Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 05, 2015 | Jun. 30, 2014 |
Document and Entity Information [Line Items] | |||
Entity Registrant Name | Atlas Financial Holdings, Inc. | ||
Entity Central Index Key | 1539894 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 11,778,993 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $136.60 | ||
Ordinary Shares | |||
Document and Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 11,646,130 | ||
Restricted Stock | |||
Document and Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 132,863 |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Position (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, available for sale | ||
Fixed income securities, at fair value (amortized cost $126,701 and $130,751) | $126,949 | $128,585 |
Equity securities, at fair value (cost $2,220 and $258) | 2,093 | 258 |
Other investments | 14,366 | 1,234 |
Total Investments | 143,408 | 130,077 |
Cash and cash equivalents | 36,586 | 9,811 |
Accrued investment income | 660 | 694 |
Accounts receivable and other assets (net of allowance of $560 and $776) | 49,770 | 37,944 |
Reinsurance recoverables on amounts paid | 18,421 | 18,144 |
Reinsurance recoverables on amounts unpaid | 2,230 | 1,002 |
Prepaid reinsurance premiums | 3,628 | 2,207 |
Deferred policy acquisition costs | 8,166 | 6,674 |
Deferred tax asset, net | 17,317 | 9,319 |
Intangible assets | 740 | 740 |
Software and office equipment, net | 2,819 | 2,500 |
Assets held for sale | 166 | 166 |
Total Assets | 283,911 | 219,278 |
Liabilities | ||
Claims liabilities | 102,430 | 101,385 |
Unearned premiums | 58,950 | 44,232 |
Due to reinsurers and other insurers | 2,456 | 2,613 |
Other liabilities and accrued expenses | 10,676 | 7,350 |
Total Liabilities | 174,512 | 155,580 |
Shareholders’ Equity | ||
Preferred shares, par value per share $0.001, 100,000,000 shares authorized, 2,000,000 shares issued and outstanding at December 31, 2014 and December 31, 2013. Liquidation value $1.00 per share | 2,000 | 2,000 |
Ordinary voting common shares, par value per share $0.003, 266,666,667 shares authorized, 11,638,723 shares issued and outstanding at December 31, 2014 and 9,291,871 shares issued and outstanding at December 31, 2013 | 34 | 28 |
Restricted voting common shares, par value per share $0.003, 33,333,334 shares authorized, 132,863 shares issued and outstanding at December 31, 2014 and December 31, 2013 | 0 | 0 |
Additional paid-in capital | 196,079 | 169,595 |
Retained deficit | -88,794 | -106,496 |
Accumulated other comprehensive income (loss), net of tax | 80 | -1,429 |
Total Shareholders’ Equity | 109,399 | 63,698 |
Total Liabilities and Shareholders’ Equity | $283,911 | $219,278 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Position (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Available-for-sale Securities, Amortized Cost Basis | $143,287 | $132,242 |
Accounts receivable and other assets, allowance | 560 | 776 |
Shareholders’ Equity | ||
Preferred shares, par value (USD per share) | $0.00 | $0.00 |
Preferred shares, shares authorized | 100,000,000 | 100,000,000 |
Preferred shares, shares issued | 2,000,000 | 2,000,000 |
Preferred shares, shares outstanding | 2,000,000 | 2,000,000 |
Preferred shares, liquidation preference per hare (USD per share) | $1 | $1 |
Common shares, shares authorized (in shares) | 300,000,001 | |
Common stock, shares, outstanding | 11,771,586 | 9,424,734 |
Ordinary Shares | ||
Shareholders’ Equity | ||
Common shares, par value (USD per share) | $0.00 | $0.00 |
Common shares, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common shares, shares issued | 9,291,871 | |
Common stock, shares, outstanding | 11,638,723 | 9,291,871 |
Restricted Stock | ||
Shareholders’ Equity | ||
Common shares, par value (USD per share) | $0.00 | $0.00 |
Common shares, shares authorized (in shares) | 33,333,334 | 33,333,334 |
Common shares, shares issued | 132,863 | 132,863 |
Common stock, shares, outstanding | 132,863 | 132,863 |
Fixed income securities | ||
Available-for-sale Securities, Amortized Cost Basis | 126,701 | 130,750 |
Equities | ||
Available-for-sale Securities, Amortized Cost Basis | $2,220 | $258 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues [Abstract] | ||
Net premiums earned | $98,124,000 | $71,344,000 |
Net investment income | 3,110,000 | 2,141,000 |
Net investment gains | 382,000 | 529,000 |
Other income | 2,000 | 13,000 |
Total revenue | 101,618,000 | 74,027,000 |
Operating Expenses [Abstract] | ||
Net claims incurred | 61,078,000 | 45,612,000 |
Acquisition costs | 14,048,000 | 10,373,000 |
Other underwriting expenses | 13,863,000 | 11,384,000 |
Expenses incurred related to acquisitions | 694,000 | 406,000 |
Total expenses | 89,683,000 | 67,775,000 |
Income from operations before income tax expense | 11,935,000 | 6,252,000 |
Income tax benefit | -5,767,000 | 72,000 |
Net income attributable to Atlas | 17,702,000 | 6,180,000 |
Add: Discount from preferred share buyback | 0 | 1,800,000 |
Less: Preferred share dividends | 94,000 | 619,000 |
Net income attributable to common shareholders | 17,608,000 | 7,361,000 |
Basic weighted average common shares outstanding (in shares) | 10,937,181 | 8,007,458 |
Earnings per common share, basic (USD per share) | $1.61 | $0.92 |
Diluted weighted average common shares outstanding (in shares) | 11,341,588 | 10,840,868 |
Earnings per common share, diluted (USD per share) | $1.56 | $0.74 |
Consolidated Statements of Comprehensive Income | ||
Net income attributable to Atlas | 17,702,000 | 6,180,000 |
Changes in net unrealized gains (losses) | 2,029,000 | -4,354,000 |
Reclassification to income of net realized gains (losses) | 257,000 | -469,000 |
Effect of income tax | -777,000 | 1,642,000 |
Other comprehensive income (loss) for the period | 1,509,000 | -3,181,000 |
Total comprehensive income | $19,211,000 | $2,999,000 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Preferred Shares | Ordinary Common Shares | Restricted Common Shares | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Income (Loss) |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2012 | $59,864 | $18,000 | $4 | $14 | $152,768 | ($112,675) | $1,753 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Atlas | 6,180 | 6,180 | |||||
Proceeds from initial public offering, net of offering costs | 9,756 | 16 | -10 | 9,750 | |||
Issuance of preferred shares | 2,000 | 2,000 | |||||
Warrants exercised | 7,181 | 5 | 7,176 | ||||
Other comprehensive loss | -3,181 | -3,181 | |||||
Repurchase of preferred shares | -16,200 | -18,000 | 1,800 | ||||
Issuance of preferred shares | 247 | 247 | |||||
Preferred dividends declared and paid | -2,145 | -2,145 | |||||
Other | -4 | 3 | -4 | -1 | -1 | -1 | |
Balance at Dec. 31, 2013 | 63,698 | 2,000 | 28 | 0 | 169,595 | -106,496 | -1,429 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Atlas | 17,702 | 17,702 | |||||
Proceeds from initial public offering, net of offering costs | 0 | ||||||
Warrants exercised | 0 | ||||||
Other comprehensive loss | 1,509 | 1,509 | |||||
Repurchase of preferred shares | 0 | ||||||
Issuance of preferred shares | 1,469 | 1,469 | |||||
Issuance of common shares | 25,021 | 6 | 25,015 | ||||
Balance at Dec. 31, 2014 | $109,399 | $2,000 | $34 | $0 | $196,079 | ($88,794) | $80 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Activities | ||
Net income attributable to Atlas | $17,702 | $6,180 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Amortization of fixed assets | 856 | 795 |
Share-based compensation expense | 1,469 | 247 |
Amortization of deferred gain on sale of headquarters building | -43 | -43 |
Deferred income taxes | -8,776 | -1,072 |
Net realized gains | -382 | -433 |
(Gain) loss in equity of investee | -632 | 28 |
Amortization of bond premiums and discounts | 756 | 1,092 |
Net changes in operating assets and liabilities: | ||
Accounts receivable and other assets, net | -11,826 | -7,490 |
Due from reinsurers and other insurers | -2,925 | -6,872 |
Deferred policy acquisition costs | -1,492 | -1,676 |
Other assets and accrued investment income | 34 | -14 |
Claims liabilities | 1,045 | -4,891 |
Unearned premiums | 14,718 | 9,174 |
Due to reinsurers and other insurers | -157 | -1,476 |
Accounts payable and accrued liabilities | 3,369 | 531 |
Net cash flows provided by (used in) operating activities | 13,716 | -5,920 |
Investing activities: | ||
Purchase of Gateway (net of cash acquired) | 0 | 11,081 |
Fixed income securities | -31,671 | -69,328 |
Equity securities | -1,969 | 0 |
Other investments | -12,500 | 0 |
Property, equipment and other | -1,177 | -1,245 |
Fixed income securities | 35,332 | 55,328 |
Equity securities | 12 | 1,388 |
Property, equipment and other | 10 | 0 |
Net cash flows used in investing activities | -11,963 | -2,776 |
Financing activities: | ||
Repurchase of preferred shares | 0 | -16,200 |
Proceeds from initial public offering, net of offering costs | 0 | 9,756 |
Issuance of common shares | 25,021 | 0 |
Warrants exercised | 0 | 7,181 |
Dividends paid | 0 | -2,145 |
Options exercised | 1 | 3 |
Net cash flows provided by financing activities | 25,022 | -1,405 |
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | ||
Net change in cash and cash equivalents | 26,775 | -10,101 |
Cash and cash equivalents, beginning of period | 9,811 | 19,912 |
Cash and cash equivalents, end of period | 36,586 | 9,811 |
Supplemental disclosure of cash information (in '000's): | ||
Cash paid for interest | 3,308 | 1,430 |
Cash paid for income taxes | $0 | $129 |
Nature_of_Operations_and_Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION |
Atlas Financial Holdings, Inc. ("Atlas" or the "Company") commenced operations on December 31, 2010. The primary business of Atlas is underwriting commercial automobile insurance in the United States, with a niche market orientation and focus on insurance for the “light” commercial automobile sector. This sector includes taxi cabs, non-emergency para-transit, limousine, livery and business autos. Automobile insurance products provide insurance coverage in three major areas: liability, accident benefits and physical damage. Liability insurance provides coverage subject to policy terms and conditions where the insured is determined to be responsible and/or liable for an automobile accident, for the payment for injuries and property damage to third parties. Accident benefit policies or personal injury protection policies provide coverage for loss of income, medical and rehabilitation expenses for insured persons who are injured in an automobile accident, regardless of fault. Physical damage coverage subject to policy terms and conditions provides for the payment of damages to an insured automobile arising from a collision with another object or from other risks such as fire or theft. In the short run, automobile physical damage and liability coverage generally provides more predictable results than automobile accident benefit or personal injury insurance. | |
Atlas' business is carried out through its insurance subsidiaries: American Country Insurance Company (“American Country”), American Service Insurance Company, Inc. (“American Service”) and Gateway Insurance Company ("Gateway"). The insurance subsidiaries distribute their insurance products through a network of retail independent agents. Together, the insurance subsidiaries are licensed to write property and casualty insurance in 49 states and the District of Columbia in the United States. The insurance subsidiaries share common management and operating infrastructure. | |
Atlas ordinary common shares had been listed on the TSXV under the symbol “AFH” since January 6, 2011. Atlas ordinary common shares became listed on the NASDAQ stock exchange on February 11, 2013 and continue to trade on this exchange under the same symbol. The Company delisted from the TSXV on June 5, 2013. | |
Basis of presentation - These statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). All significant intercompany accounts and transactions have been eliminated. To conform to the current year presentation, certain amounts in the prior years’ consolidated financial statements and notes have been reclassified. | |
Beginning with the year ended December 31, 2012, Atlas has changed where certain items appear on its Consolidated Statements of Income and Comprehensive Income according to Rule 7-04 of Regulation S-X. | |
Summary of Significant Accounting Policies | |
Principles of consolidation - The consolidated financial statements include the accounts of Atlas and the entities it controls. Subsidiaries are entities over which Atlas, directly or indirectly, has the power to govern the financial and operating policies in order to obtain the benefits from their activities, generally accompanying an equity shareholding of more than one half of the voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to Atlas and would be de-consolidated from the date that control ceases. The operating results of subsidiaries acquired or disposed of during the year will be included in the consolidated statements of income and comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate. All significant intercompany transactions and balances are eliminated in consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by Atlas. | |
The following are Atlas’ subsidiaries, all of which are 100% owned, either directly or indirectly, together with the jurisdiction of incorporation that are included in consolidated financial statements: | |
American Insurance Acquisition Inc. (Delaware) | |
American Country Insurance Company (Illinois) | |
American Service Insurance Company, Inc. (Illinois) | |
Camelot Services, Inc. (Missouri) - merged into American Insurance Acquisition Inc. during the fourth quarter of 2014 | |
Gateway Insurance Company (Missouri) | |
Classification of assets and liabilities - It is not customary in the insurance and financial services industries to classify assets and liabilities as current (settled in 1 year or less) and non-current (settled beyond 1 year). Assets and liabilities that could otherwise be classified as current include cash and cash equivalents, accrued investment income, accounts receivable and other assets, certain amounts due from reinsurers and other insurers, income tax receivable, deferred policy acquisition costs, assets held for sale, accounts payable and accrued expenses, due to reinsurers and other insurers. Balances that would otherwise be classified as non-current include deferred tax assets and office equipment. All other assets and liabilities include balances that are both current and non-current. | |
Estimates and assumptions - The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and changes in estimates are recorded in the accounting period in which they are determined. The liability for unpaid loss and loss adjustment expenses and related amounts recoverable from reinsurers represents the most significant estimate in the accompanying financial statements. Significant estimates in the accompanying financial statements also include the fair values of investments in bonds, deferred tax asset valuation, premium receivable bad debt allowance and deferred policy acquisition cost recoverability. | |
Financial instruments - Financial instruments are recognized and derecognized using trade date accounting, since that is the date Atlas contractually commits to the purchase or sale with the counterparty. | |
Effective interest method - Atlas utilizes the effective interest method for calculating the amortized cost of a financial asset and to allocate interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts the estimated future cash flows through the expected life of the financial instrument. Interest income is reported net of amortization of premium and accretion of discount. Realized gains and losses on disposition of available-for-sale securities are based on the net proceeds and the adjusted cost of the securities sold, using the specific identification method. | |
Financial assets - Atlas classifies financial assets as described below. Management determines the classification at initial recognition based on the purpose of the financial asset. | |
Cash and cash equivalents - Cash and cash equivalents include cash and highly liquid securities with original maturities of 90 days or less. | |
Available for sale (“AFS”) - Investments in fixed income securities are classified as available for sale. Securities are classified as available-for-sale when Atlas may decide to sell those securities due to changes in market interest rates, liquidity needs, changes in yields or alternative investments, and for other reasons. Available-for-sale securities are carried at fair value, with unrealized gains and losses, net of income tax, included as a separate component of accumulated other comprehensive income (loss) in shareholder’s equity. | |
Impairment of financial assets - Atlas assesses, on a quarterly basis, whether there is evidence that a financial asset or group of financial assets is impaired. An investment is considered impaired when the fair value of the investment is less than its cost or amortized cost. When an investment is impaired, the Company must make a determination as to whether the impairment is other-than-temporary. | |
Under Accounting Standards Codification ("ASC"), with respect to an investment in an impaired debt security, other-than temporary impairment ("OTTI") occurs if (a) there is intent to sell the debt security, (b) it is more likely than not it will be required to sell the debt security before its anticipated recovery, or (c) it is probable that all amounts due will be unable to be collected such that the entire cost basis of the security will not be recovered. If Atlas intends to sell the debt security, or will more likely than not be required to sell the debt security before the anticipated recovery, a loss in the entire amount of the impairment is reflected in net investment gains (losses) on investments in the consolidated statements of income. If Atlas determines that it is probable it will be unable to collect all amounts and Atlas has no intent to sell the debt security, a credit loss is recognized in net investment gains (losses) on investments in the consolidated statements of income to the extent that the present value of expected cash flows is less than the amortized cost basis; any difference between fair value and the new amortized cost basis (net of the credit loss) is reflected in other comprehensive income (losses), net of applicable income taxes. | |
For equity securities, the Company evaluates its ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Evidence considered to determine anticipated recovery are analysts' reports on the near-term prospects of the issuer and the financial condition of the issuer or the industry, in addition to the length and extent of the market value decline. If OTTI is identified, the equity security is adjusted to fair value through a charge to earnings. | |
Fair values of financial instruments - Atlas has used the following methods and assumptions in estimating its fair value disclosures: | |
Fair values for investments are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or values obtained from independent pricing services. | |
Atlas' fixed income portfolio is managed by a SEC registered investment advisor specializing in the management of insurance company portfolios. Management works directly with them to ensure that Atlas benefits from their expertise and also evaluates investments as well as specific positions independently using internal resources. Atlas' investment advisor has a team of credit analysts for all investment grade fixed income sectors. The investment process begins with an independent analyst review of each security's credit worthiness using both quantitative tools and qualitative review. At the issuer level, this includes reviews of past financial data, trends in financial stability, projections for the future, reliability of the management team in place, market data (credit spread, equity prices, trends in this data for the issuer and the issuer's industry). Reviews also consider industry trends and the macro-economic environment. This analysis is continuous, integrating new information as it becomes available. As of December 31, 2014, this process did not generate any significant difference in the rating assessment between Atlas' review and the rating agencies. The Company recognizes transfers between levels of the fair value hierarchy at the end of the period in which events occur impacting the availability of inputs to the fair value methodology. | |
Atlas employs specific control processes to determine the reasonableness of the fair value of its financial assets. These processes are designed to supplement those performed by Atlas' investment advisor to ensure that the values received from them are accurately recorded and that the data inputs and the valuation techniques utilized are appropriate, consistently applied, and that the assumptions are reasonable and consistent with the objective of determining fair value. For example, on a continuing basis, Atlas assesses the reasonableness of individual security values which have stale prices or whose changes exceed certain thresholds as compared to previous values received from Atlas' investment advisor or to expected prices. The portfolio is reviewed routinely for transaction volumes, new issuances, any changes in spreads, as well as the overall movement of interest rates along the yield curve to determine if sufficient activity and liquidity exists to provide a credible source for market valuations. When fair value determinations are expected to be more variable, they are validated through reviews by members of management or the Board of Directors who have relevant expertise and who are independent of those charged with executing investment transactions. | |
Accounts receivable and other assets - Accounts receivable include premium balances due and uncollected and installment premiums not yet due from agents and insureds. | |
Atlas evaluates the collectibility of accounts receivable based on a combination of factors. When aware of a specific customer's inability to meet its financial obligations, such as in the case of bankruptcy or deterioration in the customer's operating results or financial position, Atlas records a specific reserve for bad debt to reduce the related receivable to the amount Atlas reasonably believes is collectible. Atlas also records reserves for bad debt for all other customers based on a variety of factors, including the length of time the receivables are past due and historical collection experience. Accounts are reviewed for potential write-off on a case-by-case basis. Accounts deemed uncollectible are written off, net of expected recoveries. If circumstances related to specific customers change, estimates of the recoverability of receivables could be further adjusted. | |
Deferred policy acquisition costs ("DPAC") - Atlas defers producers’ commissions, premium taxes and other underwriting costs directly relating to the successful acquisition of premiums written to the extent they are considered recoverable. These costs are then expensed as the related premiums are earned. The method followed in determining the deferred policy acquisition costs limits the deferral to its realizable value by giving consideration to estimated future claims and expenses to be incurred as premiums are earned. Changes in estimates, if any, are recorded in the accounting period in which they are determined. Anticipated investment income is included in determining the realizable value of the deferred policy acquisition costs. Atlas’ deferred policy acquisition costs are reported net of deferred ceding commissions. | |
When anticipated losses, loss adjustment expenses, commissions and other acquisition costs exceed recorded unearned premium and any future installment premiums on existing policies, a premium deficiency reserve is recognized by recording a reduction to DPAC with a corresponding charge to operations. Atlas utilizes anticipated investment income as a factor in its premium deficiency calculation. Atlas concluded that no premium deficiency adjustments were necessary in either of the years ended December 31, 2014 and December 31, 2013. | |
Income taxes - Income taxes expense (benefit) includes all taxes based on taxable income (loss) of Atlas and its subsidiaries, and are recognized in the statement of income and comprehensive income except to the extent that they relate to items recognized directly in other comprehensive income, in which case the income tax effect is also recognized in other comprehensive income. | |
Deferred taxes are recognized using the asset and liability method of accounting. Under this method the future tax consequences attributable to temporary differences in the tax basis of assets, liabilities and items recognized directly in equity and the financial reporting basis of such items are recognized in the financial statements by recording deferred tax liabilities or deferred tax assets. | |
Deferred tax assets are recognized only to the extent that it is probable that future taxable income will be available against which they can be utilized. 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 future tax assets and liabilities of a change in tax rates is recognized in income in the period of enactment. | |
When considering the extent of the valuation allowance on Atlas' deferred tax asset, weight is given by management to both positive and negative evidence. U.S. GAAP states that a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome in determining that a valuation allowance is not needed against deferred tax assets. However, the strength and trend of earnings, as well as other relevant factors are considered. | |
Atlas accounts for uncertain tax positions in accordance with the income taxes accounting guidance. Atlas analyzes filing positions in the federal and state jurisdiction where it is required to file tax returns, as well as the open tax years in these jurisdictions. Atlas would recognize interest and penalties related to unrecognized tax benefits as a component of the provision for federal income taxes. | |
Office equipment and software – Office equipment is stated at historical cost less depreciation. Subsequent costs are included in the asset’s carrying amount or capitalized as a separate asset only when it is probable that future economic benefits will be realized. Repairs and maintenance are recognized as an expense during the period incurred. Depreciation on equipment is provided on a straight-line basis over the estimated useful lives which range from 5 years for vehicles, 5 years for furniture, 3 years for software and computer equipment and the term of the lease for leased equipment. | |
Rent expense for the lease on Atlas' headquarters is recognized on a straight-line basis over the life of the lease. | |
Insurance contracts – Contracts under which Atlas’ insurance subsidiaries accept risk at the inception of the contract from another party (the insured holder of the policy) by agreeing to compensate the policyholder or other insured beneficiary if a specified future event (the insured event) adversely affects the holder of the policy are classified as insurance contracts. All policies are short-duration contracts. | |
Revenue recognition - Premium income is recognized on a pro rata basis over the terms of the respective insurance contracts. Unearned premiums represent the portion of premiums written that are related to the unexpired terms of the policies in force. | |
Claims liabilities - The provision for unpaid claims represent the estimated liabilities for reported claims, plus those incurred but not yet reported and the related estimated loss adjustment expenses, such as legal fees. Unpaid claims expenses are determined using case-basis evaluations and statistical analyses, including insurance industry loss data, and represent estimates of the ultimate cost of all claims incurred. Although considerable variability is inherent in such estimates, management believes that the liability for unpaid claims is adequate. The estimates are continually reviewed and adjusted as necessary; such adjustments are included in current operations and are accounted for as changes in estimates. | |
Reinsurance - As part of Atlas’ insurance risk management policies, portions of its insurance risk is ceded to reinsurers. Reinsurance premiums and claims expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums and claims ceded to other companies have been reported as a reduction of premium revenue and claims incurred expense. Commissions paid to Atlas by reinsurers on business ceded have been accounted for as a reduction of the related policy acquisition costs. Reinsurance receivables are recorded for that portion of paid and unpaid losses and loss adjustment expenses that are ceded to other companies. Prepaid reinsurance premiums are recorded for unearned premiums that have been ceded to other companies. | |
Share-based payments - Atlas has a stock-based compensation plan which is described fully in Note 12 of the Consolidated Financial Statements. Under U.S. GAAP, the fair-value method of accounting is used to determine and account for equity settled transactions and to determine stock-based compensation awards granted to employees and non-employees using the Black-Scholes option pricing model. Compensation expense is recognized over the period that the stock options vest, with a corresponding increase to additional paid in capital. | |
For option awards with graded vesting, expense is recognized on a straight line basis over the service period for the entire award. | |
Operating segments - Atlas is in a single operating segment – property and casualty insurance. |
New_Accounting_Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS |
Except for rules and interpretative releases of the SEC under authority of federal securities laws and a limited number of grandfathered standards, the Financial Accounting Standards Board ("FASB") ASC is the sole source of authoritative U.S. GAAP recognized by the FASB that is applicable to the Company. All recently issued accounting pronouncements with effective dates prior to January 1, 2015 have been adopted by the Company. There were no adoptions in 2014 that had a material impact on the Consolidated Financial Statements. All other recently issued accounting pronouncements with effective dates after December 31, 2014 are not expected to have a material impact on the Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
ACQUISITIONS | ACQUISITIONS | |||
In the first quarter of 2015 (having received regulatory approval on March 4, 2015), we anticipate consummating the acquisition of Anchor Holdings Group, Inc., a privately owned insurance holding company, and its wholly owned subsidiary, Global Liberty Insurance Company of New York, along with its affiliated entities, Anchor Group Management, Plainview Premium Finance Company, Inc. and its wholly owned subsidiary Plainview Premium Finance Company of California, Inc., or collectively "Global Liberty", from an unaffiliated third party. Global Liberty provides specialized commercial insurance products, including commercial automobile insurance to niche markets such as taxi, black car and sedan service owners and operators primarily in the New York market. | ||||
Global Liberty is a New York-based insurance company that was writing approximately $40.0 million of annual taxi and limousine net written premium in states deemed favorable to Atlas at the time of our acquisition. Global Liberty is an admitted carrier in 13 states plus the District of Columbia. Atlas' acquisition of Global Liberty will expand our distribution channel for core commercial automobile lines. | ||||
Under the terms of the stock purchase agreement, the purchase price will equal the combined book value of Global Liberty at December 31, 2014, subject to certain pre and post-closing adjustments, including, among others, claim development between the signing of the stock purchase agreement and December 31, 2014. Additional consideration, principally in the form of preferred shares, may be paid to the seller, or returned to us by the seller, depending upon, among other things, the future development of Global Liberty’s actual loss reserves for certain lines of business and the utilization of certain deferred tax assets over time. Global Liberty also wrote homeowners insurance in the northeast, which has been non-renewed prior to the transaction. | ||||
The total purchase price for the combined entities of Global Liberty is estimated to be approximately $24.7 million, consisting of a combination of cash and Atlas preferred shares. Consideration will consist of approximately $20.7 million in cash and $4.0 million of Atlas preferred shares (consisting of a total of 4,000,000 preferred shares). We will have contractual protections to offset up to $4.0 million of future adverse reserve development. | ||||
The values of certain assets and liabilities acquired are preliminary in nature and are subject to adjustment as additional information is obtained, including, but not limited to, valuation of separately identifiable intangibles, fixed assets, etc.. These valuations are to be finalized within one year of the close of the acquisition. When valuations are finalized, any changes to the preliminary valuation of assets acquired or liabilities assumed may result in adjustments to separately identifiable intangibles or goodwill. | ||||
Atlas incurred $694,000 in transaction related expenses during the the fourth quarter of 2014. | ||||
On January 2, 2013 we acquired Camelot Services, Inc. ("Camelot Services"), a privately owned insurance holding company, and its sole subsidiary, Gateway Insurance Company, or Gateway, from Hendricks Holding Company, Inc., or Hendricks, an unaffiliated third party. Gateway provides specialized commercial insurance products, including commercial automobile insurance to niche markets such as taxi, black car and sedan service owners and operators. | ||||
Under the terms of the stock purchase agreement, the purchase price equaled the tangible GAAP book value of Camelot Services at December 31, 2012, subject to certain pre and post-closing adjustments, including, among others, claim development between the signing of the stock purchase agreement and December 31, 2012. Additional consideration may be paid to the seller, or returned to us by the seller, depending upon, among other things, the future development of Gateway’s actual loss reserves for certain lines of business and the utilization of certain deferred tax assets over time. Gateway also writes workers’ compensation insurance. However, an indemnity reinsurance agreement was entered into pursuant to which 100% of Gateway’s workers’ compensation business was ceded to a third party captive reinsurer funded by the seller as part of the transaction. | ||||
The total purchase price for all of Camelot Services’ outstanding shares was $14.3 million, consisting of a combination of cash and Atlas preferred shares. Consideration consisted of a $6.0 million dividend paid by Gateway immediately prior to the closing, $2.0 million of Atlas preferred shares (consisting of a total of 2 million preferred shares) and $6.3 million in cash. The agreement includes contractual protections to offset up to $2.0 million of future reserve development. We have also agreed to provide the sellers up to $2.0 million in additional consideration in the event of favorable reserve development. | ||||
The following table presents assets acquired and liabilities assumed from the Gateway acquisition based on the Company's assessment of fair value as of January 1, 2013: | ||||
(in '000s) | ||||
Purchase Consideration | ||||
Cash | $ | 12,282 | ||
Preferred stock | 2,000 | |||
Total | $ | 14,282 | ||
Allocation of Purchase Price | ||||
Cash and investments | $ | 45,421 | ||
Accounts receivable and other assets | 9,249 | |||
Reinsurance recoverables | 6,007 | |||
Intangible assets | 740 | |||
Property and equipment | 923 | |||
Deferred policy acquisition costs | 1,234 | |||
Total Assets | $ | 63,574 | ||
Claims liabilities | $ | 36,209 | ||
Unearned premiums | 9,601 | |||
Accounts payable and other liabilities | 3,482 | |||
Total Liabilities | $ | 49,292 | ||
Net assets acquired | $ | 14,282 | ||
The acquisition of Gateway resulted in the recognition of intangible assets, comprised entirely of state insurance licenses valued at $740,000. The state insurance licenses are considered to have an infinite life and will not be amortized, but will be evaluated for impairment at least annually. Thus, Atlas recognized no amortization expense during the year ended December 31, 2013 related to intangible assets acquired in the Gateway transaction. | ||||
Atlas incurred $406,000 in legal and professional fee expenses related to the transaction during the the first quarter of 2013. Atlas incurred $337,000 in one-time employee termination costs during the year ended December 31, 2013, plans for which were formulated in the same period, and also incurred $372,000 of additional interim transition/integration costs. These termination and transition/integration costs are included in "Other Underwriting Expenses" on the Consolidated Statements of Income and |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | EARNINGS PER SHARE | ||||||||
Earnings per ordinary and restricted common share (collectively, the "common shares") for the years ended December 31, 2014 and December 31, 2013 are as follows ($ in '000's except for share and per share amounts): | |||||||||
2014 | 2013 | ||||||||
Basic: | |||||||||
Net income attributable to Atlas | $ | 17,702 | $ | 6,180 | |||||
Add: Discount from preferred share buyback | — | 1,800 | |||||||
Less: Preferred share dividends | 94 | 619 | |||||||
Net income attributable to common shareholders for basic earnings per common share | $ | 17,608 | $ | 7,361 | |||||
Weighted average common shares outstanding | 10,937,181 | 8,007,458 | |||||||
Basic earnings per common share | $ | 1.61 | $ | 0.92 | |||||
Diluted: | |||||||||
Net income attributable to Atlas | $ | 17,702 | $ | 6,180 | |||||
Add: Discount from preferred share buyback | — | 1,800 | |||||||
Net income attributable to common shareholders for dilutive earnings per common share | $ | 17,702 | $ | 7,980 | |||||
Weighted average common shares outstanding | 10,937,181 | 8,007,458 | |||||||
Dilutive potential ordinary shares: | |||||||||
Dilutive stock options outstanding | 150,407 | 87,825 | |||||||
Dilutive warrants | — | 1,158,085 | |||||||
Dilutive shares upon preferred share conversion | 254,000 | 1,587,500 | |||||||
Dilutive average common shares outstanding | 11,341,588 | 10,840,868 | |||||||
Dilutive earnings per common share | $ | 1.56 | $ | 0.74 | |||||
Diluted earnings per common share is computed by dividing net income attributable to Atlas by the weighted average number of common shares outstanding for each period plus the incremental number of shares added as a result of converting dilutive potential ordinary shares, calculated using the treasury stock method (or, in the case of the convertible preferred shares, using the "if-converted" method). | |||||||||
As of December 31, 2014 there were no outstanding warrants. On August 1, 2013, 18,000,000 preferred shares were repurchased. Atlas’ dilutive potential ordinary shares consist of outstanding stock options to purchase ordinary common shares and 2,000,000 preferred shares potentially convertible to ordinary common shares at the option of the holder at any date after December 31, 2015 at the rate of 0.1270 ordinary common shares for each preferred share. The effects of these convertible instruments are excluded from the computation of diluted earnings per share in periods in which the effect would be anti-dilutive. Convertible preferred shares are anti-dilutive when the amount of dividend declared or accumulated in the current period per common share obtainable upon conversion exceeds basic earnings per share. For the years ended December 31, 2014 and 2013, convertible preferred shares and stock options were deemed to be dilutive. | |||||||||
In computing the diluted earnings per share on a year to date basis, the Company included the dilutive impact of the convertible preferred shares that were redeemed during the third quarter of 2013 on a pro-rata basis for the period during which those convertible preferred shares were outstanding. This dilutive impact increased the denominator in the full year 2013 diluted EPS computation by 1,333,500 shares; however, this has no impact on the actual earnings used for the numerator in the EPS computation. The preferred shares redeemed decreased diluted earnings per share for the year by $0.10. Future diluted earnings per share computations will not be impacted by the preferred shares redeemed. |
Investments
Investments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Investments [Abstract] | ||||||||||||||||
Investments | INVESTMENTS | |||||||||||||||
The amortized cost, gross unrealized gains and losses and fair value for Atlas’ investments in fixed maturities, equities and other investments are as follows (all amounts in '000s): | ||||||||||||||||
31-Dec-14 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Fixed Income: | ||||||||||||||||
U.S. | Government | $ | 20,506 | $ | 32 | $ | 159 | $ | 20,379 | |||||||
Corporate | ||||||||||||||||
Banking/financial services | 15,551 | 215 | 31 | 15,735 | ||||||||||||
Consumer goods | 3,478 | 50 | 13 | 3,515 | ||||||||||||
Capital goods | 14,285 | 354 | 52 | 14,587 | ||||||||||||
Energy | 2,829 | — | 84 | 2,745 | ||||||||||||
Telecommunications/utilities | 5,297 | 67 | 8 | 5,356 | ||||||||||||
Health care | 1,948 | — | 16 | 1,932 | ||||||||||||
Total Corporate | 43,388 | 686 | 204 | 43,870 | ||||||||||||
Mortgage backed - agency | 30,772 | 250 | 160 | 30,862 | ||||||||||||
Mortgage backed - commercial | 16,774 | 79 | 269 | 16,584 | ||||||||||||
Total Mortgage Backed | 47,546 | 329 | 429 | 47,446 | ||||||||||||
Other asset backed | 15,261 | 20 | 27 | 15,254 | ||||||||||||
Total Fixed Income | $ | 126,701 | $ | 1,067 | $ | 819 | $ | 126,949 | ||||||||
Equities | 2,220 | 12 | 139 | 2,093 | ||||||||||||
Other investments | 14,366 | — | — | 14,366 | ||||||||||||
Totals | $ | 143,287 | $ | 1,079 | $ | 958 | $ | 143,408 | ||||||||
31-Dec-13 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Fixed Income: | ||||||||||||||||
U.S. | Government | $ | 22,067 | $ | 36 | $ | 620 | $ | 21,483 | |||||||
Corporate | ||||||||||||||||
Banking/financial services | 16,655 | 238 | 247 | 16,646 | ||||||||||||
Consumer goods | 5,044 | 28 | 77 | 4,995 | ||||||||||||
Capital goods | 12,951 | 208 | 180 | 12,979 | ||||||||||||
Energy | 3,928 | — | 114 | 3,814 | ||||||||||||
Telecommunications/utilities | 4,979 | 50 | 55 | 4,974 | ||||||||||||
Health care | 2,025 | — | 87 | 1,938 | ||||||||||||
Total Corporate | 45,582 | 524 | 760 | 45,346 | ||||||||||||
Mortgage backed - agency | 28,877 | 120 | 910 | 28,087 | ||||||||||||
Mortgage backed - commercial | 22,131 | 53 | 614 | 21,570 | ||||||||||||
Total Mortgage Backed | 51,008 | 173 | 1,524 | 49,657 | ||||||||||||
Other asset backed | 12,093 | 15 | 9 | 12,099 | ||||||||||||
Total Fixed Income | $ | 130,750 | $ | 748 | $ | 2,913 | $ | 128,585 | ||||||||
Equities | 258 | — | — | 258 | ||||||||||||
Other investments | 1,234 | — | — | 1,234 | ||||||||||||
Totals | $ | 132,242 | $ | 748 | $ | 2,913 | $ | 130,077 | ||||||||
Atlas' other investments are comprised of various limited partnerships that invest in income-producing real estate, equities, or catastrophe bonds. Atlas' interest is not deemed minor and the investments are accounted for under the equity method of accounting. At December 31, 2014, the carrying value was approximately $14.4 million versus approximately $1.2 million at December 31, 2013. The carrying value of these investments is Atlas' share of the net book value for each limited partnership, an amount that approximates fair value. Atlas receives dividends on a routine basis which approximate the income earned on the limited partnership that invests in income-producing real estate. | ||||||||||||||||
The following tables summarize carrying amounts of fixed income securities by contractual maturity (all amounts in '000s). As certain securities and debentures have the right to call or prepay obligations, the actual settlement dates may differ from contractual maturity. | ||||||||||||||||
At December 31, 2014 | One year or less | One to five years | Five to ten years | More than ten years | Total | |||||||||||
Fixed income securities | $ | 1,875 | $ | 54,349 | $ | 23,166 | $ | 47,559 | $ | 126,949 | ||||||
Percentage of total | 1.5 | % | 42.8 | % | 18.2 | % | 37.5 | % | 100 | % | ||||||
At December 31, 2013 | One year or less | One to five years | Five to ten years | More than ten years | Total | |||||||||||
Fixed income securities | $ | 7,571 | $ | 43,693 | $ | 28,080 | $ | 49,241 | $ | 128,585 | ||||||
Percentage of total | 5.9 | % | 34 | % | 21.8 | % | 38.3 | % | 100 | % | ||||||
Management performs a quarterly analysis of Atlas’ investment holdings to determine if declines in fair value are other than temporary. The analysis includes some or all of the following procedures as deemed appropriate by management: | ||||||||||||||||
◦ | identifying all security holdings in unrealized loss positions that have existed for at least six months or other circumstances that management believes may impact the recoverability of the security; | |||||||||||||||
◦ | obtaining a valuation analysis from third party investment managers regarding these holdings based on their knowledge, experience and other market based valuation techniques; | |||||||||||||||
◦ | reviewing the trading range of certain securities over the preceding calendar period; | |||||||||||||||
◦ | assessing if declines in market value are other than temporary for debt security holdings based on credit ratings from third party security rating agencies; and | |||||||||||||||
◦ | determining the necessary provision for declines in market value that are considered other than temporary based on the analyses performed. | |||||||||||||||
The risks and uncertainties inherent in the assessment methodology utilized to determine declines in market value that are other than temporary include, but may not be limited to, the following: | ||||||||||||||||
◦ | the opinion of professional investment managers could be incorrect; | |||||||||||||||
◦ | the past trading patterns of individual securities may not reflect future valuation trends; | |||||||||||||||
◦ | the credit ratings assigned by independent credit rating agencies may be incorrect due to unforeseen or unknown facts related to a company’s financial situation; and | |||||||||||||||
◦ | the debt service pattern of non-investment grade securities may not reflect future debt service capabilities and may not reflect a company’s unknown underlying financial problems. | |||||||||||||||
As a result of the above analysis performed by management to determine declines in fair value that may be other than temporary, there was an impairment related to an equity position that was recorded in 2013. The Company reduced the fair value of its equity position by $311,000 and recorded an adjustment through the Consolidated Statements of Income and Comprehensive Income to account for this other than temporary impairment. | ||||||||||||||||
As of December 31, 2014, a portion of Atlas' portfolio was in an unrealized loss position. This occurred primarily due to a rise in interest rates during the second half of 2013. Securities in an unrealized loss position for greater than twelve months as of December 31, 2014 were $235,000. There were no securities in an unrealized loss position for greater than twelve months as of December 31, 2013. The total fair value of the securities currently in an unrealized loss position were $63.5 million at December 31, 2014 with a total temporary impairment relating to unrealized losses of $958,000. Atlas has the ability and intent to hold these securities until their fair value is recovered. Therefore, Atlas does not expect the near term change in market value of these securities to be realized. | ||||||||||||||||
The following table summarizes the components of net investment income for the years ended December 31, 2014 and 2013 (all amounts in '000s): | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Total investment income | ||||||||||||||||
Interest income | $ | 2,848 | $ | 2,716 | ||||||||||||
Dividends | 20 | 9 | ||||||||||||||
Income (loss) from other investments | 693 | (84 | ) | |||||||||||||
Investment expenses | (451 | ) | (500 | ) | ||||||||||||
Net investment income | $ | 3,110 | $ | 2,141 | ||||||||||||
The following table summarizes the components of net investment realized gains for the years ended December 31, 2014 and 2013: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Fixed income securities | $ | 376 | $ | 351 | ||||||||||||
Equities | 6 | 178 | ||||||||||||||
Net investment realized gains | $ | 382 | $ | 529 | ||||||||||||
Collateral pledged: | ||||||||||||||||
At December 31, 2014 and 2013, bonds and term deposits with a fair value of $14.5 million were on deposit with state and provincial regulatory authorities. Also, from time to time, the Company pledges securities to third parties to collateralize liabilities incurred under its policies of insurance. At December 31, 2014, the amount of such pledged securities was $6.8 million versus $7.9 million at December 31, 2013. Collateral pledging transactions are conducted under terms that are common and customary to standard collateral pledging and are subject to the Company’s standard risk management controls. These assets and investment income related thereto remain the property of the Company while pledged. Neither the state and/or provincial regulatory authorities nor any other third party has the right to re-pledge or sell said securities held on deposit. |
Financial_and_Credit_Risk_Mana
Financial and Credit Risk Management | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Financial and Credit Risk Management [Abstract] | |||||||||||||
Financial and Credit Risk Management | FINANCIAL AND CREDIT RISK MANAGEMENT | ||||||||||||
By virtue of the nature of Atlas’ business activities, financial instruments make up the majority of the balance sheet. The risks which arise from transacting financial instruments include credit risk, market risk, liquidity risk and cash flow risk. These risks may be caused by factors specific to an individual instrument or factors affecting all instruments traded in the market. Atlas has a risk management framework in place to monitor, evaluate and manage the risks assumed in conducting its business. Atlas’ risk management policies and practices are as follows: | |||||||||||||
Credit risk - Atlas is exposed to credit risk principally through its fixed income securities and balances receivable from policyholders and reinsurers. Atlas controls and monitors concentration and credit quality risk through policies to limit and monitor its exposure to individual issuers or related groups (with the exception of U.S. Government bonds) as well as through ongoing review of the credit ratings of issuers held in the securities portfolio. Atlas’ credit exposure to any one individual policyholder is not material. Atlas has policies requiring evaluation of the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvency. | |||||||||||||
As of December 31, 2014, Atlas' allowance for bad debt was $560,000. Atlas' allowance for bad debt decreased by $216,000 compared to $776,000 as of December 31, 2013. This decrease relates to formulaic modeling utilizing historic bad debt patterns. | |||||||||||||
Equity price risk - This is the risk of loss due to adverse movements in equity prices. Atlas' investment in equity securities comprises a small percentage of its total portfolio, and as a result, the exposure to this type of risk is minimal. | |||||||||||||
Foreign currency risk - Atlas is not currently exposed to material changes in the U.S. dollar currency exchange rates with any other foreign currency. | |||||||||||||
Liquidity and cash flow risk - Liquidity risk is the risk of having insufficient cash resources to meet current financial obligations without raising funds at unfavorable rates or selling assets on a forced basis. Liquidity risk arises from general business activities and in the course of managing the assets and liabilities of Atlas. There is the risk of loss to the extent that the sale of a security prior to its maturity is required to provide liquidity to satisfy policyholder and other cash outflows. Cash flow risk arises from risk that future inflation of policyholder cash flow exceeds returns on long-term investment securities. The purpose of liquidity and cash flow management is to ensure that there is sufficient cash to meet all financial commitments and obligations as they fall due. The liquidity and cash flow requirements of Atlas’ business have been met primarily by funds generated from operations, asset maturities and income and other returns received on securities. Cash provided from these sources is used primarily for claims and claim adjustment expense payments and operating expenses. The timing and amount of catastrophe claims are inherently unpredictable and may create increased liquidity requirements. | |||||||||||||
Fair value - Fair value amounts represent estimates of the consideration that would currently be agreed upon between knowledgeable, willing parties who are under no compulsion to act. | |||||||||||||
Atlas records the available for sale securities held in its securities portfolio at their fair value. Atlas primarily uses the services of external securities pricing vendors to obtain these values. The securities are valued using quoted market prices or prices established using observable market inputs. In volatile market conditions, these quoted market prices or observable market inputs can change rapidly causing a significant impact on fair value and financial results recorded. | |||||||||||||
Atlas employs a fair value hierarchy to categorize the inputs it uses in valuation techniques to measure the fair value. The hierarchy is comprised of quoted prices in active markets (Level 1), third party pricing models using available trade, bid and market information (Level 2) and internal models without observable market information (Level 3). The following table summarizes Atlas' investments at fair value as of December 31, 2014 and December 31, 2013 (all amounts in '000s): | |||||||||||||
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||
Fixed income securities | $ | 12,608 | $ | 114,341 | $ | — | $ | 126,949 | |||||
Equities | 2,093 | — | — | 2,093 | |||||||||
Other investments | — | 3,346 | 11,020 | $ | 14,366 | ||||||||
Totals | $ | 14,701 | $ | 117,687 | $ | 11,020 | $ | 143,408 | |||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||
Fixed income securities | $ | 12,624 | $ | 115,344 | $ | 617 | $ | 128,585 | |||||
Equities | 258 | — | — | 258 | |||||||||
Other investments | — | — | 1,234 | $ | 1,234 | ||||||||
Totals | $ | 12,882 | $ | 115,344 | $ | 1,851 | $ | 130,077 | |||||
The Company's investments in fixed income securities that are classified as Level 1 in the two preceding tables consist only of U.S. Treasury Securities. The Company's investments in equity securities that are classified as Level 1 in the two preceding tables consist of investments in publicly-traded common stocks. | |||||||||||||
The Company's investments in fixed income securities that are classified as Level 2 in the two preceding tables consist of investments in corporate bonds, states and political subdivisions bonds and mortgage-backed securities of U.S. government agencies and other asset-backed bonds. The Company's other investments that are classified as Level 2 consist of a limited partnership that invests in equities. | |||||||||||||
For securities classified as Level 3, the Company uses valuations provided by third party fund managers. These valuations are typically the audited net book value for each limited partnership. These limited partnerships invest in income-producing real estate or catastrophe bonds. | |||||||||||||
Though Atlas believes its valuation methods are appropriate, the use of different methodologies or assumptions to determine its fair value could result in a different fair value as of December 31, 2014. Management does not believe that reasonable changes to the inputs to its valuation methodology would result in a significantly higher or lower fair value measurement. | |||||||||||||
There were no transfers in or out of Level 2 or Level 3 during the years ended December 31, 2014 and 2013. | |||||||||||||
Information by security type pertaining to the changes in fair value of the Company's investments classified as Level 3 for the years ended December 31, 2014 and 2013 are presented below (all amounts in '000s): | |||||||||||||
December 31, 2014 | Fixed Income Securities | Other Investments | Total | ||||||||||
Balance at beginning of year | $ | 617 | $ | 1,234 | $ | 1,851 | |||||||
Total gains included in: | |||||||||||||
Consolidated statement of income | 383 | 286 | 669 | ||||||||||
Purchases | — | 9,500 | 9,500 | ||||||||||
Settlements | (1,000 | ) | — | (1,000 | ) | ||||||||
Balance at end of year | $ | — | $ | 11,020 | $ | 11,020 | |||||||
December 31, 2013 | Fixed Income Securities | Other Investments | Total | ||||||||||
Balance at beginning of year | $ | 234 | $ | 1,262 | $ | 1,496 | |||||||
Total gains (losses) included in: | |||||||||||||
Consolidated statement of income | 383 | (28 | ) | 355 | |||||||||
Balance at end of year | $ | 617 | $ | 1,234 | $ | 1,851 | |||||||
Capital management - The Company manages capital using both regulatory capital measures and internal metrics. The Company’s capital is primarily derived from common shareholders’ equity, retained deficit and accumulated other comprehensive income (loss). | |||||||||||||
As a holding company, Atlas could derive cash from its insurance subsidiaries generally in the form of dividends to meet its obligations, which will primarily consist of operating expense payments. Atlas’ insurance subsidiaries fund their obligations primarily through premium and investment income and maturities in the securities portfolio. The insurance subsidiaries require regulatory approval for the return of capital and, in certain circumstances, prior to the payment of dividends. In the event that dividends available to the holding company are inadequate to cover its operating expenses, the holding company would need to raise capital, sell assets or incur future debt. | |||||||||||||
The insurance subsidiaries must each maintain a minimum statutory capital and surplus of $1.5 million and $2.4 million under the provisions of the Illinois Insurance Code and the Missouri Insurance Code, respectively. Dividends may only be paid from statutory unassigned surplus, and payments may not be made if such surplus is less than a stipulated amount. The dividend restriction is the greater of statutory net income or 10% of total statutory capital and surplus. | |||||||||||||
Net income computed under statutory-basis accounting was $2.0 million, $4.0 million and $1.7 million for American Country, American Service and Gateway, respectively, for the year ended December 31, 2014. Net income for the year ended December 31, 2013 was $1.6 million, $3.6 million and $2.1 million for American Country, American Service and Gateway, respectively. The combined statutory capital and surplus of the insurance subsidiaries was $63.0 million and $53.1 million as of December 31, 2014 and December 31, 2013, respectively. | |||||||||||||
Atlas did not declare or pay any dividends to its common shareholders during the year ended December 31, 2014 or in the year ended December 31, 2013. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Income Taxes | INCOME TAXES | |||||||||||||
The effective tax rate was (48.3)% and 1.2% for the years ended December 31, 2014 and 2013, respectively, compared to the U.S. statutory income tax rate of 34% as shown below ($ in '000s): | ||||||||||||||
2014 | 2013 | |||||||||||||
Amount | % | Amount | % | |||||||||||
Expected income tax expense at statutory rate | $ | 4,058 | 34 | % | $ | 2,126 | 34 | % | ||||||
Change in valuation allowance | (9,446 | ) | (79.1 | )% | (2,802 | ) | (44.8 | )% | ||||||
Nondeductible expenses | 136 | 1.1 | % | 100 | 1.6 | % | ||||||||
State tax (net of federal benefit) | 11 | 0.1 | % | 47 | 0.8 | % | ||||||||
Tax net operating loss limitation write-down (excluding valuation allowance) | (519 | ) | (4.3 | )% | 626 | 10 | % | |||||||
Other | (7 | ) | (0.1 | )% | (25 | ) | (0.4 | )% | ||||||
Total | $ | (5,767 | ) | (48.3 | )% | $ | 72 | 1.2 | % | |||||
Income tax expense consists of the following for the years ended December 31, 2014 and 2013: | ||||||||||||||
2014 | 2013 | |||||||||||||
Current tax expense | $ | 3,009 | $ | 1,144 | ||||||||||
Deferred tax benefit, net of change in valuation allowance | (8,776 | ) | (1,072 | ) | ||||||||||
Total | $ | (5,767 | ) | $ | 72 | |||||||||
Upon the transaction forming Atlas on December 31, 2010, a yearly limitation as required by U.S. tax law Section 382 that applies to changes in ownership on the future utilization of Atlas’ net operating loss carryforwards was calculated. The insurance subsidiaries’ prior parent retained those tax assets previously attributed to the insurance subsidiaries which could not be utilized by Atlas as a result of this limitation. As a result, Atlas’ ability to recognize future tax benefits associated with a portion of its deferred tax assets generated during prior years have been permanently limited to the amount determined under U.S. tax law Section 382. The result is a maximum expected net deferred tax asset which Atlas has available after the merger which is believed more-likely-than-not to be utilized in the future, after consideration of valuation allowance. | ||||||||||||||
On July 22, 2013, as a result of shareholder activity, a "triggering event" as determined under IRC Section 382 was reached. As a result, under IRC Section 382, the use of the Company's net operating loss and other carryforwards will be limited as a result of this "ownership change” for tax purposes, which is defined as a cumulative change of more than 50% during any three-year period by shareholders of the Company's shares. Following this triggering event, the Company estimates that it will retain total tax effected federal net operating loss carryforwards of approximately $14.2 million as of December 31, 2014. | ||||||||||||||
The components of deferred income tax assets and liabilities as of December 31, 2014 and December 31, 2013 are as follows (all amounts in '000s): | ||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||
Deferred tax assets: | ||||||||||||||
Unpaid claims and unearned premiums | $ | 5,560 | $ | 4,783 | ||||||||||
Loss carryforwards | 14,212 | 15,265 | ||||||||||||
Bad debts | 191 | 264 | ||||||||||||
Other | 1,266 | 1,446 | ||||||||||||
Valuation allowance | — | (9,446 | ) | |||||||||||
Total deferred tax assets, net of allowance | 21,229 | 12,312 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||
Deferred policy acquisition costs | 2,776 | 2,269 | ||||||||||||
Securities | 740 | 345 | ||||||||||||
Other | 396 | 379 | ||||||||||||
Total gross deferred tax liabilities | 3,912 | 2,993 | ||||||||||||
Net deferred tax assets | $ | 17,317 | $ | 9,319 | ||||||||||
Amounts and expiration dates of the operating loss carryforwards as of December 31, 2014 are as follows (all amounts in '000s): | ||||||||||||||
Year of Occurrence | Year of Expiration | Amount | ||||||||||||
2001 | 2021 | $ | 7,734 | |||||||||||
2002 | 2022 | 4,317 | ||||||||||||
2006 | 2026 | 7,825 | ||||||||||||
2007 | 2027 | 5,131 | ||||||||||||
2008 | 2028 | 1,949 | ||||||||||||
2009 | 2029 | 1,949 | ||||||||||||
2010 | 2030 | 1,949 | ||||||||||||
2011 | 2031 | 8,371 | ||||||||||||
2012 | 2032 | 2,576 | ||||||||||||
Total | $ | 41,801 | ||||||||||||
Atlas established a valuation allowance of $0 and $9.4 million for its gross deferred tax assets as of December 31, 2014 and as of December 31, 2013, respectively. Based on Atlas’ expectations of future taxable income, its ability to change its investment strategy, as well as reversing gross future tax liabilities, management believes it is more likely than not that Atlas will fully realize the net future tax assets. The Company, therefore, has released its remaining valuation allowance at December 31, 2014. | ||||||||||||||
Atlas accounts for uncertain tax positions in accordance with the income taxes accounting guidance. Atlas has analyzed filing positions in the federal and state jurisdiction where it is required to file tax returns, as well as the open tax years in these jurisdictions. Atlas believes that its federal and state income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. Therefore, no reserves for uncertain federal and state income tax positions have been recorded. Atlas would recognize interest and penalties related to unrecognized tax benefits as a component of the provision for federal income taxes. Atlas did not incur any federal income tax related interest income, interest expense or penalties for the years ended December 31, 2014 and 2013. Tax years 2009 through 2014 are subject to examination by the Internal Revenue Service ("IRS"). The Company's 2012 tax year is currently under examination. |
Assets_Held_for_Sale
Assets Held for Sale | 12 Months Ended |
Dec. 31, 2014 | |
Assets Held for Sale [Abstract] | |
Assets Held for Sale | ASSETS HELD FOR SALE |
The Company owns two properties located in Alabama which are for sale. These properties are listed for sale for amounts greater than carried values. |
Internal_Use_Software_and_Capi
Internal Use Software and Capital Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Software and Office Equipment [Abstract] | ||||||||
Internal Use Software and Capital Assets | INTERNAL USE SOFTWARE AND CAPITAL ASSETS | |||||||
Atlas held the following internal-use software and capital assets at December 31, 2014 and December 31, 2013 (excluding assets held for sale): | ||||||||
2014 | 2013 | |||||||
Leasehold improvements | $ | 501 | $ | 501 | ||||
Internal use software | 7,372 | 6,344 | ||||||
Computer equipment | 1,844 | 1,750 | ||||||
Furniture and other office equipment | 397 | 394 | ||||||
Total | 10,114 | 8,989 | ||||||
Accumulated depreciation | (7,295 | ) | (6,489 | ) | ||||
Balance, end of period | $ | 2,819 | $ | 2,500 | ||||
Underwriting_Policy_and_Reinsu
Underwriting Policy and Reinsurance Ceded | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Underwriting Policy and Reinsurance Ceded [Abstract] | |||||||
Underwriting Policy and Reinsurance Ceded | UNDERWRITING POLICY AND REINSURANCE CEDED | ||||||
Underwriting Risk - Underwriting risk is the risk that the total cost of claims and acquisition expenses will exceed premiums received and can arise from numerous factors, including pricing risk, reserving risk, catastrophic loss risk, reinsurance coverage risk and that loss and loss adjustment expense reserves are not sufficient. | |||||||
Reinsurance Ceded - As is customary in the insurance industry, Atlas reinsures portions of certain insurance policies it writes, thereby providing a greater diversification of risk and minimizing exposure on larger risks. Atlas remains contingently at risk with respect to any reinsurance ceded and would incur an additional loss if an assuming company were unable to meet its obligation under the reinsurance treaty. | |||||||
Atlas monitors the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Letters of credit are maintained for any unauthorized reinsurer to cover ceded unearned premium, ceded loss reserve balances and ceded paid losses. These policies mitigate the risk of credit quality or dispute from becoming a danger to financial strength. To date, the Company has not experienced any material difficulties in collecting reinsurance recoverables. | |||||||
Gross premiums written and ceded premiums, losses and commissions as of and for the years ended December 31, 2014 and 2013 are as follows (all amounts in '000s): | |||||||
2014 | 2013 | ||||||
Direct premiums written | $ | 122,339 | $ | 92,487 | |||
Assumed premiums written | 93 | 573 | |||||
Ceded premiums written | 11,011 | 12,580 | |||||
Net premiums written | 111,421 | 80,480 | |||||
Ceded premiums earned | 9,589 | 12,542 | |||||
Ceded losses and loss adjustment expenses | 8,783 | 4,883 | |||||
Ceding commissions | 2,374 | 2,241 | |||||
Ceded unpaid losses and loss adjustment expenses | 18,421 | 18,144 | |||||
Prepaid reinsurance premiums | 3,628 | 2,207 | |||||
Other amounts due from reinsurers | 2,230 | 1,002 | |||||
Unpaid_Claims
Unpaid Claims | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Unpaid Claims [Abstract] | ||||||||
Unpaid Claims | UNPAID CLAIMS | |||||||
Claims liabilities - The changes in the provision for unpaid claims, net of amounts recoverable from reinsurers, for the years ended December 31, 2014 and 2013 were as follows (all amounts in '000s): | ||||||||
As of the year ended December 31, | 2014 | 2013 | ||||||
Unpaid claims, beginning of period | $ | 101,385 | $ | 70,067 | ||||
Less: reinsurance recoverable | 18,144 | 5,680 | ||||||
Net beginning unpaid claims reserves | 83,241 | 64,387 | ||||||
Net reserves acquired | — | 29,923 | ||||||
Loss portfolio transfer | 2,415 | (5,919 | ) | |||||
Incurred related to: | ||||||||
Current year | 61,680 | 45,604 | ||||||
Prior years | (602 | ) | 8 | |||||
61,078 | 45,612 | |||||||
Paid related to: | ||||||||
Current year | 19,427 | 12,874 | ||||||
Prior years | 43,298 | 37,888 | ||||||
62,725 | 50,762 | |||||||
Net unpaid claims, end of period | $ | 84,009 | $ | 83,241 | ||||
Add: reinsurance recoverable | 18,421 | 18,144 | ||||||
Unpaid claims, end of period | $ | 102,430 | $ | 101,385 | ||||
The process of establishing the estimated provision for unpaid claims is complex and imprecise, as it relies on the judgment and opinions of a large number of individuals, on historical precedent and trends, on prevailing legal, economic, social and regulatory trends and on expectations as to future developments. The process of determining the provision necessarily involves risks that the actual results will deviate, perhaps substantially, from the best estimates made. Atlas experienced favorable prior year development during 2014 of $352,000 on its core lines and $250,000 on its non-core lines, reflected as incurred related to prior years in the table above. Atlas experienced minimal unfavorable prior year development in 2013, reflected as incurred related to prior years in the table above, on its non-core lines. |
Stock_Options_and_Warrants
Stock Options and Warrants | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Stock Options and Warrants [Abstract] | |||||||||||
Stock Options and Warrants | STOCK OPTIONS AND WARRANTS | ||||||||||
Stock options - Stock option activity for the years ended December 31, 2014 and 2013 follows (prices in Canadian dollars designated with "C$"): | |||||||||||
2014 | 2013 | ||||||||||
Number | Avg. Price | Number | Avg. Price | ||||||||
Outstanding, beginning of period | 224,623 | C$ | 6.05 | 133,955 | C$ | 5.76 | |||||
Granted | 175,000 | $ | 13.26 | 91,668 | C$ | 6.45 | |||||
Exercised | — | (1,000 | ) | C$ | 3 | ||||||
Outstanding, end of period | 399,623 | -1 | 224,623 | C$ | 6.05 | ||||||
1 - Options granted in Canadian dollars will be exercised at the appropriate conversion rate at the date of exercise. | |||||||||||
Information about options outstanding at December 31, 2014 is as follows: | |||||||||||
Grant Date | Expiration Date | Number Outstanding | Number Exercisable | ||||||||
March 18, 2010 | March 15, 2020 | 9,700 | 9,700 | ||||||||
January 18, 2011 | January 18, 2021 | 123,255 | 123,255 | ||||||||
January 11, 2013 | January 11, 2023 | 91,668 | 30,557 | ||||||||
March 6, 2014 | March 6, 2024 | 175,000 | — | ||||||||
Total | 399,623 | 163,512 | |||||||||
The options granted on March 18, 2010 have an exercise price of C$3.00 per share. These options were granted to directors of Atlas' predecessor company, JJR VI. | |||||||||||
On January 18, 2011, Atlas granted options to purchase 123,255 ordinary voting common shares of Atlas stock to officers and directors at an exercise price of C$6.00 per share. All of these options were fully vested upon the third anniversary of their issuance and expire on January 18, 2021. Using the Black-Scholes option pricing model, the weighted average grant date fair value of these options is C$3.72 per share. | |||||||||||
On January 11, 2013, Atlas granted options to purchase 91,668 ordinary shares of Atlas stock to officers at an exercise price of C$6.45 per share. The options vest equally on the first, second and third anniversaries of the grant date. The options expire on January 11, 2023. Using the Black-Scholes option pricing model, the weighted average grant date fair value of these options is C$4.54 per share. | |||||||||||
In the second quarter of 2013, a new Equity Incentive Plan was approved by the Company's common shareholders at the Annual General Meeting. Atlas ceased to grant new stock options under the preceding Stock Option Plan. The Equity Incentive Plan is a new securities based compensation plan, pursuant to which Atlas may issue restricted stock grants for ordinary voting common shares, restricted units, stock grants for ordinary voting common shares, stock options and other forms of equity incentives to eligible persons as part of their compensation. The Equity Incentive Plan is considered an amendment and restatement of the Stock Option Plan, although outstanding stock options issued pursuant to the Stock Option Plan will continue to be governed by the terms of the Stock Option Plan. | |||||||||||
Under the Equity Incentive Plan, a director who either directly or indirectly purchases up to $100,000 of Atlas ordinary voting common stock on the open market, through the employee stock purchase plan, or via other means acceptable under this plan (see Note 13) will receive a 3 to 1 matching grant of restricted stock grants for ordinary voting common shares (or for Canadian taxpayers, restricted stock units) based on the aggregate purchase price of ordinary voting common shares the director purchased during the six-month period beginning on June 18, 2013 and ending on December 31, 2013, or for new directors within 6 months of their initial appointment date (the “Purchase Period”). Matching share grants of 148,152 restricted stock grants for ordinary voting common shares and 37,038 restricted stock units were made on February 28, 2014 (the “Grant Date”). The number of ordinary voting common shares issued on the Grant Date were determined by dividing (A) the dollar amount of the Company matching contribution due based on purchases during the Purchase Period by (B) the closing common share price of one share of Company ordinary voting common stock at close of market on June 17, 2013 (the “Closing Price”) which was $8.10 per share. The restricted stock grants for ordinary voting common shares will vest 20% on each anniversary of the Grant Date, subject to the terms of the Guidelines. The matching grant will be subject to all of the terms and conditions of the Equity Incentive Plan and applicable grant agreements. The Company will incur $38,000 of compensation expense per month relating to these restricted stock grants. | |||||||||||
On March 6, 2014, Atlas granted to certain executive officers (i) stock options to purchase 175,000 common shares, with an exercise price of $13.26 and vest equally on the next three anniversaries of the grant date and (ii) 37,700 fully-vested, unrestricted common shares. The options expire on March 6, 2024 . Using the Black-Scholes option pricing model, the weighted average grant date fair value of these options is $7.03 per share. These grants were made under the Company's Equity Incentive Plan. | |||||||||||
The Black-Scholes option pricing model was used to estimate the fair value of compensation expense using the following assumptions – risk-free interest rate 1.88% to 3.18%; dividend yield 0.00%; expected volatility 38.00% to 100.00%; expected life of 6 to 10 years . | |||||||||||
In accordance with ASC 718 (Stock-Based Compensation), Atlas has recognized stock compensation expense on a straight-line basis over the requisite service period of the last separately vesting portion of the award. Atlas recognized $1.5 million and $247,000 in stock compensation expense for the years ended December 31, 2014 and 2013, respectively, which is a component of other underwriting expenses on the income statement. Total unrecognized stock compensation expense related to all option grants is $2.0 million as of the year ended December 31, 2014, which will be recognized over the next 50 months. | |||||||||||
The weighted average exercise price of all the shares exercisable at December 31, 2014 is C$6.05 on outstanding options granted prior to December 31, 2013. The weighted average exercise price of all the shares exercisable at December 31, 2014 is $13.26 on outstanding options granted on March 6, 2014. The grants have a weighted average remaining life of 7.86 years and the stock options outstanding have an intrinsic value of $3.0 million as of December 31, 2014. | |||||||||||
Warrants - On November 1, 2010, 1,327,840 subscription receipts were issued in a private placement for ordinary voting common shares of Atlas as well as warrants to purchase 1,327,840 ordinary voting common shares of Atlas for C$6.00 per share. The subscription receipts were converted to Atlas ordinary common shares at Atlas' formation. During 2013, all outstanding warrants were exercised prior to their expiration on December 31, 2013. |
Other_Employee_Benefit_Plans
Other Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Other Employee Benefit Plans [Abstract] | |
Other Employee Benefit Plans | OTHER EMPLOYEE BENEFIT PLANS |
Defined Contribution Plan - In January 2011, Atlas formed a defined contribution 401(k) plan covering all qualified employees of Atlas and its subsidiaries. Employees can choose to contribute up to 60% of their annual earnings but not more than $17,500 for 2014 to the plan. Qualifying employees age 50 and older can contribute an additional $5,500 in 2014. Effective April 2014, Atlas matches 100% of the employee contribution up to 2.5% of annual earnings plus 50% of additional contributions up to 2.5% of annual earnings for a total maximum expense of 3.75% of annual earnings per participant. Atlas' matching contributions are discretionary. Employees are 100% vested in their own contributions and vest in Atlas contributions based on years of service with 100% vested after five years. Company contributions were $204,000 and $118,000, for the years ended December 31, 2014 and December 31, 2013, respectively. | |
Employee Stock Purchase Plan - In the second quarter of 2011, Atlas initiated the Atlas Employee Stock Purchase Plan (the “ESPP”) to encourage continued employee interest in the operation, growth and development of Atlas and to provide an additional investment opportunity to employees. Beginning in June 2011, full time and permanent part time employees working more than 30 hours per week were allowed to invest up to 5% of adjusted salary in Atlas ordinary voting common shares. Effective April 2014, Atlas matches 100% of the employee contribution up to 2.5% of annual earnings plus 50% of additional contributions up to 5% of annual earnings for a total maximum expense of 5% of annual earnings per participant. Atlas' matching contributions are discretionary. Employees who signed up for the ESPP by May 30, 2011 each received an additional 100 ordinary common shares as an initial participation incentive. Atlas also pays all administrative costs related to this plan. During the years ended December 31, 2014 and December 31, 2013, Atlas incurred costs related to the plan of $113,000 and $58,000, respectively. Shares for this plan are purchased on the open market. |
Share_Capital
Share Capital | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Share Capital [Abstract] | |||||||||||||
Share Capital | SHARE CAPITAL | ||||||||||||
On December 7, 2012, a shareholder meeting was held where a one-for-three reverse stock split was unanimously approved. When the reverse stock split took effect on January 29, 2013, it decreased the authorized and outstanding ordinary common shares and restricted common shares at a ratio of one-for-three. The primary objective of the reverse stock split was to increase the per share price of Atlas' common shares to meet certain listing requirements of the NASDAQ Capital Market. The share capital for the common shares is as follows: | |||||||||||||
At December 31, | 2014 | 2013 | |||||||||||
Shares Authorized | Shares Issued and Outstanding | Amount (in '000s) | Shares Issued and Outstanding | Amount (in '000s) | |||||||||
Ordinary | 266,666,667 | 11,638,723 | $ | 34 | 9,291,871 | $ | 28 | ||||||
Restricted | 33,333,334 | 132,863 | — | 132,863 | $ | — | |||||||
Total common shares | 300,000,001 | 11,771,586 | $ | 34 | 9,424,734 | $ | 28 | ||||||
On February 11, 2013, an aggregate of 4,125,000 Atlas ordinary common shares were offered in Atlas' initial public offering in the United States. 1,500,000 ordinary common shares were offered by Atlas and 2,625,000 ordinary common shares were sold by Kingsway at a price of $5.85 per share, less underwriting discounts and expenses. Atlas also granted the underwriters an option to purchase up to an aggregate of 618,750 additional ordinary common shares at the public offering price of $5.85 per share to cover over-allotments, if any. On March 11, 2013, the underwriters exercised this option and purchased an additional 451,500 ordinary common shares. After underwriting and other expenses, Atlas realized combined proceeds of $9.8 million. | |||||||||||||
All of the issued and outstanding restricted common shares are beneficially owned or controlled by Kingsway. The restricted common shares are entitled to vote at all meetings of shareholders, except at meetings of holders of a specific class that are entitled to vote separately as a class. The restricted common shares as a class shall not carry more than 30% of the aggregate votes eligible to be voted at a general meeting of common shareholders. The restricted common shares will convert to ordinary common shares in the event that these Kingsway owned shares are sold to non-affiliates of the Company. | |||||||||||||
During 2013, Atlas declared and paid $2.1 million in dividends earned through the preferred shares to Kingsway, the cumulative amount to which they were entitled through the end of July 2013. | |||||||||||||
On August 1, 2013, Atlas repurchased 18,000,000 preferred shares owned by Kingsway pursuant to the Share Repurchase Agreement. Atlas recorded a $1.8 million benefit related to the discount on the repurchase of these shares from Kingsway. | |||||||||||||
On October 18, 2013 and on November 13, 2013, Kingsway notified the Company that it had sold 529,608 and 600,000 of its restricted common shares, respectively, bringing its restricted common share count to 132,863 or 1.4% of the outstanding common shares as of December 31, 2013. | |||||||||||||
During 2013, 1,327,840 warrants and 1,000 options were exercised which resulted in the issuance of 1,328,840 common shares. | |||||||||||||
On May 13, 2014, an aggregate of 2,000,000 Atlas ordinary shares were offered in a subsequent public offering in the United States at a price of $12.50 per share. Atlas also granted the underwriters an option to purchase up to an aggregate of 300,000 additional shares at the public offering price of $12.50 per share to cover over-allotments, if any. On May 27, 2014, the underwriters exercised this option and purchased an additional 161,000 shares. After underwriting and other expenses, total proceeds of $25.0 million were realized on the issuance of the shares. A portion of the net proceeds from the offering will be used to support the acquisition of Anchor Holdings Group, Inc. and its affiliated entities. | |||||||||||||
The remaining outstanding preferred shares are not entitled to vote and are beneficially owned or controlled by the former owner of Camelot Services, Inc. as of December 31, 2014. Preferred shareholders are entitled to dividends on a cumulative basis whether or not declared by the Board of Directors at the rate of $0.045 per share per year (4.5%) and may be paid in cash or in additional preferred shares at the option of Atlas. In liquidation, dissolution or winding-up of Atlas, preferred shareholders receive the greater of $1.00 per share plus all declared and unpaid dividends or the amount it would receive in liquidation if the preferred shares had been converted to restricted voting common shares or ordinary voting common shares immediately prior to liquidation. Preferred shares are convertible into ordinary voting shares at the option of the holder at any date after the fifth year of issuance at the rate of 0.1270 ordinary voting common shares for each preferred share. The conversion rate is subject to change if the number of ordinary voting common shares or restricted voting common shares changes as a result of proportional share events, e.g. share consolidation. The preferred shares are redeemable at the option of Atlas at a price of $1.00 per share plus accrued and unpaid dividends commencing at two years from January 1, 2013 (the issuance date of the preferred shares). | |||||||||||||
The cumulative amount of dividends to which the preferred shareholders are entitled upon liquidation or sooner, if Atlas declares dividends, is $184,000 as of the year ended December 31, 2014, or $0.02 per common share. |
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Policy Acquisition Costs [Abstract] | ||||||||
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS | |||||||
Deferred policy acquisition costs for the years ended December 31, 2014 and December 31, 2013 (in '000s): | ||||||||
2014 | 2013 | |||||||
Balance, beginning of period | $ | 6,674 | $ | 3,764 | ||||
Acquisition costs deferred | 15,540 | 13,283 | ||||||
Amortization charged to income | 14,048 | 10,373 | ||||||
Balance, end of period | $ | 8,166 | $ | 6,674 | ||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS |
The business of Atlas is carried on through its insurance subsidiaries. Atlas’ insurance subsidiaries have been a party to various transactions with affiliates in the past, although activity in this regard has diminished over time. Related party transactions, including services provided to or received by Atlas’ insurance subsidiaries, are carried out in the normal course of operations and are measured at the amount of consideration paid or received as established and agreed upon by the parties. Such transactions typically include claims handling services, marketing services and commission payments. Management believes that consideration paid for such services approximates fair value. | |
As a result of the preferred shares repurchased by the Company on August 1, 2013 pursuant to the Share Repurchase Agreement and the restricted shares sold by Kingsway on October 18, 2013 and on November 13, 2013, Atlas is no longer part of the Kingsway holding company system and therefore is not considered a related party to Kingsway as of December 31, 2013. | |
During 2014, a small percentage of the Company’s investment portfolio was allocated to investment vehicles, primarily focused on income generating real-estate, that are considered related-party transactions. In these cases, one or more of the Company’s directors may be deemed to control unrelated entities that may invest in these vehicles and may also manage these vehicles. In total, such related-party investments were approximately 1% of the Company’s total assets. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||
(in ‘000s, except per share data) | |||||||||||||
2014 | |||||||||||||
Q4 | Q3 | Q2 | Q1 | ||||||||||
Gross premium written | $ | 26,361 | $ | 42,046 | $ | 22,801 | $ | 31,224 | |||||
Net premium earned | 27,289 | 25,575 | 23,306 | 21,954 | |||||||||
Underwriting income | 3,164 | 2,666 | 1,883 | 1,422 | |||||||||
Net income attributable to Atlas | 9,458 | 3,493 | 2,559 | 2,192 | |||||||||
Net income attributable to common shareholders | 9,434 | 3,469 | 2,536 | 2,169 | |||||||||
Basic earnings per common share | $ | 0.8 | $ | 0.29 | $ | 0.24 | $ | 0.23 | |||||
Diluted earnings per common share | $ | 0.77 | $ | 0.29 | $ | 0.23 | $ | 0.22 | |||||
(in ‘000s, except per share data) | |||||||||||||
2013 | |||||||||||||
Q4 | Q3 | Q2 | Q1 | ||||||||||
Gross premium written | $ | 22,069 | $ | 32,075 | $ | 16,562 | $ | 22,354 | |||||
Net premium earned | 20,512 | 17,976 | 16,968 | 15,888 | |||||||||
Underwriting income | 1,753 | 1,096 | 828 | 298 | |||||||||
Net income attributable to Atlas | 2,178 | 1,699 | 1,701 | 602 | |||||||||
Net income attributable to common shareholders | 2,155 | 3,404 | 1,476 | 326 | |||||||||
Basic earnings per common share | $ | 0.25 | $ | 0.41 | $ | 0.18 | $ | 0.05 | |||||
Diluted earnings per common share | $ | 0.22 | $ | 0.35 | $ | 0.15 | $ | 0.05 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Notes) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||
On May 22, 2012, Atlas closed the sale of the headquarters building to 150 Northwest Point, LLC, a Delaware limited liability company. Atlas recognized a gain on the sale of this property of $213,000, which will be deferred and recognized over the 5 year lease term. Atlas recognized $43,000 as an offset to rent expense for both the years ended December 31, 2014 and 2013. Total rental expense recognized on the headquarters building was $707,000 and $699,000 for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||
Atlas has the following future minimum rentals, related principally to office space, required under operating leases having initial or remaining noncancelable lease terms in excess of one year as of December 31, 2014 (all amounts in '000s): | |||||||||||||||||||
Year | 2015 | 2016 | 2017 | 2018 | 2019 & Beyond | Total | |||||||||||||
Amount | $ | 1,186 | $ | 845 | $ | 281 | $ | — | $ | — | $ | 2,312 | |||||||
In the ordinary course of its business, Atlas is involved in legal proceedings, including lawsuits, regulatory examinations and inquiries. Based on currently available information, the Company does not believe that it is reasonably possible that any of its pending legal proceedings will have a material effect on the Company's Consolidated Financial Statements. | |||||||||||||||||||
Atlas is exposed to credit risk on balances receivable from policyholders and reinsurers. Credit exposure to any one individual policyholder is not material. The Company's policies, however, are distributed by agents who may manage cash collection on its behalf pursuant to the terms of their agency agreement. Atlas has policies to evaluate the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurers’ insolvency. | |||||||||||||||||||
Virtually all states require insurers licensed to do business therein to bear a portion of contingent and incurred claim handling expenses and the unfunded amount of “covered” claim and unearned premium obligations of impaired or insolvent insurance companies, either up to the policy's limit, the applicable guaranty fund covered claim obligation cap, or 100% of statutorily defined workers' compensation benefits, subject to applicable deductibles. These obligations are funded by assessments, made on a retrospective, prospective or pre-funded basis, which are levied by guaranty associations within the state, up to prescribed limits (typically 2% of “net direct written premium”), on all member insurers in the state on the basis of the proportionate share of the premiums written by member insurers in certain covered lines of business in which the impaired, insolvent or failed insurer was engaged. | |||||||||||||||||||
In addition, as a condition to the ability to conduct business in certain states (and within the jurisdiction of some local governments), insurance companies are subject to or required to participate in various premium or loss based insurance-related assessments, including mandatory (a/k/a “involuntary”) insurance pools, underwriting associations, workers' compensation second-injury funds, reinsurance funds and other state insurance facilities. |
Line_of_Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Line of Credit | LINE OF CREDIT |
On May 7, 2014, American Insurance Acquisition, Inc. (“American Acquisition”), a subsidiary of Atlas, entered into a loan and security agreement (“Loan Agreement”) for a $10 million revolving loan facility with Fifth Third Bank. Under the Loan Agreement, funds may be borrowed and re-borrowed on a revolving basis by American Acquisition, from the closing date until (but not including) May 7, 2015, the loan maturity date. The interest rate on the advances under the revolving loan facility will generally be LIBOR plus 2.75%, provided that, during a default, interest shall accrue at a rate equal to LIBOR plus 5%. In addition, there is a non-utilization fee equal to 0.25% per annum of an amount equal to $10 million less the daily average of the aggregate principal amount of the revolving loans outstanding plus the aggregate amount of the letter of credit obligations outstanding. The Loan Agreement also provides for the issuance of letters of credit in an amount up to $2 million outstanding at any time. | |
The Loan Agreement requires us to comply with customary affirmative and negative covenants, including those governing indebtedness, liens, investments, sales of assets, issuance of securities, and distributions. The Loan Agreement also requires us to comply with certain financial covenants, including the Operating Subsidiaries (defined below) maintaining a combined statutory net worth in an amount not less than $50 million. The revolving loan facility is secured by all of the outstanding shares of American Country, American Service and Gateway, which are wholly-owned direct or indirect subsidiaries of American Acquisition (collectively, the “Operating Subsidiaries”). As of December 31, 2014, no funds were accessed from the line of credit nor were there letters of credit issued under the terms of this Loan Agreement. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS |
None. |
Schedule_II_Condensed_Financia
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||
Schedule II - Condensed Financial Information of Registrant | Schedule II – Condensed Financial Information of Registrant | ||||||
Statements of Income and Comprehensive Income | |||||||
($ in thousands) | Year ended December 31, | ||||||
2014 | 2013 | ||||||
Net investment gain | $ | 16 | $ | 96 | |||
Other underwriting expense | 1,825 | 542 | |||||
Loss from operations before income tax benefit | (1,809 | ) | (446 | ) | |||
Income tax benefit | (498 | ) | (67 | ) | |||
Loss before equity in net income of subsidiaries | $ | (1,311 | ) | $ | (379 | ) | |
Equity in net income of subsidiaries | 19,013 | 6,559 | |||||
Net income | $ | 17,702 | $ | 6,180 | |||
Other comprehensive income (loss): | |||||||
Changes in net unrealized gains (losses) | 2,029 | (4,354 | ) | ||||
Reclassification to income of net realized gains (losses) | 257 | (469 | ) | ||||
Effect of income tax | (777 | ) | 1,642 | ||||
Other comprehensive income (loss) for the period | 1,509 | (3,181 | ) | ||||
Total comprehensive income | $ | 19,211 | $ | 2,999 | |||
See accompanying Notes to Condensed Financial Information of Registrant | |||||||
Schedule II – Condensed Financial Information of Registrant (continued) | |||||||
Statements of Financial Position | |||||||
($ in thousands) | December 31, | ||||||
2014 | 2013 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 23,428 | $ | 289 | |||
Accrued investment income | 3 | — | |||||
Accounts receivable and other assets | — | 25 | |||||
Deferred tax asset, net | 515 | 215 | |||||
Investment in subsidiaries | 85,486 | 63,313 | |||||
Total Assets | $ | 109,432 | $ | 63,842 | |||
Liabilities | |||||||
Other liabilities and accrued expenses | $ | 33 | $ | 144 | |||
Total Liabilities | $ | 33 | $ | 144 | |||
Shareholders’ Equity | |||||||
Preferred shares, par value per share $0.001, 100,000,000 shares authorized, 2,000,000 shares issued and outstanding at December 31, 2014 and December 31, 2013. Liquidation value $1.00 per share | $ | 2,000 | $ | 2,000 | |||
Ordinary voting common shares, par value per share $0.003, 266,666,667 shares authorized, 11,638,723 shares issued and outstanding at December 31, 2014 and 9,291,871 shares issued and outstanding at December 31, 2013 | 34 | 28 | |||||
Restricted voting common shares, par value per share $0.003, 33,333,334 shares authorized, 132,863 shares issued and outstanding at December 31, 2014 and December 31, 2013 | — | — | |||||
Additional paid-in capital | 196,079 | 169,595 | |||||
Retained deficit | (88,794 | ) | (106,496 | ) | |||
Accumulated other comprehensive income (loss), net of tax | 80 | (1,429 | ) | ||||
Total Shareholders’ Equity | 109,399 | 63,698 | |||||
Total Liabilities and Shareholders’ Equity | $ | 109,432 | $ | 63,842 | |||
See accompanying notes to Condensed Financial Information of Registrant | |||||||
Schedule II – Condensed Financial Information of Registrant (continued) | |||||||
Statements of Cash Flow | |||||||
($ in '000's) | Year Ended December 31, | ||||||
2014 | 2013 | ||||||
Operating Activities: | |||||||
Net income | $ | 17,702 | $ | 6,180 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Equity in net income of subsidiaries | (19,013 | ) | (6,559 | ) | |||
Share-based compensation expense | 1,469 | 247 | |||||
Deferred income taxes | (301 | ) | (112 | ) | |||
Net changes in operating assets and liabilities: | |||||||
Other assets and accrued investment income | 22 | (25 | ) | ||||
Accounts payable and accrued liabilities | (112 | ) | 144 | ||||
Net cash flows used in operating activities | (233 | ) | (125 | ) | |||
Investing activities: | |||||||
Capital contributions made to subsidiaries | (1,650 | ) | — | ||||
Net cash flows used in investing activities | (1,650 | ) | — | ||||
Financing activities: | |||||||
Preferred share buyback | — | (16,200 | ) | ||||
Proceeds from initial public offering | — | 9,756 | |||||
Issuance of common shares | 25,021 | — | |||||
Warrants exercised | — | 7,181 | |||||
Dividends paid | — | (2,145 | ) | ||||
Dividends received | — | 1,752 | |||||
Options exercised | 1 | 3 | |||||
Net cash flows provided by financing activities | 25,022 | 347 | |||||
Net change in cash and cash equivalents | 23,139 | 222 | |||||
Cash and cash equivalents, beginning of year | 289 | 67 | |||||
Cash and cash equivalents, end of year | $ | 23,428 | $ | 289 | |||
Supplemental disclosure of cash information (in '000's): | Year Ended December 31, | ||||||
2014 | 2013 | ||||||
Cash paid (recovered) for: | |||||||
Interest | $ | — | $ | 129 | |||
Income taxes | (210 | ) | 25 | ||||
See accompanying notes to Condensed Financial Information of Registrant | |||||||
Schedule II – Condensed Financial Information of Registrant (continued) | |||||||
Notes to Condensed Financial Information | |||||||
The financial statements of the Registrant should be read in conjunction with the Consolidated Financial Statements and notes thereto included in Item 8. | |||||||
Atlas has no material contingencies, long-term debt obligations or guarantees. | |||||||
Atlas has not received cash dividends from its subsidiaries since its inception on December 31, 2010. |
Schedule_IV_Reinsurance
Schedule IV - Reinsurance | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Schedule IV Reinsurance [Abstract] | |||||||||||||||
Schedule IV - Reinsurance | Schedule IV – Reinsurance | ||||||||||||||
(in '000s) | Gross Amount | Ceded to Other Companies | Assumed from Other Companies | Net Amount | % of Amount Assumed to Net | ||||||||||
December 31, 2014 | |||||||||||||||
Premiums earned | $ | 107,587 | $ | (9,589 | ) | $ | 126 | $ | 98,124 | 0.1 | % | ||||
December 31, 2013 | |||||||||||||||
Premiums earned | $ | 83,358 | $ | (12,542 | ) | $ | 528 | $ | 71,344 | 0.7 | % | ||||
Schedule_V_Valuation_and_quali
Schedule V - Valuation and qualifying accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Schedule V Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Schedule V - Valuation and qualifying accounts | Schedule V – Valuation and qualifying accounts | |||||||||||||||
(in '000s) | Balance at Beginning of Period | Charged to Expenses | Other additions | Deductions | Balance at End of Period | |||||||||||
December 31, 2014 | ||||||||||||||||
Allowance for uncollectible receivables | $ | 776 | $ | 505 | $ | 172 | $ | (893 | ) | $ | 560 | |||||
Valuation allowance for deferred tax assets | 9,446 | (9,446 | ) | — | — | — | ||||||||||
December 31, 2013 | ||||||||||||||||
Allowance for uncollectible receivables | $ | 484 | $ | 764 | $ | 281 | $ | (753 | ) | $ | 776 | |||||
Valuation allowance for deferred tax assets | 11,242 | — | 1,006 | (2,802 | ) | 9,446 | ||||||||||
Schedule_VI_Supplemental_infor
Schedule VI - Supplemental information concerning property-casualty insurance operations | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Schedule VI Supplemental Property Casualty Information [Abstract] | ||||||||
Schedule VI - Supplemental Information concerning property-casualty insurance operations | Schedule VI - Supplemental information concerning property-casualty insurance operations | |||||||
(in '000s) | Year Ended December 31, | |||||||
2014 | 2013 | |||||||
Deferred policy acquisition costs | $ | 8,166 | $ | 6,674 | ||||
Reserves for insurance claims and claims expense | 102,430 | 101,385 | ||||||
Unearned premiums | 58,950 | 44,232 | ||||||
Earned premiums | 98,124 | 71,344 | ||||||
Net investment income | 3,110 | 2,141 | ||||||
Claims and claims adjustment expense incurred | ||||||||
Current year | 61,680 | 45,604 | ||||||
Prior year | (602 | ) | 8 | |||||
Amortization of deferred policy acquisition costs | 14,048 | 10,373 | ||||||
Paid claims and claim adjustment expense | 62,725 | 50,762 | ||||||
Gross premium written | 122,432 | 93,060 | ||||||
Nature_of_Operations_and_Basis1
Nature of Operations and Basis of Presentation Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation - The consolidated financial statements include the accounts of Atlas and the entities it controls. Subsidiaries are entities over which Atlas, directly or indirectly, has the power to govern the financial and operating policies in order to obtain the benefits from their activities, generally accompanying an equity shareholding of more than one half of the voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to Atlas and would be de-consolidated from the date that control ceases. The operating results of subsidiaries acquired or disposed of during the year will be included in the consolidated statements of income and comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate. All significant intercompany transactions and balances are eliminated in consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by Atlas. |
The following are Atlas’ subsidiaries, all of which are 100% owned, either directly or indirectly, together with the jurisdiction of incorporation that are included in consolidated financial statements: | |
American Insurance Acquisition Inc. (Delaware) | |
American Country Insurance Company (Illinois) | |
American Service Insurance Company, Inc. (Illinois) | |
Camelot Services, Inc. (Missouri) - merged into American Insurance Acquisition Inc. during the fourth quarter of 2014 | |
Gateway Insurance Company (Missouri) | |
Classification of assets and liabilities | Classification of assets and liabilities - It is not customary in the insurance and financial services industries to classify assets and liabilities as current (settled in 1 year or less) and non-current (settled beyond 1 year). Assets and liabilities that could otherwise be classified as current include cash and cash equivalents, accrued investment income, accounts receivable and other assets, certain amounts due from reinsurers and other insurers, income tax receivable, deferred policy acquisition costs, assets held for sale, accounts payable and accrued expenses, due to reinsurers and other insurers. Balances that would otherwise be classified as non-current include deferred tax assets and office equipment. All other assets and liabilities include balances that are both current and non-current. |
Estimates and assumptions | Estimates and assumptions - The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and changes in estimates are recorded in the accounting period in which they are determined. The liability for unpaid loss and loss adjustment expenses and related amounts recoverable from reinsurers represents the most significant estimate in the accompanying financial statements. Significant estimates in the accompanying financial statements also include the fair values of investments in bonds, deferred tax asset valuation, premium receivable bad debt allowance and deferred policy acquisition cost recoverability. |
Investments | Financial instruments - Financial instruments are recognized and derecognized using trade date accounting, since that is the date Atlas contractually commits to the purchase or sale with the counterparty. |
Effective interest method - Atlas utilizes the effective interest method for calculating the amortized cost of a financial asset and to allocate interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts the estimated future cash flows through the expected life of the financial instrument. Interest income is reported net of amortization of premium and accretion of discount. Realized gains and losses on disposition of available-for-sale securities are based on the net proceeds and the adjusted cost of the securities sold, using the specific identification method. | |
Financial assets - Atlas classifies financial assets as described below. Management determines the classification at initial recognition based on the purpose of the financial asset. | |
Cash and cash equivalents - Cash and cash equivalents include cash and highly liquid securities with original maturities of 90 days or less. | |
Available for sale (“AFS”) - Investments in fixed income securities are classified as available for sale. Securities are classified as available-for-sale when Atlas may decide to sell those securities due to changes in market interest rates, liquidity needs, changes in yields or alternative investments, and for other reasons. Available-for-sale securities are carried at fair value, with unrealized gains and losses, net of income tax, included as a separate component of accumulated other comprehensive income (loss) in shareholder’s equity. | |
Impairment of financial assets - Atlas assesses, on a quarterly basis, whether there is evidence that a financial asset or group of financial assets is impaired. An investment is considered impaired when the fair value of the investment is less than its cost or amortized cost. When an investment is impaired, the Company must make a determination as to whether the impairment is other-than-temporary. | |
Under Accounting Standards Codification ("ASC"), with respect to an investment in an impaired debt security, other-than temporary impairment ("OTTI") occurs if (a) there is intent to sell the debt security, (b) it is more likely than not it will be required to sell the debt security before its anticipated recovery, or (c) it is probable that all amounts due will be unable to be collected such that the entire cost basis of the security will not be recovered. If Atlas intends to sell the debt security, or will more likely than not be required to sell the debt security before the anticipated recovery, a loss in the entire amount of the impairment is reflected in net investment gains (losses) on investments in the consolidated statements of income. If Atlas determines that it is probable it will be unable to collect all amounts and Atlas has no intent to sell the debt security, a credit loss is recognized in net investment gains (losses) on investments in the consolidated statements of income to the extent that the present value of expected cash flows is less than the amortized cost basis; any difference between fair value and the new amortized cost basis (net of the credit loss) is reflected in other comprehensive income (losses), net of applicable income taxes. | |
For equity securities, the Company evaluates its ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Evidence considered to determine anticipated recovery are analysts' reports on the near-term prospects of the issuer and the financial condition of the issuer or the industry, in addition to the length and extent of the market value decline. If OTTI is identified, the equity security is adjusted to fair value through a charge to earnings. | |
Fair values of financial instruments | Fair values of financial instruments - Atlas has used the following methods and assumptions in estimating its fair value disclosures: |
Fair values for investments are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or values obtained from independent pricing services. | |
Atlas' fixed income portfolio is managed by a SEC registered investment advisor specializing in the management of insurance company portfolios. Management works directly with them to ensure that Atlas benefits from their expertise and also evaluates investments as well as specific positions independently using internal resources. Atlas' investment advisor has a team of credit analysts for all investment grade fixed income sectors. The investment process begins with an independent analyst review of each security's credit worthiness using both quantitative tools and qualitative review. At the issuer level, this includes reviews of past financial data, trends in financial stability, projections for the future, reliability of the management team in place, market data (credit spread, equity prices, trends in this data for the issuer and the issuer's industry). Reviews also consider industry trends and the macro-economic environment. This analysis is continuous, integrating new information as it becomes available. As of December 31, 2014, this process did not generate any significant difference in the rating assessment between Atlas' review and the rating agencies. The Company recognizes transfers between levels of the fair value hierarchy at the end of the period in which events occur impacting the availability of inputs to the fair value methodology. | |
Atlas employs specific control processes to determine the reasonableness of the fair value of its financial assets. These processes are designed to supplement those performed by Atlas' investment advisor to ensure that the values received from them are accurately recorded and that the data inputs and the valuation techniques utilized are appropriate, consistently applied, and that the assumptions are reasonable and consistent with the objective of determining fair value. For example, on a continuing basis, Atlas assesses the reasonableness of individual security values which have stale prices or whose changes exceed certain thresholds as compared to previous values received from Atlas' investment advisor or to expected prices. The portfolio is reviewed routinely for transaction volumes, new issuances, any changes in spreads, as well as the overall movement of interest rates along the yield curve to determine if sufficient activity and liquidity exists to provide a credible source for market valuations. When fair value determinations are expected to be more variable, they are validated through reviews by members of management or the Board of Directors who have relevant expertise and who are independent of those charged with executing investment transactions. | |
Accounts receivable and other assets | Accounts receivable and other assets - Accounts receivable include premium balances due and uncollected and installment premiums not yet due from agents and insureds. |
Atlas evaluates the collectibility of accounts receivable based on a combination of factors. When aware of a specific customer's inability to meet its financial obligations, such as in the case of bankruptcy or deterioration in the customer's operating results or financial position, Atlas records a specific reserve for bad debt to reduce the related receivable to the amount Atlas reasonably believes is collectible. Atlas also records reserves for bad debt for all other customers based on a variety of factors, including the length of time the receivables are past due and historical collection experience. Accounts are reviewed for potential write-off on a case-by-case basis. Accounts deemed uncollectible are written off, net of expected recoveries. If circumstances related to specific customers change, estimates of the recoverability of receivables could be further adjusted. | |
Deferred policy acquisition costs (DPAC) | Deferred policy acquisition costs ("DPAC") - Atlas defers producers’ commissions, premium taxes and other underwriting costs directly relating to the successful acquisition of premiums written to the extent they are considered recoverable. These costs are then expensed as the related premiums are earned. The method followed in determining the deferred policy acquisition costs limits the deferral to its realizable value by giving consideration to estimated future claims and expenses to be incurred as premiums are earned. Changes in estimates, if any, are recorded in the accounting period in which they are determined. Anticipated investment income is included in determining the realizable value of the deferred policy acquisition costs. Atlas’ deferred policy acquisition costs are reported net of deferred ceding commissions. |
When anticipated losses, loss adjustment expenses, commissions and other acquisition costs exceed recorded unearned premium and any future installment premiums on existing policies, a premium deficiency reserve is recognized by recording a reduction to DPAC with a corresponding charge to operations. Atlas utilizes anticipated investment income as a factor in its premium deficiency calculation. Atlas concluded that no premium deficiency adjustments were necessary in either of the years ended December 31, 2014 and December 31, 2013. | |
Income Taxes | Income taxes - Income taxes expense (benefit) includes all taxes based on taxable income (loss) of Atlas and its subsidiaries, and are recognized in the statement of income and comprehensive income except to the extent that they relate to items recognized directly in other comprehensive income, in which case the income tax effect is also recognized in other comprehensive income. |
Deferred taxes are recognized using the asset and liability method of accounting. Under this method the future tax consequences attributable to temporary differences in the tax basis of assets, liabilities and items recognized directly in equity and the financial reporting basis of such items are recognized in the financial statements by recording deferred tax liabilities or deferred tax assets. | |
Deferred tax assets are recognized only to the extent that it is probable that future taxable income will be available against which they can be utilized. 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 future tax assets and liabilities of a change in tax rates is recognized in income in the period of enactment. | |
When considering the extent of the valuation allowance on Atlas' deferred tax asset, weight is given by management to both positive and negative evidence. U.S. GAAP states that a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome in determining that a valuation allowance is not needed against deferred tax assets. However, the strength and trend of earnings, as well as other relevant factors are considered. | |
Office equipment and software | Office equipment and software – Office equipment is stated at historical cost less depreciation. Subsequent costs are included in the asset’s carrying amount or capitalized as a separate asset only when it is probable that future economic benefits will be realized. Repairs and maintenance are recognized as an expense during the period incurred. Depreciation on equipment is provided on a straight-line basis over the estimated useful lives which range from 5 years for vehicles, 5 years for furniture, 3 years for software and computer equipment and the term of the lease for leased equipment. |
Rent expense for the lease on Atlas' headquarters is recognized on a straight-line basis over the life of the lease. | |
Insurance contracts | Insurance contracts – Contracts under which Atlas’ insurance subsidiaries accept risk at the inception of the contract from another party (the insured holder of the policy) by agreeing to compensate the policyholder or other insured beneficiary if a specified future event (the insured event) adversely affects the holder of the policy are classified as insurance contracts. All policies are short-duration contracts. |
Revenue Recognition | Revenue recognition - Premium income is recognized on a pro rata basis over the terms of the respective insurance contracts. Unearned premiums represent the portion of premiums written that are related to the unexpired terms of the policies in force. |
Claims liabilities | Claims liabilities - The provision for unpaid claims represent the estimated liabilities for reported claims, plus those incurred but not yet reported and the related estimated loss adjustment expenses, such as legal fees. Unpaid claims expenses are determined using case-basis evaluations and statistical analyses, including insurance industry loss data, and represent estimates of the ultimate cost of all claims incurred. Although considerable variability is inherent in such estimates, management believes that the liability for unpaid claims is adequate. The estimates are continually reviewed and adjusted as necessary; such adjustments are included in current operations and are accounted for as changes in estimates. |
Reinsurance | Reinsurance - As part of Atlas’ insurance risk management policies, portions of its insurance risk is ceded to reinsurers. Reinsurance premiums and claims expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums and claims ceded to other companies have been reported as a reduction of premium revenue and claims incurred expense. Commissions paid to Atlas by reinsurers on business ceded have been accounted for as a reduction of the related policy acquisition costs. Reinsurance receivables are recorded for that portion of paid and unpaid losses and loss adjustment expenses that are ceded to other companies. Prepaid reinsurance premiums are recorded for unearned premiums that have been ceded to other companies. |
Share-based payments | Share-based payments - Atlas has a stock-based compensation plan which is described fully in Note 12 of the Consolidated Financial Statements. Under U.S. GAAP, the fair-value method of accounting is used to determine and account for equity settled transactions and to determine stock-based compensation awards granted to employees and non-employees using the Black-Scholes option pricing model. Compensation expense is recognized over the period that the stock options vest, with a corresponding increase to additional paid in capital. |
For option awards with graded vesting, expense is recognized on a straight line basis over the service period for the entire award. | |
Operating segments | Operating segments - Atlas is in a single operating segment – property and casualty insurance. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Schedule of Assets Acquired and Liabilities Assumed Based on the Company's Assessment of Fair Value | The following table presents assets acquired and liabilities assumed from the Gateway acquisition based on the Company's assessment of fair value as of January 1, 2013: | |||
(in '000s) | ||||
Purchase Consideration | ||||
Cash | $ | 12,282 | ||
Preferred stock | 2,000 | |||
Total | $ | 14,282 | ||
Allocation of Purchase Price | ||||
Cash and investments | $ | 45,421 | ||
Accounts receivable and other assets | 9,249 | |||
Reinsurance recoverables | 6,007 | |||
Intangible assets | 740 | |||
Property and equipment | 923 | |||
Deferred policy acquisition costs | 1,234 | |||
Total Assets | $ | 63,574 | ||
Claims liabilities | $ | 36,209 | ||
Unearned premiums | 9,601 | |||
Accounts payable and other liabilities | 3,482 | |||
Total Liabilities | $ | 49,292 | ||
Net assets acquired | $ | 14,282 | ||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Ordinary and Restricted Common Shares | Earnings per ordinary and restricted common share (collectively, the "common shares") for the years ended December 31, 2014 and December 31, 2013 are as follows ($ in '000's except for share and per share amounts): | ||||||||
2014 | 2013 | ||||||||
Basic: | |||||||||
Net income attributable to Atlas | $ | 17,702 | $ | 6,180 | |||||
Add: Discount from preferred share buyback | — | 1,800 | |||||||
Less: Preferred share dividends | 94 | 619 | |||||||
Net income attributable to common shareholders for basic earnings per common share | $ | 17,608 | $ | 7,361 | |||||
Weighted average common shares outstanding | 10,937,181 | 8,007,458 | |||||||
Basic earnings per common share | $ | 1.61 | $ | 0.92 | |||||
Diluted: | |||||||||
Net income attributable to Atlas | $ | 17,702 | $ | 6,180 | |||||
Add: Discount from preferred share buyback | — | 1,800 | |||||||
Net income attributable to common shareholders for dilutive earnings per common share | $ | 17,702 | $ | 7,980 | |||||
Weighted average common shares outstanding | 10,937,181 | 8,007,458 | |||||||
Dilutive potential ordinary shares: | |||||||||
Dilutive stock options outstanding | 150,407 | 87,825 | |||||||
Dilutive warrants | — | 1,158,085 | |||||||
Dilutive shares upon preferred share conversion | 254,000 | 1,587,500 | |||||||
Dilutive average common shares outstanding | 11,341,588 | 10,840,868 | |||||||
Dilutive earnings per common share | $ | 1.56 | $ | 0.74 | |||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Investments [Abstract] | ||||||||||||||||
Schedule of Available-for-sale Securities | The amortized cost, gross unrealized gains and losses and fair value for Atlas’ investments in fixed maturities, equities and other investments are as follows (all amounts in '000s): | |||||||||||||||
31-Dec-14 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Fixed Income: | ||||||||||||||||
U.S. | Government | $ | 20,506 | $ | 32 | $ | 159 | $ | 20,379 | |||||||
Corporate | ||||||||||||||||
Banking/financial services | 15,551 | 215 | 31 | 15,735 | ||||||||||||
Consumer goods | 3,478 | 50 | 13 | 3,515 | ||||||||||||
Capital goods | 14,285 | 354 | 52 | 14,587 | ||||||||||||
Energy | 2,829 | — | 84 | 2,745 | ||||||||||||
Telecommunications/utilities | 5,297 | 67 | 8 | 5,356 | ||||||||||||
Health care | 1,948 | — | 16 | 1,932 | ||||||||||||
Total Corporate | 43,388 | 686 | 204 | 43,870 | ||||||||||||
Mortgage backed - agency | 30,772 | 250 | 160 | 30,862 | ||||||||||||
Mortgage backed - commercial | 16,774 | 79 | 269 | 16,584 | ||||||||||||
Total Mortgage Backed | 47,546 | 329 | 429 | 47,446 | ||||||||||||
Other asset backed | 15,261 | 20 | 27 | 15,254 | ||||||||||||
Total Fixed Income | $ | 126,701 | $ | 1,067 | $ | 819 | $ | 126,949 | ||||||||
Equities | 2,220 | 12 | 139 | 2,093 | ||||||||||||
Other investments | 14,366 | — | — | 14,366 | ||||||||||||
Totals | $ | 143,287 | $ | 1,079 | $ | 958 | $ | 143,408 | ||||||||
31-Dec-13 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Fixed Income: | ||||||||||||||||
U.S. | Government | $ | 22,067 | $ | 36 | $ | 620 | $ | 21,483 | |||||||
Corporate | ||||||||||||||||
Banking/financial services | 16,655 | 238 | 247 | 16,646 | ||||||||||||
Consumer goods | 5,044 | 28 | 77 | 4,995 | ||||||||||||
Capital goods | 12,951 | 208 | 180 | 12,979 | ||||||||||||
Energy | 3,928 | — | 114 | 3,814 | ||||||||||||
Telecommunications/utilities | 4,979 | 50 | 55 | 4,974 | ||||||||||||
Health care | 2,025 | — | 87 | 1,938 | ||||||||||||
Total Corporate | 45,582 | 524 | 760 | 45,346 | ||||||||||||
Mortgage backed - agency | 28,877 | 120 | 910 | 28,087 | ||||||||||||
Mortgage backed - commercial | 22,131 | 53 | 614 | 21,570 | ||||||||||||
Total Mortgage Backed | 51,008 | 173 | 1,524 | 49,657 | ||||||||||||
Other asset backed | 12,093 | 15 | 9 | 12,099 | ||||||||||||
Total Fixed Income | $ | 130,750 | $ | 748 | $ | 2,913 | $ | 128,585 | ||||||||
Equities | 258 | — | — | 258 | ||||||||||||
Other investments | 1,234 | — | — | 1,234 | ||||||||||||
Totals | $ | 132,242 | $ | 748 | $ | 2,913 | $ | 130,077 | ||||||||
Summary of Carrying Amounts of Fixed Income Securities, by Contractual Maturity | The following tables summarize carrying amounts of fixed income securities by contractual maturity (all amounts in '000s). As certain securities and debentures have the right to call or prepay obligations, the actual settlement dates may differ from contractual maturity. | |||||||||||||||
At December 31, 2014 | One year or less | One to five years | Five to ten years | More than ten years | Total | |||||||||||
Fixed income securities | $ | 1,875 | $ | 54,349 | $ | 23,166 | $ | 47,559 | $ | 126,949 | ||||||
Percentage of total | 1.5 | % | 42.8 | % | 18.2 | % | 37.5 | % | 100 | % | ||||||
At December 31, 2013 | One year or less | One to five years | Five to ten years | More than ten years | Total | |||||||||||
Fixed income securities | $ | 7,571 | $ | 43,693 | $ | 28,080 | $ | 49,241 | $ | 128,585 | ||||||
Percentage of total | 5.9 | % | 34 | % | 21.8 | % | 38.3 | % | 100 | % | ||||||
Summary of the Components of Net Investment Income | The following table summarizes the components of net investment income for the years ended December 31, 2014 and 2013 (all amounts in '000s): | |||||||||||||||
2014 | 2013 | |||||||||||||||
Total investment income | ||||||||||||||||
Interest income | $ | 2,848 | $ | 2,716 | ||||||||||||
Dividends | 20 | 9 | ||||||||||||||
Income (loss) from other investments | 693 | (84 | ) | |||||||||||||
Investment expenses | (451 | ) | (500 | ) | ||||||||||||
Net investment income | $ | 3,110 | $ | 2,141 | ||||||||||||
Summary of the Components of Net Investment Realized Gains | The following table summarizes the components of net investment realized gains for the years ended December 31, 2014 and 2013: | |||||||||||||||
2014 | 2013 | |||||||||||||||
Fixed income securities | $ | 376 | $ | 351 | ||||||||||||
Equities | 6 | 178 | ||||||||||||||
Net investment realized gains | $ | 382 | $ | 529 | ||||||||||||
Financial_and_Credit_Risk_Mana1
Financial and Credit Risk Management (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Financial and Credit Risk Management [Abstract] | |||||||||||||
Summary of Investments at Fair Value | The following table summarizes Atlas' investments at fair value as of December 31, 2014 and December 31, 2013 (all amounts in '000s): | ||||||||||||
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||
Fixed income securities | $ | 12,608 | $ | 114,341 | $ | — | $ | 126,949 | |||||
Equities | 2,093 | — | — | 2,093 | |||||||||
Other investments | — | 3,346 | 11,020 | $ | 14,366 | ||||||||
Totals | $ | 14,701 | $ | 117,687 | $ | 11,020 | $ | 143,408 | |||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||
Fixed income securities | $ | 12,624 | $ | 115,344 | $ | 617 | $ | 128,585 | |||||
Equities | 258 | — | — | 258 | |||||||||
Other investments | — | — | 1,234 | $ | 1,234 | ||||||||
Totals | $ | 12,882 | $ | 115,344 | $ | 1,851 | $ | 130,077 | |||||
Summary of Security Type Change in Fair Value of Investments Classified as Level 3 | Information by security type pertaining to the changes in fair value of the Company's investments classified as Level 3 for the years ended December 31, 2014 and 2013 are presented below (all amounts in '000s): | ||||||||||||
December 31, 2014 | Fixed Income Securities | Other Investments | Total | ||||||||||
Balance at beginning of year | $ | 617 | $ | 1,234 | $ | 1,851 | |||||||
Total gains included in: | |||||||||||||
Consolidated statement of income | 383 | 286 | 669 | ||||||||||
Purchases | — | 9,500 | 9,500 | ||||||||||
Settlements | (1,000 | ) | — | (1,000 | ) | ||||||||
Balance at end of year | $ | — | $ | 11,020 | $ | 11,020 | |||||||
December 31, 2013 | Fixed Income Securities | Other Investments | Total | ||||||||||
Balance at beginning of year | $ | 234 | $ | 1,262 | $ | 1,496 | |||||||
Total gains (losses) included in: | |||||||||||||
Consolidated statement of income | 383 | (28 | ) | 355 | |||||||||
Balance at end of year | $ | 617 | $ | 1,234 | $ | 1,851 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate was (48.3)% and 1.2% for the years ended December 31, 2014 and 2013, respectively, compared to the U.S. statutory income tax rate of 34% as shown below ($ in '000s): | |||||||||||||
2014 | 2013 | |||||||||||||
Amount | % | Amount | % | |||||||||||
Expected income tax expense at statutory rate | $ | 4,058 | 34 | % | $ | 2,126 | 34 | % | ||||||
Change in valuation allowance | (9,446 | ) | (79.1 | )% | (2,802 | ) | (44.8 | )% | ||||||
Nondeductible expenses | 136 | 1.1 | % | 100 | 1.6 | % | ||||||||
State tax (net of federal benefit) | 11 | 0.1 | % | 47 | 0.8 | % | ||||||||
Tax net operating loss limitation write-down (excluding valuation allowance) | (519 | ) | (4.3 | )% | 626 | 10 | % | |||||||
Other | (7 | ) | (0.1 | )% | (25 | ) | (0.4 | )% | ||||||
Total | $ | (5,767 | ) | (48.3 | )% | $ | 72 | 1.2 | % | |||||
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consists of the following for the years ended December 31, 2014 and 2013: | |||||||||||||
2014 | 2013 | |||||||||||||
Current tax expense | $ | 3,009 | $ | 1,144 | ||||||||||
Deferred tax benefit, net of change in valuation allowance | (8,776 | ) | (1,072 | ) | ||||||||||
Total | $ | (5,767 | ) | $ | 72 | |||||||||
Schedule of Deferred Tax Assets and Liabilities | The components of deferred income tax assets and liabilities as of December 31, 2014 and December 31, 2013 are as follows (all amounts in '000s): | |||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||
Deferred tax assets: | ||||||||||||||
Unpaid claims and unearned premiums | $ | 5,560 | $ | 4,783 | ||||||||||
Loss carryforwards | 14,212 | 15,265 | ||||||||||||
Bad debts | 191 | 264 | ||||||||||||
Other | 1,266 | 1,446 | ||||||||||||
Valuation allowance | — | (9,446 | ) | |||||||||||
Total deferred tax assets, net of allowance | 21,229 | 12,312 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||
Deferred policy acquisition costs | 2,776 | 2,269 | ||||||||||||
Securities | 740 | 345 | ||||||||||||
Other | 396 | 379 | ||||||||||||
Total gross deferred tax liabilities | 3,912 | 2,993 | ||||||||||||
Net deferred tax assets | $ | 17,317 | $ | 9,319 | ||||||||||
Summary of Operating Loss Carryforwards | Amounts and expiration dates of the operating loss carryforwards as of December 31, 2014 are as follows (all amounts in '000s): | |||||||||||||
Year of Occurrence | Year of Expiration | Amount | ||||||||||||
2001 | 2021 | $ | 7,734 | |||||||||||
2002 | 2022 | 4,317 | ||||||||||||
2006 | 2026 | 7,825 | ||||||||||||
2007 | 2027 | 5,131 | ||||||||||||
2008 | 2028 | 1,949 | ||||||||||||
2009 | 2029 | 1,949 | ||||||||||||
2010 | 2030 | 1,949 | ||||||||||||
2011 | 2031 | 8,371 | ||||||||||||
2012 | 2032 | 2,576 | ||||||||||||
Total | $ | 41,801 | ||||||||||||
Internal_Use_Software_and_Capi1
Internal Use Software and Capital Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Software and Office Equipment [Abstract] | ||||||||
Schedule of Internal Use Software and Capital Assets | Atlas held the following internal-use software and capital assets at December 31, 2014 and December 31, 2013 (excluding assets held for sale): | |||||||
2014 | 2013 | |||||||
Leasehold improvements | $ | 501 | $ | 501 | ||||
Internal use software | 7,372 | 6,344 | ||||||
Computer equipment | 1,844 | 1,750 | ||||||
Furniture and other office equipment | 397 | 394 | ||||||
Total | 10,114 | 8,989 | ||||||
Accumulated depreciation | (7,295 | ) | (6,489 | ) | ||||
Balance, end of period | $ | 2,819 | $ | 2,500 | ||||
Underwriting_Policy_and_Reinsu1
Underwriting Policy and Reinsurance Ceded (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Underwriting Policy and Reinsurance Ceded [Abstract] | |||||||
Summary of Gross Premiums Written and Ceded Premiums, Losses and Commissions | Gross premiums written and ceded premiums, losses and commissions as of and for the years ended December 31, 2014 and 2013 are as follows (all amounts in '000s): | ||||||
2014 | 2013 | ||||||
Direct premiums written | $ | 122,339 | $ | 92,487 | |||
Assumed premiums written | 93 | 573 | |||||
Ceded premiums written | 11,011 | 12,580 | |||||
Net premiums written | 111,421 | 80,480 | |||||
Ceded premiums earned | 9,589 | 12,542 | |||||
Ceded losses and loss adjustment expenses | 8,783 | 4,883 | |||||
Ceding commissions | 2,374 | 2,241 | |||||
Ceded unpaid losses and loss adjustment expenses | 18,421 | 18,144 | |||||
Prepaid reinsurance premiums | 3,628 | 2,207 | |||||
Other amounts due from reinsurers | 2,230 | 1,002 | |||||
Unpaid_Claims_Tables
Unpaid Claims (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Unpaid Claims [Abstract] | ||||||||
Summary of the Changes in the Provision for Unpaid Claims, Net of Amounts Recoverable from Reinsurers | The changes in the provision for unpaid claims, net of amounts recoverable from reinsurers, for the years ended December 31, 2014 and 2013 were as follows (all amounts in '000s): | |||||||
As of the year ended December 31, | 2014 | 2013 | ||||||
Unpaid claims, beginning of period | $ | 101,385 | $ | 70,067 | ||||
Less: reinsurance recoverable | 18,144 | 5,680 | ||||||
Net beginning unpaid claims reserves | 83,241 | 64,387 | ||||||
Net reserves acquired | — | 29,923 | ||||||
Loss portfolio transfer | 2,415 | (5,919 | ) | |||||
Incurred related to: | ||||||||
Current year | 61,680 | 45,604 | ||||||
Prior years | (602 | ) | 8 | |||||
61,078 | 45,612 | |||||||
Paid related to: | ||||||||
Current year | 19,427 | 12,874 | ||||||
Prior years | 43,298 | 37,888 | ||||||
62,725 | 50,762 | |||||||
Net unpaid claims, end of period | $ | 84,009 | $ | 83,241 | ||||
Add: reinsurance recoverable | 18,421 | 18,144 | ||||||
Unpaid claims, end of period | $ | 102,430 | $ | 101,385 | ||||
Stock_Options_and_Warrants_Tab
Stock Options and Warrants (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Stock Options and Warrants [Abstract] | |||||||||||
Schedule of Stock Option Activity | Stock options - Stock option activity for the years ended December 31, 2014 and 2013 follows (prices in Canadian dollars designated with "C$"): | ||||||||||
2014 | 2013 | ||||||||||
Number | Avg. Price | Number | Avg. Price | ||||||||
Outstanding, beginning of period | 224,623 | C$ | 6.05 | 133,955 | C$ | 5.76 | |||||
Granted | 175,000 | $ | 13.26 | 91,668 | C$ | 6.45 | |||||
Exercised | — | (1,000 | ) | C$ | 3 | ||||||
Outstanding, end of period | 399,623 | -1 | 224,623 | C$ | 6.05 | ||||||
1 - Options granted in Canadian dollars will be exercised at the appropriate conversion rate at the date of exercise. | |||||||||||
Schedule of Option Outstanding | Information about options outstanding at December 31, 2014 is as follows: | ||||||||||
Grant Date | Expiration Date | Number Outstanding | Number Exercisable | ||||||||
March 18, 2010 | March 15, 2020 | 9,700 | 9,700 | ||||||||
January 18, 2011 | January 18, 2021 | 123,255 | 123,255 | ||||||||
January 11, 2013 | January 11, 2023 | 91,668 | 30,557 | ||||||||
March 6, 2014 | March 6, 2024 | 175,000 | — | ||||||||
Total | 399,623 | 163,512 | |||||||||
Share_Capital_Tables
Share Capital (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Share Capital [Abstract] | |||||||||||||
Schedule of Share Capital for Common Shares | The share capital for the common shares is as follows: | ||||||||||||
At December 31, | 2014 | 2013 | |||||||||||
Shares Authorized | Shares Issued and Outstanding | Amount (in '000s) | Shares Issued and Outstanding | Amount (in '000s) | |||||||||
Ordinary | 266,666,667 | 11,638,723 | $ | 34 | 9,291,871 | $ | 28 | ||||||
Restricted | 33,333,334 | 132,863 | — | 132,863 | $ | — | |||||||
Total common shares | 300,000,001 | 11,771,586 | $ | 34 | 9,424,734 | $ | 28 | ||||||
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Policy Acquisition Costs [Abstract] | ||||||||
Deferred Policy Acquisition Costs | Deferred policy acquisition costs for the years ended December 31, 2014 and December 31, 2013 (in '000s): | |||||||
2014 | 2013 | |||||||
Balance, beginning of period | $ | 6,674 | $ | 3,764 | ||||
Acquisition costs deferred | 15,540 | 13,283 | ||||||
Amortization charged to income | 14,048 | 10,373 | ||||||
Balance, end of period | $ | 8,166 | $ | 6,674 | ||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Schedule of Quarterly Financial Data (Unaudited) | |||||||||||||
(in ‘000s, except per share data) | |||||||||||||
2014 | |||||||||||||
Q4 | Q3 | Q2 | Q1 | ||||||||||
Gross premium written | $ | 26,361 | $ | 42,046 | $ | 22,801 | $ | 31,224 | |||||
Net premium earned | 27,289 | 25,575 | 23,306 | 21,954 | |||||||||
Underwriting income | 3,164 | 2,666 | 1,883 | 1,422 | |||||||||
Net income attributable to Atlas | 9,458 | 3,493 | 2,559 | 2,192 | |||||||||
Net income attributable to common shareholders | 9,434 | 3,469 | 2,536 | 2,169 | |||||||||
Basic earnings per common share | $ | 0.8 | $ | 0.29 | $ | 0.24 | $ | 0.23 | |||||
Diluted earnings per common share | $ | 0.77 | $ | 0.29 | $ | 0.23 | $ | 0.22 | |||||
(in ‘000s, except per share data) | |||||||||||||
2013 | |||||||||||||
Q4 | Q3 | Q2 | Q1 | ||||||||||
Gross premium written | $ | 22,069 | $ | 32,075 | $ | 16,562 | $ | 22,354 | |||||
Net premium earned | 20,512 | 17,976 | 16,968 | 15,888 | |||||||||
Underwriting income | 1,753 | 1,096 | 828 | 298 | |||||||||
Net income attributable to Atlas | 2,178 | 1,699 | 1,701 | 602 | |||||||||
Net income attributable to common shareholders | 2,155 | 3,404 | 1,476 | 326 | |||||||||
Basic earnings per common share | $ | 0.25 | $ | 0.41 | $ | 0.18 | $ | 0.05 | |||||
Diluted earnings per common share | $ | 0.22 | $ | 0.35 | $ | 0.15 | $ | 0.05 | |||||
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Atlas has the following future minimum rentals, related principally to office space, required under operating leases having initial or remaining noncancelable lease terms in excess of one year as of December 31, 2014 (all amounts in '000s): | ||||||||||||||||||
Year | 2015 | 2016 | 2017 | 2018 | 2019 & Beyond | Total | |||||||||||||
Amount | $ | 1,186 | $ | 845 | $ | 281 | $ | — | $ | — | $ | 2,312 | |||||||
Nature_of_Operations_and_Basis2
Nature of Operations and Basis of Presentation Office Equipment and Software (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Furniture | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Software and Development Costs | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Computer Equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Nature_of_Operations_and_Basis3
Nature of Operations and Basis of Presentation Operating Segments (Details) | 12 Months Ended |
Dec. 31, 2014 | |
segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
Jan. 02, 2013 | Dec. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 | |
state | ||||||
Business Acquisition [Line Items] | ||||||
Net written premiums | $111,421,000 | $80,480,000 | ||||
Total purchase price | 14,282,000 | |||||
Cash | 12,282,000 | |||||
Preferred stock | 2,000,000 | |||||
Equity interest issued (in shares) | 2,000,000 | |||||
Reserve development protection | 2,000,000 | |||||
Expenses incurred related to acquisitions | 694,000 | 406,000 | 694,000 | 406,000 | ||
Anchor Holdings Group, Inc. et. al. | Subsequent Event | ||||||
Business Acquisition [Line Items] | ||||||
Net written premiums | 40,000,000 | |||||
Number of states in which entity operates | 13 | |||||
Total purchase price | 24,700,000 | |||||
Cash | 20,700,000 | |||||
Reserve development protection | 4,000,000 | |||||
Anchor Holdings Group, Inc. et. al. | Subsequent Event | Nonredeemable Convertible Preferred Stock | ||||||
Business Acquisition [Line Items] | ||||||
Preferred stock | $4,000,000 | |||||
Equity interest issued (in shares) | 4,000,000 |
Acquisitions_Gateway_Acquisiti
Acquisitions Gateway Acquisition (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 02, 2013 | Dec. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||||
Total purchase price | $14,282,000 | ||||
Cash | 12,282,000 | ||||
Preferred stock | 2,000,000 | ||||
Equity interest issued (in shares) | 2,000,000 | ||||
Reserve development protection | 2,000,000 | ||||
Reserve development protection payable | 2,000,000 | ||||
Intangible assets | 740,000 | ||||
Expenses incurred related to acquisitions | 694,000 | 406,000 | 694,000 | 406,000 | |
Severance costs | 337,000 | ||||
Integration related costs | 372,000 | ||||
Dividend Paid By Gateway | |||||
Business Acquisition [Line Items] | |||||
Cash | 6,000,000 | ||||
Cash Paid By Atlas | |||||
Business Acquisition [Line Items] | |||||
Cash | $6,300,000 |
Acquisitions_Gateway_Insurance
Acquisitions Gateway Insurance Company Purchase Price Allocation (Details) (USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jan. 02, 2013 |
Purchase Consideration | |
Cash | $12,282 |
Preferred stock | 2,000 |
Total | 14,282 |
Business Combination, Recognized Identifiable Assets Acquired | |
Cash and investments | 45,421 |
Accounts receivable and other assets | 9,249 |
Reinsurance recoverables | 6,007 |
Intangible assets | 740 |
Property and equipment | 923 |
Deferred policy acquisition costs | 1,234 |
Total Assets | 63,574 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |
Claims liabilities | 36,209 |
Unearned premiums | 9,601 |
Accounts payable and other liabilities | 3,482 |
Total Liabilities | 49,292 |
Net assets acquired | $14,282 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 01, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net income attributable to Atlas | $9,458 | $3,493 | $2,559 | $2,192 | $2,178 | $1,699 | $1,701 | $602 | $17,702 | $6,180 | |
Add: Discount from preferred share buyback | 0 | 1,800 | |||||||||
Less: Preferred share dividends | 94 | 619 | |||||||||
Net income attributable to common shareholders | 9,434 | 3,469 | 2,536 | 2,169 | 2,155 | 3,404 | 1,476 | 326 | 17,608 | 7,361 | |
Net income attributable to common shareholders for dilutive earnings per common share | $17,702 | $7,980 | |||||||||
Basic: | |||||||||||
Weighted average common shares outstanding (in shares) | 10,937,181 | 8,007,458 | |||||||||
Earnings per common share, basic (USD per share) | $0.80 | $0.29 | $0.24 | $0.23 | $0.25 | $0.41 | $0.18 | $0.05 | $1.61 | $0.92 | |
Diluted: | |||||||||||
Dilutive stock options outstanding (in shares) | 150,407 | 87,825 | |||||||||
Dilutive warrants (in shares) | 0 | 1,158,085 | |||||||||
Dilutive shares upon preferred share conversion (in shares) | 254,000 | 1,587,500 | |||||||||
Dilutive average common shares outstanding (in shares) | 11,341,588 | 10,840,868 | |||||||||
Earnings per common share, diluted (USD per share) | $0.77 | $0.29 | $0.23 | $0.22 | $0.22 | $0.35 | $0.15 | $0.05 | $1.56 | $0.74 | |
Warrants, Outstanding | 0 | 0 | |||||||||
Number of ordinary shares for each preferred share converted (in shares) | 0.127 | 0.127 | |||||||||
Incremental common shares attributable to dilutive effect of conversion of preferred stock, redemption adjustment (in shares) | 1,333,500 | ||||||||||
Decrease in diluted earnings per share upon preferred share conversion (in USD per share) | $0.10 | ||||||||||
Preferred Shares | |||||||||||
Diluted: | |||||||||||
Preferred shares repurchased (in shares) | 18,000,000 | ||||||||||
Preferred shares potentially convertible to ordinary common shares at the option of the holder (in shares) | 2,000,000 |
Schedule_of_AvailableforSale_S
Schedule of Available-for-Sale Securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $143,287 | $132,242 |
Gross Unrealized Gains | 1,079 | 748 |
Gross Unrealized Losses | 958 | 2,913 |
Fair Value | 143,408 | 130,077 |
Fixed Income, U.S., Government Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 20,506 | 22,067 |
Gross Unrealized Gains | 32 | 36 |
Gross Unrealized Losses | 159 | 620 |
Fair Value | 20,379 | 21,483 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 43,388 | 45,582 |
Gross Unrealized Gains | 686 | 524 |
Gross Unrealized Losses | 204 | 760 |
Fair Value | 43,870 | 45,346 |
Corporate Debt Securities, Banking and Financial Services [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,551 | 16,655 |
Gross Unrealized Gains | 215 | 238 |
Gross Unrealized Losses | 31 | 247 |
Fair Value | 15,735 | 16,646 |
Corporate Debt Securities, Consumer Goods [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,478 | 5,044 |
Gross Unrealized Gains | 50 | 28 |
Gross Unrealized Losses | 13 | 77 |
Fair Value | 3,515 | 4,995 |
Corporate Debt Securities, Corporate, Capital Goods [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 14,285 | 12,951 |
Gross Unrealized Gains | 354 | 208 |
Gross Unrealized Losses | 52 | 180 |
Fair Value | 14,587 | 12,979 |
Corporate Debt Securities, Energy [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,829 | 3,928 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 84 | 114 |
Fair Value | 2,745 | 3,814 |
Corporate Debt Securities, Telecommunications and Utilities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,297 | 4,979 |
Gross Unrealized Gains | 67 | 50 |
Gross Unrealized Losses | 8 | 55 |
Fair Value | 5,356 | 4,974 |
Corporate Debt Securities, Health Care [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,948 | 2,025 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 16 | 87 |
Fair Value | 1,932 | 1,938 |
Fixed Income, U.S., Mortgage Backed, Total [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 47,546 | 51,008 |
Gross Unrealized Gains | 329 | 173 |
Gross Unrealized Losses | 429 | 1,524 |
Fair Value | 47,446 | 49,657 |
Mortgage Backed Securities, Agency [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 30,772 | 28,877 |
Gross Unrealized Gains | 250 | 120 |
Gross Unrealized Losses | 160 | 910 |
Fair Value | 30,862 | 28,087 |
Mortgage Backed Securities, Commercial [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,774 | 22,131 |
Gross Unrealized Gains | 79 | 53 |
Gross Unrealized Losses | 269 | 614 |
Fair Value | 16,584 | 21,570 |
Other Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,261 | 12,093 |
Gross Unrealized Gains | 20 | 15 |
Gross Unrealized Losses | 27 | 9 |
Fair Value | 15,254 | 12,099 |
Fixed income securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 126,701 | 130,750 |
Gross Unrealized Gains | 1,067 | 748 |
Gross Unrealized Losses | 819 | 2,913 |
Fair Value | 126,949 | 128,585 |
Equities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,220 | 258 |
Gross Unrealized Gains | 12 | 0 |
Gross Unrealized Losses | 139 | 0 |
Fair Value | 2,093 | 258 |
Other Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 14,366 | 1,234 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $14,366 | $1,234 |
Investments_Limited_Liability_
Investments Limited Liability Investment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Investments [Abstract] | ||
Impairment losses, investments | $311,000 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate loss | 235,000 | |
Fair value of securities currently in an unrealized loss position | 63,500,000 | |
Gross Unrealized Losses | $958,000 | $2,913,000 |
Investments_Classified_by_Cont
Investments Classified by Contractual Maturity (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ||
One year or less | $1,875 | $7,571 |
One year or less, percentage of total | 1.50% | 5.90% |
One to five years | 54,349 | 43,693 |
One to five years, percentage of total | 42.80% | 34.00% |
Five to ten years | 23,166 | 28,080 |
Five to ten years, percentage of total | 18.20% | 21.80% |
More than five years | 47,559 | 49,241 |
More than five years, percentage of total | 37.50% | 38.30% |
Fixed income securities | $126,949 | $128,585 |
Schedule_of_Investment_Income_
Schedule of Investment Income (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Investments [Abstract] | ||
Investment interest income | $2,848 | $2,716 |
Investment income, dividends | 20 | 9 |
Investment income from other investments | 693 | -84 |
Investment expenses | -451 | -500 |
Net investment income | $3,110 | $2,141 |
Investments_Schedule_of_Invest
Investments Schedule of Investment Gains (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Investments [Abstract] | ||
Fixed income securities | $376 | $351 |
Equities | 6 | 178 |
Net investment realized gains | $382 | $529 |
Collateral_Details
Collateral (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments [Abstract] | ||
Bonds and term deposits. fair value | $14.50 | $14.50 |
Available-for-sale securities pledged as collateral | $6.80 | $7.90 |
Fair_Value_of_Assets_Measeured
Fair Value of Assets Measeured on Recurring and Nonrecurring Basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | $126,949 | $128,585 |
Equities | 2,093 | 258 |
Other investments | 14,366 | 1,234 |
Total Investments | 143,408 | 130,077 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 14,701 | 12,882 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 117,687 | 115,344 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 11,020 | 1,851 |
Fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 126,949 | 128,585 |
Total Investments | 126,949 | 128,585 |
Fixed income securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 12,608 | 12,624 |
Fixed income securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 114,341 | 115,344 |
Fixed income securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 0 | 617 |
Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 2,093 | 258 |
Total Investments | 2,093 | 258 |
Equities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 2,093 | 258 |
Equities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
Equities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 0 | 0 |
Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 14,366 | 1,234 |
Other investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Other investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 3,346 | 0 |
Other investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | $11,020 | $1,234 |
Financial_and_Credit_Risk_Mana2
Financial and Credit Risk Management Summary of Change in Level 3 Investments (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of year | $1,851 | $1,496 |
Gains (losses) included in earnings | 669 | 355 |
Purchases | 9,500 | |
Settlements | -1,000 | |
Balance at end of year | 11,020 | 1,851 |
Fixed income securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of year | 617 | 234 |
Gains (losses) included in earnings | 383 | 383 |
Settlements | -1,000 | |
Balance at end of year | 0 | 617 |
Other investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of year | 1,234 | 1,262 |
Gains (losses) included in earnings | 286 | -28 |
Purchases | 9,500 | |
Balance at end of year | $11,020 | $1,234 |
Statutory_Accounting_Measureme
Statutory Accounting Measurements (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Statutory Accounting Practices [Line Items] | ||
Allowance for bad debt | $560,000 | $776,000 |
Increase in allowance for bad debt | 216,000 | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 63,000,000 | 53,100,000 |
American Country Insurance Company | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Net Income (Loss) Amount | 2,000,000 | 1,600,000 |
American Service Insurance Company, Inc | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Net Income (Loss) Amount | 4,000,000 | 3,600,000 |
Gateway Insurance Company | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Net Income (Loss) Amount | 1,700,000 | 2,100,000 |
Illinois | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 1,500,000 | |
Missouri | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | $2,400,000 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate | -48.30% | 1.20% |
Federal net operating loss carryforward | $14,212 | $15,265 |
Valuation allowance | $0 | $9,446 |
Income_Tax_Rate_Reconciliation
Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Expected income tax expense at statutory rate | $4,058 | $2,126 |
Change in valuation allowance | -9,446 | -2,802 |
Nondeductible expenses | 136 | 100 |
State tax (net of federal benefit) | 11 | 47 |
Tax net operating loss limitation write-down (excluding valuation allowance) | -519 | 626 |
Other | -7 | -25 |
Total | ($5,767) | $72 |
Expected income tax expense at statutory rate, percent | 34.00% | 34.00% |
Change in valuation allowance, percent | -79.10% | -44.80% |
Nondeductible expenses, percent | 1.10% | 1.60% |
State tax (net of federal benefit), percent | 0.10% | 0.80% |
Tax net operating loss limitation write-down (excluding valuation allowance), percent | -4.30% | 10.00% |
Other, percent | -0.10% | -0.40% |
Effective Income Tax Rate | -48.30% | 1.20% |
Components_of_Income_Tax_Expen
Components of Income Tax Expense (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Current tax expense | $3,009 | $1,144 |
Deferred tax benefit, net of change in valuation allowance | -8,776 | -1,072 |
Total | ($5,767) | $72 |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Unpaid claims and unearned premiums | $5,560 | $4,783 |
Loss carryforwards | 14,212 | 15,265 |
Bad debts | 191 | 264 |
Other | 1,266 | 1,446 |
Valuation allowance | 0 | -9,446 |
Total deferred tax assets, net of allowance | 21,229 | 12,312 |
Deferred tax liabilities: | ||
Investment securities | 2,776 | 2,269 |
Deferred policy acquisition costs | 740 | 345 |
Other | 396 | 379 |
Total gross deferred tax liabilities | 3,912 | 2,993 |
Net deferred tax assets | $17,317 | $9,319 |
Schedule_of_Tax_Carryforwards_
Schedule of Tax Carryforwards (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | $41,801 |
Carryforward Expiring in 2021 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 7,734 |
Carryforward Expiring in 2022 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 4,317 |
Carryforward Expiring in 2026 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 7,825 |
Carryforward Expiring in 2027 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 5,131 |
Carryforward Expiring in 2028 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 1,949 |
Carryforward Expiring in 2029 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 1,949 |
Carryforward Expiring in 2030 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 1,949 |
Carryforward Expiring in 2031 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 8,371 |
Carryforward Expiring in 2032 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | $2,576 |
Internal_Use_Software_and_Capi2
Internal Use Software and Capital Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Software and Office Equipment [Abstract] | ||
Leasehold improvements | $501 | $501 |
Internal use software | 7,372 | 6,344 |
Computer equipment | 1,844 | 1,750 |
Furniture and other office equipment | 397 | 394 |
Total | 10,114 | 8,989 |
Accumulated depreciation | -7,295 | -6,489 |
Balance, end of period | $2,819 | $2,500 |
Underwriting_Policy_and_Reinsu2
Underwriting Policy and Reinsurance Ceded (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Underwriting Policy and Reinsurance Ceded [Abstract] | |||||||||||
Direct premiums written | $26,361 | $42,046 | $22,801 | $31,224 | $22,069 | $32,075 | $16,562 | $22,354 | $122,339 | $92,487 | |
Assumed premiums written | 93 | 573 | |||||||||
Ceded premiums written | 11,011 | 12,580 | |||||||||
Net premiums written | 111,421 | 80,480 | |||||||||
Ceded premiums earned | 9,589 | 12,542 | |||||||||
Ceded losses and loss adjustment expenses | 8,783 | 4,883 | |||||||||
Ceding commissions | 2,374 | 2,241 | |||||||||
Ceded unpaid losses and loss adjustment expenses | 18,421 | 18,144 | 18,421 | 18,144 | 5,680 | ||||||
Prepaid reinsurance premiums | 3,628 | 2,207 | 3,628 | 2,207 | |||||||
Other amounts due from reinsurers | $2,230 | $1,002 | $2,230 | $1,002 |
Unpaid_Claims_Details
Unpaid Claims (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Unpaid claims, beginning of period | $101,385 | $70,067 |
Less: reinsurance recoverable | 18,144 | 5,680 |
Net beginning unpaid claims reserves | 83,241 | 64,387 |
Net reserves acquired | 0 | 29,923 |
Loss portfolio transfer | 2,415 | -5,919 |
Incurred related to: | ||
Incurred related to, current year | 61,680 | 45,604 |
Incurred related to, prior years | -602 | 8 |
Total incurred current and prior years | 61,078 | 45,612 |
Paid related to: | ||
Paid related to, current year | 19,427 | 12,874 |
Paid related to, prior years | 43,298 | 37,888 |
Total paid related to, current and prior years | 62,725 | 50,762 |
Net unpaid claims, end of period | 84,009 | 83,241 |
Reinsurance recoverable | 18,421 | 18,144 |
Unpaid claims, end of period | 102,430 | 101,385 |
Property and Casualty, Commercial Insurance Product Line | ||
Incurred related to: | ||
Incurred related to, prior years | -352 | |
Non-core Lines of Business | ||
Incurred related to: | ||
Incurred related to, prior years | ($250) |
Schedule_of_Activity_Related_S
Schedule of Activity Related Share-Based Compensation (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
USD ($) | CAD | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options, outstanding (in shares), beginning of period | 133,955 | |
Options, granted in period (in shares) | 175,000 | 91,668 |
Options, exercised in period (in shares) | 0 | -1,000 |
Options, outstanding (in shares), end of period | 399,623 | 224,623 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Options, outstanding, weighted average exercise price (in CAD per share), beginning balance | 5.76 | |
Options, grants in period, weighted average exercise price | $13.26 | 6.45 |
Options, exercised in period, weighted average exercise price (in CAD per share) | 3 | |
Options, outstanding, weighted average exercise price (in CAD per share), end of period | 6.05 |
Stock_Options_and_Warrants_Sch
Stock Options and Warrants Schedule of Outstanding Options (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, outstanding (in shares) | 399,623 | 224,623 | 133,955 |
Options, exercisable (in shares) | 163,512 | ||
18-Mar-10 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, outstanding (in shares) | 9,700 | ||
Options, exercisable (in shares) | 9,700 | ||
18-Jan-11 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, outstanding (in shares) | 123,255 | ||
Options, exercisable (in shares) | 123,255 | ||
11-Jan-13 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, outstanding (in shares) | 91,668 | ||
Options, exercisable (in shares) | 30,557 | ||
6-Mar-14 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, outstanding (in shares) | 175,000 | ||
Options, exercisable (in shares) | 0 |
Supplementary_Dislcosures_Rela
Supplementary Dislcosures Related to Stock Options (Details) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 06, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jun. 17, 2013 | Mar. 18, 2010 | Dec. 31, 2014 | Jan. 18, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 06, 2014 | Jan. 11, 2013 | Jan. 11, 2013 | Dec. 31, 2014 | Mar. 06, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | CAD | CAD | 18-Mar-10 | 18-Jan-11 | Prior to December 31, 2013 | 11-Jan-13 | 6-Mar-14 | Minimum [Member] | Maximum | Equity Incentive Plan | Director | Director | Director and Officer [Member] | Director and Officer [Member] | Director and Officer [Member] | Director and Officer [Member] | Director and Officer [Member] | Director and Officer [Member] | Officer | Officer | Officer | Officer | Officer | Officer | ||
Rate | CAD | USD ($) | USD ($) | 18-Mar-10 | Equity Incentive Plan | Ordinary Shares | Ordinary Shares | Equity Incentive Plan | Equity Incentive Plan | Equity Incentive Plan | Equity Incentive Plan | Ordinary Shares | Ordinary Shares | Ordinary Shares | Ordinary Shares | Ordinary Shares | Ordinary Shares | ||||||||||
CAD | Restricted Stock | 18-Jan-11 | 18-Jan-11 | Ordinary Shares | Restricted Stock | Restricted Stock | Restricted Stock Units (RSUs) | USD ($) | CAD | 11-Jan-13 | 11-Jan-13 | 6-Mar-14 | 6-Mar-14 | ||||||||||||||
USD ($) | CAD | CAD | USD ($) | Each Anniversary of Grant Date | CAD | USD ($) | |||||||||||||||||||||
Rate | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Options, grants in period, weighted average exercise price | $13.26 | 6.45 | 3 | 6 | 6.45 | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 175,000 | 123,255 | 91,668 | ||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||||||||||||||||||||||||||
Employee Service Share Based Compensation Nonvested Awards Cost Recognized Per Month | $38,000 | ||||||||||||||||||||||||||
Equity Incentive Plan, Director Threshold by Direct or Indirect Purchase of Stock, Maximum | 100,000 | ||||||||||||||||||||||||||
Equity Incentive Plan, Ratio Conversion of Restricted Stock Based on Aggregate Purchase Price of Shares | 3 | ||||||||||||||||||||||||||
Deferred Compensation Arrangement with Individual, Shares Issued | 148,152 | 37,038 | |||||||||||||||||||||||||
Share Price | $8.10 | ||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 399,623 | 224,623 | 224,623 | 133,955 | 9,700 | 123,255 | 91,668 | 175,000 | |||||||||||||||||||
Share Based Compensation Arrangements By Share Based Payment Award Options Grants in Period Exercise Price | $13.26 | ||||||||||||||||||||||||||
Options, granted in period (in shares) | 175,000 | 91,668 | 91,668 | 37,700 | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 3.72 | 4.54 | $7.03 | ||||||||||||||||||||||||
Risk free interest rate, minimum | 1.88% | ||||||||||||||||||||||||||
Risk free interest rate, maximum | 3.18% | ||||||||||||||||||||||||||
Expected dividend rate | 0.00% | ||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 38.00% | ||||||||||||||||||||||||||
Expected volatility rate | 100.00% | ||||||||||||||||||||||||||
Expected term, minimum | 6 years | 10 years | |||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 1,500,000 | 247,000 | |||||||||||||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 2,000,000 | ||||||||||||||||||||||||||
Unrecognized stock compensation expense, period for recognition | 50 months | ||||||||||||||||||||||||||
Options, outstanding, weighted average exercise price (in CAD per share) | 6.05 | 5.76 | 6.05 | $13.26 | |||||||||||||||||||||||
Shares authorized under stock option plans, exercise price range, outstanding options, weighted average remaining contractual term | 7 years 10 months 10 days | ||||||||||||||||||||||||||
Options, outstanding, intrinsic value | $3,000,000 |
Warrants_Details
Warrants (Details) (CAD) | Dec. 31, 2013 | Nov. 01, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants to purchase ordinary voting shares | 1,327,840 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | 6 | |
Ordinary Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common Stock, Subscription Receipts Issued | 1,327,840 | |
Warrants to purchase ordinary voting shares | 1,327,840 |
Defined_Contribution_Plan_Deta
Defined Contribution Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Other Employee Benefit Plans [Abstract] | ||
Defined contribution plan, maximum annual contributions per employee, percent | 60.00% | |
Defined contribution plan, maximum annual contributions per employee, amount | $17,500 | |
Defined contribution plan, additional annual contributions for employees over 50 years old, amount | 5,500 | |
Defined contribution plan, employer matching contribution, percent of match | 100.00% | |
Defined contribution plan, employer matching contribution, percent of employees gross pay | 2.50% | |
Percent of additional contributions made by employees over the age of 50 that employer will match | 50.00% | |
Defined Contribution Plan Employer Additional Contribution Matching Percent of Employees Gross Pay | 2.50% | |
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 3.75% | |
Employers matching contribution, annual vesting percentage | 100.00% | |
Defined contribution plan, employers matching contribution, vesting period | 5 years | |
Defined contribution plan, cost recognized | $204,000 | $118,000 |
Employee_Stock_Purchase_Plan_D
Employee Stock Purchase Plan (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Other Employee Benefit Plans [Abstract] | ||
Employee stock purchase plan, hours of week threshold for investing in ordinary voting common shares | 30 hours | |
Employee stock purchase plan, maximum expense of annual earnings per participant percentage | 5.00% | |
Employee stock purchase plan, employer matching contribution percent of match | 100.00% | |
Employee stock purchase plan employer matching contribution of employees gross pay | 2.50% | |
Employee stock purchase plan employer matching contribution percent of employees over 50 years of age additional contribution | 50.00% | |
Employee stock purchase plan employer additional contribution matching percent of employees gross pay | 5.00% | |
Employee stock purchase plan employer maximum contribution percentage | 5.00% | |
Expenses related to employee stock purchase plan | $113 | $58 |
Share_Capital_Reverse_Stock_Sp
Share Capital Reverse Stock Split (Details) | 0 Months Ended |
Dec. 07, 2012 | |
Share Capital [Abstract] | |
Reverse stock split ratio | 0.3333 |
Schedule_of_Stock_by_Class_Det
Schedule of Stock by Class (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Class of Stock [Line Items] | ||
Common shares, shares authorized (in shares) | 300,000,001 | |
Common stock, shares, outstanding | 11,771,586 | 9,424,734 |
Common stock, value, outstanding | $34 | $28 |
Ordinary Shares | ||
Class of Stock [Line Items] | ||
Common shares, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common stock, shares, outstanding | 11,638,723 | 9,291,871 |
Common stock, value, outstanding | 34 | 28 |
Restricted Stock | ||
Class of Stock [Line Items] | ||
Common shares, shares authorized (in shares) | 33,333,334 | 33,333,334 |
Common stock, shares, outstanding | 132,863 | 132,863 |
Common stock, value, outstanding | $0 | $0 |
Share_Capital_Initial_Public_O
Share Capital Initial Public Offering (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 11, 2013 | Feb. 11, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | ||||
Shares Sold in U.S. Initial Public Offering | 4,125,000 | |||
Initial Public Offering, Price Per Share | $5.85 | |||
Additional Shares to be Purchased by Underwriters to Cover Overallotments | 618,750 | |||
Proceeds from initial public offering, net of offering costs | $9,800 | $0 | $9,756 | |
Shares Sold by Atlas | ||||
Class of Stock [Line Items] | ||||
Shares Sold in U.S. Initial Public Offering | 1,500,000 | |||
Shares Sold by Kingsway | ||||
Class of Stock [Line Items] | ||||
Shares Sold in U.S. Initial Public Offering | 2,625,000 | |||
Shares Issued to Underwriters to Cover Over-allotments | ||||
Class of Stock [Line Items] | ||||
Stock issued | 451,500 |
Share_Capital_Stock_Repurchase
Share Capital Stock Repurchased (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
13-May-14 | Feb. 11, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 01, 2013 | 27-May-14 | Nov. 01, 2010 | Nov. 13, 2013 | Oct. 18, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Payments of dividends | $0 | $2,145,000 | |||||||
Benefit related to the discount on repurchase of stock | 0 | 1,800,000 | |||||||
Common stock, other value, outstanding (in shares) | 0 | 0 | |||||||
Warrants to purchase ordinary voting shares | 1,327,840 | ||||||||
Options, exercised in period (in shares) | 0 | 1,000 | |||||||
Common stock, shares issued | 1,328,840 | ||||||||
Shares Issued, Price Per Share | $12.50 | ||||||||
Additional Shares to be Purchased by Underwriters to Cover Overallotments | 618,750 | ||||||||
Proceeds from Issuance of Common Stock, Net | 25,000,000 | ||||||||
Preferred stock, dividend rate (in USD per share) | $0.05 | ||||||||
Preferred stock, dividend rate, percentage | 4.50% | ||||||||
Preferred stock, liquidation preference per hare (USD per share) | $1 | $1 | |||||||
Convertible preferred stock, shares issued upon conversion | 0.127 | ||||||||
Preferred stock, redemption price per share | $1 | ||||||||
Preferred stock, amount of preferred dividends in arrears | 184,000 | ||||||||
Preferred stock, per share amounts of preferred dividends in arrears | $0.02 | ||||||||
Preferred Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Preferred shares repurchased (in shares) | 18,000,000 | ||||||||
Ordinary Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Warrants to purchase ordinary voting shares | 1,327,840 | ||||||||
Stock issued | 2,000,000 | ||||||||
Shares Issued, Price Per Share | $12.50 | ||||||||
Additional Shares to be Purchased by Underwriters to Cover Overallotments | 300,000 | ||||||||
Shares Sold by Kingsway | Kingsway | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Benefit related to the discount on repurchase of stock | 1,800,000 | ||||||||
Shares Sold by Kingsway | Kingsway | Preferred Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Preferred shares repurchased (in shares) | 18,000,000 | ||||||||
Shares Sold by Kingsway | Kingsway | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock, other value, outstanding (in shares) | $132,863 | $600,000 | $529,608 | ||||||
Common Stock Other Value Outstanding Ownership Percentage | 1.40% | ||||||||
Over-Allotment Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock issued | 161,000 |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | $6,674 | $3,764 |
Acquisition costs deferred | 15,540 | 13,283 |
Amortization charged to income | 14,048 | 10,373 |
Balance, end of period | $8,166 | $6,674 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Gross premium written | $26,361 | $42,046 | $22,801 | $31,224 | $22,069 | $32,075 | $16,562 | $22,354 | $122,339 | $92,487 |
Net premium earned | 27,289 | 25,575 | 23,306 | 21,954 | 20,512 | 17,976 | 16,968 | 15,888 | 98,124 | 71,344 |
Underwriting income/(loss) | 3,164 | 2,666 | 1,883 | 1,422 | 1,753 | 1,096 | 828 | 298 | ||
Net income attributable to Atlas | 9,458 | 3,493 | 2,559 | 2,192 | 2,178 | 1,699 | 1,701 | 602 | 17,702 | 6,180 |
Net income/(loss) attributable to common shareholders | $9,434 | $3,469 | $2,536 | $2,169 | $2,155 | $3,404 | $1,476 | $326 | $17,608 | $7,361 |
Basic earnings/(loss) per common share (USD per share) | $0.80 | $0.29 | $0.24 | $0.23 | $0.25 | $0.41 | $0.18 | $0.05 | $1.61 | $0.92 |
Diluted earnings/(loss) per common share (USD per share) | $0.77 | $0.29 | $0.23 | $0.22 | $0.22 | $0.35 | $0.15 | $0.05 | $1.56 | $0.74 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | 22-May-12 | Dec. 31, 2014 | Dec. 31, 2013 | 22-May-12 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Deferred gain | $213 | |||
Lease term | 5 years | |||
Gain recognized in period | 43 | 43 | ||
Rent expense | $707 | $699 |
Commitments_and_Contingencies_3
Commitments and Contingencies Operating Lease Payment Due on HQ Building (Details) (Elk Grove Village Headquarters Building, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Elk Grove Village Headquarters Building | |
Minimum Lease Payments Related to Elk Grove Village HQ Building [Line Items] | |
2015 | $1,186 |
2016 | 845 |
2017 | 281 |
2018 | 0 |
2019 & Beyond | 0 |
Operating Leases, Future Minimum Payments Due | $2,312 |
Line_of_Credit_Details
Line of Credit (Details) (Loan Agreement, Revolving Credit Facility, USD $) | 0 Months Ended | 2 Months Ended | ||
7-May-14 | Jun. 30, 2014 | Dec. 31, 2014 | 7-May-14 | |
Line of Credit Facility [Line Items] | ||||
Minimum net worth required for compliance | $50,000,000 | |||
American Insurance Acquisition, Inc. | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 10,000,000 | 10,000,000 | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | |||
Line of credit facility, commitment fee amount | 10,000,000 | |||
Letter of credit, maximum borrowing capacity | 2,000,000 | 2,000,000 | ||
Line of credit outstanding | $0 | |||
American Insurance Acquisition, Inc. | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate spread | 2.75% | |||
American Insurance Acquisition, Inc. | Maximum | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate spread | 5.00% |
Schedule_II_Condensed_Financia1
Schedule II - Condensed Financial Information of Registrant Condensed Statement of Comprehensive Income, Parent Company (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Net investment gain | $382 | $529 | ||||||||
Other underwriting expense | 13,863 | 11,384 | ||||||||
Income from operations before income tax expense | 11,935 | 6,252 | ||||||||
Income tax benefit | -5,767 | 72 | ||||||||
Net income attributable to Atlas | 9,458 | 3,493 | 2,559 | 2,192 | 2,178 | 1,699 | 1,701 | 602 | 17,702 | 6,180 |
Changes in net unrealized gains (losses) | 2,029 | -4,354 | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | -257 | 469 | ||||||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 777 | -1,642 | ||||||||
Other comprehensive income (loss) for the period | 1,509 | -3,181 | ||||||||
Total comprehensive income | 19,211 | 2,999 | ||||||||
Parent Company | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Net investment gain | 16 | 96 | ||||||||
Other underwriting expense | 1,825 | 542 | ||||||||
Income from operations before income tax expense | -1,809 | -446 | ||||||||
Income tax benefit | -498 | -67 | ||||||||
Loss before equity in net income of subsidiaries | -1,311 | -379 | ||||||||
Equity in net income of subsidiaries | 19,013 | 6,559 | ||||||||
Net income attributable to Atlas | 17,702 | 6,180 | ||||||||
Changes in net unrealized gains (losses) | 2,029 | -4,354 | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 257 | -469 | ||||||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | -777 | 1,642 | ||||||||
Other comprehensive income (loss) for the period | 1,509 | -3,181 | ||||||||
Total comprehensive income | $19,211 | $2,999 |
Schedule_II_Condensed_Financia2
Schedule II - Condensed Financial Information of Registrant Condensed Balance Sheet, Parent Company (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | |||
Cash and cash equivalents | $36,586,000 | $9,811,000 | $19,912,000 |
Accrued investment income | 660,000 | 694,000 | |
Deferred tax asset, net | 21,229,000 | 12,312,000 | |
Investment in subsidiaries | 14,366,000 | 1,234,000 | |
Total Assets | 283,911,000 | 219,278,000 | |
Liabilities | |||
Total Liabilities | 174,512,000 | 155,580,000 | |
Shareholders’ Equity | |||
Preferred shares, par value per share $0.001, 100,000,000 shares authorized, 2,000,000 shares issued and outstanding at December 31, 2014 and December 31, 2013. Liquidation value $1.00 per share | 2,000,000 | 2,000,000 | |
Ordinary voting common shares, par value per share $0.003, 266,666,667 shares authorized, 11,638,723 shares issued and outstanding at December 31, 2014 and 9,291,871 shares issued and outstanding at December 31, 2013 | 34,000 | 28,000 | |
Restricted voting common shares, par value per share $0.003, 33,333,334 shares authorized, 132,863 shares issued and outstanding at December 31, 2014 and December 31, 2013 | 0 | 0 | |
Additional paid-in capital | 196,079,000 | 169,595,000 | |
Retained deficit | -88,794,000 | -106,496,000 | |
Accumulated other comprehensive income (loss), net of tax | 80,000 | -1,429,000 | |
Total Shareholders’ Equity | 109,399,000 | 63,698,000 | 59,864,000 |
Total Liabilities and Shareholders’ Equity | 283,911,000 | 219,278,000 | |
Parent Company | |||
Assets | |||
Cash and cash equivalents | 23,428,000 | 289,000 | 67,000 |
Accrued investment income | 3,000 | 0 | |
Accounts receivable and other assets | 0 | 25,000 | |
Deferred tax asset, net | 515,000 | 215,000 | |
Investment in subsidiaries | 85,486,000 | 63,313,000 | |
Total Assets | 109,432,000 | 63,842,000 | |
Liabilities | |||
Other liabilities and accrued expenses | 33,000 | 144,000 | |
Total Liabilities | 33,000 | 144,000 | |
Shareholders’ Equity | |||
Preferred shares, par value per share $0.001, 100,000,000 shares authorized, 2,000,000 shares issued and outstanding at December 31, 2014 and December 31, 2013. Liquidation value $1.00 per share | 2,000,000 | 2,000,000 | |
Ordinary voting common shares, par value per share $0.003, 266,666,667 shares authorized, 11,638,723 shares issued and outstanding at December 31, 2014 and 9,291,871 shares issued and outstanding at December 31, 2013 | 34,000 | 28,000 | |
Restricted voting common shares, par value per share $0.003, 33,333,334 shares authorized, 132,863 shares issued and outstanding at December 31, 2014 and December 31, 2013 | 0 | 0 | |
Additional paid-in capital | 196,079,000 | 169,595,000 | |
Retained deficit | -88,794,000 | -106,496,000 | |
Accumulated other comprehensive income (loss), net of tax | 80,000 | -1,429,000 | |
Total Shareholders’ Equity | 109,399,000 | 63,698,000 | |
Total Liabilities and Shareholders’ Equity | $109,432,000 | $63,842,000 |
Schedule_II_Condensed_Financia3
Schedule II - Condensed Financial Information of Registrant Condensed Balance Sheet, Parent Company - Additional (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Preferred shares, par value (USD per share) | $0.00 | $0.00 |
Preferred shares, shares authorized | 100,000,000 | 100,000,000 |
Preferred shares, shares issued | 2,000,000 | 2,000,000 |
Preferred shares, shares outstanding | 2,000,000 | 2,000,000 |
Preferred shares, liquidation preference per hare (USD per share) | $1 | $1 |
Common shares, shares authorized (in shares) | 300,000,001 | |
Common stock, shares, outstanding | 11,771,586 | 9,424,734 |
Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Preferred shares, par value (USD per share) | $0.00 | $0.00 |
Preferred shares, shares authorized | 100,000,000 | 100,000,000 |
Preferred shares, shares issued | 2,000,000 | 2,000,000 |
Preferred shares, shares outstanding | 2,000,000 | 2,000,000 |
Preferred shares, liquidation preference per hare (USD per share) | $1 | $1 |
Ordinary Shares | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common shares, par value (USD per share) | $0.00 | $0.00 |
Common shares, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common shares, shares issued | 9,291,871 | |
Common stock, shares, outstanding | 11,638,723 | 9,291,871 |
Ordinary Shares | Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common shares, par value (USD per share) | $0.00 | $0.00 |
Common shares, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common shares, shares issued | 11,638,723 | 9,291,871 |
Common stock, shares, outstanding | 11,638,723 | 9,291,871 |
Restricted Voting Common Shares [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, shares, outstanding | 132,863 | |
Restricted Voting Common Shares [Member] | Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common shares, par value (USD per share) | $0.00 | $0.00 |
Common shares, shares authorized (in shares) | 33,333,334 | 33,333,334 |
Common shares, shares issued | 132,863 | 132,863 |
Common stock, shares, outstanding | 132,863 | 132,863 |
Schedule_II_Condensed_Financia4
Schedule II - Condensed Financial Information of Registrant Condensed Statement of Cash Flows, Parent Company (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Activities | ||
Net income attributable to Atlas | $17,702 | $6,180 |
Net changes in operating assets and liabilities: | ||
Equity in net income of subsidiaries | -632 | 28 |
Share-based compensation expense | 1,469 | 247 |
Deferred income taxes | -8,776 | -1,072 |
Accounts payable and accrued liabilities | 3,369 | 531 |
Net cash flows provided by (used in) operating activities | 13,716 | -5,920 |
Net cash flows used in investing activities | -11,963 | -2,776 |
Financing activities: | ||
Repurchase of preferred shares | 0 | -16,200 |
Proceeds from initial public offering, net of offering costs | 0 | 9,756 |
Issuance of common shares | 25,021 | 0 |
Warrants exercised | 0 | 7,181 |
Dividends paid | 0 | -2,145 |
Options exercised | 1 | 3 |
Net cash flows provided by financing activities | 25,022 | -1,405 |
Net change in cash and cash equivalents | 26,775 | -10,101 |
Cash and cash equivalents, beginning of period | 9,811 | 19,912 |
Cash and cash equivalents, end of period | 36,586 | 9,811 |
Supplemental disclosure of cash information (in '000's): | ||
Cash paid for income taxes | 0 | 129 |
Cash paid for interest | 3,308 | 1,430 |
Parent Company | ||
Operating Activities | ||
Net income attributable to Atlas | 17,702 | 6,180 |
Net changes in operating assets and liabilities: | ||
Equity in net income of subsidiaries | -19,013 | -6,559 |
Share-based compensation expense | 1,469 | 247 |
Deferred income taxes | -301 | -112 |
Other assets and accrued investment income | 22 | -25 |
Accounts payable and accrued liabilities | -112 | 144 |
Net cash flows provided by (used in) operating activities | -233 | -125 |
Capital contributions made to subsidiaries | -1,650 | 0 |
Net cash flows used in investing activities | -1,650 | 0 |
Financing activities: | ||
Repurchase of preferred shares | 0 | -16,200 |
Proceeds from initial public offering, net of offering costs | 0 | 9,756 |
Issuance of common shares | 25,021 | 0 |
Warrants exercised | 0 | 7,181 |
Dividends paid | 0 | -2,145 |
Dividends received | 0 | 1,752 |
Options exercised | 1 | 3 |
Net cash flows provided by financing activities | 25,022 | 347 |
Net change in cash and cash equivalents | 23,139 | 222 |
Cash and cash equivalents, beginning of period | 289 | 67 |
Cash and cash equivalents, end of period | 23,428 | 289 |
Supplemental disclosure of cash information (in '000's): | ||
Cash paid for income taxes | 0 | 129 |
Cash paid for interest | ($210) | $25 |
Schedule_IV_Reinsurance_Detail
Schedule IV - Reinsurance (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule IV Reinsurance [Abstract] | ||||||||||
Premiums earned, gross amount | $107,587 | $83,358 | ||||||||
Premiums earned, ceded to other companies | -9,589 | -12,542 | ||||||||
Premiums earned, assumed from other companies | 126 | 528 | ||||||||
Net premiums earned | $27,289 | $25,575 | $23,306 | $21,954 | $20,512 | $17,976 | $16,968 | $15,888 | $98,124 | $71,344 |
Premiums earned, percent of amount assumed to net | 0.10% | 0.70% |
Schedule_V_Valuation_and_quali1
Schedule V - Valuation and qualifying accounts Valuation and Qualifying Accounts Rollforward (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Deferred tax assets, valuation allowance, ending balance | $0 | $9,446 |
Allowance for uncollectible receivables | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Allowance for doubtful accounts receivable, beginning balance | 776 | 484 |
Charged to Expenses | 505 | 764 |
Other additions | 172 | 281 |
Deductions | -893 | -753 |
Allowance for doubtful accounts receivable, ending balance | 560 | 776 |
Valuation allowance for deferred tax assets | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Deferred tax assets, valuation allowance, beginning balance | 9,446 | 11,242 |
Charged to Expenses | -9,446 | 0 |
Other additions | 0 | 1,006 |
Deductions | 0 | -2,802 |
Deferred tax assets, valuation allowance, ending balance | $0 | $9,446 |
Schedule_VI_Supplemental_infor1
Schedule VI - Supplemental information concerning property-casualty insurance operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule VI Supplemental Property Casualty Information [Abstract] | |||||||||||
Deferred policy acquisition costs | $8,166 | $6,674 | $8,166 | $6,674 | $3,764 | ||||||
Claims liabilities | 102,430 | 101,385 | 102,430 | 101,385 | 70,067 | ||||||
Unearned premiums | 58,950 | 44,232 | 58,950 | 44,232 | |||||||
Net premiums earned | 27,289 | 25,575 | 23,306 | 21,954 | 20,512 | 17,976 | 16,968 | 15,888 | 98,124 | 71,344 | |
Net investment income | 3,110 | 2,141 | |||||||||
Claims and claims adjustment expense incurred, current year | 61,680 | 45,604 | |||||||||
Claims and claims adjustment expense incurred, prior year | -602 | 8 | |||||||||
Amortization charged to income | 14,048 | 10,373 | |||||||||
Paid claims and claim adjustment expense | 62,725 | 50,762 | |||||||||
Premiums Written, Gross | $122,432 | $93,060 |