Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 12, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Conifer Holdings, Inc. | ||
Entity Central Index Key | 0001502292 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 21.3 | ||
Entity Common Stock, Shares Outstanding | 9,592,861 | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | CNFR | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-37536 | ||
Entity Incorporation, State or Country Code | MI | ||
Entity Tax Identification Number | 27-1298795 | ||
Entity Address, Address Line One | 550 West Merrill Street | ||
Entity Address, Address Line Two | Suite 200 | ||
Entity Address, City or Town | Birmingham | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 48009 | ||
City Area Code | 248 | ||
Local Phone Number | 559-0840 | ||
Document Annual Report | true | ||
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investment securities: | ||
Debt securities, at fair value (amortized cost of $129,313 and $122,678, respectively) | $ 131,000 | $ 120,440 |
Equity securities, at fair value (cost of $6,554 and $9,559, respectively) | 7,306 | 10,737 |
Short-term investments, at fair value | 31,426 | 8,925 |
Total investments | 169,732 | 140,102 |
Cash and cash equivalents | 7,464 | 10,792 |
Premiums and agents' balances receivable, net | 20,168 | 21,247 |
Receivable from Affiliate | 313 | 3,582 |
Reinsurance recoverables on unpaid losses | 22,579 | 29,685 |
Reinsurance recoverables on paid losses | 5,155 | 5,060 |
Prepaid reinsurance premiums | 1,250 | 1,829 |
Deferred policy acquisition costs | 11,906 | 12,011 |
Other assets | 8,698 | 8,444 |
Total assets | 247,265 | 232,752 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 107,246 | 92,807 |
Unearned premiums | 51,503 | 52,852 |
Debt | 35,824 | 33,502 |
Deferred gain on ADC | 0 | 5,677 |
Accounts payable and accrued expenses | 9,967 | 5,751 |
Total liabilities | 204,540 | 190,589 |
Commitments and contingencies | 0 | 0 |
Shareholders' equity: | ||
Common stock, no par value (100,000,000 shares authorized; 9,592,861 and 8,478,202 issued and outstanding, respectively) | 91,816 | 86,533 |
Accumulated deficit | (49,580) | (41,758) |
Accumulated other comprehensive income (loss) | 489 | (2,612) |
Total shareholders' equity | 42,725 | 42,163 |
Total liabilities and shareholders' equity | $ 247,265 | $ 232,752 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Debt securities, amortized cost | $ 129,313 | $ 122,678 |
Equity securities, amortized cost | $ 6,554 | $ 9,559 |
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) | 9,592,861 | 8,478,202 |
Common stock, shares outstanding (in shares) | 9,592,861 | 8,478,202 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | |||
Gross earned premiums | $ 103,203 | $ 109,188 | $ 114,737 |
Ceded earned premiums | (14,114) | (15,377) | (23,008) |
Net earned premiums | 89,089 | 93,811 | 91,729 |
Net investment income | 4,031 | 3,336 | 2,728 |
Net realized investment gains | 1,196 | 61 | 70 |
Change in fair value of equity securities | (427) | 121 | 0 |
Other gains (losses) | 0 | 0 | 750 |
Other income | 2,109 | 1,582 | 1,560 |
Total revenue | 95,998 | 98,911 | 96,837 |
Expenses | |||
Losses and loss adjustment expenses, net | 59,744 | 62,515 | 73,917 |
Policy acquisition costs | 24,911 | 25,534 | 26,245 |
Operating expenses | 17,582 | 17,683 | 17,367 |
Interest expense | 2,882 | 2,644 | 1,362 |
Total expenses | 105,119 | 108,376 | 118,891 |
Income (loss) before income taxes | (9,121) | (9,465) | (22,054) |
Equity earnings in Affiliate, net of tax | 386 | 290 | 65 |
Income tax expense (benefit) | (913) | 52 | (447) |
Net income (loss) | $ (7,822) | $ (9,227) | $ (21,542) |
Net income (loss) per share, basic and diluted | $ (0.88) | $ (1.08) | $ (2.74) |
Weighted average common shares outstanding, basic and diluted | 8,880,107 | 8,543,876 | 7,867,344 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ (7,822) | $ (9,227) | $ (21,542) |
Unrealized investment gains (losses): | |||
Unrealized investment gains (losses) during the period | 3,725 | (1,825) | 1,151 |
Income tax expense (benefit) | 824 | 0 | 356 |
Unrealized investment gains (losses), net of tax | 2,901 | (1,825) | 795 |
Less: reclassification adjustments to: | |||
Net realized investment gains (losses) included in net income (loss) | (200) | (55) | 78 |
Income tax expense (benefit) | 0 | 0 | 0 |
Total reclassifications included in net income (loss), net of tax | (200) | (55) | 78 |
Other comprehensive income (loss) | 3,101 | (1,770) | 717 |
Total comprehensive income (loss) | $ (4,721) | $ (10,997) | $ (20,825) |
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 at beginning of period at Dec. 31, 2016 | $ 67,794 | $ 80,342 | $ (11,468) | $ (1,080) |
Balance at end of period (in shares) at Dec. 31, 2016 | 7,633,070 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (21,542) | (21,542) | ||
Issuance of common stock in private placement | 5,000 | $ 5,000 | ||
Issuance of common stock in private placement (in shares) | 800,000 | |||
Common stock issuance costs | (38) | $ (38) | ||
Restricted stock units expense, net | 895 | $ 895 | ||
Restricted stock units expense, net (in shares) | 87,258 | |||
Other comprehensive income (loss) | 717 | 717 | ||
Balance at end of period at Dec. 31, 2017 | 52,826 | $ 86,199 | (33,010) | (363) |
Balance at end of period (in shares) at Dec. 31, 2017 | 8,520,328 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cumulative effect of adoption of ASU, net of taxes | ASU No. 2016-01 | 556 | (556) | ||
Cumulative effect of adoption of ASU, net of taxes | ASU No. 2018-02 | (77) | 77 | ||
Balances after cumulative effects | 52,826 | $ 86,199 | (32,531) | (842) |
Net loss | (9,227) | (9,227) | ||
Repurchase of common stock | (636) | $ (636) | ||
Repurchase of common stock (in shares) | (137,228) | |||
Restricted stock units expense | 970 | $ 970 | ||
Restricted stock units expense (in shares) | 95,102 | |||
Other comprehensive income (loss) | (1,770) | (1,770) | ||
Balance at end of period at Dec. 31, 2018 | 42,163 | $ 86,533 | (41,758) | (2,612) |
Balance at end of period (in shares) at Dec. 31, 2018 | 8,478,202 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (7,822) | (7,822) | ||
Repurchase of common stock | (676) | $ (676) | ||
Repurchase of common stock (in shares) | (163,527) | |||
Issuance of common stock in private placement | 5,000 | $ 5,000 | ||
Issuance of common stock in private placement (in shares) | 1,176,471 | |||
Restricted stock units expense | 959 | $ 959 | ||
Restricted stock units expense (in shares) | 101,715 | |||
Other comprehensive income (loss) | 3,101 | 3,101 | ||
Balance at end of period at Dec. 31, 2019 | $ 42,725 | $ 91,816 | $ (49,580) | $ 489 |
Balance at end of period (in shares) at Dec. 31, 2019 | 9,592,861 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ (7,822) | $ (9,227) | $ (21,542) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 453 | 386 | 372 |
Amortization of bond premium and discount, net | 568 | 455 | 532 |
Net realized investment gains | (1,196) | (61) | (70) |
Change in fair value of equity securities | 427 | (121) | 0 |
Restricted stock unit expenses | 959 | 970 | 895 |
Other | (1,210) | (290) | (484) |
(Increase) decrease in: | |||
Premiums, agents' balances and other receivables | 4,348 | (789) | 2,249 |
Reinsurance recoverables | 7,011 | (10,206) | (17,041) |
Prepaid reinsurance premiums | 579 | (748) | 3,039 |
Deferred policy acquisition costs | 105 | 770 | 509 |
Other assets | (489) | (1,252) | 4,239 |
Increase (decrease) in: | |||
Unpaid losses and loss adjustment expenses | 14,439 | 4,911 | 33,245 |
Unearned premiums | (1,349) | (4,820) | (454) |
Reinsurance premiums payable | (3,299) | 3,299 | |
Accounts payable and other liabilities | (1,462) | 6,313 | 302 |
Net cash provided by (used in) operating activities | 15,361 | (17,008) | 9,090 |
Cash Flows From Investing Activities | |||
Purchases of investments | (157,235) | (91,293) | (218,492) |
Proceeds from maturities and redemptions of investments | 22,401 | 22,827 | 25,213 |
Proceeds from sales of investments | 109,882 | 80,774 | 167,338 |
Purchases of property and equipment | (61) | (86) | (13) |
Net cash provided by (used in) investing activities | (25,013) | 12,222 | (25,954) |
Cash Flows From Financing Activities | |||
Proceeds received from issuance of shares of common stock | 5,000 | 5,000 | |
Repurchase of common stock | (676) | (636) | |
Borrowings under debt arrangements | 2,100 | 25,300 | 32,000 |
Repayment of borrowings under debt arrangements | (100) | (19,500) | (19,750) |
Stock and debt issuance costs | (1,454) | (1,011) | |
Net cash provided by financing activities | 6,324 | 3,710 | 16,239 |
Net increase (decrease) in cash | (3,328) | (1,076) | (625) |
Cash at beginning of period | 10,792 | 11,868 | 12,493 |
Cash at end of period | 7,464 | 10,792 | 11,868 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid | 2,547 | 3,116 | 876 |
Net income taxes paid (refunded) | 35 | (83) | |
Increase (decrease) in net payable for securities | $ 1,579 | $ (3,642) | $ 2,691 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | CONIFER HOLDINGS, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements 1. 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"), and Sycamore Insurance Agency, Inc. ("SIA"). 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." 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 three types of insurance businesses: commercial lines, personal lines, and agency business. The Company underwrites a variety of specialty insurance products, including property, general liability, 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 and Pennsylvania. 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 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, Cash Equivalents, and Short-term Investments Cash consists of cash deposits in banks, generally in operating accounts. Cash equivalents consist of money-market funds that are specifically used as overnight investments tied to cash deposit accounts. Short-term investments, consisting of money-market funds, are classified as investments in the consolidated balance sheets as they relate to the Company’s investment activities. Lease Effective January 1, 2019, the Company adopted FASB Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), which addresses the financial reporting of leasing transactions. This update required 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 amortized 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. We do not have any financing leases. The Company elected to use the transition option of practical expedients permitted within the new standard, which allows for the adoption of the new standard at the effective date without adjusting the comparative prior periods presented. Our operating leases consist primarily of real estate utilized in the operation of our businesses with lease terms ranging from 5 to 10 years. Management has determined the appropriate discount rate to use in calculating the right-to-use asset and lease liability is 6.75%. The Company recorded a right-of-use asset of $3.9 million and lease liabilities of $3.9 million included in Other Assets and Other Liabilities in the Consolidated Balance Sheets on January 1, 2019. 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 structured 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 structured 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. This policy was effective in 2018 and 2017 amounts were not recasted. 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 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 losses and loss 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. As of December 31, 2019, the deferred gain on the ADC was fully recognized. 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, As of December 31, 2019 and 2018, 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 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
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, 2019 and 2018 were as follows (dollars in thousands): December 31, 2019 Cost or Gross Unrealized Amortized Cost Gains Losses Estimated Fair Value Debt securities: U.S. Government $ 9,392 $ 66 $ (6 ) $ 9,452 State and local government 14,388 545 — 14,933 Corporate debt 39,550 865 (21 ) 40,394 Asset-backed securities 19,549 81 (55 ) 19,575 Mortgage-backed securities 31,389 238 (112 ) 31,515 Commercial mortgage-backed securities 9,972 116 (45 ) 10,043 Collateralized mortgage obligations 5,073 29 (14 ) 5,088 Total debt securities available for sale $ 129,313 $ 1,940 $ (253 ) $ 131,000 December 31, 2018 Cost or Gross Unrealized Amortized Cost Gains Losses Estimated Fair Value 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 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, 2019 Less than 12 months 12 months or More 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 - $ - $ - 4 $ 1,047 $ (6 ) 4 $ 1,047 $ (6 ) State and local government - - - - - - - - - Corporate debt 7 3,720 (17 ) 3 1,697 (4 ) 10 5,417 (21 ) Asset-backed securities 3 2,596 (1 ) 18 11,836 (54 ) 21 14,432 (55 ) Mortgage-backed securities 3 715 (1 ) 13 7,812 (111 ) 16 8,527 (112 ) Commercial mortgage -backed securities 6 6,837 (45 ) - - - 6 6,837 (45 ) Collateralized mortgage obligations 8 2,081 (14 ) - - - 8 2,081 (14 ) Total debt securities available for sale 27 15,949 (78 ) 38 22,392 (175 ) 65 38,341 (253 ) December 31, 2018 Less than 12 months 12 months or More 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 ) 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, 2019, 2018, and 2017. The Company’s sources of net investment income are as follows (dollars in thousands): December 31, 2019 2018 2017 Debt securities $ 3,476 $ 3,419 $ 2,757 Equity securities 352 129 124 Cash, cash equivalents, and short-term investments 487 85 122 Total investment income 4,315 3,633 3,003 Investment expenses (284 ) (297 ) (275 ) Net investment income $ 4,031 $ 3,336 $ 2,728 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, 2019 2018 2017 Debt securities: Gross realized gains $ 269 $ 54 $ 32 Gross realized losses (54 ) (256 ) (8 ) Total debt securities 215 (202 ) 24 Equity securities: Gross realized gains 1,020 337 76 Gross realized losses (39 ) (74 ) (30 ) Total equity securities 981 263 46 Total net investment realized gains $ 1,196 $ 61 $ 70 Proceeds from the sales of available-for-sale securities were $33.7 million, $14.6 million and $1.8 million for the years ended December 31, 2019, 2018, and 2017, respectively. The gross realized gains from sales of available-for-sale securities for the years ended December 31, 2019, 2018, and 2017 were $274,000, $7,000, and $106,000, respectively. The gross realized losses from sales of available-for-sale securities for the years ended December 31, 2019, 2018, and 2017 were $53,000, $199,000, and $37,000, respectively. The year ended December 31, 2017 has not been recast to confirm to the current presentation of ASU No. 2016-01. Refer to Note 1 ~ Summary of Significant Accounting Policies 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 2019 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 value of these investments as of December 31, 2019 were $665,000. The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at December 31, 2019. 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 $ 7,276 $ 7,293 Due after one year through five years 31,575 32,152 Due after five years through ten years 15,237 15,767 Due after ten years 9,242 9,567 Securities with contractual maturities 63,330 64,779 Asset-backed securities 19,549 19,575 Mortgage-backed securities 31,389 31,515 Commercial mortgage-backed securities 9,972 10,043 Collateralized mortgage obligations 5,073 5,088 Total debt securities $ 129,313 $ 131,000 At December 31, 2019 and 2018, the Insurance Companies Subsidiaries had an aggregate of $8.0 million and $8.5 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At December 31, 2019 and 2018, the Company had $58.4 million and $45.4 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, 2019 | |
Fair Value Disclosures [Abstract] | |
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, 2019 and 2018 (dollars in thousands): December 31, 2019 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 9,452 $ — $ 9,452 $ — State and local government 14,933 — 14,933 — Corporate debt 40,394 — 40,394 — Asset-backed securities 19,575 — 19,575 — Mortgage-backed securities 31,515 — 31,515 — Commercial mortgage-backed securities 10,043 — 10,043 — Collateralized mortgage obligations 5,088 — 5,088 — Total debt securities 131,000 — 131,000 — Equity Securities 6,599 6,335 264 — Short-term investments 31,426 31,426 — — Total marketable investments measured at fair value $ 169,025 $ 37,761 $ 131,264 $ — Investments measured at NAV: Investment in limited partnership 707 Total assets measured at fair value $ 169,732 Liabilities: Senior Unsecured Notes * $ 22,669 $ — $ 22,669 $ — Subordinated Notes * 11,222 — — 11,222 Total Liabilities measured at fair value $ 33,891 $ — $ 22,669 $ 11,222 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheet December 31, 2018 Fair Value Measurements Using Total Level 1 Level 2 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 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 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 22.2% of the fair value of the total investment portfolio as of December 31, 2019. Level 2 investments include debt securities and equity 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 77.3% of the fair value of the total investment portfolio as of December 31, 2019. 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, 2019 and 2018, Level 3 liabilities are entirely comprised of the Company's subordinated notes. In determining the fair value of the subordinated debt outstanding at December 31, 2019 and 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, 2019 and 2018, U.S. Treasury rates, respectively. 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, 2019 and 2018, respectively. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
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, 2019, 2018, and 2017. The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands): December 31, 2019 2018 2017 Balance at beginning of period $ 12,011 $ 12,781 $ 13,290 Deferred policy acquisition costs 24,806 24,764 25,736 Amortization of policy acquisition costs (24,911 ) (25,534 ) (26,245 ) Net change (105 ) (770 ) (509 ) Balance at end of period $ 11,906 $ 12,011 $ 12,781 |
Unpaid Losses and Loss Adjustme
Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Loss Reserves [Abstract] | |
Unpaid Losses and Loss Adjustment Expenses | 5. 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): December 31, 2019 2018 2017 Gross reserves - beginning of period $ 92,807 $ 87,896 $ 54,651 Less: reinsurance recoverables on unpaid losses 29,685 20,066 6,658 Plus: deferred gain on ADC (5,677 ) — — Net reserves - beginning of period 68,799 67,830 47,993 Add: incurred losses and loss adjustment expenses, net of reinsurance Current period 49,192 53,482 64,458 Prior period 10,552 9,033 9,459 Total net incurred losses and loss adjustment expenses 59,744 62,515 73,917 Deduct: loss and loss adjustment expense payments, net of reinsurance Current period 14,357 17,025 24,547 Prior period 29,519 44,521 29,533 Total net loss and loss adjustment expense payments 43,876 61,546 54,080 Net reserves - end of period 84,667 68,799 67,830 Plus: reinsurance recoverables on unpaid losses 22,579 29,685 20,066 Less: deferred gain on ADC — (5,677 ) — Gross reserves - end of period $ 107,246 $ 92,807 $ 87,896 There was $10.6 million, $9.0 million, and $9.5 million of adverse development on prior accident year reserves in 2019, 2018 and 2017, respectively. There were no significant changes in the key methods utilized in the analysis and calculations of the Company’s reserves during 2019, 2018 or 2017. In 2019, the adverse development consisted of $7.6 million from commercial lines and $3.0 million from personal lines. Of the $7.6 million of adverse development in commercial lines, the company experienced $11.0 million and $2.4 million of adverse development in its hospitality and small business lines of business, respectively. This was partially offset by the remaining $5.7 million of benefit from the ADC that was recognized in 2019. Of the $3.0 million of adverse development in personal lines in 2019, $1.7 million was related to Florida homeowners business. 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. On September 28, 2017, the Company entered into an ADC 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. As of December 31, 2019, the deferred gain from the ADC was fully utilized. 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 Consolidated Balance Sheets) and was amortized into income as a benefit in future periods. As of December 31, 2018, the Company had 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 2019, as well as total IBNR and the cumulative number of reported claims for the year ended December 31, 2019, 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 2019 2019 2019 2009 $ 11,400 $ 12,066 $ 10,312 $ 8,943 $ 8,232 $ 8,403 $ 8,359 $ 8,414 $ 8,442 $ 8,441 $ 8,441 $ — 877 2010 7,346 8,568 7,255 6,357 6,170 6,074 6,207 6,292 6,312 6,312 — 771 2011 6,753 5,758 5,326 5,049 4,932 4,903 4,935 4,933 4,933 — 590 2012 7,745 6,421 6,288 6,384 6,253 6,190 6,209 6,209 — 560 2013 10,018 9,435 9,893 10,237 11,252 11,218 11,624 50 608 2014 19,709 19,907 22,711 26,367 28,145 28,766 100 1,752 2015 22,442 26,633 31,861 34,478 36,372 200 2,352 2016 32,396 34,935 40,440 44,355 1,125 3,544 2017 44,251 44,495 49,749 3,658 5,776 2018 42,624 42,432 8,619 5,993 2019 41,286 20,265 5,774 Total $ 280,479 $ 34,018 Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident For the years ended December 31, Year 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 2009 $ 4,436 $ 5,942 $ 6,410 $ 7,233 $ 7,800 $ 7,867 $ 7,933 $ 8,321 $ 8,441 $ 8,441 $ 8,441 2010 3,066 4,488 5,219 5,910 6,040 6,065 6,166 6,258 6,312 6,312 2011 2,645 3,534 3,964 4,449 4,641 4,744 4,872 4,903 4,907 2012 2,325 3,703 4,696 5,558 5,994 6,065 6,209 6,209 2013 3,979 6,211 7,643 8,622 10,147 10,650 11,137 2014 8,715 13,977 17,458 22,446 25,609 27,544 2015 10,470 17,817 22,549 30,475 34,497 2016 10,255 19,135 27,785 37,967 2017 12,448 23,020 34,205 2018 10,375 19,799 2019 10,078 Total $ 201,096 Unpaid losses and ALAE - years 2009 through 2019 $ 79,383 Unpaid losses and ALAE - prior to 2009 (1)* 8 Unpaid ADC (2,075 ) Unpaid losses and ALAE, net of reinsurance $ 77,316 * 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 For the years ended December 31, Year 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 2019 2019 2009 $ 667 $ 639 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ — 65 2010 320 188 184 184 184 184 184 184 184 184 — 77 2011 1,678 1,758 1,981 2,031 2,030 2,045 2,027 2,024 2,024 — 717 2012 9,960 11,690 11,740 12,159 12,390 12,365 12,357 12,369 — 3,338 2013 18,034 17,996 18,925 19,138 19,167 19,202 19,222 — 5,206 2014 17,951 17,471 17,735 17,880 17,929 18,082 — 3,730 2015 10,877 13,445 14,721 15,285 15,364 — 2,141 2016 11,619 13,418 14,949 15,550 — 1,813 2017 14,058 13,550 14,493 — 2,852 2018 5,893 6,378 321 800 2019 3,099 609 305 Total $ 107,399 $ 929 Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident For the years ended December 31, Year 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 2009 $ 537 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 2010 151 174 184 184 184 184 184 184 184 184 2011 787 1,292 1,633 1,859 1,983 2,021 2,024 2,024 2,024 2012 5,665 9,251 10,844 11,777 12,202 12,306 12,329 12,349 2013 9,955 15,883 18,052 18,600 19,014 19,174 19,214 2014 12,819 16,515 17,260 17,746 17,855 18,047 2015 7,771 11,873 13,844 15,159 15,250 2016 7,119 11,238 14,442 15,110 2017 8,320 12,944 14,004 2018 4,296 5,618 2019 2,119 Total $ 104,553 Unpaid losses and ALAE - years 2009 through 2019 $ 2,846 Unpaid losses and ALAE - prior to 2009 (1)* — Unpaid ADC (112 ) Unpaid losses and ALAE, net of reinsurance $ 2,734 * 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 For the years ended December 31, Year 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 2019 2019 2009 12,066 12,705 10,946 9,577 8,866 9,037 8,993 9,048 9,076 9,075 9,075 — 942 2010 7,666 8,756 7,439 6,541 6,354 6,258 6,391 6,476 6,496 6,496 — 848 2011 8,431 7,517 7,307 7,081 6,963 6,949 6,964 6,957 6,957 — 1,307 2012 17,705 18,111 18,028 18,544 18,642 18,554 18,566 18,578 — 3,898 2013 28,052 27,431 28,817 29,375 30,419 30,420 30,846 50 5,814 2014 37,660 37,378 40,446 44,247 46,074 46,848 100 5,482 2015 33,319 40,078 46,581 49,763 51,736 200 4,493 2016 44,015 48,353 55,389 59,905 1,125 5,357 2017 58,309 58,045 64,242 3,658 8,628 2018 48,517 48,810 8,940 6,793 2019 44,385 20,874 6,079 Total 387,878 34,947 Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident For the years ended December 31, Year 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 2009 $ 4,973 $ 6,576 $ 7,043 $ 7,867 $ 8,434 $ 8,501 $ 8,567 $ 8,955 $ 9,075 $ 9,075 $ 9,075 2010 3,217 4,662 5,403 6,094 6,223 6,248 6,350 6,442 6,496 6,496 2011 3,432 4,826 5,597 6,308 6,624 6,766 6,897 6,927 6,931 2012 7,990 12,954 15,540 17,335 18,195 18,369 18,538 18,558 2013 13,934 22,094 25,695 27,223 29,162 29,824 30,351 2014 21,534 30,492 34,718 40,192 43,464 45,591 2015 18,241 29,690 36,393 45,634 49,747 2016 17,374 30,373 42,227 53,077 2017 20,768 35,964 48,209 2018 14,671 25,417 2019 12,197 Total $ 305,649 Unpaid losses and ALAE - years 2009 through 2019 $ 82,229 Unpaid losses and ALAE - prior to 2009 (1)* 8 Unpaid ADC (2,187 ) Unpaid losses and ALAE, net of reinsurance $ 80,050 * Presented as unaudited required supplementary information. The following table reconciles the loss development information to the consolidated balance sheet for the year ended December 31, 2019, by reportable segment (dollars in thousands). December 31, 2019 Net unpaid losses claims and ALAE Commercial Lines $ 77,316 Personal Lines 2,734 Total unpaid losses and LAE, net of reinsurance 80,050 Reinsurance recoverable on losses and LAE Commercial Lines 20,051 Personal Lines 2,528 Total reinsurance recoverable on unpaid losses and LAE 22,579 Unpaid ULAE 4,617 Total gross unpaid losses and LAE $ 107,246 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 35.7% 26.9% 18.4% 9.5% 4.8% 2.3% 1.3% 0.7% 0.3% 0.1% Personal Lines 79.5% 11.8% 5.5% 1.9% 1.0% 0.3% —% —% —% —% Total Lines 37.7% 26.2% 17.8% 9.2% 4.6% 2.2% 1.2% 0.7% 0.3% 0.1% |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
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 $400,000 in 2019 and $500,000 in 2018 and 2017, and ceded all specific commercial property risks in excess of $400,000 in 2019, $300,000 in 2018, and $500,000 in 2017. The Company ceded homeowners specific risks in excess of $300,000 in 2019, 2018 and 2017. 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. A loss is covered under a reinsurance contract if the loss occurs within the effective dates of the agreement notwithstanding when the loss is reported. 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 • Effective January 1, 2019 through December 31, 2019, the Company was party to a workers' compensation and casualty clash reinsurance treaty with limits up to $19.0 million in excess of a $1.0 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. • Effective January 1, 2015 through December 31, 2018, the Company was party to a casualty clash reinsurance treaty with limits up to $18.0 million in excess of a $2.0 million retention. Facultative • The Company was party to a facultative reinsurance agreement with a large reinsurer for property risks with total insured values above the other reinsurance treaty limits. Liability • Effective January 1, 2019 through December 31, 2019, the Company was party to an excess of loss reinsurance treaty for commercial liability coverage with limits up to $600,000 in excess of $400,000. Property • Effective November 1, 2014 through December 31, 2019, the Company was party to 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. • Effective January 1, 2019 through December 31, 2019, the Company was party to an excess of loss reinsurance treaty for commercial property coverage with limits up to $3.7 million in excess of $300,000. • Effective January 1, 2018 through December 31, 2018, the Company was party to an excess of loss reinsurance treaty for commercial property coverage with limits up to $200,000 in excess of $300,000. • Effective July 1, 2015 through December 31, 2018, the Company was party to an excess of loss reinsurance agreement for commercial property coverage with limits up to $2.0 million in excess of $2.0 million. • At December 31, 2019, the Company was covered for property catastrophe losses up to $28.0 million in excess of a $2.0 million retention for the first event. This treaty terminates on June 1, 2020. • At December 31, 2018, the Company was covered for property catastrophe losses up to $96.0 million in excess of a $4.0 million retention for the first event. The treaty terminated on June 1, 2019. • At December 31, 2017, the Company was covered for property catastrophe losses up to $106.0 million in excess of a $4.0 million retention for the first event. The treaty terminated on June 1, 2018. Multiple Line • Effective January 1, 2019 through December 31, 2019, the Company was party to a multi-line excess of loss treaty that covers commercial property and casualty losses up to $600,000 in excess of a $400,000 retention. • Effective January 1, 2015 through December 31, 2018, the Company was party to a multi-line excess of loss treaty that covers commercial property and casualty losses up to $1.5 million in excess of a $500,000 retention. Quota Share • The Company cedes 90% to 100% of its commercial umbrella coverages under quota share treaties. Under a quota share agreement, the reinsurer pays a percentage of all losses the insurer sustains in return for a similar percent of the premiums written on that risk. A ceding commission is paid by the reinsurer to the insurer to cover acquisition and operating expenses. 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 provided up to $17.5 million of reinsurance for adverse net loss reserve development for accident years 2005 through 2016. As of December 31, 2019, the Company had fully utilized the ADC. Equipment Breakdown, Employment Practice Liability, and Data Compromise and Identity Recovery • The Company ceded 100% of a small number of equipment breakdown, employment practices liability, and data compromise coverages that are occasionally bundled with other products under a quota share agreement with a reinsurer. 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. The Company assumed $33.5 million, $31.1 million, and $28.0 million of written premiums under the insurance fronting arrangements for the years ended December 31, 2019, 2018, and 2017, 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 2019, 2018 and 2017 ceded written and earned premium amounts include $495,000, $1.0 million and $806,000 of reinsurance reinstatement costs relating to Hurricane Irma, respectively. Year Ended December 31, 2019 2018 2017 Written premiums: Direct $ 68,394 $ 73,290 $ 86,251 Assumed 33,459 31,078 28,033 Ceded (14,129 ) (15,282 ) (23,044 ) Net written premiums $ 87,724 $ 89,086 $ 91,240 Earned premiums: Direct $ 70,911 $ 80,691 $ 87,656 Assumed 32,292 28,497 27,081 Ceded (14,114 ) (15,377 ) (23,008 ) Net earned premiums $ 89,089 $ 93,811 $ 91,729 Loss and loss adjustment expenses: Direct $ 66,256 $ 65,284 $ 79,035 Assumed 25,510 20,671 19,524 Ceded (32,022 ) (23,440 ) (24,642 ) Net loss and LAE $ 59,744 $ 62,515 $ 73,917 Percentage of Assumed Written Premiums to Net Written Premiums 38.1 % 34.9 % 30.7 % |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt At December 31, 2019, 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”). A summary of the Company's outstanding debt is as follows (dollars in thousands): December 31, 2019 2018 Senior unsecured notes $ 24,288 $ 24,018 Subordinated notes 9,536 9,484 Line of credit 2,000 — Total $ 35,824 $ 33,502 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 $1.0 million and $965,000 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 minimum tangible net worth, minimum fixed-charge coverage ratios, dividend paying capacity, reinsurance retentions, and risk-based capital ratios. At December 31, 2019, 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 line of credit 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, 2019, the Company had $2.0 million outstanding 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, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes At December 31, 2019 and 2018, the Company had current income taxes receivable of $87,000 and $79,000, 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, 2019 2018 2017 Current tax expense (benefit) $ 27 $ 52 $ (28 ) Deferred tax expense (benefit) (940 ) — (419 ) Total income tax expense (benefit) $ (913 ) $ 52 $ (447 ) The income tax expense (benefit) differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% in 2019 and 2018 and 34% in 2017 to pretax income as a result of the following (dollars in thousands): Year Ended December 31, 2019 2018 2017 Income (loss) before income taxes $ (9,121 ) $ (9,465 ) $ (22,054 ) Statutory U.S. federal income tax rate (1,915 ) (1,988 ) (7,498 ) State income taxes, net of federal benefit (230 ) (156 ) (106 ) Tax‑exempt investment income and dividend received deduction (79 ) (70 ) (123 ) Nondeductible meals and entertainment 38 38 54 Valuation allowance on deferred tax assets 966 2,331 1,515 Change in federal tax rate — — 5,612 Other 307 (103 ) 99 Income tax expense (benefit) $ (913 ) $ 52 $ (447 ) Effective tax rate 10.0 % (0.5 )% 2.0 % 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, 2019 2018 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 1,264 $ 937 Unearned premiums 2,266 2,329 Net operating loss carryforwards 12,593 10,144 Net unrealized losses on investments — 222 State net operating loss carryforwards 873 567 Deferred gain from ADC — 1,254 Other 248 123 Gross deferred tax assets 17,244 15,576 Less valuation allowance (13,572 ) (12,606 ) Total deferred tax assets, net of allowance 3,672 2,970 Deferred tax liabilities: Investment basis difference 28 22 Net unrealized gains on investments 512 — Deferred policy acquisition costs 2,500 2,522 Intangible assets 115 112 Property and equipment 57 63 Other 460 366 Total deferred tax liabilities 3,672 3,085 Net deferred tax liability $ — $ (115 ) The net deferred tax liability is recorded in accounts payable and accrued expenses in the consolidated balance sheets. As of December 31, 2019, the Company has net operating loss carryforwards for federal income tax purposes of $60.0 million, of which $50.0 million expire in tax years 2020 through 2039 and $10.0 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 $17.7 million, which expire in tax years 2021 through 2039. 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, 2019. 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 $13.6 million and $12.6 million at December 31, 2019 and 2018, 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 2016, the Company is no longer subject to U.S. federal examinations; however, the Internal Revenue Service has the ability to review years prior to 2016 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, 2019 | |
Insurance [Abstract] | |
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, 2019, 2018, and 2017, the Insurance Company Subsidiaries’ adjusted capital and surplus exceeded their authorized control level as determined by the NAIC’s risk-based capital models. Summarized 2019, 2018, and 2017 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 2019 Statutory capital and surplus $ 46,206 $ 23,261 RBC authorized control level 12,868 4,266 Statutory net income (loss) (3,627 ) (3,652 ) RBC % 359 % 545 % 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 % 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 2019. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 10. Shareholders’ Equity Common Stock In June 2019, the Company issued $5.0 million of common equity through a private placement for 1,176,471 shares priced at $4.25 per share. The participants in the private placement consisted of members of the Company's Board of Directors. The Company used the proceeds for growth capital in the Company's specialty core business segments. 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 units. For the year ended December 31, 2019, the Company had repurchased 154,208 shares of stock valued at approximately $638,000 related to the stock repurchase program. The Company also repurchased 9,319 shares of stock valued at approximately $38,000 related to the vesting of the Company’s restricted stock units. 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. As of December 31, 2019, 2018, and 2017, the Company had 9,592,861, 8,478,202, and 8,520,328 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, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 11. 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 (dollars in thousands): Year Ended December 31, 2019 2018 Balance at beginning of period $ (2,612 ) $ (363 ) 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 (2,612 ) (842 ) Other comprehensive income (loss) before reclassifications 2,901 (1,825 ) Less: amounts reclassified from accumulated other comprehensive income (loss) (200 ) (55 ) Net current period other comprehensive income (loss) 3,101 (1,770 ) Balance at end of period $ 489 $ (2,612 ) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. Earnings 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 (dollars in thousands, except share and per share amounts): Year Ended December 31, 2019 2018 2017 Net income (loss) $ (7,822 ) $ (9,227 ) $ (21,542 ) Weighted average common shares, basic and diluted* 8,880,107 8,543,876 7,867,344 Earnings (loss) per share, basic and diluted $ (0.88 ) $ (1.08 ) $ (2.74 ) * The non-vested shares of the restricted stock units were anti-dilutive as of December 31, 2019, 2018, and 2017. Therefore, the non-vested shares are excluded from earnings (loss) per share in December 31, 2019, 2018, and 2017. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | In 2015, the Company established the Conifer Holdings, Inc. 2015 Omnibus Incentive Plan The following summarizes our RSU activity (units in thousands): Number of Units Weighted Average Grant-Date Fair Value Outstanding at December 31, 2016 416 $ 9.87 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 Units vested (102 ) 9.47 Units forfeited (6 ) 7.37 Outstanding at December 31, 2019 156 $ 8.45 The scheduled vesting for the restricted stock units at December 31, 2019, was as follows (units in thousands): 2020 2021 2022 2023 Total Scheduled vesting - RSUs 102 31 13 10 156 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 $959,000, $970,000, and $948,000 of compensation expense related to the RSUs for the years ended December 31, 2019, 2018 and 2017, 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, 2019 was $1.3 million. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. 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, President of SIA and a director, 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, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 15. 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 or post-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 $501,000, $479,000 and $432,000 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. 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. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 17. Segment Information The Company is engaged in the sale of property and casualty insurance products and has organized its business model around three classes of insurance businesses: commercial lines, personal lines, and wholesale agency business. Within these three businesses, the Company offers various insurance products and insurance agency services. Such insurance businesses are engaged in underwriting and marketing insurance coverages, and administering claims processing for such policies. The Company views the commercial and personal lines segments as underwriting business (business that takes on insurance underwriting risk). The wholesale agency business provides non-risk bearing revenue through commissions and policy fees. The wholesale agency business increases the product options to the Company’s independent retail agents by offering both insurance products from the Insurance Company Subsidiaries as well as products offered by other insurers. This segment has expanded in 2019, resulting in its separate disclosure. Prior periods have been recast to reflect the separate disclosure of the wholesale agency segment. 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, losses and LAE, net of reinsurance recoveries, and other revenue and expenses. 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 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 New York. For the years ended December 31, 2019, 2018, and 2017, gross written premiums attributable to these four states were 51.6%, 51.3%, and 55.7% respectively, of the Company’s total gross written premiums. The following table summarizes our net earned premiums: Net Earned Premium 2019 2018 2017 Commercial 94 % 89 % 84 % Personal 6 % 11 % 16 % 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. The Agency business sells insurance products on behalf of the Company’s commercial and personal lines businesses as well as to third-party insurers. Certain acquisition costs incurred by the commercial and personal lines businesses are reflected as commission revenue for the Agency business and are eliminated in the Eliminations category. 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, some 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. All investment income activity is reported within net investment income, net realized investment gains, and change in fair value of equity securities on the consolidated statements of operations. The Company’s assets on the consolidated balance sheet are not allocated to the reportable segments. The following tables present information by reportable segment (dollars in thousands): Year Ended December 31, 2019 Commercial Lines Personal Lines Under-writing Wholesale Agency Corp-orate Elim-inations Total Gross written premiums $ 94,391 $ 7,462 $ 101,853 $ — $ — $ — $ 101,853 Net written premiums $ 81,966 $ 5,758 $ 87,724 $ — $ — $ — $ 87,724 Net earned premiums $ 83,858 $ 5,231 $ 89,089 $ — $ — $ — $ 89,089 Other income 216 143 359 9,073 224 (7,547 ) 2,109 Segment revenue 84,074 5,374 89,448 9,073 224 (7,547 ) 91,198 Loss and loss adjustment expenses, net 53,256 6,488 59,744 — — — 59,744 Policy acquisition costs 23,511 1,744 25,255 6,063 — (6,407 ) 24,911 Operating expenses 12,881 1,233 14,114 2,180 1,288 — 17,582 Segment expenses 89,648 9,465 99,113 8,243 1,288 (6,407 ) 102,237 Segment underwriting gain (loss) (5,574 ) (4,091 ) (9,665 ) 830 (1,064 ) (1,140 ) (11,039 ) Investment income 4,031 4,031 Net realized investment gains 1,196 1,196 Change in fair value of equity securities (427 ) (427 ) Interest expense (2,882 ) (2,882 ) Income (loss) before income taxes $ (5,574 ) $ (4,091 ) $ (9,665 ) $ 830 $ 854 $ (1,140 ) $ (9,121 ) Selected Balance Sheet Data: Deferred policy acquisition costs $ 12,033 $ 1,007 $ (1,134 ) $ 11,906 Unearned premiums 47,674 3,829 51,503 Unpaid losses and loss adjustment expenses 101,850 5,396 107,246 Year Ended December 31, 2018 Commercial Lines Personal Lines Under-writing Wholesale Agency Corp-orate Elim-inations Total Gross written premiums $ 97,694 $ 6,674 $ 104,368 $ — $ — $ — $ 104,368 Net written premiums $ 87,038 $ 2,048 $ 89,086 $ — $ — $ — $ 89,086 Net earned premiums $ 83,352 $ 10,459 $ 93,811 $ — $ — $ — $ 93,811 Other income 101 225 326 9,251 156 (8,151 ) 1,582 Segment revenue 83,453 10,684 94,137 9,251 156 (8,151 ) 95,393 Loss and loss adjustment expenses, net 53,065 9,450 62,515 — — — 62,515 Policy acquisition costs 23,584 3,846 27,430 6,255 — (8,151 ) 25,534 Operating expenses 14,662 1,088 15,750 1,564 369 — 17,683 Segment expenses 91,311 14,384 105,695 7,819 369 (8,151 ) 105,732 Segment underwriting gain (loss) (7,858 ) (3,700 ) (11,558 ) 1,432 (213 ) $ — (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 $ (7,858 ) $ (3,700 ) $ (11,558 ) $ 1,432 $ 661 $ — $ (9,465 ) Selected Balance Sheet Data: Deferred policy acquisition costs $ 11,258 $ 753 $ 12,011 Unearned premiums 49,549 3,303 52,852 Unpaid losses and loss adjustment expenses 87,643 5,164 92,807 Year Ended December 31, 2017 Commercial Lines Personal Lines Under-writing Wholesale Agency Corp-orate Elim-inations Total Gross written premiums $ 92,112 $ 22,172 $ 114,284 $ — $ — $ — $ 114,284 Net written premiums $ 78,217 $ 13,023 $ 91,240 $ — $ — $ — $ 91,240 Net earned premiums $ 76,786 $ 14,943 $ 91,729 $ — $ — $ — $ 91,729 Other income 221 573 794 10,380 130 (9,744 ) 1,560 Segment revenue 77,007 15,516 92,523 10,380 130 (9,744 ) 93,289 Loss and loss adjustment expenses, net 55,701 18,216 73,917 — — — 73,917 Policy acquisition costs 22,366 6,537 28,903 7,086 — (9,744 ) 26,245 Operating expenses 10,585 1,939 12,524 2,248 2,595 — 17,367 Segment expenses 88,652 26,692 115,344 9,334 2,595 (9,744 ) 117,529 Segment underwriting gain (loss) (11,645 ) (11,176 ) (22,821 ) 1,046 (2,465 ) $ — (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 $ (11,645 ) $ (11,176 ) $ (22,821 ) $ 1,046 $ (279 ) $ — $ (22,054 ) Selected Balance Sheet Data: Deferred policy acquisition costs $ 10,116 $ 2,665 $ 12,781 Unearned premiums 45,951 11,721 57,672 Unpaid losses and loss adjustment expenses 76,586 11,310 87,896 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 18. Quarterly Financial Data (Unaudited) The following is a summary of quarterly results of operations for 2019 and 2018 (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. The combined ratios in 2018 have been recast as a result of the addition of the wholesale agency segment. See Note 17 ~ Segment Information 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2019 Gross written premiums $ 24,216 $ 25,169 $ 27,077 $ 25,391 Net written premiums $ 20,322 $ 21,434 $ 23,806 $ 22,162 Net earned premiums $ 21,687 $ 21,349 $ 22,775 $ 23,278 Net investment income 910 1,051 1,210 860 Net realized gains 19 715 390 72 Change in fair value of equity securities 1,265 (915 ) (1,065 ) 288 Other income 422 581 564 542 Losses and loss adjustment expenses, net 14,456 14,382 14,857 16,049 Policy acquisition costs 5,589 6,210 6,153 6,959 Operating expenses 4,323 4,340 4,297 4,622 Interest expense 710 725 720 727 Income tax expense (benefit) 11 — (802 ) (122 ) Equity earnings (losses) in affiliates, net of tax 106 (8 ) 121 167 Net income (loss) $ (680 ) $ (2,884 ) $ (1,230 ) $ (3,028 ) Net income (loss) per share, basic and diluted (1) $ (0.08 ) $ (0.34 ) $ (0.13 ) $ (0.32 ) Combined ratio 108.1 % 113.0 % 109.2 % 112.9 % 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 (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 in affiliates, net of tax 55 89 93 53 Net income (loss) $ 213 $ (1,113 ) $ (3,551 ) $ (4,776 ) Net income (loss) per share, basic and diluted (1) $ 0.02 $ (0.13 ) $ (0.42 ) $ (0.56 ) Combined ratio 99.7 % 108.8 % 118.2 % 123.0 % (1 ) Due to changes in the outstanding shares of the Company (Note 10 ~ Shareholders' Equity |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | Conifer Holdings, Inc. Condensed Financial Information of Registrant Balance Sheets – Parent Company Only (dollars in thousands) December 31, 2019 2018 Assets Investment in subsidiaries $ 75,607 $ 72,419 Cash 506 1,133 Due from subsidiaries 893 403 Due from affiliate 214 445 Other assets 4,840 1,822 Total assets $ 82,060 $ 76,222 Liabilities and Shareholders' Equity Liabilities: Debt $ 35,824 $ 33,502 Other liabilities 3,511 557 Total liabilities 39,335 34,059 Shareholders' equity: Common stock, no par value (100,000,000 shares authorized; 9,592,861 and 8,478,202 issued and outstanding, respectively) 91,816 86,533 Accumulated deficit (49,580 ) (41,758 ) Accumulated other comprehensive income (loss) 489 (2,612 ) Total shareholders' equity 42,725 42,163 Total liabilities and shareholders' equity $ 82,060 $ 76,222 Schedule II Conifer Holdings, Inc. Condensed Financial Information of Registrant Statements of Comprehensive Income (Loss) – Parent Company Only (dollars in thousands) Year Ended December 31, 2019 2018 2017 Revenue Management fees from subsidiaries $ 11,621 $ 13,567 $ 15,905 Other income 167 73 826 Total revenue 11,788 13,640 16,731 Expenses Operating expenses 14,433 17,336 13,496 Interest expense 2,880 2,644 1,362 Total expenses 17,313 19,980 14,858 Income (loss) before equity in earnings (losses) of subsidiaries and income tax expense (benefit) (5,525 ) (6,340 ) 1,873 Income tax expense (benefit) 30 (581 ) 859 Income (loss) before equity earnings (losses) of subsidiaries (5,555 ) (5,759 ) 1,014 Equity earnings (losses) in subsidiaries (2,267 ) (3,468 ) (22,556 ) Net income (loss) (7,822 ) (9,227 ) (21,542 ) Other Comprehensive Income Equity in other comprehensive income (loss) of subsidiaries 3,101 (1,770 ) 717 Total Comprehensive income (loss) $ (4,721 ) $ (10,997 ) $ (20,825 ) Schedule II Conifer Holdings, Inc. Condensed Financial Information of Registrant Statement of Cash Flows – Parent Company Only (dollars in thousands) Year Ended December 31, 2019 2018 2017 Cash Flows from Operating Activities Net income (loss) $ (7,822 ) $ (9,227 ) $ (21,542 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 447 379 347 Equity in undistributed (income) loss of subsidiaries 2,267 3,468 22,556 Incentive awards expenses - vesting of RSUs 959 970 895 Changes in operating assets and liabilities: Due from subsidiaries (490 ) 110 (513 ) Due from affiliates 231 (97 ) 598 Current income tax recoverable 21 (488 ) (485 ) Other assets (3,098 ) (229 ) 532 Other liabilities 2,954 (360 ) 590 Net cash provided by (used in) operating activities (4,531 ) (5,474 ) 2,978 Cash Flows From Investing Activities Contributions to subsidiaries (3,854 ) — (20,860 ) Dividends received from subsidiaries 1,500 — — Purchases of investments — 400 (400 ) Purchases of property and equipment (66 ) (86 ) (13 ) Net cash provided by (used in) investing activities (2,420 ) 314 (21,273 ) Cash Flows From Financing Activities Proceeds received from issuance of shares of common stock 5,000 — 5,000 Repurchase of common stock (676 ) (636 ) — Borrowings under debt arrangements 2,000 25,300 32,000 Repayment of borrowings under debt arrangements — (19,500 ) (19,750 ) Stock and debt issuance costs — (1,454 ) (1,011 ) Net cash provided by financing activities 6,324 3,710 16,239 Net increase (decrease) in cash (627 ) (1,450 ) (2,056 ) Cash at beginning of period 1,133 2,583 4,639 Cash at end of period $ 506 $ 1,133 $ 2,583 Supplemental Disclosure of Cash Flow Information: Interest paid $ 2,547 $ 3,116 $ 876 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 $1.5 million in cash dividends from its subsidiaries in 2019 and no cash dividends in 2018 and 2017. 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, 2019 | |
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 2019 12,606 966 — — 13,572 2018 9,904 2,331 371 — 12,606 2017 8,389 1,515 — — 9,904 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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"), and Sycamore Insurance Agency, Inc. ("SIA"). 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." 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 | Business The Company is engaged in the sale of property and casualty insurance products and has organized its principal operations into three types of insurance businesses: commercial lines, personal lines, and agency business. The Company underwrites a variety of specialty insurance products, including property, general liability, 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 and Pennsylvania. |
Public Debt Offering | 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 |
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, Cash Equivalents, and Short-term Investments | Cash, Cash Equivalents, and Short-term Investments Cash consists of cash deposits in banks, generally in operating accounts. Cash equivalents consist of money-market funds that are specifically used as overnight investments tied to cash deposit accounts. Short-term investments, consisting of money-market funds, are classified as investments in the consolidated balance sheets as they relate to the Company’s investment activities. |
Lease Accounting | Lease Effective January 1, 2019, the Company adopted FASB Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), which addresses the financial reporting of leasing transactions. This update required 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 amortized 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. We do not have any financing leases. The Company elected to use the transition option of practical expedients permitted within the new standard, which allows for the adoption of the new standard at the effective date without adjusting the comparative prior periods presented. Our operating leases consist primarily of real estate utilized in the operation of our businesses with lease terms ranging from 5 to 10 years. Management has determined the appropriate discount rate to use in calculating the right-to-use asset and lease liability is 6.75%. The Company recorded a right-of-use asset of $3.9 million and lease liabilities of $3.9 million included in Other Assets and Other Liabilities in the Consolidated Balance Sheets on January 1, 2019. |
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 structured 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 structured 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. This policy was effective in 2018 and 2017 amounts were not recasted. 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 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 losses and loss 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. As of December 31, 2019, the deferred gain on the ADC was fully recognized. |
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, As of December 31, 2019 and 2018, 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 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 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 were as follows (dollars in thousands): December 31, 2019 Cost or Gross Unrealized Amortized Cost Gains Losses Estimated Fair Value Debt securities: U.S. Government $ 9,392 $ 66 $ (6 ) $ 9,452 State and local government 14,388 545 — 14,933 Corporate debt 39,550 865 (21 ) 40,394 Asset-backed securities 19,549 81 (55 ) 19,575 Mortgage-backed securities 31,389 238 (112 ) 31,515 Commercial mortgage-backed securities 9,972 116 (45 ) 10,043 Collateralized mortgage obligations 5,073 29 (14 ) 5,088 Total debt securities available for sale $ 129,313 $ 1,940 $ (253 ) $ 131,000 December 31, 2018 Cost or Gross Unrealized Amortized Cost Gains Losses Estimated Fair Value 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 |
Schedule of 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, 2019 Less than 12 months 12 months or More 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 - $ - $ - 4 $ 1,047 $ (6 ) 4 $ 1,047 $ (6 ) State and local government - - - - - - - - - Corporate debt 7 3,720 (17 ) 3 1,697 (4 ) 10 5,417 (21 ) Asset-backed securities 3 2,596 (1 ) 18 11,836 (54 ) 21 14,432 (55 ) Mortgage-backed securities 3 715 (1 ) 13 7,812 (111 ) 16 8,527 (112 ) Commercial mortgage -backed securities 6 6,837 (45 ) - - - 6 6,837 (45 ) Collateralized mortgage obligations 8 2,081 (14 ) - - - 8 2,081 (14 ) Total debt securities available for sale 27 15,949 (78 ) 38 22,392 (175 ) 65 38,341 (253 ) December 31, 2018 Less than 12 months 12 months or More 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 ) |
Schedule of Investment Income | The Company’s sources of net investment income are as follows (dollars in thousands): December 31, 2019 2018 2017 Debt securities $ 3,476 $ 3,419 $ 2,757 Equity securities 352 129 124 Cash, cash equivalents, and short-term investments 487 85 122 Total investment income 4,315 3,633 3,003 Investment expenses (284 ) (297 ) (275 ) Net investment income $ 4,031 $ 3,336 $ 2,728 |
Schedule 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, 2019 2018 2017 Debt securities: Gross realized gains $ 269 $ 54 $ 32 Gross realized losses (54 ) (256 ) (8 ) Total debt securities 215 (202 ) 24 Equity securities: Gross realized gains 1,020 337 76 Gross realized losses (39 ) (74 ) (30 ) Total equity securities 981 263 46 Total net investment realized gains $ 1,196 $ 61 $ 70 |
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, 2019. 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 $ 7,276 $ 7,293 Due after one year through five years 31,575 32,152 Due after five years through ten years 15,237 15,767 Due after ten years 9,242 9,567 Securities with contractual maturities 63,330 64,779 Asset-backed securities 19,549 19,575 Mortgage-backed securities 31,389 31,515 Commercial mortgage-backed securities 9,972 10,043 Collateralized mortgage obligations 5,073 5,088 Total debt securities $ 129,313 $ 131,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (dollars in thousands): December 31, 2019 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 9,452 $ — $ 9,452 $ — State and local government 14,933 — 14,933 — Corporate debt 40,394 — 40,394 — Asset-backed securities 19,575 — 19,575 — Mortgage-backed securities 31,515 — 31,515 — Commercial mortgage-backed securities 10,043 — 10,043 — Collateralized mortgage obligations 5,088 — 5,088 — Total debt securities 131,000 — 131,000 — Equity Securities 6,599 6,335 264 — Short-term investments 31,426 31,426 — — Total marketable investments measured at fair value $ 169,025 $ 37,761 $ 131,264 $ — Investments measured at NAV: Investment in limited partnership 707 Total assets measured at fair value $ 169,732 Liabilities: Senior Unsecured Notes * $ 22,669 $ — $ 22,669 $ — Subordinated Notes * 11,222 — — 11,222 Total Liabilities measured at fair value $ 33,891 $ — $ 22,669 $ 11,222 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheet December 31, 2018 Fair Value Measurements Using Total Level 1 Level 2 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 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 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Balance at beginning of period $ 12,011 $ 12,781 $ 13,290 Deferred policy acquisition costs 24,806 24,764 25,736 Amortization of policy acquisition costs (24,911 ) (25,534 ) (26,245 ) Net change (105 ) (770 ) (509 ) Balance at end of period $ 11,906 $ 12,011 $ 12,781 |
Unpaid Losses and Loss Adjust_2
Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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): December 31, 2019 2018 2017 Gross reserves - beginning of period $ 92,807 $ 87,896 $ 54,651 Less: reinsurance recoverables on unpaid losses 29,685 20,066 6,658 Plus: deferred gain on ADC (5,677 ) — — Net reserves - beginning of period 68,799 67,830 47,993 Add: incurred losses and loss adjustment expenses, net of reinsurance Current period 49,192 53,482 64,458 Prior period 10,552 9,033 9,459 Total net incurred losses and loss adjustment expenses 59,744 62,515 73,917 Deduct: loss and loss adjustment expense payments, net of reinsurance Current period 14,357 17,025 24,547 Prior period 29,519 44,521 29,533 Total net loss and loss adjustment expense payments 43,876 61,546 54,080 Net reserves - end of period 84,667 68,799 67,830 Plus: reinsurance recoverables on unpaid losses 22,579 29,685 20,066 Less: deferred gain on ADC — (5,677 ) — Gross reserves - end of period $ 107,246 $ 92,807 $ 87,896 |
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 2019, as well as total IBNR and the cumulative number of reported claims for the year ended December 31, 2019, 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 2019 2019 2019 2009 $ 11,400 $ 12,066 $ 10,312 $ 8,943 $ 8,232 $ 8,403 $ 8,359 $ 8,414 $ 8,442 $ 8,441 $ 8,441 $ — 877 2010 7,346 8,568 7,255 6,357 6,170 6,074 6,207 6,292 6,312 6,312 — 771 2011 6,753 5,758 5,326 5,049 4,932 4,903 4,935 4,933 4,933 — 590 2012 7,745 6,421 6,288 6,384 6,253 6,190 6,209 6,209 — 560 2013 10,018 9,435 9,893 10,237 11,252 11,218 11,624 50 608 2014 19,709 19,907 22,711 26,367 28,145 28,766 100 1,752 2015 22,442 26,633 31,861 34,478 36,372 200 2,352 2016 32,396 34,935 40,440 44,355 1,125 3,544 2017 44,251 44,495 49,749 3,658 5,776 2018 42,624 42,432 8,619 5,993 2019 41,286 20,265 5,774 Total $ 280,479 $ 34,018 Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident For the years ended December 31, Year 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 2009 $ 4,436 $ 5,942 $ 6,410 $ 7,233 $ 7,800 $ 7,867 $ 7,933 $ 8,321 $ 8,441 $ 8,441 $ 8,441 2010 3,066 4,488 5,219 5,910 6,040 6,065 6,166 6,258 6,312 6,312 2011 2,645 3,534 3,964 4,449 4,641 4,744 4,872 4,903 4,907 2012 2,325 3,703 4,696 5,558 5,994 6,065 6,209 6,209 2013 3,979 6,211 7,643 8,622 10,147 10,650 11,137 2014 8,715 13,977 17,458 22,446 25,609 27,544 2015 10,470 17,817 22,549 30,475 34,497 2016 10,255 19,135 27,785 37,967 2017 12,448 23,020 34,205 2018 10,375 19,799 2019 10,078 Total $ 201,096 Unpaid losses and ALAE - years 2009 through 2019 $ 79,383 Unpaid losses and ALAE - prior to 2009 (1)* 8 Unpaid ADC (2,075 ) Unpaid losses and ALAE, net of reinsurance $ 77,316 * 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 For the years ended December 31, Year 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 2019 2019 2009 $ 667 $ 639 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ — 65 2010 320 188 184 184 184 184 184 184 184 184 — 77 2011 1,678 1,758 1,981 2,031 2,030 2,045 2,027 2,024 2,024 — 717 2012 9,960 11,690 11,740 12,159 12,390 12,365 12,357 12,369 — 3,338 2013 18,034 17,996 18,925 19,138 19,167 19,202 19,222 — 5,206 2014 17,951 17,471 17,735 17,880 17,929 18,082 — 3,730 2015 10,877 13,445 14,721 15,285 15,364 — 2,141 2016 11,619 13,418 14,949 15,550 — 1,813 2017 14,058 13,550 14,493 — 2,852 2018 5,893 6,378 321 800 2019 3,099 609 305 Total $ 107,399 $ 929 Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident For the years ended December 31, Year 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 2009 $ 537 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 $ 634 2010 151 174 184 184 184 184 184 184 184 184 2011 787 1,292 1,633 1,859 1,983 2,021 2,024 2,024 2,024 2012 5,665 9,251 10,844 11,777 12,202 12,306 12,329 12,349 2013 9,955 15,883 18,052 18,600 19,014 19,174 19,214 2014 12,819 16,515 17,260 17,746 17,855 18,047 2015 7,771 11,873 13,844 15,159 15,250 2016 7,119 11,238 14,442 15,110 2017 8,320 12,944 14,004 2018 4,296 5,618 2019 2,119 Total $ 104,553 Unpaid losses and ALAE - years 2009 through 2019 $ 2,846 Unpaid losses and ALAE - prior to 2009 (1)* — Unpaid ADC (112 ) Unpaid losses and ALAE, net of reinsurance $ 2,734 * 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 For the years ended December 31, Year 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 2019 2019 2009 12,066 12,705 10,946 9,577 8,866 9,037 8,993 9,048 9,076 9,075 9,075 — 942 2010 7,666 8,756 7,439 6,541 6,354 6,258 6,391 6,476 6,496 6,496 — 848 2011 8,431 7,517 7,307 7,081 6,963 6,949 6,964 6,957 6,957 — 1,307 2012 17,705 18,111 18,028 18,544 18,642 18,554 18,566 18,578 — 3,898 2013 28,052 27,431 28,817 29,375 30,419 30,420 30,846 50 5,814 2014 37,660 37,378 40,446 44,247 46,074 46,848 100 5,482 2015 33,319 40,078 46,581 49,763 51,736 200 4,493 2016 44,015 48,353 55,389 59,905 1,125 5,357 2017 58,309 58,045 64,242 3,658 8,628 2018 48,517 48,810 8,940 6,793 2019 44,385 20,874 6,079 Total 387,878 34,947 Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident For the years ended December 31, Year 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 2009 $ 4,973 $ 6,576 $ 7,043 $ 7,867 $ 8,434 $ 8,501 $ 8,567 $ 8,955 $ 9,075 $ 9,075 $ 9,075 2010 3,217 4,662 5,403 6,094 6,223 6,248 6,350 6,442 6,496 6,496 2011 3,432 4,826 5,597 6,308 6,624 6,766 6,897 6,927 6,931 2012 7,990 12,954 15,540 17,335 18,195 18,369 18,538 18,558 2013 13,934 22,094 25,695 27,223 29,162 29,824 30,351 2014 21,534 30,492 34,718 40,192 43,464 45,591 2015 18,241 29,690 36,393 45,634 49,747 2016 17,374 30,373 42,227 53,077 2017 20,768 35,964 48,209 2018 14,671 25,417 2019 12,197 Total $ 305,649 Unpaid losses and ALAE - years 2009 through 2019 $ 82,229 Unpaid losses and ALAE - prior to 2009 (1)* 8 Unpaid ADC (2,187 ) Unpaid losses and ALAE, net of reinsurance $ 80,050 * Presented as unaudited required supplementary information. |
Short-duration Insurance Contracts, Reconciliation of Loss Development to Liability | The following table reconciles the loss development information to the consolidated balance sheet for the year ended December 31, 2019, by reportable segment (dollars in thousands). December 31, 2019 Net unpaid losses claims and ALAE Commercial Lines $ 77,316 Personal Lines 2,734 Total unpaid losses and LAE, net of reinsurance 80,050 Reinsurance recoverable on losses and LAE Commercial Lines 20,051 Personal Lines 2,528 Total reinsurance recoverable on unpaid losses and LAE 22,579 Unpaid ULAE 4,617 Total gross unpaid losses and LAE $ 107,246 |
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 35.7% 26.9% 18.4% 9.5% 4.8% 2.3% 1.3% 0.7% 0.3% 0.1% Personal Lines 79.5% 11.8% 5.5% 1.9% 1.0% 0.3% —% —% —% —% Total Lines 37.7% 26.2% 17.8% 9.2% 4.6% 2.2% 1.2% 0.7% 0.3% 0.1% |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Summary of the Effects of Reinsurance | The following table presents the effects of reinsurance and assumption transactions on written premiums, earned premiums and losses and LAE (dollars in thousands). The 2019, 2018 and 2017 ceded written and earned premium amounts include $495,000, $1.0 million and $806,000 of reinsurance reinstatement costs relating to Hurricane Irma, respectively. Year Ended December 31, 2019 2018 2017 Written premiums: Direct $ 68,394 $ 73,290 $ 86,251 Assumed 33,459 31,078 28,033 Ceded (14,129 ) (15,282 ) (23,044 ) Net written premiums $ 87,724 $ 89,086 $ 91,240 Earned premiums: Direct $ 70,911 $ 80,691 $ 87,656 Assumed 32,292 28,497 27,081 Ceded (14,114 ) (15,377 ) (23,008 ) Net earned premiums $ 89,089 $ 93,811 $ 91,729 Loss and loss adjustment expenses: Direct $ 66,256 $ 65,284 $ 79,035 Assumed 25,510 20,671 19,524 Ceded (32,022 ) (23,440 ) (24,642 ) Net loss and LAE $ 59,744 $ 62,515 $ 73,917 Percentage of Assumed Written Premiums to Net Written Premiums 38.1 % 34.9 % 30.7 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Senior Debt | A summary of the Company's outstanding debt is as follows (dollars in thousands): December 31, 2019 2018 Senior unsecured notes $ 24,288 $ 24,018 Subordinated notes 9,536 9,484 Line of credit 2,000 — Total $ 35,824 $ 33,502 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Current tax expense (benefit) $ 27 $ 52 $ (28 ) Deferred tax expense (benefit) (940 ) — (419 ) Total income tax expense (benefit) $ (913 ) $ 52 $ (447 ) |
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 2019 and 2018 and 34% in 2017 to pretax income as a result of the following (dollars in thousands): Year Ended December 31, 2019 2018 2017 Income (loss) before income taxes $ (9,121 ) $ (9,465 ) $ (22,054 ) Statutory U.S. federal income tax rate (1,915 ) (1,988 ) (7,498 ) State income taxes, net of federal benefit (230 ) (156 ) (106 ) Tax‑exempt investment income and dividend received deduction (79 ) (70 ) (123 ) Nondeductible meals and entertainment 38 38 54 Valuation allowance on deferred tax assets 966 2,331 1,515 Change in federal tax rate — — 5,612 Other 307 (103 ) 99 Income tax expense (benefit) $ (913 ) $ 52 $ (447 ) Effective tax rate 10.0 % (0.5 )% 2.0 % |
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, 2019 2018 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 1,264 $ 937 Unearned premiums 2,266 2,329 Net operating loss carryforwards 12,593 10,144 Net unrealized losses on investments — 222 State net operating loss carryforwards 873 567 Deferred gain from ADC — 1,254 Other 248 123 Gross deferred tax assets 17,244 15,576 Less valuation allowance (13,572 ) (12,606 ) Total deferred tax assets, net of allowance 3,672 2,970 Deferred tax liabilities: Investment basis difference 28 22 Net unrealized gains on investments 512 — Deferred policy acquisition costs 2,500 2,522 Intangible assets 115 112 Property and equipment 57 63 Other 460 366 Total deferred tax liabilities 3,672 3,085 Net deferred tax liability $ — $ (115 ) |
Statutory Financial Data, Ris_2
Statutory Financial Data, Risk-Based Capital and Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Summary of Statutory Basis Information | Summarized 2019, 2018, and 2017 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 2019 Statutory capital and surplus $ 46,206 $ 23,261 RBC authorized control level 12,868 4,266 Statutory net income (loss) (3,627 ) (3,652 ) RBC % 359 % 545 % 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 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 (dollars in thousands): Year Ended December 31, 2019 2018 Balance at beginning of period $ (2,612 ) $ (363 ) 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 (2,612 ) (842 ) Other comprehensive income (loss) before reclassifications 2,901 (1,825 ) Less: amounts reclassified from accumulated other comprehensive income (loss) (200 ) (55 ) Net current period other comprehensive income (loss) 3,101 (1,770 ) Balance at end of period $ 489 $ (2,612 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 (dollars in thousands, except share and per share amounts): Year Ended December 31, 2019 2018 2017 Net income (loss) $ (7,822 ) $ (9,227 ) $ (21,542 ) Weighted average common shares, basic and diluted* 8,880,107 8,543,876 7,867,344 Earnings (loss) per share, basic and diluted $ (0.88 ) $ (1.08 ) $ (2.74 ) * The non-vested shares of the restricted stock units were anti-dilutive as of December 31, 2019, 2018, and 2017. Therefore, the non-vested shares are excluded from earnings (loss) per share in December 31, 2019, 2018, and 2017. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased 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 December 31, 2016 416 $ 9.87 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 Units vested (102 ) 9.47 Units forfeited (6 ) 7.37 Outstanding at December 31, 2019 156 $ 8.45 |
Vesting Schedule for Restricted Stock Units | The scheduled vesting for the restricted stock units at December 31, 2019, was as follows (units in thousands): 2020 2021 2022 2023 Total Scheduled vesting - RSUs 102 31 13 10 156 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Information by Reportable Segment | The following table summarizes our net earned premiums: Net Earned Premium 2019 2018 2017 Commercial 94 % 89 % 84 % Personal 6 % 11 % 16 % Total 100 % 100 % 100 % The following tables present information by reportable segment (dollars in thousands): Year Ended December 31, 2019 Commercial Lines Personal Lines Under-writing Wholesale Agency Corp-orate Elim-inations Total Gross written premiums $ 94,391 $ 7,462 $ 101,853 $ — $ — $ — $ 101,853 Net written premiums $ 81,966 $ 5,758 $ 87,724 $ — $ — $ — $ 87,724 Net earned premiums $ 83,858 $ 5,231 $ 89,089 $ — $ — $ — $ 89,089 Other income 216 143 359 9,073 224 (7,547 ) 2,109 Segment revenue 84,074 5,374 89,448 9,073 224 (7,547 ) 91,198 Loss and loss adjustment expenses, net 53,256 6,488 59,744 — — — 59,744 Policy acquisition costs 23,511 1,744 25,255 6,063 — (6,407 ) 24,911 Operating expenses 12,881 1,233 14,114 2,180 1,288 — 17,582 Segment expenses 89,648 9,465 99,113 8,243 1,288 (6,407 ) 102,237 Segment underwriting gain (loss) (5,574 ) (4,091 ) (9,665 ) 830 (1,064 ) (1,140 ) (11,039 ) Investment income 4,031 4,031 Net realized investment gains 1,196 1,196 Change in fair value of equity securities (427 ) (427 ) Interest expense (2,882 ) (2,882 ) Income (loss) before income taxes $ (5,574 ) $ (4,091 ) $ (9,665 ) $ 830 $ 854 $ (1,140 ) $ (9,121 ) Selected Balance Sheet Data: Deferred policy acquisition costs $ 12,033 $ 1,007 $ (1,134 ) $ 11,906 Unearned premiums 47,674 3,829 51,503 Unpaid losses and loss adjustment expenses 101,850 5,396 107,246 Year Ended December 31, 2018 Commercial Lines Personal Lines Under-writing Wholesale Agency Corp-orate Elim-inations Total Gross written premiums $ 97,694 $ 6,674 $ 104,368 $ — $ — $ — $ 104,368 Net written premiums $ 87,038 $ 2,048 $ 89,086 $ — $ — $ — $ 89,086 Net earned premiums $ 83,352 $ 10,459 $ 93,811 $ — $ — $ — $ 93,811 Other income 101 225 326 9,251 156 (8,151 ) 1,582 Segment revenue 83,453 10,684 94,137 9,251 156 (8,151 ) 95,393 Loss and loss adjustment expenses, net 53,065 9,450 62,515 — — — 62,515 Policy acquisition costs 23,584 3,846 27,430 6,255 — (8,151 ) 25,534 Operating expenses 14,662 1,088 15,750 1,564 369 — 17,683 Segment expenses 91,311 14,384 105,695 7,819 369 (8,151 ) 105,732 Segment underwriting gain (loss) (7,858 ) (3,700 ) (11,558 ) 1,432 (213 ) $ — (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 $ (7,858 ) $ (3,700 ) $ (11,558 ) $ 1,432 $ 661 $ — $ (9,465 ) Selected Balance Sheet Data: Deferred policy acquisition costs $ 11,258 $ 753 $ 12,011 Unearned premiums 49,549 3,303 52,852 Unpaid losses and loss adjustment expenses 87,643 5,164 92,807 Year Ended December 31, 2017 Commercial Lines Personal Lines Under-writing Wholesale Agency Corp-orate Elim-inations Total Gross written premiums $ 92,112 $ 22,172 $ 114,284 $ — $ — $ — $ 114,284 Net written premiums $ 78,217 $ 13,023 $ 91,240 $ — $ — $ — $ 91,240 Net earned premiums $ 76,786 $ 14,943 $ 91,729 $ — $ — $ — $ 91,729 Other income 221 573 794 10,380 130 (9,744 ) 1,560 Segment revenue 77,007 15,516 92,523 10,380 130 (9,744 ) 93,289 Loss and loss adjustment expenses, net 55,701 18,216 73,917 — — — 73,917 Policy acquisition costs 22,366 6,537 28,903 7,086 — (9,744 ) 26,245 Operating expenses 10,585 1,939 12,524 2,248 2,595 — 17,367 Segment expenses 88,652 26,692 115,344 9,334 2,595 (9,744 ) 117,529 Segment underwriting gain (loss) (11,645 ) (11,176 ) (22,821 ) 1,046 (2,465 ) $ — (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 $ (11,645 ) $ (11,176 ) $ (22,821 ) $ 1,046 $ (279 ) $ — $ (22,054 ) Selected Balance Sheet Data: Deferred policy acquisition costs $ 10,116 $ 2,665 $ 12,781 Unearned premiums 45,951 11,721 57,672 Unpaid losses and loss adjustment expenses 76,586 11,310 87,896 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Results | The following is a summary of quarterly results of operations for 2019 and 2018 (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. The combined ratios in 2018 have been recast as a result of the addition of the wholesale agency segment. See Note 17 ~ Segment Information 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2019 Gross written premiums $ 24,216 $ 25,169 $ 27,077 $ 25,391 Net written premiums $ 20,322 $ 21,434 $ 23,806 $ 22,162 Net earned premiums $ 21,687 $ 21,349 $ 22,775 $ 23,278 Net investment income 910 1,051 1,210 860 Net realized gains 19 715 390 72 Change in fair value of equity securities 1,265 (915 ) (1,065 ) 288 Other income 422 581 564 542 Losses and loss adjustment expenses, net 14,456 14,382 14,857 16,049 Policy acquisition costs 5,589 6,210 6,153 6,959 Operating expenses 4,323 4,340 4,297 4,622 Interest expense 710 725 720 727 Income tax expense (benefit) 11 — (802 ) (122 ) Equity earnings (losses) in affiliates, net of tax 106 (8 ) 121 167 Net income (loss) $ (680 ) $ (2,884 ) $ (1,230 ) $ (3,028 ) Net income (loss) per share, basic and diluted (1) $ (0.08 ) $ (0.34 ) $ (0.13 ) $ (0.32 ) Combined ratio 108.1 % 113.0 % 109.2 % 112.9 % 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 (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 in affiliates, net of tax 55 89 93 53 Net income (loss) $ 213 $ (1,113 ) $ (3,551 ) $ (4,776 ) Net income (loss) per share, basic and diluted (1) $ 0.02 $ (0.13 ) $ (0.42 ) $ (0.56 ) Combined ratio 99.7 % 108.8 % 118.2 % 123.0 % (1 ) Due to changes in the outstanding shares of the Company (Note 10 ~ Shareholders' Equity |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||||
Dec. 31, 2019USD ($)class_businessstate | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 13, 2018USD ($) | Oct. 12, 2018USD ($) | Sep. 30, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Number of types of business | class_business | 3 | |||||
Number of states in which entity operates | state | 50 | |||||
Discount rate | 6.75% | |||||
Unrecognized tax benefits | $ 0 | $ 0 | ||||
Income tax penalties and interest accrued | $ 0 | $ 0 | ||||
Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Right-of-use asset | $ 3,900,000 | |||||
Lease liability | $ 3,900,000 | |||||
Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Lease term | 5 years | |||||
Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Lease term | 10 years | |||||
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 | $ 25,300,000 | $ 25,300,000 |
Investments - Available-for-sal
Investments - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Cost or Amortized Cost | $ 129,313 | $ 122,678 |
Debt securities, Gross Unrealized Gain | 1,940 | 248 |
Debt securities, Gross Unrealized Losses | (253) | (2,486) |
Debt securities, Estimated Fair Value | 131,000 | 120,440 |
U.S. Government | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Cost or Amortized Cost | 9,392 | 15,360 |
Debt securities, Gross Unrealized Gain | 66 | 3 |
Debt securities, Gross Unrealized Losses | (6) | (178) |
Debt securities, Estimated Fair Value | 9,452 | 15,185 |
State and local government | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Cost or Amortized Cost | 14,388 | 15,847 |
Debt securities, Gross Unrealized Gain | 545 | 115 |
Debt securities, Gross Unrealized Losses | (174) | |
Debt securities, Estimated Fair Value | 14,933 | 15,788 |
Corporate debt | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Cost or Amortized Cost | 39,550 | 30,423 |
Debt securities, Gross Unrealized Gain | 865 | 74 |
Debt securities, Gross Unrealized Losses | (21) | (651) |
Debt securities, Estimated Fair Value | 40,394 | 29,846 |
Asset-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Cost or Amortized Cost | 19,549 | 24,468 |
Debt securities, Gross Unrealized Gain | 81 | 24 |
Debt securities, Gross Unrealized Losses | (55) | (208) |
Debt securities, Estimated Fair Value | 19,575 | 24,284 |
Mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Cost or Amortized Cost | 31,389 | 30,377 |
Debt securities, Gross Unrealized Gain | 238 | 18 |
Debt securities, Gross Unrealized Losses | (112) | (1,155) |
Debt securities, Estimated Fair Value | 31,515 | 29,240 |
Commercial mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Cost or Amortized Cost | 9,972 | 4,025 |
Debt securities, Gross Unrealized Gain | 116 | 5 |
Debt securities, Gross Unrealized Losses | (45) | (77) |
Debt securities, Estimated Fair Value | 10,043 | 3,953 |
Collateralized mortgage obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Cost or Amortized Cost | 5,073 | 2,178 |
Debt securities, Gross Unrealized Gain | 29 | 9 |
Debt securities, Gross Unrealized Losses | (14) | (43) |
Debt securities, Estimated Fair Value | $ 5,088 | $ 2,144 |
Investments - Available-for-s_2
Investments - Available-for-sale Securities in Unrealized Loss Positions (Details) $ in Thousands | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Debt and Equity Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt securities, less than 12 months, number of issues | security | 27 | 111 |
Debt securities, 12 months or More, number of issues | security | 38 | 105 |
Debt securities, number of issues | security | 65 | 216 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Debt securities, less than 12 months, fair value | $ 15,949 | |
Debt securities, 12 months or More, fair value | 22,392 | |
Debt securities, fair value | 38,341 | |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Debt securities, less than 12 months, unrealized losses | (78) | |
Debt securities, 12 months or More, unrealized losses | (175) | |
Debt securities, total unrealized losses | $ (253) | |
U.S. Government | ||
Debt and Equity Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt securities, less than 12 months, number of issues | security | 0 | 1 |
Debt securities, 12 months or More, number of issues | security | 4 | 16 |
Debt securities, number of issues | security | 4 | 17 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Debt securities, less than 12 months, fair value | $ 0 | $ 2,470 |
Debt securities, 12 months or More, fair value | 1,047 | 11,725 |
Debt securities, fair value | 1,047 | 14,195 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Debt securities, less than 12 months, unrealized losses | 0 | (24) |
Debt securities, 12 months or More, unrealized losses | (6) | (154) |
Debt securities, total unrealized losses | $ (6) | $ (178) |
State and local government | ||
Debt and Equity Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt securities, less than 12 months, number of issues | security | 0 | 21 |
Debt securities, 12 months or More, number of issues | security | 0 | 16 |
Debt securities, number of issues | security | 0 | 37 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Debt securities, less than 12 months, fair value | $ 0 | $ 4,935 |
Debt securities, 12 months or More, fair value | 0 | 4,273 |
Debt securities, fair value | 0 | 9,208 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Debt securities, less than 12 months, unrealized losses | 0 | (40) |
Debt securities, 12 months or More, unrealized losses | 0 | (134) |
Debt securities, total unrealized losses | $ 0 | $ (174) |
Corporate debt | ||
Debt and Equity Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt securities, less than 12 months, number of issues | security | 7 | 36 |
Debt securities, 12 months or More, number of issues | security | 3 | 25 |
Debt securities, number of issues | security | 10 | 61 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Debt securities, less than 12 months, fair value | $ 3,720 | $ 12,096 |
Debt securities, 12 months or More, fair value | 1,697 | 11,993 |
Debt securities, fair value | 5,417 | 24,089 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Debt securities, less than 12 months, unrealized losses | (17) | (140) |
Debt securities, 12 months or More, unrealized losses | (4) | (511) |
Debt securities, total unrealized losses | $ (21) | $ (651) |
Asset-backed securities | ||
Debt and Equity Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt securities, less than 12 months, number of issues | security | 3 | 25 |
Debt securities, 12 months or More, number of issues | security | 18 | 9 |
Debt securities, number of issues | security | 21 | 34 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Debt securities, less than 12 months, fair value | $ 2,596 | $ 17,743 |
Debt securities, 12 months or More, fair value | 11,836 | 4,166 |
Debt securities, fair value | 14,432 | 21,909 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Debt securities, less than 12 months, unrealized losses | (1) | (148) |
Debt securities, 12 months or More, unrealized losses | (54) | (60) |
Debt securities, total unrealized losses | $ (55) | $ (208) |
Mortgage-backed securities | ||
Debt and Equity Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt securities, less than 12 months, number of issues | security | 3 | 20 |
Debt securities, 12 months or More, number of issues | security | 13 | 30 |
Debt securities, number of issues | security | 16 | 50 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Debt securities, less than 12 months, fair value | $ 715 | $ 5,474 |
Debt securities, 12 months or More, fair value | 7,812 | 21,715 |
Debt securities, fair value | 8,527 | 27,189 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Debt securities, less than 12 months, unrealized losses | (1) | (138) |
Debt securities, 12 months or More, unrealized losses | (111) | (1,017) |
Debt securities, total unrealized losses | $ (112) | $ (1,155) |
Commercial mortgage-backed securities | ||
Debt and Equity Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt securities, less than 12 months, number of issues | security | 6 | 4 |
Debt securities, 12 months or More, number of issues | security | 0 | 3 |
Debt securities, number of issues | security | 6 | 7 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Debt securities, less than 12 months, fair value | $ 6,837 | $ 1,082 |
Debt securities, 12 months or More, fair value | 0 | 2,632 |
Debt securities, fair value | 6,837 | 3,714 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Debt securities, less than 12 months, unrealized losses | (45) | (12) |
Debt securities, 12 months or More, unrealized losses | 0 | (65) |
Debt securities, total unrealized losses | $ (45) | $ (77) |
Collateralized mortgage obligations | ||
Debt and Equity Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt securities, less than 12 months, number of issues | security | 8 | 4 |
Debt securities, 12 months or More, number of issues | security | 0 | 6 |
Debt securities, number of issues | security | 8 | 10 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Debt securities, less than 12 months, fair value | $ 2,081 | $ 116 |
Debt securities, 12 months or More, fair value | 0 | 1,587 |
Debt securities, fair value | 2,081 | 1,703 |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Debt securities, less than 12 months, unrealized losses | (14) | (1) |
Debt securities, 12 months or More, unrealized losses | 0 | (42) |
Debt securities, total unrealized losses | $ (14) | (43) |
Debt Securities | ||
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Debt securities, less than 12 months, fair value | 43,916 | |
Debt securities, 12 months or More, fair value | 58,091 | |
Debt securities, fair value | 102,007 | |
Debt and Equity Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Debt securities, less than 12 months, unrealized losses | (503) | |
Debt securities, 12 months or More, unrealized losses | (1,983) | |
Debt securities, total unrealized losses | $ (2,486) |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Investment Income [Line Items] | |||||||||||
Investment income | $ 4,315 | $ 3,633 | $ 3,003 | ||||||||
Investment expenses | (284) | (297) | (275) | ||||||||
Net investment income | $ 860 | $ 1,210 | $ 1,051 | $ 910 | $ 911 | $ 786 | $ 837 | $ 802 | 4,031 | 3,336 | 2,728 |
Debt securities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 3,476 | 3,419 | 2,757 | ||||||||
Equity securities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 352 | 129 | 124 | ||||||||
Cash, cash equivalents and short-term investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | $ 487 | $ 85 | $ 122 |
Investments - Gross Realized Ga
Investments - Gross Realized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt securities: | |||||||||||
Gross realized gains | $ 269 | $ 54 | $ 32 | ||||||||
Gross realized losses | (54) | (256) | (8) | ||||||||
Total debt securities | 215 | (202) | 24 | ||||||||
Equity securities: | |||||||||||
Gross realized gains | 1,020 | 337 | 76 | ||||||||
Gross realized losses | (39) | (74) | (30) | ||||||||
Total equity securities | 981 | 263 | 46 | ||||||||
Total net investment realized gains | $ 72 | $ 390 | $ 715 | $ 19 | $ (91) | $ (21) | $ 12 | $ 161 | $ 1,196 | $ 61 | $ 70 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||
Proceeds from sale of available-for-sale debt securities | $ 33,700,000 | $ 14,600,000 | $ 1,800,000 |
Gross realized gain | 274,000 | 7,000 | 106,000 |
Gross realized loss | 53,000 | 199,000 | $ 37,000 |
Other equity investments | 665,000,000 | ||
Deposits held in trust accounts | 8,000,000 | 8,500,000 | |
Deposits, held in trust for collateral requirements | $ 58,400,000 | $ 45,400,000 |
Investments - Available-for-s_3
Investments - Available-for-sale Fixed Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year or less | $ 7,276 | |
Due after one year through five years | 31,575 | |
Due after five years through ten years | 15,237 | |
Due after ten years | 9,242 | |
Securities with contractual maturities | 63,330 | |
Total debt securities | 129,313 | $ 122,678 |
Estimated Fair Value | ||
Due in one year or less | 7,293 | |
Due after one year through five years | 32,152 | |
Due after five years through ten years | 15,767 | |
Due after ten years | 9,567 | |
Securities with contractual maturities | 64,779 | |
Total debt securities | 131,000 | 120,440 |
Asset-backed securities | ||
Amortized Cost | ||
Total debt securities | 19,549 | 24,468 |
Estimated Fair Value | ||
Total debt securities | 19,575 | 24,284 |
Mortgage-backed securities | ||
Amortized Cost | ||
Total debt securities | 31,389 | 30,377 |
Estimated Fair Value | ||
Total debt securities | 31,515 | 29,240 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Total debt securities | 9,972 | 4,025 |
Estimated Fair Value | ||
Total debt securities | 10,043 | 3,953 |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Total debt securities | 5,073 | 2,178 |
Estimated Fair Value | ||
Total debt securities | $ 5,088 | $ 2,144 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Total debt securities | $ 131,000 | $ 120,440 |
Equity Securities | 6,599 | 6,587 |
Short-term investments | 31,426 | 8,925 |
Total marketable investments measured at fair value | 169,025 | 135,952 |
Total assets measured at fair value | 169,732 | 140,102 |
Liabilities: | ||
Total Liabilities measured at fair value | 33,891 | 31,892 |
U.S. Government | ||
Assets: | ||
Total debt securities | 9,452 | 15,185 |
State and local government | ||
Assets: | ||
Total debt securities | 14,933 | 15,788 |
Corporate debt | ||
Assets: | ||
Total debt securities | 40,394 | 29,846 |
Asset-backed securities | ||
Assets: | ||
Total debt securities | 19,575 | 24,284 |
Mortgage-backed securities | ||
Assets: | ||
Total debt securities | 31,515 | 29,240 |
Commercial mortgage-backed securities | ||
Assets: | ||
Total debt securities | 10,043 | 3,953 |
Collateralized mortgage obligations | ||
Assets: | ||
Total debt securities | 5,088 | 2,144 |
Senior Unsecured Notes | ||
Liabilities: | ||
Debt | 22,669 | 21,252 |
Subordinated notes | ||
Liabilities: | ||
Debt | 11,222 | 10,640 |
Partnership interest | ||
Assets: | ||
Investments measured at NAV | 707 | 4,150 |
Level 1 | ||
Assets: | ||
Total debt securities | 0 | 0 |
Equity Securities | 6,335 | 6,323 |
Short-term investments | 31,426 | 8,925 |
Total marketable investments measured at fair value | 37,761 | 15,248 |
Liabilities: | ||
Total Liabilities measured at fair value | 0 | 0 |
Level 1 | U.S. Government | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 1 | State and local government | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 1 | Corporate debt | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 1 | Asset-backed securities | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 1 | Mortgage-backed securities | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 1 | Commercial mortgage-backed securities | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 1 | Collateralized mortgage obligations | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 1 | Senior Unsecured Notes | ||
Liabilities: | ||
Debt | 0 | 0 |
Level 1 | Subordinated notes | ||
Liabilities: | ||
Debt | 0 | 0 |
Level 2 | ||
Assets: | ||
Total debt securities | 131,000 | 120,440 |
Equity Securities | 264 | 264 |
Short-term investments | 0 | |
Total marketable investments measured at fair value | 131,264 | 120,704 |
Liabilities: | ||
Total Liabilities measured at fair value | 22,669 | 21,252 |
Level 2 | U.S. Government | ||
Assets: | ||
Total debt securities | 9,452 | 15,185 |
Level 2 | State and local government | ||
Assets: | ||
Total debt securities | 14,933 | 15,788 |
Level 2 | Corporate debt | ||
Assets: | ||
Total debt securities | 40,394 | 29,846 |
Level 2 | Asset-backed securities | ||
Assets: | ||
Total debt securities | 19,575 | 24,284 |
Level 2 | Mortgage-backed securities | ||
Assets: | ||
Total debt securities | 31,515 | 29,240 |
Level 2 | Commercial mortgage-backed securities | ||
Assets: | ||
Total debt securities | 10,043 | 3,953 |
Level 2 | Collateralized mortgage obligations | ||
Assets: | ||
Total debt securities | 5,088 | 2,144 |
Level 2 | Senior Unsecured Notes | ||
Liabilities: | ||
Debt | 22,669 | 21,252 |
Level 2 | Subordinated notes | ||
Liabilities: | ||
Debt | 0 | 0 |
Level 3 | ||
Assets: | ||
Total debt securities | 0 | 0 |
Equity Securities | 0 | 0 |
Short-term investments | 0 | 0 |
Total marketable investments measured at fair value | 0 | 0 |
Liabilities: | ||
Total Liabilities measured at fair value | 11,222 | 10,640 |
Level 3 | U.S. Government | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 3 | State and local government | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 3 | Corporate debt | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 3 | Asset-backed securities | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 3 | Mortgage-backed securities | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 3 | Commercial mortgage-backed securities | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 3 | Collateralized mortgage obligations | ||
Assets: | ||
Total debt securities | 0 | 0 |
Level 3 | Senior Unsecured Notes | ||
Liabilities: | ||
Debt | 0 | 0 |
Level 3 | Subordinated notes | ||
Liabilities: | ||
Debt | $ 11,222 | $ 10,640 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | Dec. 31, 2019 |
Level 1 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Investment portfolio percentage | 22.20% |
Level 2 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Investment portfolio percentage | 77.30% |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||||||
Balance at beginning of period | $ 12,011 | $ 12,781 | $ 12,011 | $ 12,781 | $ 13,290 | ||||||
Deferred policy acquisition costs | 24,806 | 24,764 | 25,736 | ||||||||
Amortization of policy acquisition costs | $ (6,959) | $ (6,153) | $ (6,210) | $ (5,589) | $ (6,097) | $ (6,452) | $ (6,472) | $ (6,513) | (24,911) | (25,534) | (26,245) |
Net change | (105) | (770) | (509) | ||||||||
Balance at end of period | $ 11,906 | $ 12,011 | $ 11,906 | $ 12,011 | $ 12,781 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||||||
Gross reserves - beginning of period | $ 92,807 | $ 87,896 | $ 92,807 | $ 87,896 | $ 54,651 | ||||||
Less: reinsurance recoverables on unpaid losses | 29,685 | 20,066 | 29,685 | 20,066 | 6,658 | ||||||
Plus: deferred gain on ADC | $ 0 | $ (5,677) | 0 | (5,677) | |||||||
Net reserves - beginning of period | 68,799 | 67,830 | 68,799 | 67,830 | 47,993 | ||||||
Add: incurred losses and loss adjustment expenses, net of reinsurance | |||||||||||
Current period | 49,192 | 53,482 | 64,458 | ||||||||
Prior period | 10,552 | 9,033 | 9,459 | ||||||||
Total net incurred losses and loss adjustment expenses | 16,049 | $ 14,857 | $ 14,382 | $ 14,456 | 17,565 | $ 16,554 | $ 15,068 | $ 13,328 | 59,744 | 62,515 | 73,917 |
Deduct: loss and loss adjustment expense payments, net of reinsurance | |||||||||||
Current period | 14,357 | 17,025 | 24,547 | ||||||||
Prior period | 29,519 | 44,521 | 29,533 | ||||||||
Total net loss and loss adjustment expense payments | 43,876 | 61,546 | 54,080 | ||||||||
Net reserves - end of period | 84,667 | 68,799 | 84,667 | 68,799 | 67,830 | ||||||
Plus: reinsurance recoverables on unpaid losses | 22,579 | 29,685 | 22,579 | 29,685 | 20,066 | ||||||
Gross reserves - end of period | $ 107,246 | $ 92,807 | $ 107,246 | $ 92,807 | $ 87,896 |
Unpaid Losses and Loss Adjust_4
Unpaid Losses and Loss Adjustment Expenses - Narrative (Details) - USD ($) | Sep. 28, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | $ 10,552,000 | $ 9,033,000 | $ 9,459,000 | |||||||||||
Losses and loss adjustment expenses, net | $ 16,049,000 | $ 14,857,000 | $ 14,382,000 | $ 14,456,000 | $ 17,565,000 | $ 16,554,000 | $ 15,068,000 | $ 13,328,000 | 59,744,000 | 62,515,000 | 73,917,000 | |||
Unpaid losses and loss adjustment expenses | 107,246,000 | 92,807,000 | 107,246,000 | 92,807,000 | 87,896,000 | $ 54,651,000 | ||||||||
Amount ceded | 14,114,000 | 15,377,000 | 23,008,000 | |||||||||||
Ceded losses recognized as a benefit | 32,022,000 | 23,440,000 | 24,642,000 | |||||||||||
Deferred ceded losses | $ 0 | 5,677,000 | 0 | 5,677,000 | ||||||||||
Adverse Development Cover Reinsurance Agreement | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Amount reinsured | $ 17,500,000 | |||||||||||||
Reinsurance retention policy, co-participation (percentage) | 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 | 1,000,000 | 806,000 | |||||||||||
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 | |||||||||||||
Unpaid losses and loss adjustment expenses | $ 57,500,000 | |||||||||||||
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 | |||||||||||||
Hurricane | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 960,000 | |||||||||||||
Losses and loss adjustment expenses, net | 583,000 | 5,400,000 | ||||||||||||
Amount ceded | 495,000 | 1,000,000 | 806,000 | |||||||||||
Commercial Line | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 7,600,000 | 6,200,000 | $ 7,200,000 | |||||||||||
Losses and loss adjustment expenses, net | (5,700,000) | |||||||||||||
Catastrophe losses incurred (percentage) | 34.00% | |||||||||||||
Commercial Line | Hurricane | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Losses and loss adjustment expenses, net | (377,000) | |||||||||||||
Personal Line | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 3,000,000 | 2,800,000 | $ 2,300,000 | |||||||||||
Catastrophe losses incurred (percentage) | 66.00% | |||||||||||||
Personal Line | Hurricane | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Losses and loss adjustment expenses, net | 960,000 | |||||||||||||
Hospitality | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 11,000,000 | |||||||||||||
Small Business Lines | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 2,400,000 | |||||||||||||
Florida Homeowners | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | $ 1,700,000 | 2,000,000 | $ 1,700,000 | |||||||||||
Commercial Liability Line | ||||||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||||||
Prior year adjustments | 4,200,000 | 5,100,000 | ||||||||||||
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 |
Unpaid Losses and Loss Adjust_5
Unpaid Losses and Loss Adjustment Expenses - Loss Development (Details) $ in Thousands | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | 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 | $ 387,878 | ||||||||||
Total IBNR | 34,947 | ||||||||||
Cumulative Paid | 305,649 | ||||||||||
Unpaid losses and ALAE - years 2009 through 2019 | 82,229 | ||||||||||
Unpaid losses and ALAE - prior to 2009 | 8 | ||||||||||
Unpaid ADC | (2,187) | ||||||||||
Unpaid losses and ALAE, net of reinsurance | 80,050 | ||||||||||
Commercial Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 280,479 | ||||||||||
Total IBNR | 34,018 | ||||||||||
Cumulative Paid | 201,096 | ||||||||||
Unpaid losses and ALAE - years 2009 through 2019 | 79,383 | ||||||||||
Unpaid losses and ALAE - prior to 2009 | 8 | ||||||||||
Unpaid ADC | (2,075) | ||||||||||
Unpaid losses and ALAE, net of reinsurance | 77,316 | ||||||||||
Personal Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 107,399 | ||||||||||
Total IBNR | 929 | ||||||||||
Cumulative Paid | 104,553 | ||||||||||
Unpaid losses and ALAE - years 2009 through 2019 | 2,846 | ||||||||||
Unpaid ADC | (112) | ||||||||||
Unpaid losses and ALAE, net of reinsurance | 2,734 | ||||||||||
Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 9,075 | $ 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 | 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 | 8,441 | 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 | 8,441 | 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 | 634 | 639 | 667 |
Total IBNR | $ 0 | ||||||||||
Cumulative number of reported claims | claim | 65 | ||||||||||
Cumulative Paid | $ 634 | 634 | 634 | 634 | 634 | 634 | 634 | 634 | 634 | 634 | $ 537 |
Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 6,496 | 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 | 6,496 | 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 | 6,312 | 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 | 6,312 | 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 | 184 | 188 | 320 | |
Total IBNR | $ 0 | ||||||||||
Cumulative number of reported claims | claim | 77 | ||||||||||
Cumulative Paid | $ 184 | 184 | 184 | 184 | 184 | 184 | 184 | 184 | 174 | $ 151 | |
Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 6,957 | 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 | $ 6,931 | 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 | 4,933 | 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 | $ 4,907 | 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 | 2,024 | 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 | 2,024 | 2,021 | 1,983 | 1,859 | 1,633 | 1,292 | $ 787 | ||
Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 18,578 | 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 | $ 18,558 | 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 | 6,209 | 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 | 6,209 | 6,065 | 5,994 | 5,558 | 4,696 | 3,703 | 2,325 | |||
Accident Year 2012 | Personal Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 12,369 | 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 | $ 12,349 | 12,329 | 12,306 | 12,202 | 11,777 | 10,844 | 9,251 | $ 5,665 | |||
Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 30,846 | 30,420 | 30,419 | 29,375 | 28,817 | 27,431 | 28,052 | ||||
Total IBNR | $ 50 | ||||||||||
Cumulative number of reported claims | claim | 5,814 | ||||||||||
Cumulative Paid | $ 30,351 | 29,824 | 29,162 | 27,223 | 25,695 | 22,094 | 13,934 | ||||
Accident Year 2013 | Commercial Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 11,624 | 11,218 | 11,252 | 10,237 | 9,893 | 9,435 | 10,018 | ||||
Total IBNR | $ 50 | ||||||||||
Cumulative number of reported claims | claim | 608 | ||||||||||
Cumulative Paid | $ 11,137 | 10,650 | 10,147 | 8,622 | 7,643 | 6,211 | 3,979 | ||||
Accident Year 2013 | Personal Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 19,222 | 19,202 | 19,167 | 19,138 | 18,925 | 17,996 | 18,034 | ||||
Total IBNR | $ 0 | ||||||||||
Cumulative number of reported claims | claim | 5,206 | ||||||||||
Cumulative Paid | $ 19,214 | 19,174 | 19,014 | 18,600 | 18,052 | 15,883 | $ 9,955 | ||||
Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 46,848 | 46,074 | 44,247 | 40,446 | 37,378 | 37,660 | |||||
Total IBNR | $ 100 | ||||||||||
Cumulative number of reported claims | claim | 5,482 | ||||||||||
Cumulative Paid | $ 45,591 | 43,464 | 40,192 | 34,718 | 30,492 | 21,534 | |||||
Accident Year 2014 | Commercial Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 28,766 | 28,145 | 26,367 | 22,711 | 19,907 | 19,709 | |||||
Total IBNR | $ 100 | ||||||||||
Cumulative number of reported claims | claim | 1,752 | ||||||||||
Cumulative Paid | $ 27,544 | 25,609 | 22,446 | 17,458 | 13,977 | 8,715 | |||||
Accident Year 2014 | Personal Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 18,082 | 17,929 | 17,880 | 17,735 | 17,471 | 17,951 | |||||
Total IBNR | $ 0 | ||||||||||
Cumulative number of reported claims | claim | 3,730 | ||||||||||
Cumulative Paid | $ 18,047 | 17,855 | 17,746 | 17,260 | 16,515 | $ 12,819 | |||||
Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 51,736 | 49,763 | 46,581 | 40,078 | 33,319 | ||||||
Total IBNR | $ 200 | ||||||||||
Cumulative number of reported claims | claim | 4,493 | ||||||||||
Cumulative Paid | $ 49,747 | 45,634 | 36,393 | 29,690 | 18,241 | ||||||
Accident Year 2015 | Commercial Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 36,372 | 34,478 | 31,861 | 26,633 | 22,442 | ||||||
Total IBNR | $ 200 | ||||||||||
Cumulative number of reported claims | claim | 2,352 | ||||||||||
Cumulative Paid | $ 34,497 | 30,475 | 22,549 | 17,817 | 10,470 | ||||||
Accident Year 2015 | Personal Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 15,364 | 15,285 | 14,721 | 13,445 | 10,877 | ||||||
Total IBNR | $ 0 | ||||||||||
Cumulative number of reported claims | claim | 2,141 | ||||||||||
Cumulative Paid | $ 15,250 | 15,159 | 13,844 | 11,873 | $ 7,771 | ||||||
Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 59,905 | 55,389 | 48,353 | 44,015 | |||||||
Total IBNR | $ 1,125 | ||||||||||
Cumulative number of reported claims | claim | 5,357 | ||||||||||
Cumulative Paid | $ 53,077 | 42,227 | 30,373 | 17,374 | |||||||
Accident Year 2016 | Commercial Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 44,355 | 40,440 | 34,935 | 32,396 | |||||||
Total IBNR | $ 1,125 | ||||||||||
Cumulative number of reported claims | claim | 3,544 | ||||||||||
Cumulative Paid | $ 37,967 | 27,785 | 19,135 | 10,255 | |||||||
Accident Year 2016 | Personal Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 15,550 | 14,949 | 13,418 | 11,619 | |||||||
Total IBNR | $ 0 | ||||||||||
Cumulative number of reported claims | claim | 1,813 | ||||||||||
Cumulative Paid | $ 15,110 | 14,442 | 11,238 | $ 7,119 | |||||||
Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 64,242 | 58,045 | 58,309 | ||||||||
Total IBNR | $ 3,658 | ||||||||||
Cumulative number of reported claims | claim | 8,628 | ||||||||||
Cumulative Paid | $ 48,209 | 35,964 | 20,768 | ||||||||
Accident Year 2017 | Commercial Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 49,749 | 44,495 | 44,251 | ||||||||
Total IBNR | $ 3,658 | ||||||||||
Cumulative number of reported claims | claim | 5,776 | ||||||||||
Cumulative Paid | $ 34,205 | 23,020 | 12,448 | ||||||||
Accident Year 2017 | Personal Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 14,493 | 13,550 | 14,058 | ||||||||
Total IBNR | $ 0 | ||||||||||
Cumulative number of reported claims | claim | 2,852 | ||||||||||
Cumulative Paid | $ 14,004 | 12,944 | $ 8,320 | ||||||||
Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 48,810 | 48,517 | |||||||||
Total IBNR | $ 8,940 | ||||||||||
Cumulative number of reported claims | claim | 6,793 | ||||||||||
Cumulative Paid | $ 25,417 | 14,671 | |||||||||
Accident Year 2018 | Commercial Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 42,432 | 42,624 | |||||||||
Total IBNR | $ 8,619 | ||||||||||
Cumulative number of reported claims | claim | 5,993 | ||||||||||
Cumulative Paid | $ 19,799 | 10,375 | |||||||||
Accident Year 2018 | Personal Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 6,378 | 5,893 | |||||||||
Total IBNR | $ 321 | ||||||||||
Cumulative number of reported claims | claim | 800 | ||||||||||
Cumulative Paid | $ 5,618 | $ 4,296 | |||||||||
Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 44,385 | ||||||||||
Total IBNR | $ 20,874 | ||||||||||
Cumulative number of reported claims | claim | 6,079 | ||||||||||
Cumulative Paid | $ 12,197 | ||||||||||
Accident Year 2019 | Commercial Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 41,286 | ||||||||||
Total IBNR | $ 20,265 | ||||||||||
Cumulative number of reported claims | claim | 5,774 | ||||||||||
Cumulative Paid | $ 10,078 | ||||||||||
Accident Year 2019 | Personal Lines | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred | 3,099 | ||||||||||
Total IBNR | $ 609 | ||||||||||
Cumulative number of reported claims | claim | 305 | ||||||||||
Cumulative Paid | $ 2,119 |
Unpaid Losses and Loss Adjust_6
Unpaid Losses and Loss Adjustment Expenses - Reconciliation of Loss to the Liability for Claims (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid losses and ALAE, net of reinsurance | $ 80,050 | |||
Reinsurance recoverables on unpaid losses | 22,579 | $ 29,685 | $ 20,066 | $ 6,658 |
Unpaid ULAE | 4,617 | |||
Total gross unpaid losses and LAE | 107,246 | $ 92,807 | $ 87,896 | $ 54,651 |
Commercial Lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid losses and ALAE, net of reinsurance | 77,316 | |||
Reinsurance recoverables on unpaid losses | 20,051 | |||
Personal Lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid losses and ALAE, net of reinsurance | 2,734 | |||
Reinsurance recoverables on unpaid losses | $ 2,528 |
Unpaid Losses and Loss Adjust_7
Unpaid Losses and Loss Adjustment Expenses - Loss Duration (Details) | Dec. 31, 2019 |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 37.70% |
Year 2 | 26.20% |
Year 3 | 17.80% |
Year 4 | 9.20% |
Year 5 | 4.60% |
Year 6 | 2.20% |
Year 7 | 1.20% |
Year 8 | 0.70% |
Year 9 | 0.30% |
Year 10, and onwards | 0.10% |
Commercial Lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 35.70% |
Year 2 | 26.90% |
Year 3 | 18.40% |
Year 4 | 9.50% |
Year 5 | 4.80% |
Year 6 | 2.30% |
Year 7 | 1.30% |
Year 8 | 0.70% |
Year 9 | 0.30% |
Year 10, and onwards | 0.10% |
Personal Lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 79.50% |
Year 2 | 11.80% |
Year 3 | 5.50% |
Year 4 | 1.90% |
Year 5 | 1.00% |
Year 6 | 0.30% |
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 ($) | Sep. 28, 2017 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 |
Effects of Reinsurance [Line Items] | ||||||||
Assumed premiums written | $ 33,459,000 | $ 31,078,000 | $ 28,033,000 | |||||
Ceded premium written | 14,129,000 | 15,282,000 | 23,044,000 | |||||
Ceded premiums earned | 14,114,000 | 15,377,000 | 23,008,000 | |||||
Hurricane | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Ceded premium written | 495,000 | 1,000,000 | 806,000 | |||||
Ceded premiums earned | 495,000 | 1,000,000 | 806,000 | |||||
Maximum | Homeowners Lines | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | 300,000 | 300,000 | 300,000 | |||||
Liability Risk | Maximum | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | 400,000 | 500,000 | 500,000 | |||||
Property Risk | Maximum | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | 400,000 | 300,000 | 500,000 | |||||
Workers Compensation and Casualty Clash | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | 1,000,000 | |||||||
Amount reinsured | 19,000,000 | |||||||
Casualty Clash | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | $ 2,000,000 | |||||||
Amount reinsured | 18,000,000 | |||||||
Liability Reinsurance Policy | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | 400,000 | |||||||
Amount reinsured | 600,000 | |||||||
Property Reinsurance Policy | Property product line | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | 2,000,000 | 4,000,000 | 4,000,000 | $ 300,000 | ||||
Amount reinsured | $ 2,700,000 | |||||||
Insured property value | $ 28,000,000 | $ 96,000,000 | $ 106,000,000 | |||||
Termination date | Jun. 1, 2020 | Jun. 1, 2019 | Jun. 1, 2018 | |||||
Property Reinsurance Policy | Commercial Lines | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | $ 300,000 | $ 300,000 | $ 2,000,000 | |||||
Amount reinsured | 3,700,000 | |||||||
Insured property value | 200,000 | $ 2,000,000 | ||||||
Multiple Line Reinsurance Policy | Commercial Lines | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | 400,000 | 500,000 | ||||||
Amount reinsured | $ 600,000 | $ 1,500,000 | ||||||
Quota Share Reinsurance Agreement | Maximum | Commercial Lines | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Reinsurance retention policy, co-participation (percentage) | 100.00% | |||||||
Quota Share Reinsurance Agreement | Minimum | Commercial Lines | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Reinsurance retention policy, co-participation (percentage) | 90.00% | |||||||
Adverse Development Cover Reinsurance Agreement | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Amount reinsured | $ 17,500,000 | |||||||
Reinsurance retention policy, co-participation (percentage) | 10.00% | |||||||
Ceded premiums earned | 10,300,000 | $ 7,200,000 | ||||||
Adverse Development Cover Reinsurance Agreement | Maximum | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Amount reinsured | $ 17,500,000 | |||||||
Consideration for reinsurance | $ 7,200,000 | |||||||
Quota Share Reinsurance Agreement, Other Arrangements | Maximum | Other insurance product line | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Reinsurance retention policy, co-participation (percentage) | 100.00% | |||||||
Insurance Fronting Arrangement | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Assumed premiums written | $ 33,500,000 | $ 31,100,000 | $ 28,000,000 |
Reinsurance - Effects of Reinsu
Reinsurance - Effects of Reinsurance and Assumption Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Written premiums: | |||||||||||
Direct | $ 68,394 | $ 73,290 | $ 86,251 | ||||||||
Assumed | 33,459 | 31,078 | 28,033 | ||||||||
Ceded | (14,129) | (15,282) | (23,044) | ||||||||
Net written premiums | $ 22,162 | $ 23,806 | $ 21,434 | $ 20,322 | $ 23,800 | $ 22,846 | $ 22,595 | $ 19,845 | 87,724 | 89,086 | 91,240 |
Earned premiums: | |||||||||||
Direct | 70,911 | 80,691 | 87,656 | ||||||||
Assumed | 32,292 | 28,497 | 27,081 | ||||||||
Ceded | (14,114) | (15,377) | (23,008) | ||||||||
Net earned premiums | 23,278 | 22,775 | 21,349 | 21,687 | 22,623 | 23,450 | 23,938 | 23,800 | 89,089 | 93,811 | 91,729 |
Loss and loss adjustment expenses: | |||||||||||
Direct | 66,256 | 65,284 | 79,035 | ||||||||
Assumed | 25,510 | 20,671 | 19,524 | ||||||||
Ceded | (32,022) | (23,440) | (24,642) | ||||||||
Total net incurred losses and loss adjustment expenses | $ 16,049 | $ 14,857 | $ 14,382 | $ 14,456 | $ 17,565 | $ 16,554 | $ 15,068 | $ 13,328 | $ 59,744 | $ 62,515 | $ 73,917 |
Percentage of Assumed Written Premiums to Net Written Premiums | 38.10% | 34.90% | 30.70% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Oct. 12, 2018USD ($) | Sep. 24, 2018USD ($) | Jun. 21, 2018USD ($) | Sep. 29, 2017USD ($) | Dec. 31, 2019USD ($)debt_instrument | Dec. 31, 2018USD ($) | Oct. 13, 2018USD ($) | Sep. 30, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||
Number of debt instruments | debt_instrument | 3 | |||||||
Debt | $ 35,824,000 | $ 33,502,000 | ||||||
Senior Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt | 24,288,000 | 24,018,000 | ||||||
Senior Unsecured Notes | Senior Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | $ 25,300,000 | 25,300,000 | $ 25,300,000 | $ 25,300,000 | ||||
Debt issued | 3,300,000 | $ 22,000,000 | ||||||
Maturity date | Sep. 30, 2023 | |||||||
Interest rate | 6.75% | |||||||
Debt issuance costs | 1,000,000 | |||||||
Line of credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 10,000,000 | 10,000,000 | ||||||
Debt | 2,000,000 | 0 | ||||||
Line of credit | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 2.75% | |||||||
Subordinated notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt | 9,536,000 | $ 9,484,000 | ||||||
Subordinated notes | Subordinated notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | $ 10,500,000 | $ 30,000,000 | $ 10,500,000 | |||||
Maturity date | Sep. 30, 2038 | Sep. 29, 2032 | ||||||
Debt repaid | $ 19,500,000 | |||||||
Interest rate, payment terms | Interest is payable quarterly at the end of March, June, September and December. | |||||||
Call premium percentage | 12.50% | |||||||
Loan origination fee | $ 105,000,000 | |||||||
Debt term | 20 years | |||||||
Debt issuance costs | $ 965,000 | |||||||
Derivative, basis spread on fixed rate | 8.00% | |||||||
Subordinated notes | Subordinated notes | Swap rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt term | 5 years | |||||||
Subordinated notes | Subordinated notes | Swap rate | Period One | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative, basis spread on fixed rate | 1250.00% | |||||||
Subordinated notes | Subordinated notes | Swap rate | Period Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative, basis spread on variable rate | 1500.00% | |||||||
Subordinated notes | Subordinated notes | Debt Instrument, Redemption, Period One | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 7.50% | |||||||
Call premium | $ 1,100,000 | |||||||
Subordinated notes | Subordinated notes | Debt Instrument, Redemption, Period Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 12.50% | |||||||
Call premium | $ 1,750,000 | |||||||
Subordinated notes | Subordinated notes | Debt Instrument, Redemption, Period Three | ||||||||
Debt Instrument [Line Items] | ||||||||
Call premium | $ 3,050,000 |
Debt - Outstanding Senior Debt
Debt - Outstanding Senior Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt | $ 35,824 | $ 33,502 |
Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Debt | 24,288 | 24,018 |
Subordinated notes | ||
Debt Instrument [Line Items] | ||
Debt | 9,536 | 9,484 |
Line of credit | ||
Debt Instrument [Line Items] | ||
Debt | $ 2,000 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Current income taxes receivable | $ 87,000 | $ 79,000 | |
Effective income tax rate | 21.00% | 21.00% | 34.00% |
Reduction in deferred tax expense related to loss reserve discounting | $ 42,735,000 | ||
Increase in deferred tax expense related to transitional loss reserve discounting | 42,735,000 | ||
Valuation allowance | $ 13,572,000 | $ 12,606,000 | |
Domestic Tax Authority | Internal Revenue Service (IRS) | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 60,000,000 | ||
Net operating loss carryforwards, subject to expiration | 50,000,000 | ||
Net operating loss carryforwards, not subject to expiration | 10,000,000 | ||
Net operating loss carryforwards subject to limitations | 14,100,000 | ||
State Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 17,700,000 | ||
State Tax Authority | Minimum | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax statute of limitations period | 3 years | ||
State Tax Authority | Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax statute of limitations period | 4 years |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current tax expense (benefit) | $ 27 | $ 52 | $ (28) | ||||||||
Deferred tax expense (benefit) | (940) | 0 | (419) | ||||||||
Total income tax expense (benefit) | $ (122) | $ (802) | $ 0 | $ 11 | $ 0 | $ 24 | $ 10 | $ 18 | $ (913) | $ 52 | $ (447) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income (loss) before income taxes | $ (9,121) | $ (9,465) | $ (22,054) | ||||||||
Statutory U.S. federal income tax rate | (1,915) | (1,988) | (7,498) | ||||||||
State income taxes, net of federal benefit | (230) | (156) | (106) | ||||||||
Tax‑exempt investment income and dividend received deduction | (79) | (70) | (123) | ||||||||
Nondeductible meals and entertainment | 38 | 38 | 54 | ||||||||
Valuation allowance on deferred tax assets | 966 | 2,331 | 1,515 | ||||||||
Change in federal tax rate | 0 | 5,612 | |||||||||
Other | 307 | (103) | 99 | ||||||||
Total income tax expense (benefit) | $ (122) | $ (802) | $ 0 | $ 11 | $ 0 | $ 24 | $ 10 | $ 18 | $ (913) | $ 52 | $ (447) |
Effective tax rate | 10.00% | (0.50%) | 2.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Discounted unpaid losses and loss adjustment expenses | $ 1,264 | $ 937 |
Unearned premiums | 2,266 | 2,329 |
Net operating loss carryforwards | 12,593 | 10,144 |
Net unrealized losses on investments | 222 | |
State net operating loss carryforwards | 873 | 567 |
Deferred gain from ADC | 1,254 | |
Other | 248 | 123 |
Gross deferred tax assets | 17,244 | 15,576 |
Less valuation allowance | (13,572) | (12,606) |
Total deferred tax assets, net of allowance | 3,672 | 2,970 |
Deferred tax liabilities: | ||
Investment basis difference | 28 | 22 |
Net unrealized gains on investments | 512 | 0 |
Deferred policy acquisition costs | 2,500 | 2,522 |
Intangible assets | 115 | 112 |
Property and equipment | 57 | 63 |
Other | 460 | 366 |
Total deferred tax liabilities | $ 3,672 | 3,085 |
Net deferred tax liability | $ (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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CIC | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | $ 46,206 | $ 47,121 | $ 35,848 |
RBC authorized control level | 12,868 | 11,901 | 8,873 |
Statutory net income (loss) | $ (3,627) | $ 1,244 | $ (6,993) |
RBC % | 359.00% | 396.00% | 404.00% |
WPIC | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | $ 23,261 | $ 26,588 | $ 26,075 |
RBC authorized control level | 4,266 | 4,682 | 6,224 |
Statutory net income (loss) | $ (3,652) | $ 834 | $ (13,737) |
RBC % | 545.00% | 568.00% | 419.00% |
Statutory Financial Data, Ris_4
Statutory Financial Data, Risk-Based Capital and Dividend Restrictions - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Dividend restriction percentage of statutory surplus of preceding year | 10.00% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Dec. 31, 2019USD ($)voteshares | Dec. 31, 2018USD ($)shares | Dec. 05, 2018shares | Dec. 31, 2017shares | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock, shares issued (in shares) | 9,592,861 | 8,478,202 | ||||
Common stock, shares outstanding (in shares) | 9,592,861 | 8,478,202 | ||||
Common stock voting rights, number of votes per share | vote | 1 | |||||
Restricted Stock Units (RSUs) | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares repurchased (in shares) | 9,319 | 8,053 | ||||
Shares repurchased | $ | $ 38,000 | $ 52,000 | ||||
Stock Repurchase Program, December 2018 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Number of shares authorized for repurchase (in shares) | 1,000,000 | |||||
Shares repurchased (in shares) | 154,208 | 129,175 | ||||
Shares repurchased | $ | $ 638,000 | $ 584,000 | ||||
Common stocks | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock, shares issued (in shares) | 9,592,861 | 8,478,202 | 8,520,328 | |||
Common stock, shares outstanding (in shares) | 9,592,861 | 8,478,202 | 8,520,328 | |||
Private placement | Common stocks | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common equity issued | $ | $ 5,000,000 | $ 5,000,000 | ||||
Common equity issued (in shares) | 1,176,471 | 800,000 | ||||
Offering price per share (in dollars per share) | $ / shares | $ 4.25 | $ 6.25 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ 42,163 | $ 52,826 | $ 67,794 | ||
Balances after cumulative effects | 52,826 | ||||
Other comprehensive income (loss) | 3,101 | (1,770) | 717 | ||
Balance at end of period | 42,725 | 42,163 | 52,826 | ||
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (2,612) | (363) | (1,080) | ||
Balances after cumulative effects | (842) | $ (2,612) | $ (842) | ||
Other comprehensive income (loss) before reclassifications | 2,901 | (1,825) | |||
Less: amounts reclassified from accumulated other comprehensive income (loss) | (200) | (55) | |||
Other comprehensive income (loss) | 3,101 | (1,770) | 717 | ||
Balance at end of period | $ 489 | $ (2,612) | (363) | ||
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, net of taxes | (556) | (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, net of taxes | $ 77 | $ 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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ (3,028) | $ (1,230) | $ (2,884) | $ (680) | $ (4,776) | $ (3,551) | $ (1,113) | $ 213 | $ (7,822) | $ (9,227) | $ (21,542) |
Weighted average common shares outstanding, basic and diluted | 8,880,107 | 8,543,876 | 7,867,344 | ||||||||
Earnings (loss) per share, basic and diluted | $ (0.32) | $ (0.13) | $ (0.34) | $ (0.08) | $ (0.56) | $ (0.42) | $ (0.13) | $ 0.02 | $ (0.88) | $ (1.08) | $ (2.74) |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - 2015 Omnibus Incentive Plan - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | 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 | ||||
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 | ||||
Shares granted in period (in shares) | 70,000 | 111,281 | 390,352 | ||
Shares granted in period | $ 404,000 | $ 909,000 | $ 4,100,000 | ||
Share-based compensation expense | $ 959,000 | $ 970,000 | $ 948,000 | ||
Share-based compensation expense not yet recognized | $ 1,300,000 |
Stock-based Compensation - RSU
Stock-based Compensation - RSU Activity (Details) - 2015 Omnibus Incentive Plan - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Units | |||||
Beginning period, outstanding (in shares) | 264,000 | 307,000 | 416,000 | ||
Units granted (in shares) | 70,000 | 111,281 | 390,352 | ||
Units vested (in shares) | (102,000) | (95,000) | (95,000) | ||
Units forfeited (in shares) | (6,000) | (18,000) | (14,000) | ||
Ending period, outstanding (in shares) | 156,000 | 264,000 | 307,000 | 416,000 | |
Weighted Average Grant-Date Fair Value | |||||
Beginning period, outstanding (in dollars per share) | $ 8.91 | $ 9.84 | $ 9.87 | ||
Units granted (in dollars per share) | 5.76 | ||||
Units vested (in dollars per share) | 9.47 | 9.84 | 9.97 | ||
Units forfeited (in dollars per share) | 7.37 | 8.96 | 9.94 | ||
Ending period, outstanding (in dollars per share) | $ 8.45 | $ 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Scheduled vesting - RSUs (in shares) | 156 | 264 | 307 | 416 |
2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Scheduled vesting - RSUs (in shares) | 102 | |||
2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Scheduled vesting - RSUs (in shares) | 31 | |||
2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Scheduled vesting - RSUs (in shares) | 13 | |||
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 ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [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 | $ 501,000 | $ 479,000 | $ 432,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Dec. 31, 2019USD ($) |
Agreement to Design and Implement New Systems | |
Other Commitments [Line Items] | |
Minimum monthly payment | $ 30,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) - business | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of businesses | 3 | ||
Gross Written Premiums | Geographic Concentration Risk | Florida, Michigan, Texas and New York | |||
Segment Reporting Information [Line Items] | |||
Concentration risk | 51.60% | 51.30% | 55.70% |
Segment Information - Summary o
Segment Information - Summary of Net Earned Premiums by Segment (Details) - Net Earned Premium - Operating Segments | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Concentration percentage | 100.00% | 100.00% | 100.00% |
Commercial Lines | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage | 94.00% | 89.00% | 84.00% |
Personal Lines | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage | 6.00% | 11.00% | 16.00% |
Segment Information - Informati
Segment Information - Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||||||||||
Gross written premiums | $ 25,391 | $ 27,077 | $ 25,169 | $ 24,216 | $ 27,440 | $ 26,629 | $ 26,562 | $ 23,737 | $ 101,853 | $ 104,368 | $ 114,284 | |
Net written premiums | 22,162 | 23,806 | 21,434 | 20,322 | 23,800 | 22,846 | 22,595 | 19,845 | 87,724 | 89,086 | 91,240 | |
Net earned premiums | 23,278 | 22,775 | 21,349 | 21,687 | 22,623 | 23,450 | 23,938 | 23,800 | 89,089 | 93,811 | 91,729 | |
Other income | 542 | 564 | 581 | 422 | 370 | 405 | 450 | 357 | 2,109 | 1,582 | 1,560 | |
Segment revenue | 91,198 | 95,393 | 93,289 | |||||||||
Losses and loss adjustment expenses, net | 16,049 | 14,857 | 14,382 | 14,456 | 17,565 | 16,554 | 15,068 | 13,328 | 59,744 | 62,515 | 73,917 | |
Policy acquisition costs | 6,959 | 6,153 | 6,210 | 5,589 | 6,097 | 6,452 | 6,472 | 6,513 | 24,911 | 25,534 | 26,245 | |
Operating expenses | 4,622 | 4,297 | 4,340 | 4,323 | 4,407 | 4,786 | 4,303 | 4,187 | 17,582 | 17,683 | 17,367 | |
Segment expenses | 102,237 | 105,732 | 117,529 | |||||||||
Segment underwriting gain (loss) | (11,039) | (10,339) | (24,240) | |||||||||
Investment income | 860 | 1,210 | 1,051 | 910 | 911 | 786 | 837 | 802 | 4,031 | 3,336 | 2,728 | |
Net realized investment gains | 72 | 390 | 715 | 19 | (91) | (21) | 12 | 161 | 1,196 | 61 | 70 | |
Other gains (losses) | 0 | 0 | 750 | |||||||||
Change in fair value of equity securities | 288 | (1,065) | (915) | 1,265 | 237 | 152 | 29 | (297) | (427) | 121 | 0 | |
Interest expense | (727) | $ (720) | $ (725) | $ (710) | (810) | $ (598) | $ (617) | $ (619) | (2,882) | (2,644) | (1,362) | |
Income (loss) before income taxes | (9,121) | (9,465) | (22,054) | |||||||||
Deferred policy acquisition costs | 11,906 | 12,011 | 11,906 | 12,011 | 12,781 | $ 13,290 | ||||||
Unearned premiums | 51,503 | 52,852 | 51,503 | 52,852 | 57,672 | |||||||
Unpaid losses and loss adjustment expenses | 107,246 | 92,807 | 107,246 | 92,807 | 87,896 | $ 54,651 | ||||||
Operating Segments | Commercial Lines | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gross written premiums | 94,391 | 97,694 | 92,112 | |||||||||
Net written premiums | 81,966 | 87,038 | 78,217 | |||||||||
Net earned premiums | 83,858 | 83,352 | 76,786 | |||||||||
Other income | 216 | 101 | 221 | |||||||||
Segment revenue | 84,074 | 83,453 | 77,007 | |||||||||
Losses and loss adjustment expenses, net | 53,256 | 53,065 | 55,701 | |||||||||
Policy acquisition costs | 23,511 | 23,584 | 22,366 | |||||||||
Operating expenses | 12,881 | 14,662 | 10,585 | |||||||||
Segment expenses | 89,648 | 91,311 | 88,652 | |||||||||
Segment underwriting gain (loss) | (5,574) | (7,858) | (11,645) | |||||||||
Income (loss) before income taxes | (5,574) | (7,858) | (11,645) | |||||||||
Deferred policy acquisition costs | 12,033 | 11,258 | 12,033 | 11,258 | 10,116 | |||||||
Unearned premiums | 47,674 | 49,549 | 47,674 | 49,549 | 45,951 | |||||||
Unpaid losses and loss adjustment expenses | 101,850 | 87,643 | 101,850 | 87,643 | 76,586 | |||||||
Operating Segments | Personal Lines | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gross written premiums | 7,462 | 6,674 | 22,172 | |||||||||
Net written premiums | 5,758 | 2,048 | 13,023 | |||||||||
Net earned premiums | 5,231 | 10,459 | 14,943 | |||||||||
Other income | 143 | 225 | 573 | |||||||||
Segment revenue | 5,374 | 10,684 | 15,516 | |||||||||
Losses and loss adjustment expenses, net | 6,488 | 9,450 | 18,216 | |||||||||
Policy acquisition costs | 1,744 | 3,846 | 6,537 | |||||||||
Operating expenses | 1,233 | 1,088 | 1,939 | |||||||||
Segment expenses | 9,465 | 14,384 | 26,692 | |||||||||
Segment underwriting gain (loss) | (4,091) | (3,700) | (11,176) | |||||||||
Income (loss) before income taxes | (4,091) | (3,700) | (11,176) | |||||||||
Deferred policy acquisition costs | 1,007 | 753 | 1,007 | 753 | 2,665 | |||||||
Unearned premiums | 3,829 | 3,303 | 3,829 | 3,303 | 11,721 | |||||||
Unpaid losses and loss adjustment expenses | 5,396 | $ 5,164 | 5,396 | 5,164 | 11,310 | |||||||
Operating Segments | Underwriting | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gross written premiums | 101,853 | 104,368 | 114,284 | |||||||||
Net written premiums | 87,724 | 89,086 | 91,240 | |||||||||
Net earned premiums | 89,089 | 93,811 | 91,729 | |||||||||
Other income | 359 | 326 | 794 | |||||||||
Segment revenue | 89,448 | 94,137 | 92,523 | |||||||||
Losses and loss adjustment expenses, net | 59,744 | 62,515 | 73,917 | |||||||||
Policy acquisition costs | 25,255 | 27,430 | 28,903 | |||||||||
Operating expenses | 14,114 | 15,750 | 12,524 | |||||||||
Segment expenses | 99,113 | 105,695 | 115,344 | |||||||||
Segment underwriting gain (loss) | (9,665) | (11,558) | (22,821) | |||||||||
Income (loss) before income taxes | (9,665) | (11,558) | (22,821) | |||||||||
Operating Segments | Wholesale Agency | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Other income | 9,073 | 9,251 | 10,380 | |||||||||
Segment revenue | 9,073 | 9,251 | 10,380 | |||||||||
Policy acquisition costs | 6,063 | 6,255 | 7,086 | |||||||||
Operating expenses | 2,180 | 1,564 | 2,248 | |||||||||
Segment expenses | 8,243 | 7,819 | 9,334 | |||||||||
Segment underwriting gain (loss) | 830 | 1,432 | 1,046 | |||||||||
Income (loss) before income taxes | 830 | 1,432 | 1,046 | |||||||||
Corp-orate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Other income | 224 | 156 | 130 | |||||||||
Segment revenue | 224 | 156 | 130 | |||||||||
Operating expenses | 1,288 | 369 | 2,595 | |||||||||
Segment expenses | 1,288 | 369 | 2,595 | |||||||||
Segment underwriting gain (loss) | (1,064) | (213) | (2,465) | |||||||||
Investment income | 4,031 | 3,336 | 2,728 | |||||||||
Net realized investment gains | 1,196 | 61 | 70 | |||||||||
Other gains (losses) | 750 | |||||||||||
Change in fair value of equity securities | (427) | 121 | ||||||||||
Interest expense | (2,882) | (2,644) | (1,362) | |||||||||
Income (loss) before income taxes | 854 | 661 | (279) | |||||||||
Eliminations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Other income | (7,547) | (8,151) | (9,744) | |||||||||
Segment revenue | (7,547) | (8,151) | (9,744) | |||||||||
Policy acquisition costs | (6,407) | (8,151) | (9,744) | |||||||||
Segment expenses | (6,407) | $ (8,151) | $ (9,744) | |||||||||
Segment underwriting gain (loss) | (1,140) | |||||||||||
Income (loss) before income taxes | (1,140) | |||||||||||
Deferred policy acquisition costs | $ (1,134) | $ (1,134) |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Gross written premiums | $ 25,391 | $ 27,077 | $ 25,169 | $ 24,216 | $ 27,440 | $ 26,629 | $ 26,562 | $ 23,737 | $ 101,853 | $ 104,368 | $ 114,284 |
Net written premiums | 22,162 | 23,806 | 21,434 | 20,322 | 23,800 | 22,846 | 22,595 | 19,845 | 87,724 | 89,086 | 91,240 |
Net earned premiums | 23,278 | 22,775 | 21,349 | 21,687 | 22,623 | 23,450 | 23,938 | 23,800 | 89,089 | 93,811 | 91,729 |
Net investment income | 860 | 1,210 | 1,051 | 910 | 911 | 786 | 837 | 802 | 4,031 | 3,336 | 2,728 |
Net realized gains (losses) | 72 | 390 | 715 | 19 | (91) | (21) | 12 | 161 | 1,196 | 61 | 70 |
Change in fair value of equity securities | 288 | (1,065) | (915) | 1,265 | 237 | 152 | 29 | (297) | (427) | 121 | 0 |
Other gains (losses) | 0 | 0 | 750 | ||||||||
Other income | 542 | 564 | 581 | 422 | 370 | 405 | 450 | 357 | 2,109 | 1,582 | 1,560 |
Losses and loss adjustment expenses, net | 16,049 | 14,857 | 14,382 | 14,456 | 17,565 | 16,554 | 15,068 | 13,328 | 59,744 | 62,515 | 73,917 |
Policy acquisition costs | 6,959 | 6,153 | 6,210 | 5,589 | 6,097 | 6,452 | 6,472 | 6,513 | 24,911 | 25,534 | 26,245 |
Operating expenses | 4,622 | 4,297 | 4,340 | 4,323 | 4,407 | 4,786 | 4,303 | 4,187 | 17,582 | 17,683 | 17,367 |
Interest expense | 727 | 720 | 725 | 710 | 810 | 598 | 617 | 619 | 2,882 | 2,644 | 1,362 |
Income tax expense (benefit) | (122) | (802) | 0 | 11 | 0 | 24 | 10 | 18 | (913) | 52 | (447) |
Equity earnings (losses) in affiliates, net of tax | 167 | 121 | (8) | 106 | 53 | 93 | 89 | 55 | 386 | 290 | 65 |
Net income (loss) | $ (3,028) | $ (1,230) | $ (2,884) | $ (680) | $ (4,776) | $ (3,551) | $ (1,113) | $ 213 | $ (7,822) | $ (9,227) | $ (21,542) |
Net income (loss) per share, basic and diluted | $ (0.32) | $ (0.13) | $ (0.34) | $ (0.08) | $ (0.56) | $ (0.42) | $ (0.13) | $ 0.02 | $ (0.88) | $ (1.08) | $ (2.74) |
Combined ratio (percentage) | 112.90% | 109.20% | 113.00% | 108.10% | 123.00% | 118.20% | 108.80% | 99.70% |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Due from affiliate | $ 313 | $ 3,582 | ||
Other assets | 8,698 | 8,444 | ||
Total assets | 247,265 | 232,752 | ||
Liabilities: | ||||
Debt | 35,824 | 33,502 | ||
Total liabilities | 204,540 | 190,589 | ||
Shareholders' equity: | ||||
Common stock, no par value (100,000,000 shares authorized; 9,592,861 and 8,478,202 issued and outstanding, respectively) | 91,816 | 86,533 | ||
Accumulated deficit | (49,580) | (41,758) | ||
Accumulated other comprehensive income (loss) | 489 | (2,612) | ||
Total shareholders' equity | 42,725 | 42,163 | $ 52,826 | $ 67,794 |
Total liabilities and shareholders' equity | 247,265 | 232,752 | ||
Parent Company | ||||
Assets | ||||
Investment in subsidiaries | 75,607 | 72,419 | ||
Cash | 506 | 1,133 | ||
Due from subsidiaries | 893 | 403 | ||
Due from affiliate | 214 | 445 | ||
Other assets | 4,840 | 1,822 | ||
Total assets | 82,060 | 76,222 | ||
Liabilities: | ||||
Debt | 35,824 | 33,502 | ||
Other liabilities | 3,511 | 557 | ||
Total liabilities | 39,335 | 34,059 | ||
Shareholders' equity: | ||||
Common stock, no par value (100,000,000 shares authorized; 9,592,861 and 8,478,202 issued and outstanding, respectively) | 91,816 | 86,533 | ||
Accumulated deficit | (49,580) | (41,758) | ||
Accumulated other comprehensive income (loss) | 489 | (2,612) | ||
Total shareholders' equity | 42,725 | 42,163 | ||
Total liabilities and shareholders' equity | $ 82,060 | $ 76,222 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant - Balance Sheets Stock Information (Details) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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) | 9,592,861 | 8,478,202 |
Common stock, shares outstanding (in shares) | 9,592,861 | 8,478,202 |
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) | 9,592,861 | 8,478,202 |
Common stock, shares outstanding (in shares) | 9,592,861 | 8,478,202 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant - Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | |||||||||||
Revenue | $ 95,998 | $ 98,911 | $ 96,837 | ||||||||
Other income | $ 542 | $ 564 | $ 581 | $ 422 | $ 370 | $ 405 | $ 450 | $ 357 | 2,109 | 1,582 | 1,560 |
Expenses | |||||||||||
Operating expenses | 4,622 | 4,297 | 4,340 | 4,323 | 4,407 | 4,786 | 4,303 | 4,187 | 17,582 | 17,683 | 17,367 |
Interest expense | 727 | 720 | 725 | 710 | 810 | 598 | 617 | 619 | 2,882 | 2,644 | 1,362 |
Total expenses | 105,119 | 108,376 | 118,891 | ||||||||
Income tax expense (benefit) | (122) | (802) | 0 | 11 | 0 | 24 | 10 | 18 | (913) | 52 | (447) |
Net income (loss) | $ (3,028) | $ (1,230) | $ (2,884) | $ (680) | $ (4,776) | $ (3,551) | $ (1,113) | $ 213 | (7,822) | (9,227) | (21,542) |
Other Comprehensive Income | |||||||||||
Equity in other comprehensive income (loss) of subsidiaries | 3,101 | (1,770) | 717 | ||||||||
Parent Company | |||||||||||
Revenue | |||||||||||
Revenue | 11,788 | 13,640 | 16,731 | ||||||||
Other income | 167 | 73 | 826 | ||||||||
Expenses | |||||||||||
Operating expenses | 14,433 | 17,336 | 13,496 | ||||||||
Interest expense | 2,880 | 2,644 | 1,362 | ||||||||
Total expenses | 17,313 | 19,980 | 14,858 | ||||||||
Income (loss) before equity in earnings (losses) of subsidiaries and income tax expense (benefit) | (5,525) | (6,340) | 1,873 | ||||||||
Income tax expense (benefit) | 30 | (581) | 859 | ||||||||
Income (loss) before equity earnings (losses) of subsidiaries | (5,555) | (5,759) | 1,014 | ||||||||
Equity earnings (losses) in subsidiaries | (2,267) | (3,468) | (22,556) | ||||||||
Net income (loss) | (7,822) | (9,227) | (21,542) | ||||||||
Other Comprehensive Income | |||||||||||
Equity in other comprehensive income (loss) of subsidiaries | 3,101 | (1,770) | 717 | ||||||||
Total Comprehensive income (loss) | (4,721) | (10,997) | (20,825) | ||||||||
Parent Company | Management fees from subsidiaries | |||||||||||
Revenue | |||||||||||
Revenue | $ 11,621 | $ 13,567 | $ 15,905 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant - Statement of Cash Flows (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||||||||||
Net income (loss) | $ (3,028,000) | $ (1,230,000) | $ (2,884,000) | $ (680,000) | $ (4,776,000) | $ (3,551,000) | $ (1,113,000) | $ 213,000 | $ (7,822,000) | $ (9,227,000) | $ (21,542,000) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 453,000 | 386,000 | 372,000 | ||||||||
Incentive awards expenses - vesting of RSUs | 959,000 | 970,000 | 895,000 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Other assets | (489,000) | (1,252,000) | 4,239,000 | ||||||||
Net cash provided by (used in) operating activities | 15,361,000 | (17,008,000) | 9,090,000 | ||||||||
Cash Flows From Investing Activities | |||||||||||
Purchases of investments | (157,235,000) | (91,293,000) | (218,492,000) | ||||||||
Purchases of property and equipment | (61,000) | (86,000) | (13,000) | ||||||||
Net cash provided by (used in) investing activities | (25,013,000) | 12,222,000 | (25,954,000) | ||||||||
Cash Flows From Financing Activities | |||||||||||
Proceeds received from issuance of shares of common stock | 5,000,000 | 5,000,000 | |||||||||
Repurchase of common stock | (676,000) | (636,000) | |||||||||
Borrowings under debt arrangements | 2,100,000 | 25,300,000 | 32,000,000 | ||||||||
Repayment of borrowings under debt arrangements | (100,000) | (19,500,000) | (19,750,000) | ||||||||
Net cash provided by financing activities | 6,324,000 | 3,710,000 | 16,239,000 | ||||||||
Net increase (decrease) in cash | (3,328,000) | (1,076,000) | (625,000) | ||||||||
Cash at beginning of period | 10,792,000 | 11,868,000 | 10,792,000 | 11,868,000 | 12,493,000 | ||||||
Cash at end of period | 7,464,000 | 10,792,000 | 7,464,000 | 10,792,000 | 11,868,000 | ||||||
Supplemental Disclosure of Cash Flow Information: | |||||||||||
Interest paid | 2,547,000 | 3,116,000 | 876,000 | ||||||||
Parent Company | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income (loss) | (7,822,000) | (9,227,000) | (21,542,000) | ||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 447,000 | 379,000 | 347,000 | ||||||||
Equity in undistributed (income) loss of subsidiaries | 2,267,000 | 3,468,000 | 22,556,000 | ||||||||
Incentive awards expenses - vesting of RSUs | 959,000 | 970,000 | 895,000 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Due from subsidiaries | (490,000) | 110,000 | (513,000) | ||||||||
Due from affiliates | 231,000 | (97,000) | 598,000 | ||||||||
Current income tax recoverable | 21,000 | (488,000) | (485,000) | ||||||||
Other assets | (3,098,000) | (229,000) | 532,000 | ||||||||
Other liabilities | 2,954,000 | (360,000) | 590,000 | ||||||||
Net cash provided by (used in) operating activities | (4,531,000) | (5,474,000) | 2,978,000 | ||||||||
Cash Flows From Investing Activities | |||||||||||
Contributions to subsidiaries | (3,854,000) | 0 | (20,860,000) | ||||||||
Dividends received from subsidiaries | 1,500,000 | 0 | 0 | ||||||||
Purchases of investments | 0 | 400,000 | (400,000) | ||||||||
Purchases of property and equipment | (66,000) | (86,000) | (13,000) | ||||||||
Net cash provided by (used in) investing activities | (2,420,000) | 314,000 | (21,273,000) | ||||||||
Cash Flows From Financing Activities | |||||||||||
Proceeds received from issuance of shares of common stock | 5,000,000 | 0 | 5,000,000 | ||||||||
Repurchase of common stock | (676,000) | (636,000) | 0 | ||||||||
Borrowings under debt arrangements | 2,000,000 | 25,300,000 | 32,000,000 | ||||||||
Repayment of borrowings under debt arrangements | 0 | (19,500,000) | (19,750,000) | ||||||||
Stock and debt issuance costs | 0 | (1,454,000) | (1,011,000) | ||||||||
Net cash provided by financing activities | 6,324,000 | 3,710,000 | 16,239,000 | ||||||||
Net increase (decrease) in cash | (627,000) | (1,450,000) | (2,056,000) | ||||||||
Cash at beginning of period | $ 1,133,000 | $ 2,583,000 | 1,133,000 | 2,583,000 | 4,639,000 | ||||||
Cash at end of period | $ 506,000 | $ 1,133,000 | 506,000 | 1,133,000 | 2,583,000 | ||||||
Supplemental Disclosure of Cash Flow Information: | |||||||||||
Interest paid | $ 2,547,000 | $ 3,116,000 | $ 876,000 |
Schedule II - Condensed Finan_6
Schedule II - Condensed Financial Information of Registrant - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Guarantee of debt | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
Guarantee obligation | $ 10,000,000 | ||
Interest rate | 4.00% | ||
Parent Company | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
Dividends received from subsidiaries during period | $ 1,500,000 | $ 0 | $ 0 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 12,606 | $ 9,904 | $ 8,389 |
Charged to Expense | 966 | 2,331 | 1,515 |
Decrease to Other Comprehensive Income | 0 | 371 | 0 |
Deductions from Allowance Account | 0 | 0 | 0 |
Balance at End of Period | $ 13,572 | $ 12,606 | $ 9,904 |