.76 Units vested (95 ) 9.84 Units forfeited (18 ) 8.96 Outstanding at December 31, 2018 264 $ 8.91 The scheduled vesting for the restricted stock units at December 31, 2018 was as follows (in thousands): 2019 2020 2021 2022 2023 Total Scheduled vesting - RSUs 104 104 32 14 10 264 In 2015, the Company issued 390,352 RSUs to executive officers and other employees to be settled in shares of common stock. The total RSUs were valued at $4.1 million on the date of grant. In 2016, the Company issued 111,281 RSUs to executive officers and other employees valued at $909,000 on the date of grant. In 2018, the Company issued 70,000 RSUs to executive officers and other employees valued at $404,000 on the dates of grant. The Company recorded $970,000 , $948,000 and $856,000 of compensation expense related to the RSUs for the years ended December 31, 2018 , 2017 and 2016 , respectively. The total compensation cost related to the non-vested portion of the restricted stock units which has not been recognized as of December 31, 2018 was $2.4 million . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company employs B. Matthew Petcoff as Vice President of SIA. B. Matthew Petcoff is the brother of the Chairman and Chief Executive Officer, James G. Petcoff. The Company employs Nicholas J. Petcoff as its Executive Vice President and a director, Andrew D. Petcoff as its Senior Vice President of Personal Lines, and Hilary Petcoff as its Vice President of Enterprise Risk Management. Nicholas J. Petcoff and Andrew D. Petcoff have been employed with the Company since 2009. They are the sons of the Company's Chairman and Chief Executive Officer, James G. Petcoff. Hilary Petcoff has been employed with the Company since 2009 and was appointed as its Vice President of Enterprise Risk Management in May 2018. Ms. Petcoff is the daughter of the Company’s Chairman and Chief Executive Officer, James G. Petcoff. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company maintains a retirement savings plan under section 401(k) of the Internal Revenue Code (the “Plan”) for certain eligible employees. Eligible employees electing to participate in the 401(k) plan may defer and contribute from 1% to 100% of their compensation on a pre‑tax basis, subject to statutory limits. The Company will match the employees’ contributions up to the first 4% of their compensation. The Company’s Plan expense amounted to $479,000 , $432,000 and $405,000 for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal proceedings The Company and its subsidiaries are subject at times to various claims, lawsuits and proceedings relating principally to alleged errors or omissions in the placement of insurance, claims administration, and other business transactions arising in the ordinary course of business. Where appropriate, the Company vigorously defends such claims, lawsuits and proceedings. Some of these claims, lawsuits and proceedings seek damages, including consequential, exemplary or punitive damages, in amounts that could, if awarded, be significant. Most of the claims, lawsuits and proceedings arising in the ordinary course of business are covered by the insurance policy at issue. We account for such activity through the establishment of unpaid losses and LAE reserves. In accordance with accounting guidance, if it is probable that a liability has been incurred as of the date of the financial statements and the amount of loss is reasonably estimable; then an accrual for the costs to resolve these claims is recorded by the Company in the accompanying consolidated balance sheets. Periodic expenses related to the defense of such claims are included in the accompanying consolidated statements of operations. On the basis of current information, the Company does not believe that there is a reasonable possibility that any material loss exceeding amounts already accrued, if any, will result from any of the claims, lawsuits and proceedings to which the Company is subject to, either individually, or in the aggregate. Commitments The Company is party to an agreement with an unaffiliated company to provide a policy administration, billing, and claims system for the Company. The scope of work and fee structure has changed over time. Currently, the agreement requires a minimum monthly payment of $30,000 with a fee schedule that is scalable with the premium volume, and expires on September 30, 2022. Operating leases The Company leases administrative office facilities, including its corporate headquarters, and office equipment under operating leases that expire at various dates through 2024. The Company has the option to extend its corporate headquarters lease for two additional five ‑year periods. The Company recognizes rent expense on a straight‑line basis over the term of the lease. Rent expense under the operating leases totaled $1.0 million in 2018 , $961,000 in 2017 , and $915,000 in 2016 . The future minimum rental payments under non-cancelable operating leases as of December 31, 2018 , are as follows (in thousands): Years Ending December 31, Amount 2019 $ 1,142 2020 1,116 2021 962 2022 829 2023 728 2024 and thereafter 451 Total future minimum rental payments $ 5,228 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 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 maker 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 maker, the Chief Executive Officer, reviews a number of financial measures including gross written premiums, net earned premiums and losses and LAE, 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 LAE, policy acquisition costs and operating expenses of the operating segments. Operating expenses primarily include compensation and related benefits for underwriting personnel, 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, Texas and Pennsylvania. For the years ended December 31, 2018 , 2017 and 2016 , gross written premiums attributable to these four states were 53.9% , 60.8% , and 56.7% respectively, of the Company’s total gross written premiums. The following table summarizes our net earned premiums: Net Earned Premium 2018 2017 2016 Commercial 89 % 84 % 77 % Personal 11 % 16 % 23 % Total 100 % 100 % 100 % 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 restaurants, bars and taverns. • Personal lines—offers coverage for low-value dwelling, and wind-exposed homeowners. 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 debt obligations; (iii) depreciation and amortization on property and equipment, and (iv) all investment income activity. The following tables present information by reportable segment (dollars in thousands): Year Ended December 31, 2018 Commercial Lines Personal Lines Corporate & Other Total Gross written premiums $ 97,694 $ 6,674 $ — $ 104,368 Net written premiums $ 87,038 $ 2,048 $ — $ 89,086 Net earned premiums $ 83,352 $ 10,459 $ — $ 93,811 Other income 594 769 219 1,582 Segment revenue 83,946 11,228 219 95,393 Loss and loss adjustment expenses, net 53,065 9,450 — 62,515 Policy acquisition costs 21,474 4,060 — 25,534 Operating expenses 15,067 1,455 1,161 17,683 Segment expenses 89,606 14,965 1,161 105,732 Segment underwriting gain (loss) $ (5,660 ) $ (3,737 ) $ (942 ) $ (10,339 ) Investment income 3,336 3,336 Net realized investment gains 61 61 Change in fair value of equity securities 121 121 Interest expense (2,644 ) (2,644 ) Income (loss) before income taxes $ (68 ) $ (9,465 ) Selected Balance Sheet Data: Deferred policy acquisition costs $ 11,257 $ 754 $ — $ 12,011 Unearned premiums 49,549 3,303 — 52,852 Loss and loss adjustment expense reserves 87,643 5,164 — 92,807 Year Ended December 31, 2017 Commercial Lines Personal Lines Corporate & Other Total Gross written premiums $ 92,112 $ 22,172 $ — $ 114,284 Net written premiums $ 78,217 $ 13,023 $ — $ 91,240 Net earned premiums $ 76,786 $ 14,943 $ — $ 91,729 Other income 628 780 152 1,560 Segment revenue 77,414 15,723 152 93,289 Loss and loss adjustment expenses, net 55,701 18,216 — 73,917 Policy acquisition costs 20,470 5,775 — 26,245 Operating expenses 11,339 2,570 3,458 17,367 Segment expenses 87,510 26,561 3,458 117,529 Segment underwriting gain (loss) $ (10,096 ) $ (10,838 ) $ (3,306 ) $ (24,240 ) Investment income 2,728 2,728 Net realized investment gains 70 70 Other gains (losses) 750 750 Interest expense (1,362 ) (1,362 ) Income (loss) before income taxes $ (1,120 ) $ (22,054 ) Selected Balance Sheet Data: Deferred policy acquisition costs $ 10,116 $ 2,665 $ — $ 12,781 Unearned premiums 45,951 11,721 — 57,672 Loss and loss adjustment expense reserves 76,586 11,310 — 87,896 Year Ended December 31, 2016 Commercial Lines Personal Lines Corporate & Other Total Gross written premiums $ 88,242 $ 26,681 $ — $ 114,923 Net written premiums $ 78,439 $ 21,490 $ — $ 99,929 Net earned premiums $ 68,921 $ 20,706 $ — $ 89,627 Other income 378 558 182 1,118 Segment revenue 69,299 21,264 182 90,745 Loss and loss adjustment expenses, net 42,441 16,562 — 59,003 Policy acquisition costs 18,560 6,720 — 25,280 Operating expenses 6,767 2,911 7,918 17,596 Segment expenses 67,768 26,193 7,918 101,879 Segment underwriting gain (loss) $ 1,531 $ (4,929 ) $ (7,736 ) $ (11,134 ) Investment income 2,173 2,173 Net realized investment gains 1,365 1,365 Other gains (losses) (400 ) (400 ) Interest expense (647 ) (647 ) Income (loss) before income taxes $ (5,245 ) $ (8,643 ) Selected Balance Sheet Data: Deferred policy acquisition costs $ 10,156 $ 3,134 $ — $ 13,290 Unearned premiums 44,484 13,642 — 58,126 Loss and loss adjustment expense reserves 46,917 7,734 — 54,651 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following is a summary of quarterly results of operations for 2018 and 2017 (in thousands, except per share and ratio data). The fluctuations between periods and changes in reserves, as disclosed in Note 5, are due to the normal fluctuations in operations from quarter to quarter. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2018 Gross written premiums $ 23,737 $ 26,562 $ 26,629 $ 27,440 Net written premiums $ 19,845 $ 22,595 $ 22,846 $ 23,800 Net earned premiums $ 23,800 $ 23,938 $ 23,450 $ 22,623 Net investment income 802 837 786 911 Net realized gains (losses) 161 12 (21 ) (91 ) Change in fair value of equity securities (1) (297 ) 29 152 237 Other income 357 450 405 370 Losses and loss adjustment expenses, net 13,328 15,068 16,554 17,565 Policy acquisition costs 6,513 6,472 6,452 6,097 Operating expenses 4,187 4,303 4,786 4,407 Interest expense 619 617 598 810 Income tax expense (benefit) 18 10 24 — Equity earnings (losses) in affiliates, net of tax 55 89 93 53 Net income (loss) $ 213 $ (1,113 ) $ (3,551 ) $ (4,776 ) Diluted earnings (loss) per common share (2) $ 0.02 $ (0.13 ) $ (0.42 ) $ (0.56 ) Combined ratio 99.5 % 106.0 % 116.5 % 122.1 % 2017 Gross written premiums $ 26,474 $ 26,981 $ 29,581 $ 31,247 Net written premiums $ 22,324 $ 23,082 $ 18,395 $ 27,439 Net earned premiums $ 24,140 $ 24,497 $ 17,659 $ 25,433 Net investment income 577 663 768 720 Net realized gains (losses) (8 ) — 39 39 Other gains (losses) — 750 — — Other income 354 372 477 357 Losses and loss adjustment expenses, net 15,733 16,674 26,468 15,042 Policy acquisition costs 6,472 6,428 6,655 6,690 Operating expenses 4,530 4,370 4,474 3,993 Interest expense 224 219 303 616 Income tax (benefit) expense 6 (282 ) (135 ) (36 ) Equity earnings (losses) in affiliates, net of tax 104 60 (76 ) (23 ) Net income (loss) $ (1,798 ) $ (1,067 ) $ (18,898 ) $ 221 Diluted earnings (loss) per common share (2) $ (0.24 ) $ (0.14 ) $ (2.46 ) $ 0.03 Combined ratio 109.1 % 110.4 % 207.3 % 99.7 % (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale. Prior periods have not been recast to conform to the current presentation. Refer to Note 1 ~ Summary of Significant Accounting Policies for further details. (2) Due to the changes in the equity structure of the Company (Note ~ 10 Shareholders' Equity) the weighted average common shares outstanding has fluctuated over the past two years and therefore the quarterly diluted earnings (loss) per common share does not total the full-year earnings (loss) per common share stated on the face of the Consolidated Statements of Operations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On March 13, 2019 the Company repurchased 119,605 shares of the Company's stock at $4.00 per share. This transaction was completed as part of the Company's stock repurchase program that began on December 5, 2018. Refer to Note 10 ~ Shareholders' Equity for further details. As of March 13, 2019, the Company has repurchased 250,260 shares of stock valued at approximately $1.1 million related to the stock repurchase program. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant - Balance Sheets | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant - Balance Sheets | December 31, 2018 2017 Assets Investment in subsidiaries $ 72,419 $ 77,657 Equity securities — 400 Cash 1,133 2,583 Due from subsidiaries 403 513 Due from affiliate 445 348 Other assets 1,822 1,271 Total assets $ 76,222 $ 82,772 Liabilities and Shareholders' Equity Liabilities: Debt $ 33,502 $ 29,027 Other liabilities 557 919 Total liabilities 34,059 29,946 Shareholders' equity: Common stock, no par value (100,000,000 shares authorized; 8,478,202 and 8,520,328 issued and outstanding, respectively) 86,533 86,199 Accumulated deficit (41,758 ) (33,010 ) Accumulated other comprehensive income (loss) (2,612 ) (363 ) Total shareholders' equity 42,163 52,826 Total liabilities and shareholders' equity $ 76,222 $ 82,772 Year Ended December 31, 2018 2017 2016 Revenue Management fees from subsidiaries $ 13,567 $ 15,905 $ 9,911 Other income 73 826 51 Total revenue 13,640 16,731 9,962 Expenses Operating expenses 17,336 13,496 16,995 Interest expense 2,644 1,362 647 Total expenses 19,980 14,858 17,642 Income (loss) before equity in earnings (losses) of subsidiaries and income tax expense (benefit) (6,340 ) 1,873 (7,680 ) Income tax expense (benefit) (581 ) 859 (864 ) Income (loss) before equity earnings (losses) of subsidiaries (5,759 ) 1,014 (6,816 ) Equity earnings (losses) in subsidiaries (3,468 ) (22,556 ) (1,621 ) Net income (loss) (9,227 ) (21,542 ) (8,437 ) Other Comprehensive Income Equity in other comprehensive income (loss) of subsidiaries (1,770 ) 717 (1,262 ) Total Comprehensive income (loss) $ (10,997 ) $ (20,825 ) $ (9,699 ) Schedule II Conifer Holdings, Inc. Condensed Financial Information of Registrant Statement of Cash Flows – Parent Company Only (dollars in thousands) Year Ended December 31, 2018 2017 2016 Cash Flows from Operating Activities Net income (loss) $ (9,227 ) $ (21,542 ) $ (8,437 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 379 347 364 Equity in undistributed (income) loss of subsidiaries 3,468 22,556 1,621 Incentive awards expenses - vesting of RSUs 970 895 856 Changes in operating assets and liabilities: Due from subsidiaries 110 (513 ) 150 Due from affiliates (97 ) 598 — Current income tax recoverable (488 ) (485 ) 288 Other assets (229 ) 532 (270 ) Other liabilities (360 ) 590 5 Net cash provided by (used in) operating activities (5,474 ) 2,978 (5,423 ) Cash Flows From Investing Activities Contributions to subsidiaries — (20,860 ) (2,100 ) Dividends received from subsidiaries — — 5,450 Purchases of investments 400 (400 ) — Purchases of property and equipment (86 ) (13 ) (192 ) Net cash provided by (used in) investing activities 314 (21,273 ) 3,158 Cash Flows From Financing Activities Proceeds received from issuance of shares of common stock — 5,000 — Repurchase of common stock (636 ) — (625 ) Borrowings under debt arrangements 25,300 32,000 7,000 Repayment of borrowings under debt arrangements (19,500 ) (19,750 ) (2,000 ) Stock and debt issuance costs (1,454 ) (1,011 ) — Net cash provided by financing activities 3,710 16,239 4,375 Net increase (decrease) in cash (1,450 ) (2,056 ) 2,110 Cash at beginning of period 2,583 4,639 2,529 Cash at end of period $ 1,133 $ 2,583 $ 4,639 Supplemental Disclosure of Cash Flow Information: Interest paid $ 3,116 $ 876 $ 641 Conifer Holding, Inc. Condensed Financial Information of Registrant Parent Company Only Notes to Condensed Financial Statements 1. Accounting Policies Organization Conifer Holdings, Inc. (the “Parent”) is a Michigan‑domiciled holding company organized for the purpose of managing its insurance entities. The Parent conducts its principal operations through these entities. Basis of Presentation The accompanying condensed financial information should be read in conjunction with the Consolidated Financial Statements and related Notes of Conifer Holdings, Inc. and Subsidiaries. Investments in subsidiaries are accounted for using the equity method. Under the equity method, the investment in subsidiaries is stated at cost plus contributions and equity in undistributed income (loss) of consolidated subsidiaries less dividends received since the date of acquisition. The Parent’s operations consist of income earned from management and administrative services performed for the insurance entities pursuant to intercompany services agreements. These management and administrative services include providing management, marketing, offices and equipment, and premium collection, for which the insurance companies pay fees based on a percentage of gross premiums written. Also, the Parent receives commission income for performing agency services. The primary operating costs of the Parent are salaries and related costs of personnel, information technology, administrative expenses, and professional fees. The income received from the management and administrative services is used to cover operating costs, meet debt service requirements and cover other holding company obligations. Estimates and Assumptions Preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates. Dividends The Parent received no cash dividends from its subsidiaries in 2018 or 2017 and $5.5 million in 2016. 2. Guarantees The Parent has guaranteed the principal and interest obligations of a $10 million surplus note issued by Conifer Insurance Company to White Pine Insurance Company (both wholly owned subsidiaries). The note pays interest annually at a per annum rate of 4% and has no maturity. |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant - Statements of Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant - Statements of Comprehensive Income (Loss) | December 31, 2018 2017 Assets Investment in subsidiaries $ 72,419 $ 77,657 Equity securities — 400 Cash 1,133 2,583 Due from subsidiaries 403 513 Due from affiliate 445 348 Other assets 1,822 1,271 Total assets $ 76,222 $ 82,772 Liabilities and Shareholders' Equity Liabilities: Debt $ 33,502 $ 29,027 Other liabilities 557 919 Total liabilities 34,059 29,946 Shareholders' equity: Common stock, no par value (100,000,000 shares authorized; 8,478,202 and 8,520,328 issued and outstanding, respectively) 86,533 86,199 Accumulated deficit (41,758 ) (33,010 ) Accumulated other comprehensive income (loss) (2,612 ) (363 ) Total shareholders' equity 42,163 52,826 Total liabilities and shareholders' equity $ 76,222 $ 82,772 Year Ended December 31, 2018 2017 2016 Revenue Management fees from subsidiaries $ 13,567 $ 15,905 $ 9,911 Other income 73 826 51 Total revenue 13,640 16,731 9,962 Expenses Operating expenses 17,336 13,496 16,995 Interest expense 2,644 1,362 647 Total expenses 19,980 14,858 17,642 Income (loss) before equity in earnings (losses) of subsidiaries and income tax expense (benefit) (6,340 ) 1,873 (7,680 ) Income tax expense (benefit) (581 ) 859 (864 ) Income (loss) before equity earnings (losses) of subsidiaries (5,759 ) 1,014 (6,816 ) Equity earnings (losses) in subsidiaries (3,468 ) (22,556 ) (1,621 ) Net income (loss) (9,227 ) (21,542 ) (8,437 ) Other Comprehensive Income Equity in other comprehensive income (loss) of subsidiaries (1,770 ) 717 (1,262 ) Total Comprehensive income (loss) $ (10,997 ) $ (20,825 ) $ (9,699 ) Schedule II Conifer Holdings, Inc. Condensed Financial Information of Registrant Statement of Cash Flows – Parent Company Only (dollars in thousands) Year Ended December 31, 2018 2017 2016 Cash Flows from Operating Activities Net income (loss) $ (9,227 ) $ (21,542 ) $ (8,437 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 379 347 364 Equity in undistributed (income) loss of subsidiaries 3,468 22,556 1,621 Incentive awards expenses - vesting of RSUs 970 895 856 Changes in operating assets and liabilities: Due from subsidiaries 110 (513 ) 150 Due from affiliates (97 ) 598 — Current income tax recoverable (488 ) (485 ) 288 Other assets (229 ) 532 (270 ) Other liabilities (360 ) 590 5 Net cash provided by (used in) operating activities (5,474 ) 2,978 (5,423 ) Cash Flows From Investing Activities Contributions to subsidiaries — (20,860 ) (2,100 ) Dividends received from subsidiaries — — 5,450 Purchases of investments 400 (400 ) — Purchases of property and equipment (86 ) (13 ) (192 ) Net cash provided by (used in) investing activities 314 (21,273 ) 3,158 Cash Flows From Financing Activities Proceeds received from issuance of shares of common stock — 5,000 — Repurchase of common stock (636 ) — (625 ) Borrowings under debt arrangements 25,300 32,000 7,000 Repayment of borrowings under debt arrangements (19,500 ) (19,750 ) (2,000 ) Stock and debt issuance costs (1,454 ) (1,011 ) — Net cash provided by financing activities 3,710 16,239 4,375 Net increase (decrease) in cash (1,450 ) (2,056 ) 2,110 Cash at beginning of period 2,583 4,639 2,529 Cash at end of period $ 1,133 $ 2,583 $ 4,639 Supplemental Disclosure of Cash Flow Information: Interest paid $ 3,116 $ 876 $ 641 Conifer Holding, Inc. Condensed Financial Information of Registrant Parent Company Only Notes to Condensed Financial Statements 1. Accounting Policies Organization Conifer Holdings, Inc. (the “Parent”) is a Michigan‑domiciled holding company organized for the purpose of managing its insurance entities. The Parent conducts its principal operations through these entities. Basis of Presentation The accompanying condensed financial information should be read in conjunction with the Consolidated Financial Statements and related Notes of Conifer Holdings, Inc. and Subsidiaries. Investments in subsidiaries are accounted for using the equity method. Under the equity method, the investment in subsidiaries is stated at cost plus contributions and equity in undistributed income (loss) of consolidated subsidiaries less dividends received since the date of acquisition. The Parent’s operations consist of income earned from management and administrative services performed for the insurance entities pursuant to intercompany services agreements. These management and administrative services include providing management, marketing, offices and equipment, and premium collection, for which the insurance companies pay fees based on a percentage of gross premiums written. Also, the Parent receives commission income for performing agency services. The primary operating costs of the Parent are salaries and related costs of personnel, information technology, administrative expenses, and professional fees. The income received from the management and administrative services is used to cover operating costs, meet debt service requirements and cover other holding company obligations. Estimates and Assumptions Preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates. Dividends The Parent received no cash dividends from its subsidiaries in 2018 or 2017 and $5.5 million in 2016. 2. Guarantees The Parent has guaranteed the principal and interest obligations of a $10 million surplus note issued by Conifer Insurance Company to White Pine Insurance Company (both wholly owned subsidiaries). The note pays interest annually at a per annum rate of 4% and has no maturity. |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant - Statement of Cash Flows | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant - Statement of Cash Flows | December 31, 2018 2017 Assets Investment in subsidiaries $ 72,419 $ 77,657 Equity securities — 400 Cash 1,133 2,583 Due from subsidiaries 403 513 Due from affiliate 445 348 Other assets 1,822 1,271 Total assets $ 76,222 $ 82,772 Liabilities and Shareholders' Equity Liabilities: Debt $ 33,502 $ 29,027 Other liabilities 557 919 Total liabilities 34,059 29,946 Shareholders' equity: Common stock, no par value (100,000,000 shares authorized; 8,478,202 and 8,520,328 issued and outstanding, respectively) 86,533 86,199 Accumulated deficit (41,758 ) (33,010 ) Accumulated other comprehensive income (loss) (2,612 ) (363 ) Total shareholders' equity 42,163 52,826 Total liabilities and shareholders' equity $ 76,222 $ 82,772 Year Ended December 31, 2018 2017 2016 Revenue Management fees from subsidiaries $ 13,567 $ 15,905 $ 9,911 Other income 73 826 51 Total revenue 13,640 16,731 9,962 Expenses Operating expenses 17,336 13,496 16,995 Interest expense 2,644 1,362 647 Total expenses 19,980 14,858 17,642 Income (loss) before equity in earnings (losses) of subsidiaries and income tax expense (benefit) (6,340 ) 1,873 (7,680 ) Income tax expense (benefit) (581 ) 859 (864 ) Income (loss) before equity earnings (losses) of subsidiaries (5,759 ) 1,014 (6,816 ) Equity earnings (losses) in subsidiaries (3,468 ) (22,556 ) (1,621 ) Net income (loss) (9,227 ) (21,542 ) (8,437 ) Other Comprehensive Income Equity in other comprehensive income (loss) of subsidiaries (1,770 ) 717 (1,262 ) Total Comprehensive income (loss) $ (10,997 ) $ (20,825 ) $ (9,699 ) Schedule II Conifer Holdings, Inc. Condensed Financial Information of Registrant Statement of Cash Flows – Parent Company Only (dollars in thousands) Year Ended December 31, 2018 2017 2016 Cash Flows from Operating Activities Net income (loss) $ (9,227 ) $ (21,542 ) $ (8,437 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 379 347 364 Equity in undistributed (income) loss of subsidiaries 3,468 22,556 1,621 Incentive awards expenses - vesting of RSUs 970 895 856 Changes in operating assets and liabilities: Due from subsidiaries 110 (513 ) 150 Due from affiliates (97 ) 598 — Current income tax recoverable (488 ) (485 ) 288 Other assets (229 ) 532 (270 ) Other liabilities (360 ) 590 5 Net cash provided by (used in) operating activities (5,474 ) 2,978 (5,423 ) Cash Flows From Investing Activities Contributions to subsidiaries — (20,860 ) (2,100 ) Dividends received from subsidiaries — — 5,450 Purchases of investments 400 (400 ) — Purchases of property and equipment (86 ) (13 ) (192 ) Net cash provided by (used in) investing activities 314 (21,273 ) 3,158 Cash Flows From Financing Activities Proceeds received from issuance of shares of common stock — 5,000 — Repurchase of common stock (636 ) — (625 ) Borrowings under debt arrangements 25,300 32,000 7,000 Repayment of borrowings under debt arrangements (19,500 ) (19,750 ) (2,000 ) Stock and debt issuance costs (1,454 ) (1,011 ) — Net cash provided by financing activities 3,710 16,239 4,375 Net increase (decrease) in cash (1,450 ) (2,056 ) 2,110 Cash at beginning of period 2,583 4,639 2,529 Cash at end of period $ 1,133 $ 2,583 $ 4,639 Supplemental Disclosure of Cash Flow Information: Interest paid $ 3,116 $ 876 $ 641 Conifer Holding, Inc. Condensed Financial Information of Registrant Parent Company Only Notes to Condensed Financial Statements 1. Accounting Policies Organization Conifer Holdings, Inc. (the “Parent”) is a Michigan‑domiciled holding company organized for the purpose of managing its insurance entities. The Parent conducts its principal operations through these entities. Basis of Presentation The accompanying condensed financial information should be read in conjunction with the Consolidated Financial Statements and related Notes of Conifer Holdings, Inc. and Subsidiaries. Investments in subsidiaries are accounted for using the equity method. Under the equity method, the investment in subsidiaries is stated at cost plus contributions and equity in undistributed income (loss) of consolidated subsidiaries less dividends received since the date of acquisition. The Parent’s operations consist of income earned from management and administrative services performed for the insurance entities pursuant to intercompany services agreements. These management and administrative services include providing management, marketing, offices and equipment, and premium collection, for which the insurance companies pay fees based on a percentage of gross premiums written. Also, the Parent receives commission income for performing agency services. The primary operating costs of the Parent are salaries and related costs of personnel, information technology, administrative expenses, and professional fees. The income received from the management and administrative services is used to cover operating costs, meet debt service requirements and cover other holding company obligations. Estimates and Assumptions Preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates. Dividends The Parent received no cash dividends from its subsidiaries in 2018 or 2017 and $5.5 million in 2016. 2. Guarantees The Parent has guaranteed the principal and interest obligations of a $10 million surplus note issued by Conifer Insurance Company to White Pine Insurance Company (both wholly owned subsidiaries). The note pays interest annually at a per annum rate of 4% and has no maturity. |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | Balance at Beginning of Period Charged to Expense Decrease to Other Comprehensive Income Deductions from Allowance Account Balance at End of Period Valuation for Deferred Tax Assets 2018 $ 9,904 $ 2,331 $ 371 $ — $ 12,606 2017 8,389 1,515 — — 9,904 2016 5,160 2,808 421 — 8,389 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Management Representation | Basis of Presentation and Management Representation The consolidated financial statements include accounts, after elimination of intercompany accounts and transactions, of Conifer Holdings, Inc. (the “Company” or “Conifer”), its wholly owned subsidiaries Conifer Insurance Company ("CIC"), Red Cedar Insurance Company ("RCIC"), White Pine Insurance Company ("WPIC"), Sycamore Insurance Agency, Inc. ("SIA") and American Colonial Insurance Services, Inc. CIC, WPIC, and RCIC are collectively referred to as the "Insurance Company Subsidiaries." On a stand-alone basis Conifer Holdings, Inc is referred to as the "Parent Company." On December 30, 2016, the Company's wholly owned subsidiary, American Colonial Insurance Company ("ACIC") was merged into WPIC. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which differ from statutory accounting practices prescribed or permitted for insurance companies by regulatory authorities. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes the amounts included in the consolidated financial statements reflect management's best estimates and assumptions, actual results may differ from these estimates. |
Cash and Short-term Investments | Cash and Short-term Investments Cash consists of cash deposits in banks, generally in operating accounts. Short-term investments, consisting of money-market funds, are classified as investments in the consolidated balance sheets as they relate principally to the Company’s investment activities. The Company maintains its cash deposits in major banks and invests short-term funds in institutional money-market funds and short-term financial instruments. These securities typically mature within three months or less. |
Investment Securities and Other-than-temporary Impairments | Investment Securities Debt securities are classified as available-for-sale and reported at fair value. The Company determines the fair value using the market approach, which uses quoted prices or other relevant data based on market transactions involving identical or comparable assets. The Company purchases the available-for-sale debt securities with the expectation that they will be held to maturity, however the Company may sell them if market conditions or credit‑related risk warrant earlier sales. The Company does not have any securities classified as held-to-maturity or trading. The change in unrealized gain and loss on debt securities is recorded as a component of accumulated other comprehensive income (loss), net of the related deferred tax effect, until realized. The debt securities portfolio includes mortgage-backed and asset-backed securities. The Company recognizes income from these securities using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from anticipated prepayments, the estimated economic life is recalculated and the remaining unamortized premium or discount is amortized prospectively over the remaining economic life. Premiums and discounts on mortgage-backed and asset-backed securities are amortized or accreted over the life of the related available‑for‑sale security as an adjustment to yield using the effective interest method. Such amortization and accretion is included in interest income in the consolidated statements of operations. Dividend and interest income are recognized when earned. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis and included in earnings on the trade date. Equity securities that do not result in consolidation and are not accounted for under the equity method are measured at fair value and any changes in fair value are recognized in net income in the Consolidated Statements of Operations. Mutual fund and similar investments are measured at their net asset value, which approximates fair value. Any changes in the net asset value are recognized in net income in the Consolidated Statements of Operations. The Company carries other equity investments that do not have a readily determinable fair value at cost, less impairment and adjusted for observable price changes under the measurement alternative provided under GAAP. We review these investments for impairment during each reporting period. These investments are a component of Other Assets in the Consolidated Balance Sheets. Other-than-Temporary Impairments The Company reviews its impaired securities for possible other-than-temporary impairment ("OTTI") 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. The Company considers the following factors in performing its review: (i) the amount by which the security’s fair value is less than its cost, (ii) length of time the security has been impaired, (iii) whether management has the intent to sell the security, (iv) if it is more likely than not that management will be required to sell the security before recovery of its amortized cost basis, (v) whether the impairment is due to an issuer‑specific event, credit issues or change in market interest rates, (vi) the security’s credit rating and any recent downgrades or (vii) stress testing of expected cash flows under different scenarios. If the Company determines that a security has experienced an OTTI, the impairment is recognized as a realized investment loss in the consolidated statements of operations. For each impaired security, the Company determines if: (i) it does not intend to sell the security and (ii) it is not "more likely than not" that the Company will be required to sell the security before recovery of its amortized cost basis. If the Company cannot assert these conditions, an OTTI loss is recorded through the consolidated statements of operations in the current period. For all other impaired securities, the Company will assess whether the net present value of the cash flows expected to be collected from the security is less than its amortized cost basis. Such a shortfall in cash flows is referred to as a “credit loss.” For any such security, the Company separates the impairment loss into: (i) the credit loss and (ii) the non-credit loss, which is the amount related to all other factors such as interest rate changes, fluctuations in exchange rates and market conditions. The credit loss charge is recorded to the current period statements of operations and the non-credit loss is recorded to accumulated other comprehensive income (loss), within shareholders’ equity, on an after-tax basis. A security’s cost basis is permanently reduced by the amount of a credit loss. Income is accreted over the remaining life of a security based on the interest rate necessary to discount the expected future cash flows to the new basis. If the security is non-income producing, any cash proceeds are applied as a reduction of principal when received. |
Recognition of Premium Revenues | Recognition of Premium Revenues All of the property and casualty policies written by our insurance companies are considered short-duration contracts. These policy premiums are earned on a daily pro-rata basis, net of reinsurance, over the term of the policy, which are six or twelve months in duration. The portion of premiums written that relate to the unexpired terms of policies in force are deferred and reported as unearned premium at the balance sheet date. |
Reinsurance | Reinsurance Reinsurance premiums, commissions, losses and loss adjustment expenses ("LAE") on reinsured business are accounted for on a basis consistent with that used in accounting for the original policies issued and the terms of the reinsurance contracts. The amounts reported as reinsurance recoverables include amounts billed to reinsurers on losses and LAE paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities that have not yet been paid. Reinsurance recoverables on unpaid losses and LAE are estimated based upon assumptions consistent with those used in establishing the gross liabilities as they are applied to the underlying reinsured contracts. The Company records an allowance for uncollectible reinsurance recoverables based on an assessment of the reinsurer’s creditworthiness and collectability of the recorded amounts. Management believes an allowance for uncollectible recoverable from its reinsurers was not necessary for the periods presented. The Company receives ceding commissions in connection with certain ceded reinsurance. The ceding commissions are recorded as a reduction of operating expenses. In 2017, the Company entered into an adverse development cover reinsurance agreement (the "ADC"). The ADC is a retroactive reinsurance contract. If the cumulative claim and allocated claim adjustment expenses ceded under the ADC exceed the consideration paid, the resulting gain from such excess is deferred and amortized into earnings in future periods using the interest method. In any period in which there is a gain position and a revised estimate of claim and allocated claim adjustment expenses, a portion of the deferred gain is cumulatively recognized in earnings as if the revised estimate was available at the inception date of the ADC. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business is deferred. These deferred costs consist of commissions paid to agents, premium taxes, and underwriting costs, including compensation and payroll related benefits. Proceeds from reinsurance transactions that represent recovery of acquisition costs reduce applicable unamortized acquisition costs in such a manner that net acquisition costs are capitalized and charged to expense. Amortization of such policy acquisition costs is charged to expense in proportion to premium earned over the estimated policy term. To the extent that unearned premiums on existing policies are not adequate to cover the sum of expected losses and LAE, unamortized acquisition costs and policy maintenance costs, unamortized deferred policy acquisition costs are charged to expense to the extent required to eliminate the premium deficiency. If the premium deficiency is greater than the unamortized policy acquisition costs, a liability is recorded for any such deficiency. The Company considers anticipated investment income in determining whether a premium deficiency exists. Management performs this evaluation at each insurance product line level. |
Unpaid Losses and Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and LAE in the consolidated balance sheets represents the Company’s estimate of the amount it expects to pay for the ultimate cost of all losses and LAE incurred that remain unpaid at the balance sheet date. The liability is recorded on an undiscounted basis, except for the liability for unpaid losses and LAE assumed related to acquired companies which are initially recorded at fair value. The process of estimating the liability for unpaid losses and LAE is a complex process that requires a high degree of judgment. The liability for unpaid losses and LAE represent the accumulation of individual case estimates for reported losses and LAE, and actuarially determined estimates for incurred but not reported losses and LAE. The liability for unpaid losses and LAE is intended to include the ultimate net cost of all losses and LAE incurred but unpaid as of the balance sheet date. The liability is stated net of anticipated deductibles, salvage and subrogation, and gross of reinsurance ceded. The estimate of the unpaid losses and LAE liability is continually reviewed and updated. Although management believes the liability for losses and LAE is reasonable, the ultimate liability may be more or less than the current estimate. The estimation of ultimate liability for unpaid losses and LAE is a complex, imprecise and inherently uncertain process, and therefore involves a considerable degree of judgment and expertise. The Company utilizes various actuarially‑accepted reserving methodologies in deriving the continuum of expected outcomes and ultimately determining its estimated liability amount. These methodologies utilize various inputs, including but not limited to written and earned premiums, paid and reported losses and LAE, expected initial loss and LAE ratio, which is the ratio of incurred losses and LAE to earned premiums, and expected claim reporting and payout patterns (including company-specific and industry data). The liability for unpaid loss and LAE does not represent an exact measurement of liability, but is an estimate that is not directly or precisely quantifiable, particularly on a prospective basis, and is subject to a significant degree of variability over time. In addition, the establishment of the liability for unpaid losses and LAE makes no provision for the broadening of coverage by legislative action or judicial interpretation or for the extraordinary future emergence of new types of losses not sufficiently represented in the Company’s historical experience or which cannot yet be quantified. As a result, an integral component of estimating the liability for unpaid losses and LAE is the use of informed subjective estimates and judgments about the ultimate exposure to unpaid losses and LAE. The effects of changes in the estimated liability are included in the results of operations in the period in which the estimates are revised. The Company allocates the applicable portion of the unpaid losses and LAE to amounts recoverable from reinsurers under reinsurance contracts and reports those amounts separately as assets on the consolidated balance sheets. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax-credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized to the extent that there is sufficient positive evidence, as allowed under the Accounting Standard Codification ("ASC") 740, Income Taxes, to support the recoverability of those deferred tax assets. The Company establishes a valuation allowance to the extent that there is insufficient evidence to support the recoverability of the deferred tax asset under ASC 740. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax‑planning strategies, and results of recent operations. If it is determined that the deferred tax assets would be realizable in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. |
Other Income | Other Income Other income consists primarily of fees charged to policyholders by the Company for services outside of the premium charge, such as installment billings or policy issuance costs. Commission income is also received by the Company’s insurance agencies for writing policies for third party insurance companies. The Company recognizes commission income on the later of the effective date of the policy, the date when the premium can be reasonably established, or the date when substantially all services related to the insurance placement have been rendered. |
Operating Expenses | Operating Expenses Operating expenses consist primarily of other underwriting, compensation and benefits, information technology, facility and other administrative expenses. |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance Effective January 1, 2018, the Company adopted FASB Accounting Standards Update ("ASU") No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities . As a result of adoption of this ASU, equity instruments that do not result in consolidation and are not accounted for under the equity method are measured at fair value and any changes in fair value are recognized in net income. In addition, the Company's equity securities that do not have a readily determinable fair value are recorded at cost, less impairment and adjusted for observable price changes under the measurement alternative provided under GAAP. Previously, the Company’s equity securities were classified as available-for-sale and changes in fair value were recorded in other comprehensive income. Upon adoption of this ASU, cumulative net unrealized gains on equity securities of $1.1 million , net of deferred income taxes of $0.5 million , were reclassified from accumulated other comprehensive income into accumulated deficit. Prior periods have not been recast to conform to the current presentation. See Note 2 ~ Investments for details regarding the change in net unrealized gains on equity securities included in net income for the year ended December 31, 2018 . Effective January 1, 2018, the Company early adopted ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The ASU provides an option to reclassify tax effects remaining in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (TCJA) to retained earnings. Upon enactment of the TCJA, the U.S. corporate tax rate was reduced from 35% to 21% and the Company's U.S. deferred tax balances were remeasured to the lower enacted U.S. corporate tax rate. GAAP requires the effects of changes in tax rates and laws on deferred tax balances to be recorded as a component of income tax expense in the period of enactment, even if the assets and liabilities relate to items of accumulated other comprehensive income. As a result of adopting the ASU, the Company reclassified $77,000 of previously recognized deferred taxes from accumulated other comprehensive income into accumulated deficit as of January 1, 2018. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which addresses the financial reporting of leasing transactions. This update will require the recognition of a right-of-use asset and a corresponding lease liability, discounted to the present value, for all leases that extend beyond 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the consolidated statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the consolidated statement of operations and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the consolidated statement of cash flows. This ASU is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. We do not have any financing leases. If the standard were adopted as of December 31, 2018 , approximately $4.3 million of future lease liabilities would be added to our balance sheet with a corresponding right-of-use asset. We have approximately $1.2 million of operating lease expenses as of December 31, 2018 , and do not expect that there would be a materially different expense upon adoption. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), which amends the current methodology and timing for recognizing credit losses. This amendment will replace the current GAAP "incurred loss" methodology for credit losses with a methodology based on expected credit losses. The new guidance will also require expanded consideration of a broader range of reasonable and increased supportable information for the credit loss estimates. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Management is currently evaluating the impact of the guidance. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments, or ASU 2016-15. This update addresses the presentation and classification on the statement of cash flows for eight specific items, with the objective of reducing existing diversity in practice in how certain cash receipts and cash payments are presented and classified. The Company adopted ASU 2016-15 as of January 1, 2018. The adoption of the new guidance did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) , which modifies the disclosure requirements for assets and liabilities measured at fair value. The requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements have all been removed. However, the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period must be disclosed along with the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements (or other quantitative information if it is more reasonable). Finally, for investments measured at net asset value, the requirements have been modified so that the timing of liquidation and the date when restrictions from redemption might lapse are only disclosed if the investee has communicated the timing to the entity or announced the timing publicly. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted upon the issuance of this update. Management is currently evaluating the impact of the guidance. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | The cost or amortized cost, gross unrealized gain or loss, and estimated fair value of the investments in securities classified as available-for-sale at December 31, 2018 and 2017 were as follows (dollars in thousands): December 31, 2018 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt securities: U.S. Government $ 15,360 $ 3 $ (178 ) $ 15,185 State and local government 15,847 115 (174 ) 15,788 Corporate debt 30,423 74 (651 ) 29,846 Asset-backed securities 24,468 24 (208 ) 24,284 Mortgage-backed securities 30,377 18 (1,155 ) 29,240 Commercial mortgage-backed securities 4,025 5 (77 ) 3,953 Collateralized mortgage obligations 2,178 9 (43 ) 2,144 Total debt securities available for sale $ 122,678 $ 248 $ (2,486 ) $ 120,440 December 31, 2017 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt securities: U.S. Government $ 17,179 $ 10 $ (99 ) $ 17,090 State and local government 17,302 255 (54 ) 17,503 Corporate debt 38,947 170 (209 ) 38,908 Asset-backed securities 23,539 36 (35 ) 23,540 Mortgage-backed securities 33,942 38 (522 ) 33,458 Commercial mortgage-backed securities 3,532 3 (44 ) 3,491 Collateralized mortgage obligations 2,563 19 (36 ) 2,546 Total debt securities available for sale 137,004 531 (999 ) 136,536 Equity Securities (1) 8,629 1,240 (182 ) 9,687 Total securities available for sale $ 145,633 $ 1,771 $ (1,181 ) $ 146,223 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale. Prior periods have not been recast to conform to the current presentation. Refer to Note 1 ~ Summary of Significant Accounting Policies for further details. |
Schedule of Securities in Unrealized Loss Positions | 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 (dollars in thousands): December 31, 2018 Less than 12 months Greater than 12 months Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt securities: U.S. Government 1 $ 2,470 $ (24 ) 16 $ 11,725 $ (154 ) 17 $ 14,195 $ (178 ) State and local government 21 4,935 (40 ) 16 4,273 (134 ) 37 9,208 (174 ) Corporate debt 36 12,096 (140 ) 25 11,993 (511 ) 61 24,089 (651 ) Asset-backed securities 25 17,743 (148 ) 9 4,166 (60 ) 34 21,909 (208 ) Mortgage-backed securities 20 5,474 (138 ) 30 21,715 (1,017 ) 50 27,189 (1,155 ) Commercial mortgage-backed securities 4 1,082 (12 ) 3 2,632 (65 ) 7 3,714 (77 ) Collateralized mortgage obligations 4 116 (1 ) 6 1,587 (42 ) 10 1,703 (43 ) Total debt securities available for sale 111 $ 43,916 $ (503 ) 105 $ 58,091 $ (1,983 ) 216 $ 102,007 $ (2,486 ) December 31, 2017 Less than 12 months Greater than 12 months Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt securities: U.S. Government 12 $ 11,555 $ (64 ) 7 $ 2,207 $ (35 ) 19 $ 13,762 $ (99 ) State and local government 10 3,511 (20 ) 7 1,424 (34 ) 17 4,935 (54 ) Corporate debt 38 15,236 (46 ) 10 6,555 (163 ) 48 21,791 (209 ) Asset-backed securities 20 13,948 (29 ) 3 915 (6 ) 23 14,863 (35 ) Mortgage-backed securities 6 4,935 (19 ) 26 24,939 (503 ) 32 29,874 (522 ) Commercial mortgage-backed securities 3 2,026 (12 ) 2 722 (32 ) 5 2,748 (44 ) Collateralized mortgage obligations 8 1,870 (36 ) — — — 8 1,870 (36 ) Total debt securities available for sale 97 53,081 (226 ) 55 36,762 (773 ) 152 89,843 (999 ) Equity Securities (1) 13 436 (75 ) 4 266 (107 ) 17 702 (182 ) Total securities 110 $ 53,517 $ (301 ) 59 $ 37,028 $ (880 ) 169 $ 90,545 $ (1,181 ) (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale. Prior periods have not been recast to conform to the current presentation. Refer to Note 1 ~ Summary of Significant Accounting Policies for further details. |
Summary of Investment Income | The Company’s sources of net investment income are as follows (dollars in thousands): December 31, 2018 2017 2016 Debt securities $ 3,419 $ 2,757 $ 2,370 Equity securities 129 124 98 Cash and short-term investments 85 122 21 Total investment income 3,633 3,003 2,489 Investment expenses (297 ) (275 ) (316 ) Net investment income $ 3,336 $ 2,728 $ 2,173 |
Summary of Gross Realized Gains and Losses on Securities | The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale debt securities and equity securities, as follows (dollars in thousands): December 31, 2018 2017 2016 Debt securities: Gross realized gains $ 54 $ 32 $ 587 Gross realized losses (256 ) (8 ) (24 ) Total debt securities (202 ) 24 563 Equity securities: Gross realized gains 337 76 1,198 Gross realized losses (74 ) (30 ) (396 ) Total equity securities 263 46 802 Total net investment realized gains $ 61 $ 70 $ 1,365 |
Summary of Amortized Cost and Fair Value of Securities | The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at December 31, 2018 . 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 (dollars in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 9,206 $ 9,153 Due after one year through five years 33,028 32,667 Due after five years through ten years 11,568 11,279 Due after ten years 7,828 7,720 Securities with contractual maturities 61,630 60,819 Asset-backed securities 24,468 24,284 Mortgage-backed securities 30,377 29,240 Commercial mortgage-backed securities 4,025 3,953 Collateralized mortgage obligations 2,178 2,144 Total debt securities $ 122,678 $ 120,440 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value | The following tables present the Company’s assets and liabilities measured at fair value, classified by the valuation hierarchy as of December 31, 2018 and 2017 (dollars in thousands): December 31, 2018 Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt Securities: U.S. Government $ 15,185 $ — $ 15,185 $ — State and local government 15,788 — 15,788 — Corporate debt 29,846 — 29,846 — Asset-backed securities 24,284 — 24,284 — Mortgage-backed securities 29,240 — 29,240 — Commercial mortgage-backed securities 3,953 — 3,953 — Collateralized mortgage obligations 2,144 — 2,144 — Total debt securities 120,440 — 120,440 — Equity Securities 6,587 6,323 264 — Short-term investments 8,925 8,925 — Total marketable investments measured at fair value $ 135,952 $ 15,248 $ 120,704 $ — Investments measured at NAV: Investment in limited partnership $ 4,150 Total investments measured at NAV $ 4,150 Total assets measured at fair value $ 140,102 Liabilities: Senior Unsecured Notes * $ 21,252 $ — $ 21,252 $ — Subordinated Notes * 10,640 — — 10,640 Total Liabilities measured at fair value $ 31,892 $ — $ 21,252 $ 10,640 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheet December 31, 2017 Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Debt Securities: U.S. Government $ 17,090 $ — $ 17,090 $ — State and local government 17,503 — 17,503 — Corporate debt 38,908 — 38,908 — Asset-backed securities 23,540 — 23,540 — Mortgage-backed securities 33,458 — 33,458 — Commercial mortgage-backed securities 3,491 — 3,491 — Collateralized mortgage-backed securities 2,546 — 2,546 — Total debt securities 136,536 — 136,536 — Equity Securities 5,627 5,381 246 — Short-term investments 11,427 8,429 2,998 — Total investments measured at fair value $ 153,590 $ 13,810 $ 139,780 $ — Investments measured at NAV: Investment in limited partnership $ 4,060 Total investments measured at NAV $ 4,060 Total assets measured at fair value $ 157,650 Liabilities: Subordinated Notes * $ 29,888 $ — $ — $ 29,888 Total Liabilities measured at fair value $ 29,888 $ — $ — $ 29,888 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Summary of Deferred Policy Acquisition Costs | The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands): December 31, 2018 2017 2016 Balance at beginning of period $ 12,781 $ 13,290 $ 12,102 Deferred policy acquisition costs 24,764 25,736 26,468 Amortization of policy acquisition costs (25,534 ) (26,245 ) (25,280 ) Net change (770 ) (509 ) 1,188 Balance at end of period $ 12,011 $ 12,781 $ 13,290 |
Unpaid Losses and Loss Adjust_2
Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Loss Reserves [Abstract] | |
Schedule of the Changes in the Reserves for Losses and Loss Adjustment Expense | The table below provides the changes in the reserves for losses and LAE, net of recoverables from reinsurers, for the periods indicated (dollars in thousands): 2018 2017 2016 Gross reserves - beginning of period $ 87,896 $ 54,651 $ 35,422 Less: reinsurance recoverables on unpaid losses 20,066 6,658 5,405 Net reserves - beginning of period 67,830 47,993 30,017 Add: incurred losses and loss adjustment expenses, net of reinsurance Current period 53,482 64,458 48,782 Prior period 9,033 9,459 10,221 Total net incurred losses and loss adjustment expenses 62,515 73,917 59,003 Deduct: loss and loss adjustment expense payments, net of reinsurance Current period 17,025 24,547 20,828 Prior period 44,521 29,533 20,199 Total net loss and loss adjustment expense payments 61,546 54,080 41,027 Net reserves - end of period 68,799 67,830 47,993 Plus: reinsurance recoverables on unpaid losses 29,685 20,066 6,658 Less: deferred gain on ADC (5,677 ) — — Gross reserves - end of period $ 92,807 $ 87,896 $ 54,651 |
Short-duration Insurance Contracts, Claims Development | The following tables represent cumulative incurred loss and allocated loss adjustment expenses ("ALAE"), net of reinsurance, by accident year and cumulative paid loss and ALAE, net of reinsurance, by accident year, for the years ended December 31, 2009 to 2018, as well as total IBNR and the cumulative number of reported claims for the year ended December 31, 2018, by reportable segment and accident year (dollars in thousands). Commercial Lines Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims Accident Year 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2018 2018 2009 $ 11,400 $ 12,066 $ 10,312 $ 8,943 $ 8,232 $ 8,403 $ 8,359 $ 8,414 $ 8,442 $ 8,441 $ — 877 2010 7,346 8,568 7,255 6,357 6,170 6,074 6,207 6,292 6,312 — 771 2011 6,753 5,758 5,326 5,049 4,932 4,903 4,935 4,933 — 590 2012 7,745 6,421 6,288 6,384 6,253 6,190 6,209 — 560 2013 10,018 9,435 9,893 10,237 11,252 11,218 50 605 2014 19,709 19,907 22,711 26,367 28,145 282 1,749 2015 22,442 26,633 31,861 34,478 612 2,346 2016 32,396 34,935 40,440 1,822 3,526 2017 44,251 44,495 9,145 5,686 2018 42,624 21,199 5,572 Total $ 227,295 $ 33,110 Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2009 $ 4,436 $ 5,942 $ 6,410 $ 7,233 $ 7,800 $ 7,867 $ 7,933 $ 8,321 $ 8,441 $ 8,441 2010 3,066 4,488 5,219 5,910 6,040 6,065 6,166 6,258 6,312 2011 2,645 3,534 3,964 4,449 4,641 4,744 4,872 4,903 2012 2,325 3,703 4,696 5,558 5,994 6,065 6,209 2013 3,979 6,211 7,643 8,622 10,147 10,650 2014 8,715 13,977 17,458 22,446 25,609 2015 10,470 17,817 22,549 30,475 2016 10,255 19,135 27,785 2017 12,448 23,020 2018 10,375 Total $ 153,779 Unpaid losses and ALAE - years 2009 through 2018 $ 73,516 Unpaid losses and ALAE - prior to 2009 (1)* 45 Unpaid ADC (16,849 ) Unpaid losses and ALAE, net of reinsurance $ 56,712 * Presented as unaudited required supplementary information. (1) The Company's formation was in 2009, however, as a result of the acquisition of WPIC in 2010, incurred losses prior to the 2009 accident year remain outstanding. Personal Lines Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims Accident Year For the years ended December 31, 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2018 2018 2009 $ 667 $ 639 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ — 65 2010 320 188 184 184 184 184 184 184 184 — 77 2011 1,678 1,758 1,981 2,031 2,030 2,045 2,027 2,024 — 717 2012 9,960 11,690 11,740 12,159 12,390 12,365 12,357 — 3,338 2013 18,034 17,996 18,925 19,138 19,167 19,202 4 5,195 2014 17,951 17,471 17,735 17,880 17,929 24 3,700 2015 10,877 13,445 14,721 15,285 12 2,128 2016 11,619 13,418 14,949 — 1,810 2017 14,058 13,550 48 2,769 2018 5,893 584 741 Total $ 102,007 $ 672 Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2009 $ 537 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 2010 151 174 184 184 184 184 184 184 184 2011 787 1,292 1,633 1,859 1,983 2,021 2,024 2,024 2012 5,665 9,251 10,844 11,777 12,202 12,306 12,329 2013 9,955 15,883 18,052 18,600 19,014 19,174 2014 12,819 16,515 17,260 17,746 17,855 2015 7,771 11,873 13,844 15,159 2016 7,119 11,238 14,442 2017 8,320 12,944 2018 4,296 Total $ 99,041 Unpaid losses and ALAE - years 2009 through 2018 $ 2,966 Unpaid losses and ALAE - prior to 2009 (1)* — Unpaid ADC (701 ) Unpaid losses and ALAE, net of reinsurance $ 2,265 * Presented as unaudited required supplementary information. Total Lines Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims Accident Year For the years ended December 31, 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2018 2018 2009 $12,066 $12,705 $10,946 $9,577 $8,866 $9,037 $8,993 $9,048 $9,076 $9,075 — 942 2010 7,666 8,756 7,439 6,541 6,354 6,258 6,391 6,476 6,496 — 848 2011 8,431 7,517 7,307 7,081 6,963 6,949 6,964 6,957 — 1,307 2012 17,705 18,111 18,028 18,544 18,642 18,554 18,566 — 3,898 2013 28,052 27,431 28,817 29,375 30,419 30,420 54 5,800 2014 37,660 37,378 40,446 44,247 46,074 306 5,449 2015 33,319 40,078 46,581 49,763 624 4,474 2016 44,015 48,353 55,389 1,822 5,336 2017 58,309 58,045 9,193 8,455 2018 48,517 21,783 6,313 Total $329,302 $ 33,782 Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2009 $4,973 $6,576 $7,043 $7,867 $8,434 $8,501 $8,567 $8,955 $9,075 $9,075 2010 3,217 4,662 5,403 6,094 6,223 6,248 6,350 6,442 6,496 2011 3,432 4,826 5,597 6,308 6,624 6,766 6,897 6,927 2012 7,990 12,954 15,540 17,335 18,195 18,369 18,538 2013 13,934 22,094 25,695 27,223 29,162 29,824 2014 21,534 30,492 34,718 40,192 43,464 2015 18,241 29,690 36,393 45,634 2016 17,374 30,373 42,227 2017 20,768 35,964 2018 14,671 Total $ 252,820 Unpaid losses and ALAE - years 2009 through 2018 $ 76,482 Unpaid losses and ALAE - prior to 2009 (1)* 45 Unpaid ADC (17,550 ) Unpaid losses and ALAE, net of reinsurance $58,977 * Presented as unaudited required supplementary information. |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | The following table reconciles the claim development information to the consolidated balance sheet for the year ended December 31, 2018 , by reportable segment (dollars in thousands). December 31, 2018 Net outstanding liabilities for unpaid claims and ALAE Commercial Lines $ 56,712 Personal Lines 2,265 Liabilities for unpaid claims and ALAE, net of reinsurance 58,977 Reinsurance recoverable on unpaid claims Commercial Lines 26,919 Personal Lines 2,766 Total reinsurance recoverable on unpaid claims 29,685 ULAE Expense 4,145 Total gross liability for unpaid claims and LAE $ 92,807 |
Loss Duration Schedule | The following table represents the average annual percentage payout of incurred losses by age, net of reinsurance, for each reportable segment. Average annual percentage payout of incurred losses by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10+ Commercial Lines 30.5 % 24.0 % 19.4 % 13.5 % 6.7 % 3.0 % 1.5 % 0.8 % 0.5 % 0.1 % Personal Lines 64.2 % 21.3 % 7.7 % 3.9 % 2.5 % 0.4 % — % — % — % — % Total Lines 32.2 % 23.9 % 18.8 % 13.0 % 6.4 % 2.9 % 1.5 % 0.8 % 0.5 % 0.1 % |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Summary of the Effects of Reinsurance | The Company assumed $31.1 million , $28.0 million, and $25.0 million of written premiums under the insurance fronting arrangements for the years ended December 31, 2018 , 2017 , and 2016 , respectively. The following table presents the effects of reinsurance and assumption transactions on written premiums, earned premiums and losses and LAE (dollars in thousands). The 2018 and 2017 ceded written and earned premium amounts include $1.0 million and $806,000 of reinsurance reinstatement costs relating to Hurricane Irma, respectively. Year Ended December 31, 2018 2017 2016 Written premiums: Direct $ 73,290 $ 86,251 $ 89,915 Assumed 31,078 28,033 25,008 Ceded (15,282 ) (23,044 ) (14,994 ) Net written premiums $ 89,086 $ 91,240 $ 99,929 Earned premiums: Direct $ 80,691 $ 87,656 $ 90,660 Assumed 28,497 27,081 14,053 Ceded (15,377 ) (23,008 ) (15,086 ) Net earned premiums $ 93,811 $ 91,729 $ 89,627 Loss and loss adjustment expenses: Direct $ 65,284 $ 79,035 $ 59,940 Assumed 20,671 19,524 11,955 Ceded (23,440 ) (24,642 ) (12,892 ) Net Loss and loss adjustment expenses $ 62,515 $ 73,917 $ 59,003 Percentage of Assumed Written Premiums to Net Written Premiums 34.9 % 30.7 % 25.0 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Senior Debt | A summary of the Company's outstanding debt is as follows (dollars in thousands): December 31, 2018 2017 Senior unsecured notes $ 24,018 $ — Subordinated notes 9,484 29,027 Line of credit — — Total $ 33,502 $ 29,027 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | The income tax expense (benefit) is comprised of the following (dollars in thousands): Year Ended December 31, 2018 2017 2016 Current tax expense (benefit) $ 52 $ (28 ) $ 70 Deferred tax expense (benefit) — (419 ) (147 ) Total income tax expense (benefit) $ 52 $ (447 ) $ (77 ) |
Summary of Income Tax Expense (Benefit) Reconciliation | The income tax expense (benefit) differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% in 2018, and 34% in 2017 and 2016, to pretax income as a result of the following (dollars in thousands): Year Ended December 31, 2018 2017 2016 Income (loss) before income taxes $ (9,465 ) $ (22,054 ) $ (8,643 ) Statutory U.S. federal income tax rate (1,988 ) (7,498 ) (2,939 ) State income taxes, net of federal benefit (156 ) (106 ) (3 ) Tax‑exempt investment income and dividend received deduction (70 ) (123 ) (106 ) Nondeductible meals and entertainment 38 54 61 Valuation allowance on deferred tax assets 2,331 1,515 2,808 Change in federal tax rate — 5,612 — Other (103 ) 99 102 Income tax expense (benefit) $ 52 $ (447 ) $ (77 ) Effective tax rate (0.5 )% 2.0 % 0.9 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (dollars in thousands): December 31, 2018 2017 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 937 $ 1,026 Unearned premiums 2,329 2,576 Net operating loss carryforwards 10,144 9,147 Net unrealized losses on investments 222 — State net operating loss carryforwards 567 385 Deferred gain from ADC 1,254 — Other 123 135 Gross deferred tax assets 15,576 13,269 Less valuation allowance (12,606 ) (9,904 ) Total deferred tax assets, net of allowance 2,970 3,365 Deferred tax liabilities: Investment basis difference 22 19 Net unrealized gains on investments — 124 Deferred policy acquisition costs 2,522 2,684 Intangible assets 112 107 Property and equipment 63 85 Other 366 461 Total deferred tax liabilities 3,085 3,480 Net deferred tax liability $ (115 ) $ (115 ) |
Statutory Financial Data, Ris_2
Statutory Financial Data, Risk-Based Capital and Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Summary of Statutory Basis Information | Summarized 2018 , 2017 and 2016 statutory basis information for the non-captive Insurance Company Subsidiaries, which differs from generally accepted accounting principles, is as follows (dollars in thousands). CIC WPIC 2018 Statutory capital and surplus $ 47,121 $ 26,588 RBC authorized control level 11,901 4,682 Statutory net income (loss) 1,244 834 RBC % 396 % 568 % CIC WPIC 2017 Statutory capital and surplus $ 35,848 $ 26,075 RBC authorized control level 8,873 6,224 Statutory net income (loss) (6,993 ) (13,737 ) RBC % 404 % 419 % CIC WPIC 2016 Statutory capital and surplus $ 29,539 $ 32,391 RBC authorized control level 6,676 6,583 Statutory net income (loss) (2,782 ) (1,209 ) RBC % 442 % 492 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated 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 (in thousands): Year Ended 2018 2017 Balance at beginning of period $ (363 ) $ (1,080 ) Cumulative effect of adoption of ASU No. 2016-01, net of taxes (556 ) — Cumulative effect of adoption of ASU No. 2018-02, net of taxes 77 — Balance after cumulative effects (842 ) (1,080 ) Other comprehensive income (loss) before reclassifications (1,825 ) 795 Less: amounts reclassified from accumulated other comprehensive income (loss) (55 ) 78 Net current period other comprehensive income (loss) (1,770 ) 717 Balance at end of period $ (2,612 ) $ (363 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table presents the calculation of basic and diluted earnings (loss) per common share, as follows (in thousands, except share and per share amounts): Year Ended 2018 2017 2016 Net income (loss) $ (9,227 ) $ (21,542 ) $ (8,437 ) Weighted average common shares, basic and diluted* 8,543,876 7,867,344 7,618,588 Earnings (loss) per share, basic and diluted $ (1.08 ) $ (2.74 ) $ (1.11 ) * The non-vested shares of the restricted stock units were anti-dilutive as of December 31, 2018 , 2017 , and 2016 . Therefore, the basic and diluted weighted average common shares are equal as of December 31, 2018 , 2017 , and 2016 . |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | The following summarizes our RSU activity (units in thousands): Number of Units Weighted Average Grant-Date Fair Value Outstanding at August 12, 2015 (IPO) — $ — Units granted 390 10.48 Outstanding at December 31, 2015 390 $ 10.48 Units granted 111 8.17 Units vested (77 ) 10.48 Units forfeited (8 ) 9.95 Outstanding at December 31, 2016 416 $ 9.87 Units granted — — Units vested (95 ) 9.97 Units forfeited (14 ) 9.94 Outstanding at December 31, 2017 307 $ 9.84 Units granted 70 5.76 Units vested (95 ) 9.84 Units forfeited (18 ) 8.96 Outstanding at December 31, 2018 264 $ 8.91 |
Vesting Schedule for Restricted Stock Units | The scheduled vesting for the restricted stock units at December 31, 2018 was as follows (in thousands): 2019 2020 2021 2022 2023 Total Scheduled vesting - RSUs 104 104 32 14 10 264 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum rental payments under non-cancelable operating leases as of December 31, 2018 , are as follows (in thousands): Years Ending December 31, Amount 2019 $ 1,142 2020 1,116 2021 962 2022 829 2023 728 2024 and thereafter 451 Total future minimum rental payments $ 5,228 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Information by Reportable Segment | The following tables present information by reportable segment (dollars in thousands): Year Ended December 31, 2018 Commercial Lines Personal Lines Corporate & Other Total Gross written premiums $ 97,694 $ 6,674 $ — $ 104,368 Net written premiums $ 87,038 $ 2,048 $ — $ 89,086 Net earned premiums $ 83,352 $ 10,459 $ — $ 93,811 Other income 594 769 219 1,582 Segment revenue 83,946 11,228 219 95,393 Loss and loss adjustment expenses, net 53,065 9,450 — 62,515 Policy acquisition costs 21,474 4,060 — 25,534 Operating expenses 15,067 1,455 1,161 17,683 Segment expenses 89,606 14,965 1,161 105,732 Segment underwriting gain (loss) $ (5,660 ) $ (3,737 ) $ (942 ) $ (10,339 ) Investment income 3,336 3,336 Net realized investment gains 61 61 Change in fair value of equity securities 121 121 Interest expense (2,644 ) (2,644 ) Income (loss) before income taxes $ (68 ) $ (9,465 ) Selected Balance Sheet Data: Deferred policy acquisition costs $ 11,257 $ 754 $ — $ 12,011 Unearned premiums 49,549 3,303 — 52,852 Loss and loss adjustment expense reserves 87,643 5,164 — 92,807 Year Ended December 31, 2017 Commercial Lines Personal Lines Corporate & Other Total Gross written premiums $ 92,112 $ 22,172 $ — $ 114,284 Net written premiums $ 78,217 $ 13,023 $ — $ 91,240 Net earned premiums $ 76,786 $ 14,943 $ — $ 91,729 Other income 628 780 152 1,560 Segment revenue 77,414 15,723 152 93,289 Loss and loss adjustment expenses, net 55,701 18,216 — 73,917 Policy acquisition costs 20,470 5,775 — 26,245 Operating expenses 11,339 2,570 3,458 17,367 Segment expenses 87,510 26,561 3,458 117,529 Segment underwriting gain (loss) $ (10,096 ) $ (10,838 ) $ (3,306 ) $ (24,240 ) Investment income 2,728 2,728 Net realized investment gains 70 70 Other gains (losses) 750 750 Interest expense (1,362 ) (1,362 ) Income (loss) before income taxes $ (1,120 ) $ (22,054 ) Selected Balance Sheet Data: Deferred policy acquisition costs $ 10,116 $ 2,665 $ — $ 12,781 Unearned premiums 45,951 11,721 — 57,672 Loss and loss adjustment expense reserves 76,586 11,310 — 87,896 Year Ended December 31, 2016 Commercial Lines Personal Lines Corporate & Other Total Gross written premiums $ 88,242 $ 26,681 $ — $ 114,923 Net written premiums $ 78,439 $ 21,490 $ — $ 99,929 Net earned premiums $ 68,921 $ 20,706 $ — $ 89,627 Other income 378 558 182 1,118 Segment revenue 69,299 21,264 182 90,745 Loss and loss adjustment expenses, net 42,441 16,562 — 59,003 Policy acquisition costs 18,560 6,720 — 25,280 Operating expenses 6,767 2,911 7,918 17,596 Segment expenses 67,768 26,193 7,918 101,879 Segment underwriting gain (loss) $ 1,531 $ (4,929 ) $ (7,736 ) $ (11,134 ) Investment income 2,173 2,173 Net realized investment gains 1,365 1,365 Other gains (losses) (400 ) (400 ) Interest expense (647 ) (647 ) Income (loss) before income taxes $ (5,245 ) $ (8,643 ) Selected Balance Sheet Data: Deferred policy acquisition costs $ 10,156 $ 3,134 $ — $ 13,290 Unearned premiums 44,484 13,642 — 58,126 Loss and loss adjustment expense reserves 46,917 7,734 — 54,651 The following table summarizes our net earned premiums: Net Earned Premium 2018 2017 2016 Commercial 89 % 84 % 77 % Personal 11 % 16 % 23 % Total 100 % 100 % 100 % |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Results | The following is a summary of quarterly results of operations for 2018 and 2017 (in thousands, except per share and ratio data). The fluctuations between periods and changes in reserves, as disclosed in Note 5, are due to the normal fluctuations in operations from quarter to quarter. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2018 Gross written premiums $ 23,737 $ 26,562 $ 26,629 $ 27,440 Net written premiums $ 19,845 $ 22,595 $ 22,846 $ 23,800 Net earned premiums $ 23,800 $ 23,938 $ 23,450 $ 22,623 Net investment income 802 837 786 911 Net realized gains (losses) 161 12 (21 ) (91 ) Change in fair value of equity securities (1) (297 ) 29 152 237 Other income 357 450 405 370 Losses and loss adjustment expenses, net 13,328 15,068 16,554 17,565 Policy acquisition costs 6,513 6,472 6,452 6,097 Operating expenses 4,187 4,303 4,786 4,407 Interest expense 619 617 598 810 Income tax expense (benefit) 18 10 24 — Equity earnings (losses) in affiliates, net of tax 55 89 93 53 Net income (loss) $ 213 $ (1,113 ) $ (3,551 ) $ (4,776 ) Diluted earnings (loss) per common share (2) $ 0.02 $ (0.13 ) $ (0.42 ) $ (0.56 ) Combined ratio 99.5 % 106.0 % 116.5 % 122.1 % 2017 Gross written premiums $ 26,474 $ 26,981 $ 29,581 $ 31,247 Net written premiums $ 22,324 $ 23,082 $ 18,395 $ 27,439 Net earned premiums $ 24,140 $ 24,497 $ 17,659 $ 25,433 Net investment income 577 663 768 720 Net realized gains (losses) (8 ) — 39 39 Other gains (losses) — 750 — — Other income 354 372 477 357 Losses and loss adjustment expenses, net 15,733 16,674 26,468 15,042 Policy acquisition costs 6,472 6,428 6,655 6,690 Operating expenses 4,530 4,370 4,474 3,993 Interest expense 224 219 303 616 Income tax (benefit) expense 6 (282 ) (135 ) (36 ) Equity earnings (losses) in affiliates, net of tax 104 60 (76 ) (23 ) Net income (loss) $ (1,798 ) $ (1,067 ) $ (18,898 ) $ 221 Diluted earnings (loss) per common share (2) $ (0.24 ) $ (0.14 ) $ (2.46 ) $ 0.03 Combined ratio 109.1 % 110.4 % 207.3 % 99.7 % (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale. Prior periods have not been recast to conform to the current presentation. Refer to Note 1 ~ Summary of Significant Accounting Policies for further details. (2) Due to the changes in the equity structure of the Company (Note ~ 10 Shareholders' Equity) the weighted average common shares outstanding has fluctuated over the past two years and therefore the quarterly diluted earnings (loss) per common share does not total the full-year earnings (loss) per common share stated on the face of the Consolidated Statements of Operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | Jan. 01, 2018USD ($) | Dec. 31, 2018USD ($)class_businessstate | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | Oct. 12, 2018USD ($) |
Accounting Policies [Abstract] | ||||||
Number of types of business | class_business | 2 | |||||
Number of states in which entity operates | state | 50 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Unrecognized tax benefits | $ 0 | $ 0 | ||||
Income tax penalties and interest accrued | 0 | 0 | ||||
Deferred income taxes | 0 | $ (419,000) | $ (147,000) | |||
Operating lease rent expense | 1,200,000 | |||||
Senior Unsecured Notes | Senior Unsecured Notes | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Face amount of debt | $ 25,300,000 | $ 25,300,000 | ||||
Accumulated Other Comprehensive Income (Loss) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification of previously recognized deferred taxes from accumulated other comprehensive income into accumulated deficit | $ 77,000 | |||||
Accounting Standards Update 2016-01 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Deferred income taxes | 500,000 | |||||
Accounting Standards Update 2016-01 | Retained Earnings (Accumulated deficit) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of adoption of ASU | 1,100,000 | |||||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income (Loss) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of adoption of ASU | $ (1,100,000) | |||||
Subsequent Event | Scenario, Forecast | Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Lease liability | $ 4,300,000 | |||||
Right of use asset | $ 4,300,000 |
Investments - Available-for-sal
Investments - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt securities: | ||
Debt securities, Cost or Amortized Cost | $ 122,678 | $ 137,004 |
Debt securities, Gross Unrealized Gain | 248 | 531 |
Debt securities, Gross Unrealized Loss | (2,486) | (999) |
Debt securities, Estimated Fair Value | 120,440 | 136,536 |
Equity securities, Cost or Amortized Cost | 8,629 | |
Equity securities, Gross Unrealized Gain | 1,240 | |
Equity securities, Gross Unrealized Loss | (182) | |
Equity securities, Estimated Fair Value | 9,687 | |
Securities, Cost or Amortized Cost | 145,633 | |
Securities, Gross Unrealized Gain | 1,771 | |
Securities, Gross Unrealized Loss | (1,181) | |
Securities, Estimated Fair Value | 146,223 | |
U.S. Government | ||
Debt securities: | ||
Debt securities, Cost or Amortized Cost | 15,360 | 17,179 |
Debt securities, Gross Unrealized Gain | 3 | 10 |
Debt securities, Gross Unrealized Loss | (178) | (99) |
Debt securities, Estimated Fair Value | 15,185 | 17,090 |
State and local government | ||
Debt securities: | ||
Debt securities, Cost or Amortized Cost | 15,847 | 17,302 |
Debt securities, Gross Unrealized Gain | 115 | 255 |
Debt securities, Gross Unrealized Loss | (174) | (54) |
Debt securities, Estimated Fair Value | 15,788 | 17,503 |
Corporate debt | ||
Debt securities: | ||
Debt securities, Cost or Amortized Cost | 30,423 | 38,947 |
Debt securities, Gross Unrealized Gain | 74 | 170 |
Debt securities, Gross Unrealized Loss | (651) | (209) |
Debt securities, Estimated Fair Value | 29,846 | 38,908 |
Asset-backed securities | ||
Debt securities: | ||
Debt securities, Cost or Amortized Cost | 24,468 | 23,539 |
Debt securities, Gross Unrealized Gain | 24 | 36 |
Debt securities, Gross Unrealized Loss | (208) | (35) |
Debt securities, Estimated Fair Value | 24,284 | 23,540 |
Mortgage-backed securities | ||
Debt securities: | ||
Debt securities, Cost or Amortized Cost | 30,377 | 33,942 |
Debt securities, Gross Unrealized Gain | 18 | 38 |
Debt securities, Gross Unrealized Loss | (1,155) | (522) |
Debt securities, Estimated Fair Value | 29,240 | 33,458 |
Commercial mortgage-backed securities | ||
Debt securities: | ||
Debt securities, Cost or Amortized Cost | 4,025 | 3,532 |
Debt securities, Gross Unrealized Gain | 5 | 3 |
Debt securities, Gross Unrealized Loss | (77) | (44) |
Debt securities, Estimated Fair Value | 3,953 | 3,491 |
Collateralized mortgage obligations | ||
Debt securities: | ||
Debt securities, Cost or Amortized Cost | 2,178 | 2,563 |
Debt securities, Gross Unrealized Gain | 9 | 19 |
Debt securities, Gross Unrealized Loss | (43) | (36) |
Debt securities, Estimated Fair Value | $ 2,144 | $ 2,546 |
Investments - Available-for-s_2
Investments - Available-for-sale Securities in Unrealized Loss Positions (Details) $ in Thousands | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Marketable Securities [Line Items] | ||
Less than 12 months, number of issues | security | 110 | |
Greater than 12 months, number issues | security | 59 | |
Number of issues | security | 169 | |
Less than 12 months, fair value | $ 53,517 | |
Greater than 12 months, fair value | 37,028 | |
Fair Value | 90,545 | |
Less than 12 months, gross unrealized losses | (301) | |
Greater than 12 months, gross unrealized losses | (880) | |
Gross unrealized losses | $ (1,181) | |
U.S. Government | ||
Marketable Securities [Line Items] | ||
Less than 12 months, number of issues | security | 1 | |
Less than 12 months, number of issues | security | 12 | |
Greater than 12 months, number of issues | security | 16 | |
Greater than 12 months, number issues | security | 7 | |
Number of issues | security | 17 | |
Number of issues | security | 19 | |
Less than 12 months, fair value | $ 2,470 | |
Less than 12 months, fair value | $ 11,555 | |
Greater than 12 months, fair value | 11,725 | |
Greater than 12 months, fair value | 2,207 | |
Fair Value | 14,195 | |
Fair Value | 13,762 | |
Less than 12 months, gross unrealized losses | (24) | |
Less than 12 months, gross unrealized losses | (64) | |
Greater than 12 months, gross unrealized losses | (154) | |
Greater than 12 months, gross unrealized losses | (35) | |
Gross unrealized losses | $ (178) | |
Gross unrealized losses | $ (99) | |
State and local government | ||
Marketable Securities [Line Items] | ||
Less than 12 months, number of issues | security | 21 | |
Less than 12 months, number of issues | security | 10 | |
Greater than 12 months, number of issues | security | 16 | |
Greater than 12 months, number issues | security | 7 | |
Number of issues | security | 37 | |
Number of issues | security | 17 | |
Less than 12 months, fair value | $ 4,935 | |
Less than 12 months, fair value | $ 3,511 | |
Greater than 12 months, fair value | 4,273 | |
Greater than 12 months, fair value | 1,424 | |
Fair Value | 9,208 | |
Fair Value | 4,935 | |
Less than 12 months, gross unrealized losses | (40) | |
Less than 12 months, gross unrealized losses | (20) | |
Greater than 12 months, gross unrealized losses | (134) | |
Greater than 12 months, gross unrealized losses | (34) | |
Gross unrealized losses | $ (174) | |
Gross unrealized losses | $ (54) | |
Corporate debt | ||
Marketable Securities [Line Items] | ||
Less than 12 months, number of issues | security | 36 | |
Less than 12 months, number of issues | security | 38 | |
Greater than 12 months, number of issues | security | 25 | |
Greater than 12 months, number issues | security | 10 | |
Number of issues | security | 61 | |
Number of issues | security | 48 | |
Less than 12 months, fair value | $ 12,096 | |
Less than 12 months, fair value | $ 15,236 | |
Greater than 12 months, fair value | 11,993 | |
Greater than 12 months, fair value | 6,555 | |
Fair Value | 24,089 | |
Fair Value | 21,791 | |
Less than 12 months, gross unrealized losses | (140) | |
Less than 12 months, gross unrealized losses | (46) | |
Greater than 12 months, gross unrealized losses | (511) | |
Greater than 12 months, gross unrealized losses | (163) | |
Gross unrealized losses | $ (651) | |
Gross unrealized losses | $ (209) | |
Asset-backed securities | ||
Marketable Securities [Line Items] | ||
Less than 12 months, number of issues | security | 25 | |
Less than 12 months, number of issues | security | 20 | |
Greater than 12 months, number of issues | security | 9 | |
Greater than 12 months, number issues | security | 3 | |
Number of issues | security | 34 | |
Number of issues | security | 23 | |
Less than 12 months, fair value | $ 17,743 | |
Less than 12 months, fair value | $ 13,948 | |
Greater than 12 months, fair value | 4,166 | |
Greater than 12 months, fair value | 915 | |
Fair Value | 21,909 | |
Fair Value | 14,863 | |
Less than 12 months, gross unrealized losses | (148) | |
Less than 12 months, gross unrealized losses | (29) | |
Greater than 12 months, gross unrealized losses | (60) | |
Greater than 12 months, gross unrealized losses | (6) | |
Gross unrealized losses | $ (208) | |
Gross unrealized losses | $ (35) | |
Mortgage-backed securities | ||
Marketable Securities [Line Items] | ||
Less than 12 months, number of issues | security | 20 | |
Less than 12 months, number of issues | security | 6 | |
Greater than 12 months, number of issues | security | 30 | |
Greater than 12 months, number issues | security | 26 | |
Number of issues | security | 50 | |
Number of issues | security | 32 | |
Less than 12 months, fair value | $ 5,474 | |
Less than 12 months, fair value | $ 4,935 | |
Greater than 12 months, fair value | 21,715 | |
Greater than 12 months, fair value | 24,939 | |
Fair Value | 27,189 | |
Fair Value | 29,874 | |
Less than 12 months, gross unrealized losses | (138) | |
Less than 12 months, gross unrealized losses | (19) | |
Greater than 12 months, gross unrealized losses | (1,017) | |
Greater than 12 months, gross unrealized losses | (503) | |
Gross unrealized losses | $ (1,155) | |
Gross unrealized losses | $ (522) | |
Commercial mortgage-backed securities | ||
Marketable Securities [Line Items] | ||
Less than 12 months, number of issues | security | 4 | |
Less than 12 months, number of issues | security | 3 | |
Greater than 12 months, number of issues | security | 3 | |
Greater than 12 months, number issues | security | 2 | |
Number of issues | security | 7 | |
Number of issues | security | 5 | |
Less than 12 months, fair value | $ 1,082 | |
Less than 12 months, fair value | $ 2,026 | |
Greater than 12 months, fair value | 2,632 | |
Greater than 12 months, fair value | 722 | |
Fair Value | 3,714 | |
Fair Value | 2,748 | |
Less than 12 months, gross unrealized losses | (12) | |
Less than 12 months, gross unrealized losses | (12) | |
Greater than 12 months, gross unrealized losses | (65) | |
Greater than 12 months, gross unrealized losses | (32) | |
Gross unrealized losses | $ (77) | |
Gross unrealized losses | $ (44) | |
Collateralized mortgage obligations | ||
Marketable Securities [Line Items] | ||
Less than 12 months, number of issues | security | 4 | |
Less than 12 months, number of issues | security | 8 | |
Greater than 12 months, number of issues | security | 6 | |
Greater than 12 months, number issues | security | 0 | |
Number of issues | security | 10 | |
Number of issues | security | 8 | |
Less than 12 months, fair value | $ 116 | |
Less than 12 months, fair value | $ 1,870 | |
Greater than 12 months, fair value | 1,587 | |
Greater than 12 months, fair value | 0 | |
Fair Value | 1,703 | |
Fair Value | 1,870 | |
Less than 12 months, gross unrealized losses | (1) | |
Less than 12 months, gross unrealized losses | (36) | |
Greater than 12 months, gross unrealized losses | (42) | |
Greater than 12 months, gross unrealized losses | 0 | |
Gross unrealized losses | $ (43) | |
Gross unrealized losses | $ (36) | |
Debt securities | ||
Marketable Securities [Line Items] | ||
Less than 12 months, number of issues | security | 111 | |
Less than 12 months, number of issues | security | 97 | |
Greater than 12 months, number of issues | security | 105 | |
Greater than 12 months, number issues | security | 55 | |
Number of issues | security | 216 | |
Number of issues | security | 152 | |
Less than 12 months, fair value | $ 43,916 | |
Less than 12 months, fair value | $ 53,081 | |
Greater than 12 months, fair value | 58,091 | |
Greater than 12 months, fair value | 36,762 | |
Fair Value | 102,007 | |
Fair Value | 89,843 | |
Less than 12 months, gross unrealized losses | (503) | |
Less than 12 months, gross unrealized losses | (226) | |
Greater than 12 months, gross unrealized losses | (1,983) | |
Greater than 12 months, gross unrealized losses | (773) | |
Gross unrealized losses | $ (2,486) | |
Gross unrealized losses | $ (999) | |
Equity securities | ||
Marketable Securities [Line Items] | ||
Less than 12 months, number of issues | security | 13 | |
Greater than 12 months, number issues | security | 4 | |
Number of issues | security | 17 | |
Less than 12 months, fair value | $ 436 | |
Greater than 12 months, fair value | 266 | |
Fair Value | 702 | |
Less than 12 months, gross unrealized losses | (75) | |
Greater than 12 months, gross unrealized losses | (107) | |
Gross unrealized losses | $ (182) |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Investment Income [Line Items] | |||||||||||
Investment income | $ 3,633 | $ 3,003 | $ 2,489 | ||||||||
Investment expenses | (297) | (275) | (316) | ||||||||
Net investment income | $ 911 | $ 786 | $ 837 | $ 802 | $ 720 | $ 768 | $ 663 | $ 577 | 3,336 | 2,728 | 2,173 |
Debt securities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 3,419 | 2,757 | 2,370 | ||||||||
Equity securities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 129 | 124 | 98 | ||||||||
Cash and short-term investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | $ 85 | $ 122 | $ 21 |
Investments - Gross Realized Ga
Investments - Gross Realized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Marketable Securities [Line Items] | |||
Debt securities, Gross realized gains | $ 54 | ||
Equity securities, Gross realized gains | 337 | ||
Debt securities, Gross realized losses | (256) | ||
Equity securities, Gross realized losses | (74) | ||
Total debt securities | (202) | ||
Total equity securities | 263 | ||
Total net investment realized gains | $ 61 | $ 70 | $ 1,365 |
Debt securities | |||
Marketable Securities [Line Items] | |||
Gross realized gains | 32 | 587 | |
Gross realized losses | (8) | (24) | |
Total net realized investment gains | 24 | 563 | |
Equity securities | |||
Marketable Securities [Line Items] | |||
Gross realized gains | 76 | 1,198 | |
Gross realized losses | (30) | (396) | |
Total net realized investment gains | $ 46 | $ 802 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of available for sale securities | $ 14,600 | ||
Proceeds from sales of available for sale securities | $ 1,800 | $ 30,800 | |
Change in fair value of equity securities | 121 | 0 | $ 0 |
Deposits in trust accounts to meet requirements of state insurance departments | 8,500 | 8,200 | |
Deposits in trust accounts to meet collateral requirements with reinsurers | $ 45,400 | $ 18,400 |
Investments - Available-for-s_3
Investments - Available-for-sale Fixed Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in one year or less | $ 9,206 | |
Due after one year through five years | 33,028 | |
Due after five years through ten years | 11,568 | |
Due after ten years | 7,828 | |
Securities with contractual maturities | 61,630 | |
Debt securities, Cost or Amortized Cost | 122,678 | $ 137,004 |
Estimated Fair Value | ||
Due in one year or less | 9,153 | |
Due after one year through five years | 32,667 | |
Due after five years through ten years | 11,279 | |
Due after ten years | 7,720 | |
Securities with contractual maturities | 60,819 | |
Debt securities, Estimated Fair Value | 120,440 | 136,536 |
Asset-backed securities | ||
Amortized Cost | ||
Securities without contractual maturities | 24,468 | |
Debt securities, Cost or Amortized Cost | 24,468 | 23,539 |
Estimated Fair Value | ||
Securities without contractual maturities | 24,284 | |
Debt securities, Estimated Fair Value | 24,284 | 23,540 |
Mortgage-backed securities | ||
Amortized Cost | ||
Securities without contractual maturities | 30,377 | |
Debt securities, Cost or Amortized Cost | 30,377 | 33,942 |
Estimated Fair Value | ||
Securities without contractual maturities | 29,240 | |
Debt securities, Estimated Fair Value | 29,240 | 33,458 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Securities without contractual maturities | 4,025 | |
Debt securities, Cost or Amortized Cost | 4,025 | 3,532 |
Estimated Fair Value | ||
Securities without contractual maturities | 3,953 | |
Debt securities, Estimated Fair Value | 3,953 | 3,491 |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Securities without contractual maturities | 2,178 | |
Debt securities, Cost or Amortized Cost | 2,178 | 2,563 |
Estimated Fair Value | ||
Securities without contractual maturities | 2,144 | |
Debt securities, Estimated Fair Value | $ 2,144 | $ 2,546 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | $ 120,440 | $ 136,536 | |
Equity Securities | 10,737 | ||
Equity Securities | 9,687 | ||
Short-term investments | 8,925 | 11,427 | |
Total assets measured at fair value | 140,102 | 157,650 | |
Total Liabilities measured at fair value | 31,892 | 29,888 | |
U.S. Government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 15,185 | 17,090 | |
State and local government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 15,788 | 17,503 | |
Corporate debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 29,846 | 38,908 | |
Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 24,284 | 23,540 | |
Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 29,240 | 33,458 | |
Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 3,953 | 3,491 | |
Collateralized mortgage obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 2,144 | 2,546 | |
Senior Unsecured Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 21,252 | ||
Subordinated Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 10,640 | 29,888 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 8,925 | 8,429 | |
Total assets measured at fair value | 15,248 | 13,810 | |
Total Liabilities measured at fair value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized mortgage obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | 6,323 | ||
Equity Securities | 5,381 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Senior Unsecured Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 0 | ||
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 2,998 | ||
Total assets measured at fair value | 120,704 | 139,780 | |
Total Liabilities measured at fair value | 21,252 | 0 | |
Significant Other Observable Inputs (Level 2) | U.S. Government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 15,185 | 17,090 | |
Significant Other Observable Inputs (Level 2) | State and local government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 15,788 | 17,503 | |
Significant Other Observable Inputs (Level 2) | Corporate debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 29,846 | 38,908 | |
Significant Other Observable Inputs (Level 2) | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 24,284 | 23,540 | |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 29,240 | 33,458 | |
Significant Other Observable Inputs (Level 2) | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 3,953 | 3,491 | |
Significant Other Observable Inputs (Level 2) | Collateralized mortgage obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 2,144 | 2,546 | |
Significant Other Observable Inputs (Level 2) | Debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 120,440 | 136,536 | |
Significant Other Observable Inputs (Level 2) | Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | 264 | ||
Equity Securities | 246 | ||
Significant Other Observable Inputs (Level 2) | Senior Unsecured Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 21,252 | ||
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Liabilities measured at fair value | 10,640 | 29,888 | |
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Collateralized mortgage obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Senior Unsecured Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | $ 0 | ||
Significant Unobservable Inputs (Level 3) | Subordinated Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt | 10,640 | 29,888 | |
Levles 1, 2 and 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 8,925 | 11,427 | |
Total assets measured at fair value | 135,952 | 153,590 | |
Levles 1, 2 and 3 | U.S. Government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 15,185 | 17,090 | |
Levles 1, 2 and 3 | State and local government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 15,788 | 17,503 | |
Levles 1, 2 and 3 | Corporate debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 29,846 | 38,908 | |
Levles 1, 2 and 3 | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 24,284 | 23,540 | |
Levles 1, 2 and 3 | Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 29,240 | 33,458 | |
Levles 1, 2 and 3 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 3,953 | 3,491 | |
Levles 1, 2 and 3 | Collateralized mortgage obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 2,144 | 2,546 | |
Levles 1, 2 and 3 | Debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities | 120,440 | 136,536 | |
Levles 1, 2 and 3 | Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | 6,587 | ||
Equity Securities | 5,627 | ||
Fair Value Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in limited partnership | 4,150 | 4,060 | |
Partnership Interest | Fair Value Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in limited partnership | $ 4,150 | $ 4,060 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | Dec. 31, 2018 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Percentage of the fair value of the total investment portfolio (percentage) | 10.80% |
Significant Other Observable Inputs (Level 2) | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Percentage of the fair value of the total investment portfolio (percentage) | 86.10% |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Activity in Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||||||
Balance at beginning of period | $ 12,781 | $ 13,290 | $ 12,781 | $ 13,290 | $ 12,102 | ||||||
Deferred policy acquisition costs | 24,764 | 25,736 | 26,468 | ||||||||
Amortization of policy acquisition costs | $ (6,097) | $ (6,452) | $ (6,472) | $ (6,513) | $ (6,690) | $ (6,655) | $ (6,428) | $ (6,472) | (25,534) | (26,245) | (25,280) |
Net change | (770) | (509) | 1,188 | ||||||||
Balance at end of period | $ 12,011 | $ 12,781 | $ 12,011 | $ 12,781 | $ 13,290 |
Unpaid Losses and Loss Adjust_3
Unpaid Losses and Loss Adjustment Expenses - Changes in the Liability for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||||||
Gross reserves - beginning of period | $ 87,896 | $ 54,651 | $ 87,896 | $ 54,651 | $ 35,422 | ||||||
Less: reinsurance recoverables on unpaid losses | 20,066 | 6,658 | 20,066 | 6,658 | 5,405 | ||||||
Net reserves - beginning of period | 67,830 | 47,993 | 67,830 | 47,993 | 30,017 | ||||||
Add: incurred losses and loss adjustment expenses, net of reinsurance | |||||||||||
Current period | 53,482 | 64,458 | 48,782 | ||||||||
Prior period | 9,033 | 9,459 | 10,221 | ||||||||
Net Loss and loss adjustment expenses | $ 17,565 | $ 16,554 | $ 15,068 | $ 13,328 | $ 15,042 | $ 26,468 | $ 16,674 | $ 15,733 | 62,515 | 73,917 | 59,003 |
Deduct: loss and loss adjustment expense payments, net of reinsurance | |||||||||||
Current period | 17,025 | 24,547 | 20,828 | ||||||||
Prior period | 44,521 | 29,533 | 20,199 | ||||||||
Total net loss and loss adjustment expense payments | 61,546 | 54,080 | 41,027 | ||||||||
Net reserves - end of period | 68,799 | 67,830 | 68,799 | 67,830 | 47,993 | ||||||
Plus: reinsurance recoverables on unpaid losses | 29,685 | 20,066 | 29,685 | 20,066 | 6,658 | ||||||
Less: deferred gain on ADC | (5,677) | 0 | (5,677) | 0 | 0 | ||||||
Gross reserves - end of period | $ 92,807 | $ 87,896 | $ 92,807 | $ 87,896 | $ 54,651 |
Unpaid Losses and Loss Adjust_4
Unpaid Losses and Loss Adjustment Expenses - Narrative (Details) - USD ($) | Sep. 28, 2017 | Jun. 30, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | $ 9,033,000 | $ 9,459,000 | $ 10,221,000 | |||||||||||
Unpaid losses and loss adjustment expenses | $ 92,807,000 | $ 87,896,000 | 92,807,000 | 87,896,000 | 54,651,000 | $ 35,422,000 | ||||||||
Amount ceded | 15,377,000 | 23,008,000 | 15,086,000 | |||||||||||
Ceded losses recognized as a benefit | 23,440,000 | 24,642,000 | 12,892,000 | |||||||||||
Deferred ceded losses | 5,677,000 | 0 | 5,677,000 | 0 | 0 | |||||||||
Losses and loss adjustment expenses, net | 17,565,000 | $ 16,554,000 | $ 15,068,000 | $ 13,328,000 | 15,042,000 | $ 26,468,000 | $ 16,674,000 | $ 15,733,000 | 62,515,000 | 73,917,000 | 59,003,000 | |||
Adverse Development Cover Reinsurance Agreement | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Amount reinsured | $ 17,500,000 | $ 1,400,000 | ||||||||||||
Reinsurance agreement, quota share (percentage) | 10.00% | 10.00% | ||||||||||||
Amount ceded | 10,300,000 | 7,200,000 | ||||||||||||
Ceded losses recognized as a benefit | 4,600,000 | |||||||||||||
Deferred ceded losses | 5,700,000 | 5,700,000 | ||||||||||||
Catastrophe Reinsurance Treaty | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Amount reinsured | 4,000,000 | 4,000,000 | ||||||||||||
Amount ceded | 10,000,000 | 5,200,000 | ||||||||||||
Ceded premiums | $ 1,000,000 | $ 806,000 | 1,000,000 | 806,000 | ||||||||||
Commercial Line | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 6,200,000 | $ 7,200,000 | ||||||||||||
Catastrophe losses incurred (percentage) | 34.00% | |||||||||||||
Commercial Liability Line | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 4,200,000 | $ 5,100,000 | 4,100,000 | |||||||||||
Personal Line | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 2,800,000 | $ 2,300,000 | ||||||||||||
Catastrophe losses incurred (percentage) | 66.00% | |||||||||||||
Florida Homeowners | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 2,000,000 | $ 1,700,000 | ||||||||||||
Texas Homeowners | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 727,000 | |||||||||||||
Commercial Property Line | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 1,600,000 | |||||||||||||
Commercial Automobile Line | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 500,000 | 2,700,000 | ||||||||||||
Personal Automobile Line | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 800,000 | |||||||||||||
Wind-exposed Homeowners | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | $ 2,700,000 | |||||||||||||
Hurricane | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Amount ceded | 1,000,000 | 806,000 | ||||||||||||
Losses and loss adjustment expenses, net | 583,000 | $ 5,400,000 | ||||||||||||
Hurricane | Commercial Line | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Losses and loss adjustment expenses, net | (377,000) | |||||||||||||
Hurricane | Personal Line | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Losses and loss adjustment expenses, net | $ 960,000 | |||||||||||||
Minimum | Adverse Development Cover Reinsurance Agreement | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Reinsurance retention policy carried reserves threshold | $ 1,400,000 | |||||||||||||
Unpaid losses and loss adjustment expenses | $ 36,600,000 | 36,600,000 | ||||||||||||
Maximum | Adverse Development Cover Reinsurance Agreement | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Amount reinsured | 17,500,000 | |||||||||||||
Reinsurance retention policy carried reserves threshold | $ 19,500,000 | 19,500,000 | ||||||||||||
Unpaid losses and loss adjustment expenses | $ 57,500,000 | $ 57,500,000 |
Unpaid Losses and Loss Adjust_5
Unpaid Losses and Loss Adjustment Expenses - Loss Development (Details) $ in Thousands | Dec. 31, 2018USD ($)claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) |
Claims Development [Line Items] | ||||||||||
Incurred | $ 329,302 | |||||||||
Total IBNR | 33,782 | |||||||||
Cumulative Paid | 252,820 | |||||||||
Unpaid losses and ALAE - years 2009 through 2018 | 76,482 | |||||||||
Unpaid losses and ALAE - prior to 2009 | 45 | |||||||||
Unpaid ADC | (17,550) | |||||||||
Unpaid losses and ALAE, net of reinsurance | 58,977 | |||||||||
Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 227,295 | |||||||||
Total IBNR | 33,110 | |||||||||
Cumulative Paid | 153,779 | |||||||||
Unpaid losses and ALAE - years 2009 through 2018 | 73,516 | |||||||||
Unpaid losses and ALAE - prior to 2009 | 45 | |||||||||
Unpaid ADC | (16,849) | |||||||||
Unpaid losses and ALAE, net of reinsurance | 56,712 | |||||||||
Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 102,007 | |||||||||
Total IBNR | 672 | |||||||||
Cumulative Paid | 99,041 | |||||||||
Unpaid losses and ALAE - years 2009 through 2018 | 2,966 | |||||||||
Unpaid losses and ALAE - prior to 2009 | 0 | |||||||||
Unpaid ADC | (701) | |||||||||
Unpaid losses and ALAE, net of reinsurance | 2,265 | |||||||||
Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 9,075 | $ 9,076 | $ 9,048 | $ 8,993 | $ 9,037 | $ 8,866 | $ 9,577 | $ 10,946 | $ 12,705 | $ 12,066 |
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 942 | |||||||||
Cumulative Paid | $ 9,075 | 9,075 | 8,955 | 8,567 | 8,501 | 8,434 | 7,867 | 7,043 | 6,576 | 4,973 |
Accident Year 2009 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 8,441 | 8,442 | 8,414 | 8,359 | 8,403 | 8,232 | 8,943 | 10,312 | 12,066 | 11,400 |
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 877 | |||||||||
Cumulative Paid | $ 8,441 | 8,441 | 8,321 | 7,933 | 7,867 | 7,800 | 7,233 | 6,410 | 5,942 | 4,436 |
Accident Year 2009 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 634 | 634 | 634 | 634 | 634 | 634 | 634 | 634 | 639 | 667 |
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 65 | |||||||||
Cumulative Paid | $ 634 | 634 | 634 | 634 | 634 | 634 | 634 | 634 | 634 | $ 537 |
Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 6,496 | 6,476 | 6,391 | 6,258 | 6,354 | 6,541 | 7,439 | 8,756 | 7,666 | |
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 848 | |||||||||
Cumulative Paid | $ 6,496 | 6,442 | 6,350 | 6,248 | 6,223 | 6,094 | 5,403 | 4,662 | 3,217 | |
Accident Year 2010 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 6,312 | 6,292 | 6,207 | 6,074 | 6,170 | 6,357 | 7,255 | 8,568 | 7,346 | |
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 771 | |||||||||
Cumulative Paid | $ 6,312 | 6,258 | 6,166 | 6,065 | 6,040 | 5,910 | 5,219 | 4,488 | 3,066 | |
Accident Year 2010 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 184 | 184 | 184 | 184 | 184 | 184 | 184 | 188 | 320 | |
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 77 | |||||||||
Cumulative Paid | $ 184 | 184 | 184 | 184 | 184 | 184 | 184 | 174 | $ 151 | |
Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 6,957 | 6,964 | 6,949 | 6,963 | 7,081 | 7,307 | 7,517 | 8,431 | ||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 1,307 | |||||||||
Cumulative Paid | $ 6,927 | 6,897 | 6,766 | 6,624 | 6,308 | 5,597 | 4,826 | 3,432 | ||
Accident Year 2011 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 4,933 | 4,935 | 4,903 | 4,932 | 5,049 | 5,326 | 5,758 | 6,753 | ||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 590 | |||||||||
Cumulative Paid | $ 4,903 | 4,872 | 4,744 | 4,641 | 4,449 | 3,964 | 3,534 | 2,645 | ||
Accident Year 2011 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 2,024 | 2,027 | 2,045 | 2,030 | 2,031 | 1,981 | 1,758 | 1,678 | ||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 717 | |||||||||
Cumulative Paid | $ 2,024 | 2,024 | 2,021 | 1,983 | 1,859 | 1,633 | 1,292 | $ 787 | ||
Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 18,566 | 18,554 | 18,642 | 18,544 | 18,028 | 18,111 | 17,705 | |||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 3,898 | |||||||||
Cumulative Paid | $ 18,538 | 18,369 | 18,195 | 17,335 | 15,540 | 12,954 | 7,990 | |||
Accident Year 2012 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 6,209 | 6,190 | 6,253 | 6,384 | 6,288 | 6,421 | 7,745 | |||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 560 | |||||||||
Cumulative Paid | $ 6,209 | 6,065 | 5,994 | 5,558 | 4,696 | 3,703 | 2,325 | |||
Accident Year 2012 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 12,357 | 12,365 | 12,390 | 12,159 | 11,740 | 11,690 | 9,960 | |||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 3,338 | |||||||||
Cumulative Paid | $ 12,329 | 12,306 | 12,202 | 11,777 | 10,844 | 9,251 | $ 5,665 | |||
Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 30,420 | 30,419 | 29,375 | 28,817 | 27,431 | 28,052 | ||||
Total IBNR | $ 54 | |||||||||
Cumulative number of reported claims | claim | 5,800 | |||||||||
Cumulative Paid | $ 29,824 | 29,162 | 27,223 | 25,695 | 22,094 | 13,934 | ||||
Accident Year 2013 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 11,218 | 11,252 | 10,237 | 9,893 | 9,435 | 10,018 | ||||
Total IBNR | $ 50 | |||||||||
Cumulative number of reported claims | claim | 605 | |||||||||
Cumulative Paid | $ 10,650 | 10,147 | 8,622 | 7,643 | 6,211 | 3,979 | ||||
Accident Year 2013 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 19,202 | 19,167 | 19,138 | 18,925 | 17,996 | 18,034 | ||||
Total IBNR | $ 4 | |||||||||
Cumulative number of reported claims | claim | 5,195 | |||||||||
Cumulative Paid | $ 19,174 | 19,014 | 18,600 | 18,052 | 15,883 | $ 9,955 | ||||
Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 46,074 | 44,247 | 40,446 | 37,378 | 37,660 | |||||
Total IBNR | $ 306 | |||||||||
Cumulative number of reported claims | claim | 5,449 | |||||||||
Cumulative Paid | $ 43,464 | 40,192 | 34,718 | 30,492 | 21,534 | |||||
Accident Year 2014 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 28,145 | 26,367 | 22,711 | 19,907 | 19,709 | |||||
Total IBNR | $ 282 | |||||||||
Cumulative number of reported claims | claim | 1,749 | |||||||||
Cumulative Paid | $ 25,609 | 22,446 | 17,458 | 13,977 | 8,715 | |||||
Accident Year 2014 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 17,929 | 17,880 | 17,735 | 17,471 | 17,951 | |||||
Total IBNR | $ 24 | |||||||||
Cumulative number of reported claims | claim | 3,700 | |||||||||
Cumulative Paid | $ 17,855 | 17,746 | 17,260 | 16,515 | $ 12,819 | |||||
Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 49,763 | 46,581 | 40,078 | 33,319 | ||||||
Total IBNR | $ 624 | |||||||||
Cumulative number of reported claims | claim | 4,474 | |||||||||
Cumulative Paid | $ 45,634 | 36,393 | 29,690 | 18,241 | ||||||
Accident Year 2015 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 34,478 | 31,861 | 26,633 | 22,442 | ||||||
Total IBNR | $ 612 | |||||||||
Cumulative number of reported claims | claim | 2,346 | |||||||||
Cumulative Paid | $ 30,475 | 22,549 | 17,817 | 10,470 | ||||||
Accident Year 2015 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 15,285 | 14,721 | 13,445 | 10,877 | ||||||
Total IBNR | $ 12 | |||||||||
Cumulative number of reported claims | claim | 2,128 | |||||||||
Cumulative Paid | $ 15,159 | 13,844 | 11,873 | $ 7,771 | ||||||
Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 55,389 | 48,353 | 44,015 | |||||||
Total IBNR | $ 1,822 | |||||||||
Cumulative number of reported claims | claim | 5,336 | |||||||||
Cumulative Paid | $ 42,227 | 30,373 | 17,374 | |||||||
Accident Year 2016 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 40,440 | 34,935 | 32,396 | |||||||
Total IBNR | $ 1,822 | |||||||||
Cumulative number of reported claims | claim | 3,526 | |||||||||
Cumulative Paid | $ 27,785 | 19,135 | 10,255 | |||||||
Accident Year 2016 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 14,949 | 13,418 | 11,619 | |||||||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | claim | 1,810 | |||||||||
Cumulative Paid | $ 14,442 | 11,238 | $ 7,119 | |||||||
Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 58,045 | 58,309 | ||||||||
Total IBNR | $ 9,193 | |||||||||
Cumulative number of reported claims | claim | 8,455 | |||||||||
Cumulative Paid | $ 35,964 | 20,768 | ||||||||
Accident Year 2017 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 44,495 | 44,251 | ||||||||
Total IBNR | $ 9,145 | |||||||||
Cumulative number of reported claims | claim | 5,686 | |||||||||
Cumulative Paid | $ 23,020 | 12,448 | ||||||||
Accident Year 2017 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 13,550 | 14,058 | ||||||||
Total IBNR | $ 48 | |||||||||
Cumulative number of reported claims | claim | 2,769 | |||||||||
Cumulative Paid | $ 12,944 | $ 8,320 | ||||||||
Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 48,517 | |||||||||
Total IBNR | $ 21,783 | |||||||||
Cumulative number of reported claims | claim | 6,313 | |||||||||
Cumulative Paid | $ 14,671 | |||||||||
Accident Year 2018 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 42,624 | |||||||||
Total IBNR | $ 21,199 | |||||||||
Cumulative number of reported claims | claim | 5,572 | |||||||||
Cumulative Paid | $ 10,375 | |||||||||
Accident Year 2018 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 5,893 | |||||||||
Total IBNR | $ 584 | |||||||||
Cumulative number of reported claims | claim | 741 | |||||||||
Cumulative Paid | $ 4,296 |
Unpaid Losses and Loss Adjust_6
Unpaid Losses and Loss Adjustment Expenses - Reconciliation of Claims to the Liability for Claims (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid losses and ALAE, net of reinsurance | $ 58,977 | |||
Reinsurance recoverables on unpaid losses | 29,685 | $ 20,066 | $ 6,658 | $ 5,405 |
ULAE Expense | 4,145 | |||
Unpaid losses and loss adjustment expenses | 92,807 | $ 87,896 | $ 54,651 | $ 35,422 |
Commercial Lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid losses and ALAE, net of reinsurance | 56,712 | |||
Reinsurance recoverables on unpaid losses | 26,919 | |||
Personal Lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid losses and ALAE, net of reinsurance | 2,265 | |||
Reinsurance recoverables on unpaid losses | $ 2,766 |
Unpaid Losses and Loss Adjust_7
Unpaid Losses and Loss Adjustment Expenses - Loss Duration (Details) | Dec. 31, 2018 |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 32.20% |
Year 2 | 23.90% |
Year 3 | 18.80% |
Year 4 | 13.00% |
Year 5 | 6.40% |
Year 6 | 2.90% |
Year 7 | 1.50% |
Year 8 | 0.80% |
Year 9 | 0.50% |
Year 10, and onwards | 0.10% |
Commercial Lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 30.50% |
Year 2 | 24.00% |
Year 3 | 19.40% |
Year 4 | 13.50% |
Year 5 | 6.70% |
Year 6 | 3.00% |
Year 7 | 1.50% |
Year 8 | 0.80% |
Year 9 | 0.50% |
Year 10, and onwards | 0.10% |
Personal Lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 64.20% |
Year 2 | 21.30% |
Year 3 | 7.70% |
Year 4 | 3.90% |
Year 5 | 2.50% |
Year 6 | 0.40% |
Year 7 | 0.00% |
Year 8 | 0.00% |
Year 9 | 0.00% |
Year 10, and onwards | 0.00% |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) | Jan. 01, 2018 | Sep. 28, 2017 | Jun. 30, 2017 | Jul. 01, 2015 | Jan. 01, 2015 | Dec. 31, 2014 | Nov. 01, 2014 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Effects of Reinsurance [Line Items] | ||||||||||||
Unpaid losses and loss adjustment expenses | $ 92,807,000 | $ 87,896,000 | $ 54,651,000 | $ 35,422,000 | ||||||||
Assumed premiums written | 31,078,000 | 28,033,000 | 25,008,000 | |||||||||
Ceded premium written | 15,282,000 | 23,044,000 | 14,994,000 | |||||||||
Ceded premiums earned | 15,377,000 | 23,008,000 | 15,086,000 | |||||||||
Workers Compensation and Casualty Clash | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amount retained (excess of) | 2,000,000 | |||||||||||
Amount reinsured | 18,000,000 | |||||||||||
Adverse Development Cover Reinsurance Agreement | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amount retained (excess of) | $ 36,600,000 | |||||||||||
Amount reinsured | $ 17,500,000 | $ 1,400,000 | ||||||||||
Reinsurance agreement, quota share (percentage) | 10.00% | 10.00% | ||||||||||
Ceded premiums earned | 10,300,000 | 7,200,000 | ||||||||||
Insurance Fronting Arrangement | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Assumed premiums written | $ 31,100,000 | 28,000,000 | 25,000,000 | |||||||||
Minimum | Adverse Development Cover Reinsurance Agreement | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance retention policy carried reserves threshold | $ 1,400,000 | |||||||||||
Unpaid losses and loss adjustment expenses | $ 36,600,000 | |||||||||||
Maximum | Adverse Development Cover Reinsurance Agreement | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amount reinsured | 17,500,000 | |||||||||||
Reinsurance retention policy carried reserves threshold | $ 19,500,000 | 19,500,000 | ||||||||||
Unpaid losses and loss adjustment expenses | $ 57,500,000 | |||||||||||
Consideration for reinsurance | $ 7,200,000 | |||||||||||
Contingent recovery (percentage) | 35.00% | |||||||||||
Commercial Liability Line | Maximum | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amount retained (excess of) | $ 500,000 | 500,000 | ||||||||||
Commercial Property Line | Maximum | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amount retained (excess of) | 300,000 | 500,000 | 500,000 | |||||||||
Homeowners Lines | Quota Share Reinsurance Agreement | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amount retained (excess of) | $ 300,000 | |||||||||||
Homeowners Lines | Maximum | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amount retained (excess of) | $ 300,000 | 300,000 | $ 300,000 | |||||||||
Commercial Lines | Multiple Line Reinsurance Policy | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amount retained (excess of) | $ 500,000 | |||||||||||
Amount reinsured | $ 1,500,000 | |||||||||||
Commercial Lines | Quota Share Reinsurance Agreement | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amount retained (excess of) | $ 500,000 | |||||||||||
Commercial Lines | Minimum | Quota Share Reinsurance Agreement | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance agreement, quota share (percentage) | 90.00% | |||||||||||
Commercial Lines | Maximum | Quota Share Reinsurance Agreement | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance agreement, quota share (percentage) | 100.00% | |||||||||||
Property product line | Property Reinsurance Policy | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amount retained (excess of) | $ 300,000 | $ 2,000,000 | $ 300,000 | $ 4,000,000 | ||||||||
Amount reinsured | $ 2,700,000 | |||||||||||
Insured property value | $ 200,000 | $ 2,000,000 | $ 96,000,000 | |||||||||
Other insurance product line | Quota Share Reinsurance Agreement | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance agreement, quota share (percentage) | 25.00% | |||||||||||
Other insurance product line | Quota Share Reinsurance Agreement, Other Arrangements | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance agreement, quota share (percentage) | 100.00% | |||||||||||
Hurricane | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Ceded premium written | $ 1,000,000 | 806,000 | ||||||||||
Ceded premiums earned | $ 1,000,000 | $ 806,000 |
Reinsurance - Effects of Reinsu
Reinsurance - Effects of Reinsurance and Assumption Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Written premiums: | |||||||||||
Direct | $ 73,290 | $ 86,251 | $ 89,915 | ||||||||
Assumed | 31,078 | 28,033 | 25,008 | ||||||||
Ceded | (15,282) | (23,044) | (14,994) | ||||||||
Net written premiums | $ 23,800 | $ 22,846 | $ 22,595 | $ 19,845 | $ 27,439 | $ 18,395 | $ 23,082 | $ 22,324 | 89,086 | 91,240 | 99,929 |
Earned premiums: | |||||||||||
Direct | 80,691 | 87,656 | 90,660 | ||||||||
Assumed | 28,497 | 27,081 | 14,053 | ||||||||
Ceded | (15,377) | (23,008) | (15,086) | ||||||||
Net earned premiums | 22,623 | 23,450 | 23,938 | 23,800 | 25,433 | 17,659 | 24,497 | 24,140 | 93,811 | 91,729 | 89,627 |
Loss and loss adjustment expenses: | |||||||||||
Direct | 65,284 | 79,035 | 59,940 | ||||||||
Assumed | 20,671 | 19,524 | 11,955 | ||||||||
Ceded | (23,440) | (24,642) | (12,892) | ||||||||
Net Loss and loss adjustment expenses | $ 17,565 | $ 16,554 | $ 15,068 | $ 13,328 | $ 15,042 | $ 26,468 | $ 16,674 | $ 15,733 | $ 62,515 | $ 73,917 | $ 59,003 |
Percentage of Assumed Written Premiums to Net Written Premiums | 34.90% | 30.70% | 25.00% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Oct. 12, 2018USD ($) | Sep. 24, 2018USD ($) | Jun. 21, 2018USD ($) | Sep. 29, 2017USD ($) | Dec. 31, 2018USD ($)debt_instrument | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Number of debt instruments | debt_instrument | 3 | |||||
Senior unsecured notes | Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 25,300,000 | $ 25,300,000 | ||||
Debt issued | 3,300,000 | $ 22,000,000 | ||||
Interest rate | 6.75% | |||||
Debt issuance costs | 1,300,000 | |||||
Subordinated Debt | Private placement, subordinated note | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 10,500,000 | $ 30,000,000 | 10,500,000 | $ 30,000,000 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 8.00% | |||||
Debt repaid | $ 19,500,000 | |||||
Call premium percentage | 12.50% | |||||
Loan origination fee | $ 105,000 | |||||
Debt term | 20 years | |||||
Debt issuance costs | 1,000,000 | |||||
Subordinated Debt | Swap rate | Private placement, subordinated note | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 5 years | |||||
Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity | $ 10,000,000 | $ 10,000,000 | ||||
Line of credit | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 2.75% | |||||
Period One | Subordinated Debt | Swap rate | Private placement, subordinated note | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, basis spread on variable rate | 1250.00% | |||||
Period Two | Subordinated Debt | Swap rate | Private placement, subordinated note | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, basis spread on variable rate | 1500.00% | |||||
Debt Instrument, Redemption, Period One | Subordinated Debt | Private placement, subordinated note | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 7.50% | |||||
Call premium | $ 1,100,000 | |||||
Debt Instrument, Redemption, Period Two | Subordinated Debt | Private placement, subordinated note | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 12.50% | |||||
Call premium | $ 1,750,000 | |||||
Debt Instrument, Redemption, Period Three | Subordinated Debt | Private placement, subordinated note | ||||||
Debt Instrument [Line Items] | ||||||
Call premium | $ 3,050,000 |
Debt - Outstanding Senior Debt
Debt - Outstanding Senior Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt | $ 33,502 | $ 29,027 |
Senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Debt | 24,018 | 0 |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Debt | 9,484 | 29,027 |
Line of credit | ||
Debt Instrument [Line Items] | ||
Debt | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
Current income taxes receivable | $ 79 | $ 214 |
Reduction in deferred tax expense related to loss reserve discounting | 42,735 | |
Increase in deferred tax expense related to transitional loss reserve discounting | 42,735 | |
Valuation allowance | 12,606 | $ 9,904 |
Domestic Tax Authority | Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 48,300 | |
Net operating loss carryforwards, subject to expiration | 43,300 | |
Net operating loss carryforwards, not subject to expiration | 5,000 | |
Net operating loss carryforwards subject to limitations | 14,100 | |
State Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 11,900 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current tax expense (benefit) | $ 52 | $ (28) | $ 70 | ||||||||
Deferred tax expense (benefit) | 0 | (419) | (147) | ||||||||
Total income tax expense (benefit) | $ 0 | $ 24 | $ 10 | $ 18 | $ (36) | $ (135) | $ (282) | $ 6 | $ 52 | $ (447) | $ (77) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. federal income tax rate | 21.00% | 34.00% | 34.00% | ||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Income (loss) before income taxes | $ (9,465) | $ (22,054) | $ (8,643) | ||||||||
Statutory U.S. federal income tax rate | (1,988) | (7,498) | (2,939) | ||||||||
State income taxes, net of federal benefit | (156) | (106) | (3) | ||||||||
Tax‑exempt investment income and dividend received deduction | (70) | (123) | (106) | ||||||||
Nondeductible meals and entertainment | 38 | 54 | 61 | ||||||||
Valuation allowance on deferred tax assets | 2,331 | 1,515 | 2,808 | ||||||||
Change in federal tax rate | 0 | 5,612 | 0 | ||||||||
Other | (103) | 99 | 102 | ||||||||
Total income tax expense (benefit) | $ 0 | $ 24 | $ 10 | $ 18 | $ (36) | $ (135) | $ (282) | $ 6 | $ 52 | $ (447) | $ (77) |
Effective tax rate | (0.50%) | 2.00% | 0.90% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Discounted unpaid losses and loss adjustment expenses | $ 937 | $ 1,026 |
Unearned premiums | 2,329 | 2,576 |
Net operating loss carryforwards | 10,144 | 9,147 |
Net unrealized losses on investments | 222 | |
State net operating loss carryforwards | 567 | 385 |
Deferred gain from ADC | 1,254 | 0 |
Other | 123 | 135 |
Gross deferred tax assets | 15,576 | 13,269 |
Less valuation allowance | (12,606) | (9,904) |
Total deferred tax assets, net of allowance | 2,970 | 3,365 |
Deferred tax liabilities: | ||
Investment basis difference | 22 | 19 |
Net unrealized gains on investments | 0 | 124 |
Deferred policy acquisition costs | 2,522 | 2,684 |
Intangible assets | 112 | 107 |
Property and equipment | 63 | 85 |
Other | 366 | 461 |
Total deferred tax liabilities | 3,085 | 3,480 |
Net deferred tax liability | $ (115) | $ (115) |
Statutory Financial Data, Ris_3
Statutory Financial Data, Risk-Based Capital and Dividend Restrictions - Summary of Statutory Basis Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CIC | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | $ 47,121 | $ 35,848 | $ 29,539 |
RBC authorized control level | 11,901 | 8,873 | 6,676 |
Statutory net income (loss) | $ 1,244 | $ (6,993) | $ (2,782) |
RBC % | 396.00% | 404.00% | 442.00% |
WPIC | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | $ 26,588 | $ 26,075 | $ 32,391 |
RBC authorized control level | 4,682 | 6,224 | 6,583 |
Statutory net income (loss) | $ 834 | $ (13,737) | $ (1,209) |
RBC % | 568.00% | 419.00% | 492.00% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017USD ($)$ / sharesshares | Dec. 31, 2018USD ($)voteshares | Dec. 31, 2016USD ($)shares | Dec. 05, 2018shares | Dec. 31, 2017shares | Feb. 25, 2016USD ($) | |
Class of Stock [Line Items] | ||||||
Common equity issued | $ | $ 5,000,000 | |||||
Stock repurchased and retired during period, value | $ | $ 636,000 | $ 625,000 | ||||
Common stock, shares outstanding (in shares) | 8,478,202 | 8,520,328 | ||||
Common stock, shares issued (in shares) | 8,478,202 | 8,520,328 | ||||
No Par, Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchased and retired during period, shares (in shares) | 137,228 | 88,650 | ||||
Stock repurchased and retired during period, value | $ | $ 636,000 | $ 625,000 | ||||
Common stock, shares outstanding (in shares) | 8,478,202 | 7,633,070 | 8,520,328 | |||
Common stock, shares issued (in shares) | 8,478,202 | 7,633,070 | 8,520,328 | |||
Common stock voting rights, number of votes per share | vote | 1 | |||||
Stock Repurchase Program, December 2018 | ||||||
Class of Stock [Line Items] | ||||||
Number of share authorized for repurchase (in shares) | 1,000,000 | |||||
Stock repurchased during period, shares (in shares) | 129,175 | |||||
Stock repurchased during period, value | $ | $ 584,000 | |||||
Stock Repurchase Program, February 2016 | No Par, Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Authorized amount of stock repurchase program | $ | $ 2,100,000 | |||||
Stock repurchased and retired during period, shares (in shares) | 88,650 | |||||
Stock repurchased and retired during period, value | $ | $ 625,000 | |||||
Private Placement | ||||||
Class of Stock [Line Items] | ||||||
Common equity issued (in shares) | 800,000 | |||||
Price per share (in dollars per share) | $ / shares | $ 6.25 | |||||
Restricted Stock Units (RSUs) | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchased during period, shares (in shares) | 8,053 | |||||
Stock repurchased during period, value | $ | $ 52,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 52,826 | $ 67,794 | $ 77,262 | |
Balances after cumulative effects | $ 52,826 | |||
Other comprehensive income (loss) | (1,770) | 717 | (1,262) | |
Balance at end of period | 42,163 | 52,826 | 67,794 | |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (363) | (1,080) | 182 | |
Balances after cumulative effects | (842) | (842) | ||
Other comprehensive income (loss) before reclassifications | (1,825) | 795 | ||
Less: amounts reclassified from accumulated other comprehensive income (loss) | (55) | 78 | ||
Other comprehensive income (loss) | (1,770) | 717 | (1,262) | |
Balance at end of period | $ (2,612) | $ (363) | $ (1,080) | |
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption of ASU | (556) | |||
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption of ASU | $ 77 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ (4,776) | $ (3,551) | $ (1,113) | $ 213 | $ 221 | $ (18,898) | $ (1,067) | $ (1,798) | $ (9,227) | $ (21,542) | $ (8,437) |
Weighted average common shares outstanding, basic and diluted (in shares) | 8,543,876 | 7,867,344 | 7,618,588 | ||||||||
Earnings (loss) per share allocable to common, basic and diluted (in dollars per share) | $ (1.08) | $ (2.74) | $ (1.11) |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - 2015 Omnibus Incentive Plan - USD ($) $ in Thousands | 5 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 1,377,000 | 1,377,000 | |||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Number of shares issued upon conversion, per share (in shares) | 1 | 1 | |||
Stock issued during period (in shares) | 390,352 | 70,000 | 0 | 111,281 | |
Stock granted, value | $ 4,100 | $ 404 | $ 909 | ||
Compensation expense | 970 | $ 948 | $ 856 | ||
Total compensation cost not yet recognized | $ 2,400 |
Stock-based Compensation - RSU
Stock-based Compensation - RSU Activity (Details) - 2015 Omnibus Incentive Plan - Restricted Stock Units (RSUs) - $ / shares | 5 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Units | ||||
Beginning period, outstanding (in shares) | 0 | 307,000 | 416,000 | 390,000 |
Units granted (in shares) | 390,352 | 70,000 | 0 | 111,281 |
Units vested (in shares) | (95,000) | (95,000) | (77,000) | |
Units forfeited (in shares) | (18,000) | (14,000) | (8,000) | |
Ending period, outstanding (in shares) | 390,000 | 264,000 | 307,000 | 416,000 |
Weighted Average Grant-Date Fair Value | ||||
Beginning period, outstanding (in dollars per share) | $ 0 | $ 9.84 | $ 9.87 | $ 10.48 |
Units granted (in dollars per share) | 10.48 | 5.76 | 0 | 8.17 |
Units vested (in dollars per share) | 9.84 | 9.97 | 10.48 | |
Units forfeited (in dollars per share) | 8.96 | 9.94 | 9.95 | |
Ending period, outstanding (in dollars per share) | $ 10.48 | $ 8.91 | $ 9.84 | $ 9.87 |
Stock-based Compensation - Vest
Stock-based Compensation - Vesting Schedule for RSUs (Details) - 2015 Omnibus Incentive Plan - Restricted Stock Units (RSUs) - shares shares in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 12, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Scheduled vesting - RSUs (in shares) | 264 | 307 | 416 | 390 | 0 |
2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Scheduled vesting - RSUs (in shares) | 104 | ||||
2020 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Scheduled vesting - RSUs (in shares) | 104 | ||||
2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Scheduled vesting - RSUs (in shares) | 32 | ||||
2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Scheduled vesting - RSUs (in shares) | 14 | ||||
2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Scheduled vesting - RSUs (in shares) | 10 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Minimum employee contribution amount, percentage of gross compensation | 1.00% | ||
Maximum employee contribution amount, percentage of gross compensation | 100.00% | ||
Employee matching contribution, percentage of employee gross compensation | 4.00% | ||
Plan expense | $ 479 | $ 432 | $ 405 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)renewal_option | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Other Commitments [Line Items] | |||
Number of lease renewal options | renewal_option | 2 | ||
Lease renewal term | 5 years | ||
Rent expense under operating leases | $ 1,000 | $ 961 | $ 915 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2019 | 1,142 | ||
2020 | 1,116 | ||
2021 | 962 | ||
2022 | 829 | ||
2023 | 728 | ||
2024 and thereafter | 451 | ||
Total future minimum rental payments | 5,228 | ||
Agreement to Design and Implement New Systems | |||
Other Commitments [Line Items] | |||
Minimum monthly payment | $ 30 |
Segment Information - Narrative
Segment Information - Narrative (Details) - business | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 2 | ||
Gross Written Premiums | Geographic Concentration Risk | Florida, Michigan, Texas and Pennsylvania | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage | 53.90% | 60.80% | 56.70% |
Segment Information - Summary o
Segment Information - Summary of Net Earned Premiums by Segment (Details) - Net Earned Premium - Operating Segments | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Concentration percentage | 100.00% | 100.00% | 100.00% |
Commercial Lines | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage | 89.00% | 84.00% | 77.00% |
Personal Lines | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage | 11.00% | 16.00% | 23.00% |
Segment Information - Informati
Segment Information - Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||||||||||
Gross written premiums | $ 27,440 | $ 26,629 | $ 26,562 | $ 23,737 | $ 31,247 | $ 29,581 | $ 26,981 | $ 26,474 | $ 104,368 | $ 114,284 | $ 114,923 | |
Net written premiums | 23,800 | 22,846 | 22,595 | 19,845 | 27,439 | 18,395 | 23,082 | 22,324 | 89,086 | 91,240 | 99,929 | |
Net earned premiums | 22,623 | 23,450 | 23,938 | 23,800 | 25,433 | 17,659 | 24,497 | 24,140 | 93,811 | 91,729 | 89,627 | |
Other income | 370 | 405 | 450 | 357 | 357 | 477 | 372 | 354 | 1,582 | 1,560 | 1,118 | |
Segment revenue | 95,393 | 93,289 | 90,745 | |||||||||
Losses and loss adjustment expenses, net | 17,565 | 16,554 | 15,068 | 13,328 | 15,042 | 26,468 | 16,674 | 15,733 | 62,515 | 73,917 | 59,003 | |
Policy acquisition costs | 6,097 | 6,452 | 6,472 | 6,513 | 6,690 | 6,655 | 6,428 | 6,472 | 25,534 | 26,245 | 25,280 | |
Operating expenses | 4,407 | 4,786 | 4,303 | 4,187 | 3,993 | 4,474 | 4,370 | 4,530 | 17,683 | 17,367 | 17,596 | |
Segment expenses | 105,732 | 117,529 | 101,879 | |||||||||
Segment underwriting gain (loss) | (10,339) | (24,240) | (11,134) | |||||||||
Investment income | 911 | 786 | 837 | 802 | 720 | 768 | 663 | 577 | 3,336 | 2,728 | 2,173 | |
Net realized investment gains | (91) | (21) | 12 | 161 | 39 | 39 | 0 | (8) | 61 | 70 | 1,365 | |
Other gains (losses) | 0 | 0 | 750 | 0 | 0 | 750 | (400) | |||||
Change in fair value of equity securities | 237 | 152 | 29 | (297) | 121 | 0 | 0 | |||||
Interest expense | (810) | $ (598) | $ (617) | $ (619) | (616) | $ (303) | $ (219) | $ (224) | (2,644) | (1,362) | (647) | |
Income (loss) before income taxes | (9,465) | (22,054) | (8,643) | |||||||||
Deferred policy acquisition costs | 12,011 | 12,781 | 12,011 | 12,781 | 13,290 | $ 12,102 | ||||||
Unearned premiums | 52,852 | 57,672 | 52,852 | 57,672 | 58,126 | |||||||
Loss and loss adjustment expense reserves | 92,807 | 87,896 | 92,807 | 87,896 | 54,651 | $ 35,422 | ||||||
Operating Segments | Commercial Lines | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gross written premiums | 97,694 | 92,112 | 88,242 | |||||||||
Net written premiums | 87,038 | 78,217 | 78,439 | |||||||||
Net earned premiums | 83,352 | 76,786 | 68,921 | |||||||||
Other income | 594 | 628 | 378 | |||||||||
Segment revenue | 83,946 | 77,414 | 69,299 | |||||||||
Losses and loss adjustment expenses, net | 53,065 | 55,701 | 42,441 | |||||||||
Policy acquisition costs | 21,474 | 20,470 | 18,560 | |||||||||
Operating expenses | 15,067 | 11,339 | 6,767 | |||||||||
Segment expenses | 89,606 | 87,510 | 67,768 | |||||||||
Segment underwriting gain (loss) | (5,660) | (10,096) | 1,531 | |||||||||
Deferred policy acquisition costs | 11,257 | 10,116 | 11,257 | 10,116 | 10,156 | |||||||
Unearned premiums | 49,549 | 45,951 | 49,549 | 45,951 | 44,484 | |||||||
Loss and loss adjustment expense reserves | 87,643 | 76,586 | 87,643 | 76,586 | 46,917 | |||||||
Operating Segments | Personal Lines | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gross written premiums | 6,674 | 22,172 | 26,681 | |||||||||
Net written premiums | 2,048 | 13,023 | 21,490 | |||||||||
Net earned premiums | 10,459 | 14,943 | 20,706 | |||||||||
Other income | 769 | 780 | 558 | |||||||||
Segment revenue | 11,228 | 15,723 | 21,264 | |||||||||
Losses and loss adjustment expenses, net | 9,450 | 18,216 | 16,562 | |||||||||
Policy acquisition costs | 4,060 | 5,775 | 6,720 | |||||||||
Operating expenses | 1,455 | 2,570 | 2,911 | |||||||||
Segment expenses | 14,965 | 26,561 | 26,193 | |||||||||
Segment underwriting gain (loss) | (3,737) | (10,838) | (4,929) | |||||||||
Deferred policy acquisition costs | 754 | 2,665 | 754 | 2,665 | 3,134 | |||||||
Unearned premiums | 3,303 | 11,721 | 3,303 | 11,721 | 13,642 | |||||||
Loss and loss adjustment expense reserves | 5,164 | 11,310 | 5,164 | 11,310 | 7,734 | |||||||
Corporate & Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gross written premiums | 0 | 0 | 0 | |||||||||
Net written premiums | 0 | 0 | 0 | |||||||||
Net earned premiums | 0 | 0 | 0 | |||||||||
Other income | 219 | 152 | 182 | |||||||||
Segment revenue | 219 | 152 | 182 | |||||||||
Losses and loss adjustment expenses, net | 0 | 0 | 0 | |||||||||
Policy acquisition costs | 0 | 0 | 0 | |||||||||
Operating expenses | 1,161 | 3,458 | 7,918 | |||||||||
Segment expenses | 1,161 | 3,458 | 7,918 | |||||||||
Segment underwriting gain (loss) | (942) | (3,306) | (7,736) | |||||||||
Investment income | 3,336 | 2,728 | 2,173 | |||||||||
Net realized investment gains | 61 | 70 | 1,365 | |||||||||
Other gains (losses) | 750 | (400) | ||||||||||
Change in fair value of equity securities | 121 | |||||||||||
Interest expense | (2,644) | (1,362) | (647) | |||||||||
Income (loss) before income taxes | (68) | (1,120) | (5,245) | |||||||||
Deferred policy acquisition costs | 0 | 0 | 0 | 0 | 0 | |||||||
Unearned premiums | 0 | 0 | 0 | 0 | 0 | |||||||
Loss and loss adjustment expense reserves | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Gross written premiums | $ 27,440 | $ 26,629 | $ 26,562 | $ 23,737 | $ 31,247 | $ 29,581 | $ 26,981 | $ 26,474 | $ 104,368 | $ 114,284 | $ 114,923 |
Net written premiums | 23,800 | 22,846 | 22,595 | 19,845 | 27,439 | 18,395 | 23,082 | 22,324 | 89,086 | 91,240 | 99,929 |
Net earned premiums | 22,623 | 23,450 | 23,938 | 23,800 | 25,433 | 17,659 | 24,497 | 24,140 | 93,811 | 91,729 | 89,627 |
Net investment income | 911 | 786 | 837 | 802 | 720 | 768 | 663 | 577 | 3,336 | 2,728 | 2,173 |
Net realized gains (losses) | (91) | (21) | 12 | 161 | 39 | 39 | 0 | (8) | 61 | 70 | 1,365 |
Change in fair value of equity securities | 237 | 152 | 29 | (297) | 121 | 0 | 0 | ||||
Other gains (losses) | 0 | 0 | 750 | 0 | 0 | 750 | (400) | ||||
Other income | 370 | 405 | 450 | 357 | 357 | 477 | 372 | 354 | 1,582 | 1,560 | 1,118 |
Losses and loss adjustment expenses, net | 17,565 | 16,554 | 15,068 | 13,328 | 15,042 | 26,468 | 16,674 | 15,733 | 62,515 | 73,917 | 59,003 |
Policy acquisition costs | 6,097 | 6,452 | 6,472 | 6,513 | 6,690 | 6,655 | 6,428 | 6,472 | 25,534 | 26,245 | 25,280 |
Operating expenses | 4,407 | 4,786 | 4,303 | 4,187 | 3,993 | 4,474 | 4,370 | 4,530 | 17,683 | 17,367 | 17,596 |
Interest expense | 810 | 598 | 617 | 619 | 616 | 303 | 219 | 224 | 2,644 | 1,362 | 647 |
Income tax expense (benefit) | 0 | 24 | 10 | 18 | (36) | (135) | (282) | 6 | 52 | (447) | (77) |
Equity earnings (losses) in affiliates, net of tax | 53 | 93 | 89 | 55 | (23) | (76) | 60 | 104 | 290 | 65 | 129 |
Net income (loss) | $ (4,776) | $ (3,551) | $ (1,113) | $ 213 | $ 221 | $ (18,898) | $ (1,067) | $ (1,798) | $ (9,227) | $ (21,542) | $ (8,437) |
Diluted earnings (loss) per common share (in dollars per share) | $ (0.56) | $ (0.42) | $ (0.13) | $ 0.02 | $ 0.03 | $ (2.46) | $ (0.14) | $ (0.24) | |||
Combined ratio (percentage) | 122.10% | 116.50% | 106.00% | 99.50% | 99.70% | 207.30% | 110.40% | 109.10% |
Subsequent Events (Details)
Subsequent Events (Details) - Stock Repurchase Program, December 2018 - USD ($) | Mar. 13, 2019 | Mar. 13, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||
Stock repurchased during period, shares (in shares) | 129,175 | ||
Stock repurchased during period, value | $ 584,000 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Stock repurchased during period, shares (in shares) | 119,605 | 250,260 | |
Stock repurchased during period, price (in USD per share) | $ 4 | ||
Stock repurchased during period, value | $ 1,100,000 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Equity Securities | $ 9,687 | |||
Cash | $ 10,792 | 11,868 | ||
Due from affiliate | 3,582 | 1,195 | ||
Other assets | 8,444 | 7,073 | ||
Total assets | 232,752 | 239,032 | ||
Liabilities: | ||||
Debt | 33,502 | 29,027 | ||
Total liabilities | 190,589 | 186,206 | ||
Shareholders' equity: | ||||
Common stock, no par value (100,000,000 shares authorized; 8,478,202 and 8,520,328 issued and outstanding, respectively) | 86,533 | 86,199 | ||
Accumulated deficit | (41,758) | (33,010) | ||
Accumulated other comprehensive income (loss) | (2,612) | (363) | ||
Total shareholders' equity | 42,163 | 52,826 | $ 67,794 | $ 77,262 |
Total liabilities and shareholders' equity | 232,752 | 239,032 | ||
Parent Company | ||||
Assets | ||||
Investment in subsidiaries | 72,419 | 77,657 | ||
Equity Securities | 0 | 400 | ||
Cash | 1,133 | 2,583 | ||
Due from subsidiaries | 403 | 513 | ||
Due from affiliate | 445 | 348 | ||
Other assets | 1,822 | 1,271 | ||
Total assets | 76,222 | 82,772 | ||
Liabilities: | ||||
Debt | 33,502 | 29,027 | ||
Other liabilities | 557 | 919 | ||
Total liabilities | 34,059 | 29,946 | ||
Shareholders' equity: | ||||
Common stock, no par value (100,000,000 shares authorized; 8,478,202 and 8,520,328 issued and outstanding, respectively) | 86,533 | 86,199 | ||
Accumulated deficit | (41,758) | (33,010) | ||
Accumulated other comprehensive income (loss) | (2,612) | (363) | ||
Total shareholders' equity | 42,163 | 52,826 | ||
Total liabilities and shareholders' equity | $ 76,222 | $ 82,772 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant - Balance Sheets Stock Information (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 8,478,202 | 8,520,328 |
Common stock, shares outstanding (in shares) | 8,478,202 | 8,520,328 |
Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 8,478,202 | 8,520,328 |
Common stock, shares outstanding (in shares) | 8,478,202 | 8,520,328 |
Schedule II - Condensed Finan_6
Schedule II - Condensed Financial Information of Registrant - Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | |||||||||||
Revenue | $ 98,911 | $ 96,837 | $ 93,883 | ||||||||
Other income | $ 370 | $ 405 | $ 450 | $ 357 | $ 357 | $ 477 | $ 372 | $ 354 | 1,582 | 1,560 | 1,118 |
Expenses | |||||||||||
Operating expenses | 4,407 | 4,786 | 4,303 | 4,187 | 3,993 | 4,474 | 4,370 | 4,530 | 17,683 | 17,367 | 17,596 |
Interest expense | 810 | 598 | 617 | 619 | 616 | 303 | 219 | 224 | 2,644 | 1,362 | 647 |
Total expenses | 108,376 | 118,891 | 102,526 | ||||||||
Income tax expense (benefit) | 0 | 24 | 10 | 18 | (36) | (135) | (282) | 6 | 52 | (447) | (77) |
Net income (loss) | $ (4,776) | $ (3,551) | $ (1,113) | $ 213 | $ 221 | $ (18,898) | $ (1,067) | $ (1,798) | (9,227) | (21,542) | (8,437) |
Other Comprehensive Income | |||||||||||
Equity in other comprehensive income (loss) of subsidiaries | (1,770) | 717 | (1,262) | ||||||||
Total comprehensive income (loss) | (10,997) | (20,825) | (9,699) | ||||||||
Parent Company | |||||||||||
Revenue | |||||||||||
Revenue | 13,640 | 16,731 | 9,962 | ||||||||
Other income | 73 | 826 | 51 | ||||||||
Expenses | |||||||||||
Operating expenses | 17,336 | 13,496 | 16,995 | ||||||||
Interest expense | 2,644 | 1,362 | 647 | ||||||||
Total expenses | 19,980 | 14,858 | 17,642 | ||||||||
Income (loss) before equity in earnings (losses) of subsidiaries and income tax expense (benefit) | (6,340) | 1,873 | (7,680) | ||||||||
Income tax expense (benefit) | (581) | 859 | (864) | ||||||||
Income (loss) before equity earnings (losses) of subsidiaries | (5,759) | 1,014 | (6,816) | ||||||||
Equity earnings (losses) in subsidiaries | (3,468) | (22,556) | (1,621) | ||||||||
Net income (loss) | (9,227) | (21,542) | (8,437) | ||||||||
Other Comprehensive Income | |||||||||||
Equity in other comprehensive income (loss) of subsidiaries | (1,770) | 717 | (1,262) | ||||||||
Total comprehensive income (loss) | (10,997) | (20,825) | (9,699) | ||||||||
Management fees from subsidiaries | Parent Company | |||||||||||
Revenue | |||||||||||
Revenue | $ 13,567 | $ 15,905 | $ 9,911 |
Schedule II - Condensed Finan_7
Schedule II - Condensed Financial Information of Registrant - Statement of Cash Flows (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities | |||||||||||
Net income (loss) | $ (4,776,000) | $ (3,551,000) | $ (1,113,000) | $ 213,000 | $ 221,000 | $ (18,898,000) | $ (1,067,000) | $ (1,798,000) | $ (9,227,000) | $ (21,542,000) | $ (8,437,000) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
Incentive awards expenses - vesting of RSUs | 970,000 | 895,000 | 856,000 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Other assets | (1,252,000) | 4,239,000 | (7,139,000) | ||||||||
Net cash provided by (used in) operating activities | (17,008,000) | 9,090,000 | 6,166,000 | ||||||||
Cash Flows From Investing Activities | |||||||||||
Purchases of property and equipment | (86,000) | (13,000) | (195,000) | ||||||||
Net cash provided by (used in) investing activities | 12,222,000 | (25,954,000) | (10,751,000) | ||||||||
Cash Flows From Financing Activities | |||||||||||
Proceeds received from issuance of shares of common stock | 0 | 5,000,000 | 0 | ||||||||
Repurchase of common stock | (636,000) | 0 | (625,000) | ||||||||
Borrowings under debt arrangements | 25,300,000 | 32,000,000 | 7,000,000 | ||||||||
Repayment of borrowings under debt arrangements | (19,500,000) | (19,750,000) | (2,000,000) | ||||||||
Stock and debt issuance costs | (1,454,000) | (1,011,000) | 0 | ||||||||
Net cash provided by financing activities | 3,710,000 | 16,239,000 | 4,375,000 | ||||||||
Net increase (decrease) in cash | (1,076,000) | (625,000) | (210,000) | ||||||||
Cash at beginning of period | 11,868,000 | 12,493,000 | 11,868,000 | 12,493,000 | 12,703,000 | ||||||
Cash at end of period | 10,792,000 | 11,868,000 | 10,792,000 | 11,868,000 | 12,493,000 | ||||||
Supplemental Disclosure of Cash Flow Information: | |||||||||||
Interest paid | 3,116,000 | 876,000 | 641,000 | ||||||||
Parent Company | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income (loss) | (9,227,000) | (21,542,000) | (8,437,000) | ||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 379,000 | 347,000 | 364,000 | ||||||||
Equity in undistributed (income) loss of subsidiaries | 3,468,000 | 22,556,000 | 1,621,000 | ||||||||
Incentive awards expenses - vesting of RSUs | 970,000 | 895,000 | 856,000 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Due from subsidiaries | 110,000 | (513,000) | 150,000 | ||||||||
Due from affiliates | (97,000) | 598,000 | 0 | ||||||||
Current income tax recoverable | (488,000) | (485,000) | 288,000 | ||||||||
Other assets | (229,000) | 532,000 | (270,000) | ||||||||
Other liabilities | (360,000) | 590,000 | 5,000 | ||||||||
Net cash provided by (used in) operating activities | (5,474,000) | 2,978,000 | (5,423,000) | ||||||||
Cash Flows From Investing Activities | |||||||||||
Contributions to subsidiaries | 0 | (20,860,000) | (2,100,000) | ||||||||
Dividends received from subsidiaries | 0 | 0 | 5,450,000 | ||||||||
Purchases of investments | 400,000 | (400,000) | 0 | ||||||||
Purchases of property and equipment | (86,000) | (13,000) | (192,000) | ||||||||
Net cash provided by (used in) investing activities | 314,000 | (21,273,000) | 3,158,000 | ||||||||
Cash Flows From Financing Activities | |||||||||||
Proceeds received from issuance of shares of common stock | 0 | 5,000,000 | 0 | ||||||||
Repurchase of common stock | (636,000) | 0 | (625,000) | ||||||||
Borrowings under debt arrangements | 25,300,000 | 32,000,000 | 7,000,000 | ||||||||
Repayment of borrowings under debt arrangements | (19,500,000) | (19,750,000) | (2,000,000) | ||||||||
Stock and debt issuance costs | (1,454,000) | (1,011,000) | 0 | ||||||||
Net cash provided by financing activities | 3,710,000 | 16,239,000 | 4,375,000 | ||||||||
Net increase (decrease) in cash | (1,450,000) | (2,056,000) | 2,110,000 | ||||||||
Cash at beginning of period | $ 2,583,000 | $ 4,639,000 | 2,583,000 | 4,639,000 | 2,529,000 | ||||||
Cash at end of period | $ 1,133,000 | $ 2,583,000 | 1,133,000 | 2,583,000 | 4,639,000 | ||||||
Supplemental Disclosure of Cash Flow Information: | |||||||||||
Interest paid | $ 3,116,000 | $ 876,000 | $ 641,000 |
Schedule II - Condensed Finan_8
Schedule II - Condensed Financial Information of Registrant - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Parent Company | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Dividends received from subsidiaries during period | $ 0 | $ 0 | $ 5,450,000 |
Guarantee of debt | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Guarantee obligation | $ 10,000,000 | ||
Interest rate | 4.00% |
Schedule V - Valuation and Qu_2
Schedule V - Valuation and Qualifying Accounts (Details) - Valuation for Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 9,904 | $ 8,389 | $ 5,160 |
Charged to Expense | 2,331 | 1,515 | 2,808 |
Decrease to Other Comprehensive Income | 371 | 0 | 421 |
Deductions from Allowance Account | 0 | 0 | 0 |
Balance at End of Period | $ 12,606 | $ 9,904 | $ 8,389 |
Uncategorized Items - cnfr-2018
Label | Element | Value |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 86,199,000 |
Shares, Outstanding | us-gaap_SharesOutstanding | 8,520,328 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (32,531,000) |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 556,000 |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (77,000) |