Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 04, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Line Items] | |||
Entity Registrant Name | Atlas Financial Holdings, Inc. | ||
Entity Central Index Key | 1,539,894 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 211.7 | ||
Ordinary Shares | |||
Document and Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 11,890,432 | ||
Restricted Voting Common Shares | |||
Document and Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 132,863 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments, available for sale | ||
Fixed income securities, at fair value (amortized cost $185,455 and $126,701) | $ 183,773 | $ 126,949 |
Equity securities, at fair value (cost $4,147 and $2,220) | 4,240 | 2,093 |
Other investments | 22,937 | 14,366 |
Total Investments | 210,950 | 143,408 |
Cash and cash equivalents | 22,354 | 36,586 |
Accrued investment income | 1,036 | 660 |
Premiums receivable (net of allowance of $846 and $560) | 82,529 | 47,385 |
Reinsurance recoverables on amounts paid | 3,277 | 2,230 |
Reinsurance recoverables on amounts unpaid | 29,399 | 18,421 |
Prepaid reinsurance premiums | 17,412 | 3,628 |
Deferred policy acquisition costs | 10,235 | 8,166 |
Deferred tax asset, net | 17,166 | 17,317 |
Goodwill | 2,726 | 0 |
Intangible assets | 4,925 | 740 |
Software and office equipment, net | 2,589 | 2,819 |
Other assets | 6,941 | 2,385 |
Assets held for sale | 34 | 166 |
Total Assets | 411,573 | 283,911 |
Liabilities | ||
Claims liabilities | 127,011 | 102,430 |
Unearned premiums | 108,202 | 58,950 |
Due to reinsurers and other insurers | 10,781 | 2,456 |
Note payable | 17,500 | 0 |
Other liabilities and accrued expenses | 18,457 | 10,676 |
Total Liabilities | $ 281,951 | $ 174,512 |
Commitments and contingencies | ||
Shareholders’ Equity | ||
Preferred shares, $0.001 par value, 100,000,000 shares authorized, shares issued and outstanding: 2015 - 6,940,500 and 2014 - 2,000,000. Liquidation value $1.00 per share | $ 6,941 | $ 2,000 |
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued and outstanding: 2015 - 11,883,025 and 2014 - 11,638,723 | 36 | 34 |
Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: 2015 and 2014 - 132,863 | 0 | 0 |
Additional paid-in capital | 198,041 | 196,079 |
Retained deficit | (74,364) | (88,794) |
Accumulated other comprehensive (loss) income, net of tax | (1,032) | 80 |
Total Shareholders’ Equity | 129,622 | 109,399 |
Total Liabilities and Shareholders’ Equity | $ 411,573 | $ 283,911 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Position (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Debt Securities, Amortized Cost Basis | $ 185,455 | $ 126,701 |
Available-for-sale Equity Securities, Amortized Cost Basis | 4,147 | 2,220 |
Premium receivable, allowance | $ 846 | $ 560 |
Shareholders’ Equity | ||
Preferred shares, par value (USD per share) | $ 0.001 | $ 0.001 |
Preferred shares, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred shares, shares issued (in shares) | 6,940,500 | 2,000,000 |
Preferred stock, shares outstanding (in shares) | 6,940,500 | 2,000,000 |
Preferred shares, liquidation preference per share (USD per share) | $ 1 | $ 1 |
Common shares, shares authorized (in shares) | 300,000,001 | 300,000,001 |
Common stock, shares, outstanding (in shares) | 12,015,888 | 11,771,586 |
Ordinary Shares | ||
Shareholders’ Equity | ||
Common shares, par value (USD per share) | $ 0.003 | $ 0.003 |
Common shares, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common shares, shares issued (in shares) | 11,883,025 | 11,638,723 |
Common stock, shares, outstanding (in shares) | 11,883,025 | 11,638,723 |
Restricted Voting Common Shares | ||
Shareholders’ Equity | ||
Common shares, par value (USD per share) | $ 0.003 | $ 0.003 |
Common shares, shares authorized (in shares) | 33,333,334 | 33,333,334 |
Common shares, shares issued (in shares) | 132,863 | 132,863 |
Common stock, shares, outstanding (in shares) | 132,863 | 132,863 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues [Abstract] | |||
Net premiums earned | $ 152,064 | $ 98,124 | $ 71,344 |
Net investment income | 3,976 | 3,110 | 2,141 |
Net realized investment gains | 455 | 382 | 529 |
Other income | 356 | 2 | 13 |
Total revenue | 156,851 | 101,618 | 74,027 |
Operating Expenses [Abstract] | |||
Net claims incurred | 89,994 | 61,078 | 45,612 |
Acquisition costs | 18,592 | 14,048 | 10,373 |
Other underwriting expenses | 23,325 | 13,863 | 11,255 |
Amortization of intangible assets | 315 | 0 | 0 |
Interest expense | 638 | 0 | 129 |
Expenses incurred pursuant to Gateway stock purchase agreement | 942 | 0 | 0 |
Expenses incurred related to acquisition of subsidiaries | 999 | 694 | 406 |
Total expenses | 134,805 | 89,683 | 67,775 |
Income from operations before income tax expense | 22,046 | 11,935 | 6,252 |
Income tax expense (benefit) | 7,616 | (5,767) | 72 |
Net income | 14,430 | 17,702 | 6,180 |
Add: Discount from preferred share buyback | 0 | 0 | 1,800 |
Less: Preferred share dividends | 276 | 94 | 619 |
Net income attributable to common shareholders | $ 14,154 | $ 17,608 | $ 7,361 |
Basic weighted average common shares outstanding (in shares) | 11,975,579 | 10,937,181 | 8,007,458 |
Earnings per common share, basic (USD per share) | $ 1.18 | $ 1.61 | $ 0.92 |
Diluted weighted average common shares outstanding (in shares) | 12,735,679 | 11,341,588 | 10,840,868 |
Earnings per common share, diluted (USD per share) | $ 1.13 | $ 1.56 | $ 0.74 |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 14,430 | $ 17,702 | $ 6,180 |
Other comprehensive (loss) income: | |||
Changes in net unrealized investment (losses) gains | (1,912) | 2,029 | (4,354) |
Reclassification to income of net realized investment gains (losses) | 203 | 257 | (469) |
Effect of income tax | 597 | (777) | 1,642 |
Other comprehensive (loss) income | (1,112) | 1,509 | (3,181) |
Total comprehensive income | $ 13,318 | $ 19,211 | $ 2,999 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Shares | Ordinary Voting Common Shares | Restricted Voting Common Shares | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period 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 | 6,180 | 6,180 | |||||
U.S. initial public offering, net of offering costs | 9,756 | 16 | 9,750 | ||||
Issuance of preferred shares | 2,000 | 2,000 | |||||
Warrants exercised | 7,181 | 5 | 7,176 | ||||
Other comprehensive income (loss) | (3,181) | (3,181) | |||||
Repurchase or redemption of shares | (16,200) | (18,000) | (10) | ||||
Benefit related to the discount on repurchase of stock | 1,800 | 1,800 | |||||
Share-based compensation | 247 | 247 | |||||
Preferred dividends declared and paid | (2,145) | (2,145) | |||||
Other | (4) | 3 | (4) | (1) | (1) | (1) | |
Balance at end of period 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 | 17,702 | 17,702 | |||||
U.S. initial public offering, net of offering costs | 25,021 | ||||||
Warrants exercised | 0 | ||||||
Other comprehensive income (loss) | 1,509 | 1,509 | |||||
Benefit related to the discount on repurchase of stock | 0 | ||||||
Share-based compensation | 1,469 | 1,469 | |||||
Proceeds from U.S. public offering, net of offering costs | 25,021 | 6 | 25,015 | ||||
Balance at end of period at Dec. 31, 2014 | 109,399 | 2,000 | 34 | 0 | 196,079 | (88,794) | 80 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 14,430 | 14,430 | |||||
U.S. initial public offering, net of offering costs | 0 | ||||||
Issuance of preferred shares | 4,941 | 4,941 | |||||
Warrants exercised | 0 | ||||||
Other comprehensive income (loss) | (1,112) | (1,112) | |||||
Benefit related to the discount on repurchase of stock | 0 | ||||||
Share-based compensation | 1,819 | 2 | 1,817 | ||||
Options exercised | 145 | 145 | |||||
Balance at end of period at Dec. 31, 2015 | $ 129,622 | $ 6,941 | $ 36 | $ 0 | $ 198,041 | $ (74,364) | $ (1,032) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income | $ 14,430 | $ 17,702 | $ 6,180 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization of fixed assets | 966 | 856 | 795 |
Share-based compensation expense | 1,819 | 1,469 | 247 |
Amortization of deferred gain on sale of headquarters building | (43) | (43) | (43) |
Amortization of intangible assets | 315 | 0 | 0 |
Deferred income taxes | (174) | (8,776) | (1,072) |
Net realized gains | (455) | (382) | (433) |
(Gain) loss in equity of investees | (1,238) | (632) | 28 |
Amortization of bond premiums and discounts | 1,525 | 756 | 1,092 |
Expenses incurred pursuant to Gateway stock purchase agreement | 941 | 0 | 0 |
Net changes in operating assets and liabilities (net of acquisition): | |||
Premiums receivable and other assets, net | (26,469) | (11,826) | (7,490) |
Due from reinsurers and other insurers | (7,931) | (2,925) | (6,872) |
Deferred policy acquisition costs | (240) | (1,492) | (1,676) |
Accrued investment income | (13) | 34 | (14) |
Claims liabilities | (6,150) | 1,045 | (4,891) |
Unearned premiums | 26,276 | 14,718 | 9,174 |
Due to reinsurers and other insurers | 3,542 | (157) | (1,476) |
Accounts payable and accrued liabilities | 1,376 | 3,369 | 531 |
Net cash flows provided by (used in) operating activities | 8,477 | 13,716 | (5,920) |
Investing activities: | |||
Purchase of subsidiary (net of cash acquired) | (10,956) | 0 | 11,081 |
Purchases of: | |||
Fixed income securities | (78,921) | (31,671) | (69,328) |
Equity securities | (3,340) | (1,969) | 0 |
Other investments | (7,332) | (12,500) | 0 |
Property, equipment and other | (713) | (1,167) | (1,245) |
Proceeds from sale and maturity of: | |||
Fixed income securities | 59,395 | 35,332 | 55,328 |
Equity securities | 1,402 | 12 | 1,388 |
Assets held for sale | 111 | 0 | 0 |
Net cash flows used in investing activities | (40,354) | (11,963) | (2,776) |
Financing activities: | |||
Preferred share buyback | 0 | 0 | (16,200) |
Proceeds from U.S. public offering, net of offering costs | 0 | 25,021 | 9,756 |
Warrants exercised | 0 | 0 | 7,181 |
Proceeds from notes payable | 18,000 | 0 | 0 |
Repayment of note | (500) | 0 | 0 |
Dividends paid | 0 | 0 | (2,145) |
Options exercised | 145 | 1 | 3 |
Net cash flows provided by (used in) financing activities | 17,645 | 25,022 | (1,405) |
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | |||
Net change in cash and cash equivalents | (14,232) | 26,775 | (10,101) |
Cash and cash equivalents, beginning of period | 36,586 | 9,811 | 19,912 |
Cash and cash equivalents, end of period | 22,354 | 36,586 | 9,811 |
Supplemental disclosure of cash information (in '000s): | |||
Cash paid for income taxes | 8,636 | 3,308 | 1,430 |
Cash paid for interest | 567 | 0 | 129 |
Anchor Holdings Group, Inc. et. al. | |||
Supplemental disclosure of noncash investing and financing activities (in '000's): | |||
Preferred Shares Issued | 4,000 | 0 | 2,000 |
Gateway Insurance Company | |||
Supplemental disclosure of noncash investing and financing activities (in '000's): | |||
Preferred Shares Issued | $ 941 | $ 0 | $ 0 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION Atlas Financial Holdings, Inc. ("Atlas" or "We" 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”), Gateway Insurance Company ("Gateway"), and as of March 11, 2015, Global Liberty Insurance Company of New York ("Global Liberty"), Anchor Group Management, Inc. ("Anchor Management"), Plainview Premium Finance Company, Inc. ("Plainview Delaware") and Plainview Delaware's wholly-owned subsidiary, Plainview Premium Finance Company of California, Inc. ("Plainview California" and together with Plainview Delaware, "Plainview"). 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. Atlas' core products are actively distributed in 41 of those states plus Washington, D.C. The insurance subsidiaries share common management and operating infrastructure. Atlas' ordinary voting common shares were previously listed on the TSX Venture Exchange (“TSXV”) under the symbol “AFH” from January 6, 2011 to June 4, 2013, when Atlas' application for the voluntary delisting of its ordinary voting common shares from the TSXV was approved. Atlas' ordinary voting common shares became listed on the NASDAQ stock exchange on February 11, 2013, under the same symbol, "AFH." 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 voting common shares and restricted voting 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. Unless otherwise noted, all historical share and per share values in this Annual Report on Form 10-K reflect the one-for-three reverse stock split. 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. Seasonality - The property and casualty ("P&C") insurance business is seasonal in nature. While Atlas' net premiums earned are generally stable from quarter to quarter, Atlas' gross premiums written follow the common renewal dates for the "light" commercial risks that represent its core lines of business. For example, January 1 and March 1 are common taxi cab renewal dates in Illinois and New York, respectively. Additionally, we implemented our New York “excess taxi program” in the third quarter of 2012, which has an annual renewal date in the third quarter. Net underwriting income is driven mainly by the timing and nature of claims, which can vary widely. 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) Anchor Holdings Group, Inc. (New York) Global Liberty Insurance Company of New York (New York) Plainview Premium Finance Company, Inc. (Delaware) Plainview Premium Finance Company of California, Inc. (California) Anchor Group Management, Inc. (New York) We filed our Quarterly Report on Form 10-Q for the period ended September 30, 2015, under the assumption that certain variable interest entities (“VIEs”), were controlled by Atlas. Based on new information obtained after the filing of our Quarterly Report on Form 10-Q for the period ended September 30, 2015, we have determined that these VIEs are not controlled by Atlas. As a result, the Company no longer consolidates these VIEs. The amounts included within the September 30, 2015 Quarterly Report on Form 10-Q were not material. 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, 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 - For securities other than mortgage backed and asset backed, Atlas utilizes the effective interest method to calculate the amortized cost of the financial asset and to amortize or accrete the discount or premium over the remaining life. The effective interest rate is the rate that discounts the estimated future cash flows through the expected life of the financial instrument. Mortgage backed and asset backed securities are valued using the retrospective adjustment method which uses the effective interest method and includes anticipated prepayments. 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 - Investments in fixed income and equity 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 shareholders' 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. 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 whether 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 prove to 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 prove to 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. 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, 2015 , this process did not generate any significant difference in the rating assessment between Atlas' review and the rating agencies. 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 that 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. 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 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. Premiums receivable - Premiums 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, 2015 , 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 based on the differences in the tax basis of assets, liabilities and items recognized directly in equity and the financial reporting basis of such items. 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. Goodwill – Atlas recognized goodwill as part of the acquisition of Anchor Holdings Group, Inc. The amounts recognized represent the cost of the acquisition above the fair value of the net assets acquired. Atlas reviews goodwill at least annually for impairment. Atlas concluded that there was no goodwill impairment in the year ended December 31, 2015 . Intangible assets – Atlas recognized intangible assets as part of the acquisition of Gateway and Anchor Holdings Group, Inc. The intangible assets are classified as either indefinite or definite lived depending on whether the useful lives can be identified. Atlas indefinite-lived intangible assets consist of state insurance licenses, and these intangible assets are reviewed for impairment at least annually. Atlas concluded that there was no indefinite-lived intangible asset impairment in either of the years ended December 31, 2015 and December 31, 2014 . Definite-lived intangible assets are amortized over their useful lives on a straight-line basis except for customer related intangibles, which are on an accelerated basis. Atlas definite-lived intangible assets consist of trade names and trademarks with useful lives of 15 years and customer relationships with useful lives of 10 years . Atlas recorded $315,000 of intangible asset amortization for the year ended December 31, 2015 . Business combinations - The value of certain assets and liabilities acquired are subject to adjustment from the initial purchase price allocation as additional information is obtained, including, but not limited to, valuation of separately identifiable intangibles, the preferred stock issued to the seller, and deferred taxes. The valuations are finalized within 12 months of the close of the acquisition (not including loss reserve development consideration, if applicable). The changes upon finalization to the initial purchase price allocation and valuation of assets and liabilities may result in an adjustment to identifiable intangible assets and goodwill. Adjustments to the provisional amounts identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. The effect of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date, are recorded in the financial statements and presented separately on the income statement in the reporting period in which the adjustment amounts are determined. 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, 5 years for enterprise software and 3 years for all other 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 to the Consolidated Financial Statements. Atlas uses the fair-value method of accounting to determine and account for equity settled transactions and to determine stock-based compensation for awards granted to employees and non-employees. For stock-based compensation for awards granted to employees and non-employees that include a performance provision, the Monte-Carlo simulation model is utilized to determine fair value. Stock-based compensation prior to 2015 was valued 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 operates in one business segment, the property and casualty insurance business. Reclassifications - Certain accounts in the prior years' consolidated financial statement have been reclassified for comparative purposes to conform to the current year's presentation. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Pertinent accounting and disclosure pronouncements issued from time to time by the Financial Accounting Standards Board ("FASB") are adopted by the Company as they become effective. All recently issued accounting pronouncements with effective dates prior to January 1, 2016 have been adopted by the Company. In February 2016, the FASB issued updated guidance on leases. For public entities, this guidance is effective for years beginning after December 15, 2018, including interim periods within those years. The Company is currently evaluating the guidance to determine the potential impact of its adoption on its consolidated financial statements. In January 2016, the FASB issued updated guidance on recognition and measurement of financial assets and liabilities. One provision of this update requires equity investments, except those accounted for under the equity method, to be measured at fair value and changes in fair value are recognized in net income. For public entities, this guidance is effective for years beginning after December 15, 2017, including interim periods within those years. The Company is currently evaluating the guidance to determine the potential impact of its adoption on its consolidated financial statements. In May 2015, the FASB issued guidance requiring additional disclosures about short-duration insurance contracts. The new disclosures, which are required for annual periods beginning after December 31, 2015 and for interim periods beginning after December 31, 2016, are intended to provide additional information about insurance liabilities including the nature, amount, timing, and uncertainty of future cash flows related to those liabilities. Except for the retrospective application of additional disclosure requirements, the new guidance will not impact the Company's consolidated financial statements. In September 2015, the FASB issued updated business combination guidance requiring an acquirer to recognize and disclose adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This update eliminates the requirement to retrospectively account for those adjustments. For public entities, this guidance is effective for years beginning after December 15, 2015, including interim periods within those years. The Company adopted this guidance for the reporting period ending December 31, 2015. In May 2014, the FASB issued a comprehensive revenue recognition standard which applies to all entities that have contracts with customers, except for those that fall within the scope of other standards, such as insurance contracts. The Company is currently evaluating the guidance, which will be effective in 2018, to determine the potential impact, if any, of its adoption on its consolidated financial statements. All other recently issued accounting pronouncements with effective dates after December 31, 2015 are not expected to have a material impact on the Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Acquisition of Anchor Holdings Group, Inc. et. al. On March 11, 2015, Atlas acquired Anchor Holdings Group, Inc., a privately owned insurance holding company, and its wholly owned subsidiary, Global Liberty, along with its affiliated entities, Anchor Management, and Plainview (collectively, "Anchor"), from an unaffiliated third party. Anchor 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 Anchor expands our distribution channel for core commercial automobile lines and provides incremental licensure as well as important infrastructure in the large New York market. Under the terms of the stock purchase agreement, the purchase price was based on the combined U.S. GAAP book value of Anchor at 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 the future development of Global Liberty’s actual loss reserves for certain lines of business over time. The total purchase price for the combined entities of Anchor was $23.2 million , consisting of a combination of cash and Atlas preferred shares, and is estimated at approximately 1.3 times combined U.S. GAAP book value. Consideration consisted of approximately $19.2 million in cash and $4.0 million of Atlas preferred shares (consisting of a total of 4,000,000 preferred shares at $1.00 per preferred share), subject to future price adjustments, as noted above. We have contractual protections to offset up to $4.0 million of future adverse reserve development during the five year period after the acquisition. Global Liberty also wrote homeowners insurance in the northeast, which was non-renewed prior to the transaction. The Anchor acquisition was accounted for using the acquisition method. Atlas began consolidating Anchor on March 11, 2015. The following unaudited pro forma summary presents Atlas' consolidated financial information for the years ended December 31, 2015 and 2014 as if Anchor had been acquired on January 1, 2014. These amounts have been calculated after applying the Company's accounting policies had the acquisition been completed on January 1, 2014. These results were prepared for comparative purposes only and do not purport to be indicative of the results of operations that may have actually resulted had the acquisition occurred on the indicated dates, nor are they indicative of potential future operating results of the Company. (in '000s, except per share information) Years Ended December 31, 2015 December 31, 2014 Revenue $ 162,311 $ 134,883 Income from operations before income tax expense 1 23,601 16,212 Net income 1 15,420 20,370 Basic earnings per share 1 $ 1.26 $ 1.84 Diluted earnings per share 1 $ 1.21 $ 1.77 1 - Excludes expenses incurred in the connection with the Anchor acquisition From the date of acquisition through December 31, 2015 , Anchor earned revenue of $27.5 million and net income of $2.4 million . The value of certain assets and liabilities acquired are subject to adjustment as additional information is obtained, including, but not limited to, valuation of separately identifiable intangibles, the preferred stock issued to the seller, and deferred taxes. The valuations were finalized during the year ended December 31, 2015 (not including loss reserve development consideration). The changes upon finalization to the preliminary valuation of assets and liabilities resulted in an adjustment to identifiable intangible assets, goodwill, deferred tax and other liabilities. The following table presents the adjusted values of assets acquired and liabilities assumed for the Anchor acquisition based on its estimated fair value on March 11, 2015. (in $ '000s) Purchase Consideration Cash $ 19,199 Preferred stock 4,000 Total $ 23,199 Allocation of Purchase Price Cash and investments $ 48,508 Other current assets 33,303 Property and equipment 22 Goodwill 2,726 Intangible assets 4,500 Total Assets $ 89,059 Claims liabilities $ 30,731 Unearned premiums 22,976 Accounts payable and other liabilities 11,231 Deferred tax liabilities 922 Total Liabilities $ 65,860 Net assets acquired $ 23,199 The acquisition of Anchor resulted in the recognition of intangible assets and goodwill valued at $4.5 million and $2.7 million , respectively. The Company recorded an adjustment to the purchase price allocation and amortization related to the identified intangible assets during the fourth quarter of 2015 . Atlas recognized amortization expense of $315,000 during the year ended December 31, 2015 related to intangible assets acquired in the Anchor transaction. Atlas incurred $999,000 in transaction expenses related to the Anchor acquisition for the year ended December 31, 2015 and $694,000 for the year ended December 31, 2014 . The following table presents a summary of definite-lived intangible assets by major asset class at December 31, 2015 : (in $ '000s) Economic Useful Life Gross Carrying Amount Accumulated Amortization Net Trade name and trademark 15 years $ 1,800 $ 97 $ 1,703 Customer relationship 10 years 2,700 218 2,482 $ 4,500 $ 315 $ 4,185 Estimated future amortization expense for definite-lived intangible assets is $390,000 for each of the next five years. Acquisition of Gateway Insurance Company On January 2, 2013 we acquired Camelot Services, Inc. ("Camelot Services"), a privately owned insurance holding company, and its sole subsidiary, Gateway from 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 2,000,000 preferred shares at $1.00 per preferred share) 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 during the five year period after the acquisition. 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 indefinite life and will not be amortized, but will be evaluated for impairment at least annually. Thus, Atlas recognized no amortization expense during the years ended December 31, 2015, 2014, and 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 year ended December 31, 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 $372,000 of additional interim transition/integration costs. These termination and transition/integration costs are included in "Other Underwriting Expenses" on the Consolidated Statements of Income and Comprehensive Income. During the first quarter of 2015, the Company issued an additional 940,500 preferred shares pursuant to the Gateway stock purchase agreement due to the favorable development of Gateway’s actual loss reserves for certain lines of business. The Gateway preferred shares issued during the first quarter of 2015 have been recorded as additional acquisition expense and not as an adjustment to goodwill because the fair value of the contingent consideration was determined to be zero at the date of the Gateway acquisition. In accordance with U.S. GAAP, such adjustments are reflected in the income statement in the period that the contingency is re-estimated. The estimate of this contingency could change in the future until all remaining claims are settled. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Earnings per ordinary voting common shares, restricted voting common shares, and participative restricted stock units ("RSUs") (collectively, the "common shares") for the years ended December 31, 2015 , December 31, 2014 , and December 31, 2013 are as follows ($ in '000s except for share and per share amounts): Year Ended December 31, 2015 2014 2013 Basic: Income from operations before income tax expense $ 22,046 $ 11,935 $ 6,252 Income tax expense (benefit) 7,616 (5,767 ) 72 Net income 14,430 17,702 6,180 Add: Discount from preferred share buyback — — 1,800 Less: Preferred share dividends 276 94 619 Net income attributable to common shareholders for basic earnings per common share $ 14,154 $ 17,608 $ 7,361 Weighted average common shares outstanding 11,975,579 10,937,181 8,007,458 Basic earnings per common share $ 1.18 $ 1.61 $ 0.92 Diluted: Income from operations before income tax expense $ 22,046 $ 11,935 $ 6,252 Income tax expense (benefit) 7,616 (5,767 ) 72 Net income 14,430 17,702 6,180 Add: Discount from preferred share buyback — — 1,800 Net income attributable to common shareholders for dilutive earnings per common share $ 14,430 $ 17,702 $ 7,980 Weighted average common shares outstanding 11,975,579 10,937,181 8,007,458 Dilutive potential ordinary shares: Dilutive stock options outstanding 186,656 150,407 87,825 Dilutive warrants — — 1,158,085 Dilutive shares upon preferred share conversion 573,444 254,000 1,587,500 Dilutive average common shares outstanding 12,735,679 11,341,588 10,840,868 Dilutive earnings per common share $ 1.13 $ 1.56 $ 0.74 Diluted earnings per common share is computed by dividing net income 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 voting common 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, 2015 and December 31, 2014 , there were no outstanding warrants. On August 1, 2013, 18,000,000 preferred shares were repurchased. Atlas’ dilutive potential ordinary voting common shares consist of outstanding stock options to purchase ordinary voting common shares and preferred shares potentially convertible to ordinary voting common shares at the option of the holder at any date after December 31, 2018 ( 2,940,500 at the rate of 0.1270 ordinary voting common shares for each preferred share) and after March 11, 2020 ( 4,000,000 preferred shares at the rate of 0.05 ordinary voting 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, 2015, 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, 2015 | |
Investments [Abstract] | |
Investments | INVESTMENTS The amortized cost, gross unrealized gains and losses and fair value for Atlas’ investments in fixed maturities and equities are as follows (all amounts in '000s): December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed Income: U.S. Government $ 45,529 $ 244 $ (136 ) $ 45,637 Corporate Banking/financial services 21,963 117 (166 ) 21,914 Consumer goods 7,813 43 (121 ) 7,735 Capital goods 15,524 127 (556 ) 15,095 Energy 4,807 — (401 ) 4,406 Telecommunications/utilities 12,298 27 (450 ) 11,875 Health care 3,038 — (17 ) 3,021 Total Corporate 65,443 314 (1,711 ) 64,046 Mortgage backed - agency 34,874 112 (313 ) 34,673 Mortgage backed - commercial 19,961 158 (244 ) 19,875 Total Mortgage Backed 54,835 270 (557 ) 54,548 Other asset backed 19,648 14 (120 ) 19,542 Total Fixed Income 185,455 842 (2,524 ) 183,773 Equities 4,147 139 (46 ) 4,240 Totals $ 189,602 $ 981 $ (2,570 ) $ 188,013 December 31, 2014 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 Totals $ 128,921 $ 1,079 $ (958 ) $ 129,042 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, 2015 One year or less One to five years Five to ten years More than ten years Total Amortized Cost $ 12,504 $ 69,082 $ 42,631 $ 61,238 $ 185,455 Fair Value $ 12,527 $ 68,412 $ 42,285 $ 60,549 $ 183,773 Percentage of total 6.8 % 37.2 % 23.0 % 33.0 % 100.0 % At December 31, 2014 One year or less One to five years Five to ten years More than ten years Total Amortized Cost $ 1,786 $ 54,315 $ 23,432 $ 47,168 $ 126,701 Fair Value $ 1,875 $ 54,349 $ 23,166 $ 47,559 $ 126,949 Percentage of total 1.5 % 42.8 % 18.2 % 37.5 % 100.0 % Management performs a quarterly analysis of Atlas’ investment holdings to determine if declines in fair value are other than temporary (equities may require more timely review in some cases). 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 whether 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 prove to 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 prove to 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. The total fair value of the securities currently in an unrealized loss position was $123.6 million at December 31, 2015 with a total temporary impairment relating to unrealized losses of $2.6 million . 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 aging of unrealized losses on the Company's investments in fixed income and equity securities is presented as follows (all amounts in '000s): Less Than 12 Months More Than 12 Months Total As of December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Income Securities: U.S. Government $ 15,582 $ (95 ) $ 3,809 $ (41 ) $ 19,391 $ (136 ) Corporate Banking/financial services 12,216 (161 ) 595 (5 ) 12,811 (166 ) Consumer goods 6,044 (121 ) — — 6,044 (121 ) Capital goods 9,425 (428 ) 755 (128 ) 10,180 (556 ) Energy 3,862 (337 ) 544 (64 ) 4,406 (401 ) Telecommunications/utilities 8,811 (450 ) — — 8,811 (450 ) Health care 3,021 (17 ) — — 3,021 (17 ) Total Corporate 43,379 (1,514 ) 1,894 (197 ) 45,273 (1,711 ) Mortgage backed - agency 25,168 (255 ) 1,921 (58 ) 27,089 (313 ) Mortgage backed - commercial 10,022 (129 ) 3,445 (115 ) 13,467 (244 ) Total Mortgage Backed 35,190 (384 ) 5,366 (173 ) 40,556 (557 ) Other asset backed 16,203 (113 ) 1,084 (7 ) 17,287 (120 ) Total Fixed Income Securities 110,354 (2,106 ) 12,153 (418 ) 122,507 (2,524 ) Equities 1,062 (46 ) — — 1,062 (46 ) Totals $ 111,416 $ (2,152 ) $ 12,153 $ (418 ) $ 123,569 $ (2,570 ) Less Than 12 Months More Than 12 Months Total As of December 31, 2014 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Income Securities: U.S. Government $ 2,228 $ (3 ) $ 9,395 $ (156 ) $ 11,623 $ (159 ) Corporate Banking/financial services 3,298 (14 ) 1,523 (17 ) 4,821 (31 ) Consumer goods 269 — 714 (13 ) 983 (13 ) Capital goods 2,599 (19 ) 1,543 (33 ) 4,142 (52 ) Energy 2,583 (82 ) 86 (2 ) 2,669 (84 ) Telecommunications/utilities 1,371 (7 ) 168 (1 ) 1,539 (8 ) Health care 1,443 (10 ) 488 (6 ) 1,931 (16 ) Total Corporate 11,563 (132 ) 4,522 (72 ) 16,085 (204 ) Mortgage backed - agency 4,196 (28 ) 9,202 (132 ) 13,398 (160 ) Mortgage backed - commercial 1,409 (5 ) 9,781 (264 ) 11,190 (269 ) Total Mortgage Backed 5,605 (33 ) 18,983 (396 ) 24,588 (429 ) Other asset backed 10,021 (27 ) — — 10,021 (27 ) Total Fixed Income Securities 29,417 (195 ) 32,900 (624 ) 62,317 (819 ) Equities 1,230 (139 ) — — 1,230 (139 ) Totals $ 30,647 $ (334 ) $ 32,900 $ (624 ) $ 63,547 $ (958 ) As of December 31, 2015 , we held 435 and 1 individual fixed income and equity securities, respectively, that were in an unrealized loss position, of which 35 individual fixed income securities were in a continuous loss position for longer than 12 months. As of December 31, 2014 , we held 153 and 3 individual fixed income and equity securities, respectively, that were in an unrealized loss position, of which 49 individual fixed income securities were in a continuous loss position for longer than 12 months. We did not recognize the unrealized losses in earnings on these fixed income securities for the years ended December 31, 2015 and 2014 , because we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized costs. The following table summarizes the components of net investment income for the years ended December 31, 2015, 2014, and 2013 (all amounts in '000s): Year Ended December 31, 2015 2014 2013 Total investment income Interest income $ 3,371 $ 2,848 $ 2,716 Dividends 43 20 9 Income (loss) from other investments 1,344 693 (84 ) Investment expenses (782 ) (451 ) (500 ) Net investment income $ 3,976 $ 3,110 $ 2,141 The following table presents the gross realized gains and gross realized losses from sales of fixed income and equity securities for the years ended December 31, 2015, 2014, and 2013 (all amounts in '000s): 2015 2014 2013 Gross Realized Gains Gross Realized Losses Gross Realized Gains Gross Realized Losses Gross Realized Gains Gross Realized Losses Fixed income securities $ 574 $ (86 ) $ 425 $ (59 ) $ 1,587 $ (1,225 ) Equities 69 (81 ) 6 — 394 — Total $ 643 $ (167 ) $ 431 $ (59 ) $ 1,981 $ (1,225 ) The aggregate fair value from sales of fixed income and equity securities included in the table above for the years ended December 31, 2015, 2014, and 2013 are $39.8 million , $25.0 million , and $86.7 million , respectively. The following table summarizes the components of net investment realized gains (losses) for the years ended December 31, 2015, 2014, and 2013 (all amounts in '000s): Year Ended December 31, 2015 2014 2013 Fixed income securities $ 487 $ 366 $ 362 Equities (12 ) 6 394 Other (20 ) 10 84 Net investment realized gains before OTTI 455 382 840 OTTI — — (311 ) Net investment realized gains $ 455 $ 382 $ 529 Equity Method Investments: The following table summarizes investments in equity method investments by investment type at December 31, 2015 and December 31, 2014 (all amounts in '000s): Unfunded Commitments Carrying Value As of December 31, 2015 2015 2014 Real estate $ 1,775 $ 10,300 $ 2,754 Insurance linked securities — 8,747 8,266 Activist hedge funds — 3,685 3,346 Venture capital 700 205 — Total Equity Method Investments $ 2,475 $ 22,937 $ 14,366 Collateral pledged: At December 31, 2015 and 2014 , bonds and term deposits with a fair value of $15.8 million and $14.5 million , respectively, were on deposit with state and provincial regulatory authorities. Also, from time to time, the Company pledges securities to and deposits cash with third parties to collateralize liabilities incurred under its policies of reinsurance assumed and other commitments made by the Company. At December 31, 2015 , the amount of such pledged securities was $3.6 million versus $6.8 million at December 31, 2014 . 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Capital Management | 12 Months Ended |
Dec. 31, 2015 | |
Financial and Credit Risk Management [Abstract] | |
Fair Value of Financial Instruments and Capital Management | FAIR VALUE OF FINANCIAL INSTRUMENTS AND CAPITAL MANAGEMENT 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. The following table summarizes Atlas' investments at fair value as of December 31, 2015 and December 31, 2014 (all amounts in '000s): December 31, 2015 Level 1 Level 2 Level 3 Total Fixed income securities $ 23,483 $ 160,290 $ — $ 183,773 Equities 4,240 — — 4,240 Totals $ 27,723 $ 160,290 $ — $ 188,013 December 31, 2014 Level 1 Level 2 Level 3 Total Fixed income securities $ 12,608 $ 114,341 $ — $ 126,949 Equities 2,093 — — 2,093 Totals $ 14,701 $ 114,341 $ — $ 129,042 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 had no fair value investments classified as Level 3 as of December 31, 2015 and December 31, 2014 . 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, 2015 . 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, 2015 and 2014 . 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, 2015 and 2014 are presented below (all amounts in '000s): Year Ended December 31, 2015 2014 Balance at beginning of year $ — $ 617 Total gains included in: Consolidated statement of income — 383 Settlements — (1,000 ) Balance at end of year $ — $ — 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 and debt 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 and debt payments, 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 , $2.4 million , and $3.5 million under the provisions of the Illinois Insurance Code, the Missouri Insurance Code, and New York 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 $3.4 million , $6.1 million , $2.0 million , and $1.2 million for American Country, American Service, Gateway and Global Liberty, respectively, for the year ended December 31, 2015 . Net income for the year ended December 31, 2014 was $2.0 million , $4.0 million , and $1.7 million for American Country, American Service and Gateway, respectively. The combined statutory capital and surplus of the insurance subsidiaries was $118.5 million and $63.0 million as of December 31, 2015 and December 31, 2014 , respectively. Atlas did not declare or pay any dividends to its common shareholders during the years ended December 31, 2015 and 2014 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The effective tax rate was 34.5% , (48.3)% , and 1.2% for the years ended December 31, 2015, 2014, and 2013 , respectively. The table below reconciles the U.S. statutory income tax rate to the effective tax rate ($ in '000s): Year Ended December 31, 2015 2014 2013 Amount % Amount % Amount % Provision for taxes at U.S. statutory marginal income tax rate $ 7,716 35.0 % $ 4,058 34.0 % $ 2,126 34.0 % Provision for deferred tax assets deemed unrealizable (valuation allowance) — — % (9,446 ) (79.1 )% (2,802 ) (44.8 )% Nondeductible expenses 124 0.6 % 136 1.1 % 100 1.6 % Tax-exempt income (89 ) (0.4 )% — — % — — % State tax (net of federal benefit) 118 0.5 % 11 0.1 % 47 0.8 % Tax net operating loss limitation write-down (excluding valuation allowance) — — % (519 ) (4.3 )% 626 10.0 % Nondeductible purchase accounting adjustment 329 1.5 % — — % — — % Change in statutory tax rate (471 ) (2.1 )% — — % — — % Other (111 ) (0.6 )% (7 ) (0.1 )% (25 ) (0.4 )% Provision for income taxes for continuing operations $ 7,616 34.5 % $ (5,767 ) (48.3 )% $ 72 1.2 % Income tax expense (benefit) consists of the following for the years ended December 31, 2015, 2014, and 2013 (all amounts in '000s): Year Ended December 31, 2015 2014 2013 Current tax expense $ 7,790 $ 3,009 $ 1,144 Deferred tax benefit, net of change in valuation allowance (174 ) (8,776 ) (1,072 ) Total $ 7,616 $ (5,767 ) $ 72 Upon the transaction forming Atlas on December 31, 2010, a yearly limitation as required by U.S. Internal Revenue Code of 1986 (as amended, "IRC") 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 has been permanently limited to the amount determined under IRC Section 382. The result is a maximum expected net deferred tax asset that 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 occurred. As a result, under IRC Section 382, the use of the Company's net operating loss and other carryforwards will be limited due to this "ownership change” for tax purposes, which is defined as a cumulative change of more than 50% during any three-year period by shareholders owning 5% or greater portions of the Company's shares. Due to this triggering event, the Company estimates that it will retain total tax effected federal net operating loss carryforwards of approximately $12.7 million as of December 31, 2015 . The components of deferred income tax assets and liabilities as of December 31, 2015 and December 31, 2014 are as follows (all amounts in '000s): December 31, 2015 December 31, 2014 Deferred tax assets: Losses carried forward $ 12,656 $ 14,212 Unpaid claims and unearned premiums 8,122 5,560 Tax credits 662 662 Investments 36 — Commissions 1,306 319 All other 1,457 476 Total gross deferred tax assets 24,239 21,229 Deferred tax liabilities: Deferred policy acquisition costs 3,582 2,776 Investments — 740 Fixed assets 401 396 Intangible assets 1,465 — All other 1,625 — Total gross deferred tax liabilities 7,073 3,912 Net deferred tax assets $ 17,166 $ 17,317 Amounts and expiration dates of the operating loss carryforwards as of December 31, 2015 are as follows (all amounts in '000s): Year of Occurrence Year of Expiration Amount 2001 2021 $ 5,481 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 4,669 2012 2032 2,890 Total $ 36,160 Atlas has not established a valuation allowance for its gross future deferred tax assets as of December 31, 2015 or as of December 31, 2014 . 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, 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, 2015, 2014, and 2013 . Tax years 2009 through 2015 are subject to examination by the Internal Revenue Service ("IRS"). The Company's 2012 tax year is currently under examination by the IRS. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Dec. 31, 2015 | |
Assets Held for Sale [Abstract] | |
Assets Held for Sale | ASSETS HELD FOR SALE During the year ended December 31, 2015 , Atlas sold one of its two properties located in Alabama and recognized a loss of $20,000 to an unaffiliated third party. The remaining property is listed for sale for an amount greater than its carried value. |
Internal Use Software and Capit
Internal Use Software and Capital Assets | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and December 31, 2014 (excluding assets held for sale) (all amounts in '000s): As of December 31, 2015 2014 Leasehold improvements $ 507 $ 501 Internal use software 7,611 7,372 Computer equipment 2,225 1,844 Furniture and other office equipment 593 397 Total 10,936 10,114 Accumulated depreciation (8,347 ) (7,295 ) Balance, end of period $ 2,589 $ 2,819 Depreciation expense and amortization was $966,000 , $856,000 , and $795,000 for the years ended December 31, 2015, 2014, and 2013 , respectively. Effective July 1, 2015, the Company implemented a new policy management software and began amortizing the cost of the software. Total capitalized cost of the software was approximately $2.0 million . Amortization expense for the new software for the year ended December 31, 2015 was $186 ,000. |
Reinsurance Ceded
Reinsurance Ceded | 12 Months Ended |
Dec. 31, 2015 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | |
Reinsurance Ceded | 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, 2015, 2014, and 2013 are as follows (all amounts in '000s): 2015 2014 2013 Direct premiums written $ 208,570 $ 122,339 $ 92,487 Assumed premiums written 716 93 573 Ceded premiums written (39,609 ) (11,011 ) (12,580 ) Net premiums written $ 169,677 $ 111,421 $ 80,480 Direct premiums earned $ 182,376 $ 107,587 $ 83,358 Assumed premiums earned 634 126 528 Ceded premiums earned (30,946 ) (9,589 ) (12,542 ) Net premiums earned $ 152,064 $ 98,124 $ 71,344 Ceded losses and loss adjustment expenses 19,113 8,783 4,883 Ceding commissions 7,798 2,374 2,241 Ceded unpaid losses and loss adjustment expenses 29,399 18,421 18,144 Prepaid reinsurance premiums 17,412 3,628 2,207 Other amounts due from reinsurers 3,277 2,230 1,002 |
Unpaid Claims
Unpaid Claims | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, 2014, and 2013 were as follows (all amounts in '000s): As of the year ended December 31, 2015 2014 2013 Unpaid claims, beginning of period $ 102,430 $ 101,385 $ 70,067 Less: reinsurance recoverable 18,421 18,144 5,680 Net beginning unpaid claims reserves 84,009 83,241 64,387 Net reserves acquired 19,396 — 29,923 Change in retroactive reinsurance ceded 2,037 2,415 (5,919 ) Incurred related to: Current year 89,828 61,680 45,604 Prior years 166 (602 ) 8 89,994 61,078 45,612 Paid related to: Current year 32,402 19,427 12,874 Prior years 65,422 43,298 37,888 97,824 62,725 50,762 Net unpaid claims, end of period 97,612 84,009 83,241 Add: reinsurance recoverable 29,399 18,421 18,144 Unpaid claims, end of period $ 127,011 $ 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. The establishment of reserves is an inherently uncertain process involving estimates; and current provisions may not be sufficient. Adjustments to reserves, both positive and negative, are reflected in the statement of income and comprehensive income as estimates are updated. Atlas experienced $166,000 in unfavorable prior year development for the year ended December 31, 2015 as reflected as incurred related to prior years in the table above. Prior year development on non-core lines, assigned risk and pre-acquisition Global Liberty reserves was $641,000 for the year ended December 31, 2015 . This increase was offset by $475,000 of favorable prior year development on our core lines. Atlas experienced favorable prior year development during the year ended December 31, 2014 of $352,000 on its core lines and $250,000 on its non-core lines as reflected as incurred related to prior years in the table above. Atlas experienced minimal unfavorable prior year development for the year ended December 31, 2013 , reflected as incurred related to prior years in the table above, on its non-core lines. |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Based Compensation | SHARE BASED COMPENSATION On January 6, 2011, Atlas adopted a stock option plan (the “Stock Option Plan”) in order to advance the interests of Atlas by providing incentives to eligible persons defined in the plan. In the second quarter of 2013, a new equity incentive plan (the “Equity Incentive Plan”) was approved by the Company's common shareholders at the Annual General Meeting, and Atlas ceased to grant new stock options under the preceding Stock Option Plan. The Equity Incentive Plan is a securities based compensation plan, pursuant to which Atlas may issue restricted stock grants for ordinary voting common shares, restricted units, stock grants for ordinary voting common shares, stock options and other forms of equity incentives to eligible persons as part of their compensation. The Equity Incentive Plan is considered an amendment and restatement of the Stock Option Plan, although outstanding stock options issued pursuant to the Stock Option Plan will continue to be governed by the terms of the Stock Option Plan. Stock options - Stock option activity for the years ended December 31, 2015 and 2014 follows (prices in Canadian dollars designated with "C$" and United States dollars designated with "US$"): 2015 2014 C$ Denominated: Number Avg. Price Number Avg. Price Outstanding, beginning of period 224,623 C$ 6.05 224,623 C$ 6.05 Granted — — — — Exercised (36,895 ) 5.21 — — Outstanding, end of period 187,728 C$ 6.22 224,623 C$ 6.05 2015 2014 US$ Denominated: Number Avg. Price Number Avg. Price Outstanding, beginning of period 175,000 US$13.26 — — Granted 200,000 US$20.29 175,000 US$13.26 Exercised — — — — Outstanding, end of period 375,000 US$17.01 175,000 US$13.26 Information about options outstanding at December 31, 2015 is as follows: Grant Date Expiration Date Number Outstanding Number Exercisable March 18, 2010 March 15, 2020 — — January 18, 2011 January 18, 2021 96,060 96,060 January 11, 2013 January 11, 2023 91,668 61,112 March 6, 2014 March 6, 2024 175,000 58,333 March 12, 2015 March 12, 2025 200,000 — Total 562,728 215,505 There are 215,505 stock options that are exercisable as of December 31, 2015 . The stock option grants outstanding have a weighted average remaining life of 7.83 years and have an intrinsic value of $3.9 million as of December 31, 2015 . On March 12, 2015 , the Board of Directors of Atlas granted equity awards of (i) 200,000 restricted voting common shares of the Company and (ii) 200,000 options to acquire ordinary voting common shares to the executive officers of the Company as part of the Company’s annual compensation process. The awards were made under the Company’s Equity Incentive Plan. The awards vest in 5 equal annual installments of 20% , provided that an installment shall not vest unless an annual performance target based on specific return on average equity growth rates is met. In the event the performance target is not met in any year, the 20% installment for such year shall not vest, but such non-vested installment shall carry forward and can become vested in future years (up to the fifth year from the date of grant), subject to achievement in a future year of the applicable performance target for such year. The Monte-Carlo simulation model was used, for both the options and restricted share grants, to estimate the fair value of compensation expense as a result of the performance based component of these grants. Utilizing the Monte-Carlo simulation model, the fair values were $1.5 million and $1.9 million for the options and restricted share grants, respectively. This expense will be amortized over the anticipated vesting period. Restricted shares - The activity for the restricted shares and restricted share units for the years ended December 31, 2015 and 2014 are as follows: 2015 2014 Number of Shares Weighted Average Fair Value at Grant Date Number of Shares Weighted Average Fair Value at Grant Date Non-vested, beginning of period 185,190 $ 12.20 — $ — Granted 200,000 17.99 185,190 12.20 Vested (37,035 ) 12.20 — — Non-vested, end of period 348,155 $ 15.53 185,190 $ 12.20 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 $1.8 million , $1.5 million and $247,000 in stock compensation expense for the years ended December 31, 2015, 2014, and 2013 , respectively, which is a component of other underwriting expenses on the income statement. Total unrecognized stock compensation expense related to all stock and restricted share option grants is $1.7 million and $3.0 million , respectively as of December 31, 2015 , which will be recognized over the next 50 months . |
Other Employee Benefit Plans
Other Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Other Employee Benefit Plans [Abstract] | |
Other Employee Benefit Plans | OTHER EMPLOYEE BENEFIT PLANS Defined Contribution Plan - In the first quarter of 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 $18,000 for 2015 , to the plan. Qualifying employees age 50 and older can contribute an additional $6,000 during 2015 . 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 equally over 5 years with 100% vested after 5 years . Company contributions were $300,000 , $204,000 , and $118,000 for the years ended December 31, 2015 , 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. Atlas also pays all administrative costs related to this plan. During the years ended December 31, 2015 , December 31, 2014 , and December 31, 2013 , Atlas' costs incurred related to the matching portion of the ESPP were $151,000 , $113,000 , and $58,000 , respectively. Share purchases pursuant to this plan are made in the open market. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2015 | |
Share Capital [Abstract] | |
Share Capital | SHARE CAPITAL The share capital is as follows: At December 31, 2015 2014 Shares Authorized Shares Issued and Outstanding Amount (in '000s) Shares Issued and Outstanding Amount (in '000s) Preferred Shares 100,000,000 6,940,500 $ 6,941 2,000,000 $ 2,000 Ordinary voting common shares 266,666,667 11,883,025 $ 36 11,638,723 $ 34 Restricted voting common shares 33,333,334 132,863 — 132,863 — Total common shares 300,000,001 12,015,888 $ 36 11,771,586 $ 34 All of the issued and outstanding restricted voting common shares are beneficially owned or controlled by Kingsway Financial Services, Inc. (including its subsidiaries and affiliated companies, "Kingsway"). The restricted voting 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 voting 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 voting common shares will convert to ordinary voting common shares in the event that these Kingsway-owned shares are sold to non-affiliates of Kingsway. There were 29,631 and 37,038 non-vested restricted stock units ("RSUs") as of December 31, 2015 and December 31, 2014 , respectively. These RSUs are participative and are included in the computations of earnings per share and book value per share for these periods. During the year ended December 31, 2015 , the Company issued 7,407 ordinary voting common shares as a result of the vesting of RSUs and 200,000 non-vested restricted shares to a director and the officers, respectively. During the year ended December 31, 2015 , the Company issued 36,895 ordinary voting common shares to a director as a result of exercising options. These shares were granted and issued under the Company's Equity Incentive Plan. During the first quarter of 2015, the Company issued 4,000,000 preferred shares as a portion of the consideration related to the Anchor acquisition and an additional 940,500 preferred shares pursuant to the Gateway stock purchase agreement. At December 31, 2015 , there were 6,940,500 preferred shares outstanding. These preferred shares are beneficially owned or controlled by the former owners of Gateway ( 2,940,500 preferred shares) and Anchor ( 4,000,000 preferred shares). The Gateway preferred shares issued during the first quarter of 2015 have been recorded as additional acquisition expense and not as an adjustment to goodwill because the fair value of the contingent consideration was determined to be zero at the date of the Gateway acquisition. In accordance with U.S. GAAP, such adjustments are reflected in the income statement in the period that the contingency is re-estimated. The estimate of this contingency could change in the future until all remaining claims are settled. 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 they 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. The preferred shares are redeemable at the option of Atlas at a price of $1.00 per share plus accrued and unpaid dividends, subject to certain conditions, prior to the conversion date. Preferred shareholders are not entitled to vote. Preferred shares are convertible into ordinary voting common shares at the option of the former owners of Gateway and Anchor at any date after the fifth year of issuance at the rate of 0.1270 and 0.0500 , respectively, 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 by way of an anti-dilution event. During the year ended December 31, 2015 , Atlas did not declare or pay dividends earned through the preferred shares. The former owners of Gateway and Anchor earned $130,000 and $146,000 , respectively, in dividends during the year ended December 31, 2015 . As of December 31, 2015 , Atlas has accrued $314,000 and $146,000 in dividends for the former owners of Gateway and Anchor, respectively, which remain unpaid. 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 . 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 voting 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 was used to support the acquisition of Anchor Holdings Group, Inc. and its affiliated entities. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS Deferred policy acquisition costs represent those costs that are incremental and directly related to the successful acquisition of new or renewal written premium. Such deferred policy acquisition costs generally include agent commissions, premium taxes and a portion of employee compensation and benefits directly related to time spent performing specific acquisition or renewal activities. 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. Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, typically 12 months. Deferred policy acquisition costs for the years ended December 31, 2015 , December 31, 2014 , and December 31, 2013 (all amounts in '000s): Year Ended December 31, 2015 2014 2013 Balance, beginning of period $ 8,166 $ 6,674 $ 3,764 Acquisition costs deferred 20,661 15,540 13,283 Amortization charged to income 18,592 14,048 10,373 Balance, end of period $ 10,235 $ 8,166 $ 6,674 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS During 2015 and 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. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (in ‘000s, except per share data) 2015 Q4 Q3 Q2 Q1 Gross premium written $ 52,423 $ 65,315 $ 46,575 $ 44,973 Net premium earned 41,927 41,666 38,304 30,167 Underwriting income 1 4,954 4,946 5,175 4,763 Net income 4,333 4,024 3,936 2,137 Net income attributable to common shareholders 4,253 3,943 3,856 2,102 Basic earnings per common share $ 0.35 $ 0.33 $ 0.32 $ 0.18 Diluted earnings per common share $ 0.34 $ 0.32 $ 0.31 $ 0.17 (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 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 $ 0.80 $ 0.29 $ 0.24 $ 0.23 Diluted earnings per common share $ 0.77 $ 0.29 $ 0.23 $ 0.22 1 - We reclassified interest expense from underwriting expense to non-operating expense during the fourth quarter. As a result, underwriting income was restated and increased by $139,000 and $269,000 for the three months ended June 30, 2015 and September 30, 2015, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES On May 22, 2012, Atlas closed the sale and leaseback 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 five year lease term. Atlas recognized $43,000 as an offset to rent expense for the years ended December 31, 2015, 2014, and 2013 . Total rental expense recognized on the headquarters building was $704,000 , $707,000 and $699,000 for the years ended December 31, 2015, 2014, and 2013 , respectively. The decrease in rental expense on the headquarters building for the year ended December 31, 2015 was due to lower utility costs. 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, 2015 (all amounts in '000s): Year 2016 2017 2018 2019 2020 2021 & Beyond Total Amount $ 1,731 $ 1,240 $ 919 $ 929 $ 955 $ 1,058 $ 6,832 The Company has entered into subscription agreements to commit up to $6.8 million of capital to allow for participation by the Company in limited liability investments, which invest in income-producing real estate, small business loans and equity securities. As of December 31, 2015 , the unfunded commitment was $2.5 million . 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, agents 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 procedures to monitor and minimize its exposure to delinquent agent balances, including, but not limited to, reviewing account current statements, processing policy cancellations for non-payment and other collection efforts deemed appropriate. Atlas also has procedures 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, 2015 | |
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 (“Former Loan Agreement”) for a $10.0 million revolving loan facility with Fifth Third Bank. Under the Former Loan Agreement, funds could 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 was generally LIBOR plus 2.75% , provided that, during a default, interest would accrue at a rate equal to LIBOR plus 5% . In addition, there was a non-utilization fee equal to 0.25% per annum of an amount equal to $10.0 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. On March 9, 2015, American Acquisition entered into a loan and security agreement (“Loan Agreement”) for a $35.0 million loan facility with Fifth Third Bank. The Loan Agreement includes a $30.0 million line of credit ("Draw Amount"), which can be drawn in increments at any time during the first twelve months of the agreement effective date of March 9, 2015. The $30.0 million line of credit has a five year term and bears interest at one-month LIBOR plus 4.5% , effectively 4.92% at December 31, 2015 . The Loan Agreement also includes a $5.0 million revolving line of credit ("Revolver") that bears interest at one month LIBOR plus 2.75% , effectively 3.18% at December 31, 2015 . This $5.0 million revolving line of credit replaces the $10.0 million revolving line of credit American Acquisition previously had in place with Fifth Third Bank under the Former Loan Agreement. The Loan Agreement also provides for the issuance of letters of credit in an amount up to $2.0 million outstanding at any time. In addition, there is a non-utilization fee for each of the $30.0 million line of credit and $5.0 million revolving line of credit equal to 0.50% per annum of an amount equal to $30.0 million and $5.0 million , respectively, less the daily average of the aggregate principal amount outstanding under such credit lines (plus, in the case of the $30.0 million line of credit, the aggregate amount of the letter of credit obligations outstanding). The Loan Agreement requires American Acquisition 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 American Acquisition to make mandatory prepayments under certain conditions and to comply with certain financial covenants, including the ASI Pool Subsidiaries (defined below) maintaining a combined statutory net worth in an amount not less than $60 million (subject to adjustment) and maintaining a minimum funded debt to Earnings Before Interest, Taxes, Depreciation and Amortization ratio. The Loan Agreement is secured by substantially all of the property of American Acquisition, including all of the outstanding shares of American Country, American Service and Gateway, which are wholly-owned direct subsidiaries of American Acquisition (the “ASI Pool Subsidiaries”). As of December 31, 2015 , American Acquisition was in compliance with the covenants of the Loan Agreement. As of December 31, 2015 , $2.0 million in funds were accessed from the Revolver and used for the Anchor acquisition. $15.5 million in funds were accessed against the Draw Amount as of December 31, 2015 . The draw was contributed to the ASI Pool Subsidiaries in exchange for surplus notes that carry a variable interest rate of prime plus 2% with a maturity date of April 30, 2020. No letters of credit were issued under the terms of this Loan Agreement as of December 31, 2015 . As of December 31, 2015 , the unused funds for the Revolver and the Draw Amount were $3.0 million and $14.5 million , respectively. For the year ended December 31, 2015 , American Acquisition incurred interest expense, including non-utilization fees, of $638,000 and bank fees of $56,000 in connection with the Loan Agreement. As of December 31, 2015 , unamortized bank fees associated with the Loan Agreement were $281 ,000. These bank fees will be amortized over the next 50 months. The following table provides the rollforward of Atlas' total debt outstanding for the year ended December 31, 2015 (all amounts in '000s): Balance at Issuances Maturities and Repayments Balance at Year Ended Ended December 31, 2015 December 31, 2014 December 31, 2015 Revolver $ — $ 2,500 $ (500 ) $ 2,000 Draw Amount — 15,500 — 15,500 Total Borrowings $ — $ 18,000 $ (500 ) $ 17,500 |
Schedule II - Condensed Financ
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2015 | |
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 '000s) Year ended December 31, 2015 2014 2013 Net investment gain $ 7 $ 16 $ 96 Other underwriting expense 2,566 1,825 542 Loss from operations before income tax benefit (2,559 ) (1,809 ) (446 ) Income tax benefit (577 ) (498 ) (67 ) Loss before equity in net income of subsidiaries $ (1,982 ) $ (1,311 ) $ (379 ) Equity in net income of subsidiaries 16,412 19,013 6,559 Net income $ 14,430 $ 17,702 $ 6,180 Other comprehensive (loss) income: Changes in net unrealized (losses) gains (1,912 ) 2,029 (4,354 ) Reclassification to income of net realized gains (losses) 203 257 (469 ) Effect of income tax 597 (777 ) 1,642 Other comprehensive (loss) income for the period (1,112 ) 1,509 (3,181 ) Total comprehensive income $ 13,318 $ 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 '000s , except for share and per share data ) December 31, 2015 2014 Assets Cash and cash equivalents $ 162 $ 23,428 Accrued investment income — 3 Accounts receivable and other assets 479 — Deferred tax asset, net 766 515 Investment in subsidiaries 128,215 85,486 Total Assets $ 129,622 $ 109,432 Liabilities Other liabilities and accrued expenses $ — $ 33 Total Liabilities $ — $ 33 Shareholders’ Equity Preferred shares, $0.001 par value, 100,000,000 shares authorized, shares issued and outstanding: 2015 - 6,940,500 and 2014 - 2,000,000. Liquidation value $1.00 per share $ 6,941 $ 2,000 Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued and outstanding: 2015 - 11,883,025 and 2014 - 11,638,723 36 34 Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: 2015 and 2014 - 132,863 — — Additional paid-in capital 198,041 196,079 Retained deficit (74,364 ) (88,794 ) Accumulated other comprehensive (loss) income, net of tax (1,032 ) 80 Total Shareholders’ Equity 129,622 109,399 Total Liabilities and Shareholders’ Equity $ 129,622 $ 109,432 See accompanying notes to Condensed Financial Information of Registrant Schedule II – Condensed Financial Information of Registrant (continued) Statements of Cash Flow ($ in '000s) Year Ended December 31, 2015 2014 2013 Operating Activities: Net income $ 14,430 $ 17,702 $ 6,180 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in net income of subsidiaries (16,412 ) (19,013 ) (6,559 ) Share-based compensation expense 1,819 1,469 247 Deferred income taxes (251 ) (301 ) (112 ) Expenses incurred pursuant to Gateway stock purchase agreement 941 — — Net changes in operating assets and liabilities: Other assets and accrued investment income (476 ) 22 (25 ) Accounts payable and accrued liabilities (34 ) (112 ) 144 Net cash flows provided by (used in) operating activities 17 (233 ) (125 ) Investing activities: Capital contributions made to subsidiaries (23,428 ) (1,650 ) — Net cash flows used in investing activities (23,428 ) (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 145 1 3 Net cash flows provided by financing activities 145 25,022 347 Net change in cash and cash equivalents (23,266 ) 23,139 222 Cash and cash equivalents, beginning of year 23,428 289 67 Cash and cash equivalents, end of year $ 162 $ 23,428 $ 289 Supplemental disclosure of cash information (in '000s): Year Ended December 31, 2015 2014 2013 Cash paid (recovered) for: Interest $ — $ — $ 129 Income taxes 85 (210 ) 25 Supplemental disclosure of noncash investing and financing activities (in '000s): Issuance of preferred shares related to acquisition of subsidiary $ 4,000 $ — $ 2,000 Issuance of preferred shares related to Gateway stock purchase agreement 941 — — 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, 2015 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [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, 2015 Premiums earned $ 182,376 $ (30,946 ) $ 634 $ 152,064 0.4 % 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 qual
Schedule V - Valuation and qualifying accounts | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 Allowance for uncollectible receivables $ 560 $ 566 $ 8 $ (288 ) $ 846 Valuation allowance for deferred tax assets — — — — — 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 info
Schedule VI - Supplemental information concerning property-casualty insurance operations | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Information for Property, Casualty Insurance Underwriters [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, 2015 2014 2013 Deferred policy acquisition costs $ 10,235 $ 8,166 $ 6,674 Reserves for insurance claims and claims expense 127,011 102,430 101,385 Unearned premiums 108,202 58,950 44,232 Earned premiums 152,064 98,124 71,344 Net investment income 3,976 3,110 2,141 Claims and claims adjustment expense incurred Current year 89,828 61,680 45,604 Prior year 166 (602 ) 8 Amortization of deferred policy acquisition costs 18,592 14,048 10,373 Paid claims and claim adjustment expense 97,824 62,725 50,762 Gross premium written 209,286 122,432 93,060 |
Nature of Operations and Basi30
Nature of Operations and Basis of Presentation Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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) Anchor Holdings Group, Inc. (New York) Global Liberty Insurance Company of New York (New York) Plainview Premium Finance Company, Inc. (Delaware) Plainview Premium Finance Company of California, Inc. (California) Anchor Group Management, Inc. (New York) |
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, 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 - For securities other than mortgage backed and asset backed, Atlas utilizes the effective interest method to calculate the amortized cost of the financial asset and to amortize or accrete the discount or premium over the remaining life. The effective interest rate is the rate that discounts the estimated future cash flows through the expected life of the financial instrument. Mortgage backed and asset backed securities are valued using the retrospective adjustment method which uses the effective interest method and includes anticipated prepayments. 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 - Investments in fixed income and equity 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 shareholders' 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. 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 whether 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 prove to 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 prove to 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. 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, 2015 , this process did not generate any significant difference in the rating assessment between Atlas' review and the rating agencies. 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 that 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. 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 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. |
Premiums receivable | Premiums receivable - Premiums 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, 2015 , 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 based on the differences in the tax basis of assets, liabilities and items recognized directly in equity and the financial reporting basis of such items. 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. |
Goodwill | Goodwill – Atlas recognized goodwill as part of the acquisition of Anchor Holdings Group, Inc. The amounts recognized represent the cost of the acquisition above the fair value of the net assets acquired. Atlas reviews goodwill at least annually for impairment. Atlas concluded that there was no goodwill impairment in the year ended December 31, 2015 . |
Intangible Assets | Intangible assets – Atlas recognized intangible assets as part of the acquisition of Gateway and Anchor Holdings Group, Inc. The intangible assets are classified as either indefinite or definite lived depending on whether the useful lives can be identified. Atlas indefinite-lived intangible assets consist of state insurance licenses, and these intangible assets are reviewed for impairment at least annually. Atlas concluded that there was no indefinite-lived intangible asset impairment in either of the years ended December 31, 2015 and December 31, 2014 . Definite-lived intangible assets are amortized over their useful lives on a straight-line basis except for customer related intangibles, which are on an accelerated basis. Atlas definite-lived intangible assets consist of trade names and trademarks with useful lives of 15 years and customer relationships with useful lives of 10 years . Atlas recorded $315,000 of intangible asset amortization for the year ended December 31, 2015 . |
Business Combinations | Business combinations - The value of certain assets and liabilities acquired are subject to adjustment from the initial purchase price allocation as additional information is obtained, including, but not limited to, valuation of separately identifiable intangibles, the preferred stock issued to the seller, and deferred taxes. The valuations are finalized within 12 months of the close of the acquisition (not including loss reserve development consideration, if applicable). The changes upon finalization to the initial purchase price allocation and valuation of assets and liabilities may result in an adjustment to identifiable intangible assets and goodwill. Adjustments to the provisional amounts identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. The effect of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date, are recorded in the financial statements and presented separately on the income statement in the reporting period in which the adjustment amounts are determined. |
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, 5 years for enterprise software and 3 years for all other 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 to the Consolidated Financial Statements. Atlas uses the fair-value method of accounting to determine and account for equity settled transactions and to determine stock-based compensation for awards granted to employees and non-employees. For stock-based compensation for awards granted to employees and non-employees that include a performance provision, the Monte-Carlo simulation model is utilized to determine fair value. Stock-based compensation prior to 2015 was valued 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 operates in one business segment, the property and casualty insurance business. |
Reclassifications | Reclassifications - Certain accounts in the prior years' consolidated financial statement have been reclassified for comparative purposes to conform to the current year's presentation. |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisition [Line Items] | |
Schedule of Finite-Lived Intangible Assets | The following table presents a summary of definite-lived intangible assets by major asset class at December 31, 2015 : (in $ '000s) Economic Useful Life Gross Carrying Amount Accumulated Amortization Net Trade name and trademark 15 years $ 1,800 $ 97 $ 1,703 Customer relationship 10 years 2,700 218 2,482 $ 4,500 $ 315 $ 4,185 |
Anchor Holdings Group, Inc. et. al. | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisition Pro Forma Information | These results were prepared for comparative purposes only and do not purport to be indicative of the results of operations that may have actually resulted had the acquisition occurred on the indicated dates, nor are they indicative of potential future operating results of the Company. (in '000s, except per share information) Years Ended December 31, 2015 December 31, 2014 Revenue $ 162,311 $ 134,883 Income from operations before income tax expense 1 23,601 16,212 Net income 1 15,420 20,370 Basic earnings per share 1 $ 1.26 $ 1.84 Diluted earnings per share 1 $ 1.21 $ 1.77 1 - Excludes expenses incurred in the connection with the Anchor acquisition |
Schedule of Assets Acquired and Liabilities Assumed Based on the Company's Assessment of Fair Value | The following table presents the adjusted values of assets acquired and liabilities assumed for the Anchor acquisition based on its estimated fair value on March 11, 2015. (in $ '000s) Purchase Consideration Cash $ 19,199 Preferred stock 4,000 Total $ 23,199 Allocation of Purchase Price Cash and investments $ 48,508 Other current assets 33,303 Property and equipment 22 Goodwill 2,726 Intangible assets 4,500 Total Assets $ 89,059 Claims liabilities $ 30,731 Unearned premiums 22,976 Accounts payable and other liabilities 11,231 Deferred tax liabilities 922 Total Liabilities $ 65,860 Net assets acquired $ 23,199 |
Gateway Insurance Company | |
Business Acquisition [Line Items] | |
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, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Shares, Basic and Diluted | Earnings per ordinary voting common shares, restricted voting common shares, and participative restricted stock units ("RSUs") (collectively, the "common shares") for the years ended December 31, 2015 , December 31, 2014 , and December 31, 2013 are as follows ($ in '000s except for share and per share amounts): Year Ended December 31, 2015 2014 2013 Basic: Income from operations before income tax expense $ 22,046 $ 11,935 $ 6,252 Income tax expense (benefit) 7,616 (5,767 ) 72 Net income 14,430 17,702 6,180 Add: Discount from preferred share buyback — — 1,800 Less: Preferred share dividends 276 94 619 Net income attributable to common shareholders for basic earnings per common share $ 14,154 $ 17,608 $ 7,361 Weighted average common shares outstanding 11,975,579 10,937,181 8,007,458 Basic earnings per common share $ 1.18 $ 1.61 $ 0.92 Diluted: Income from operations before income tax expense $ 22,046 $ 11,935 $ 6,252 Income tax expense (benefit) 7,616 (5,767 ) 72 Net income 14,430 17,702 6,180 Add: Discount from preferred share buyback — — 1,800 Net income attributable to common shareholders for dilutive earnings per common share $ 14,430 $ 17,702 $ 7,980 Weighted average common shares outstanding 11,975,579 10,937,181 8,007,458 Dilutive potential ordinary shares: Dilutive stock options outstanding 186,656 150,407 87,825 Dilutive warrants — — 1,158,085 Dilutive shares upon preferred share conversion 573,444 254,000 1,587,500 Dilutive average common shares outstanding 12,735,679 11,341,588 10,840,868 Dilutive earnings per common share $ 1.13 $ 1.56 $ 0.74 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 and equities are as follows (all amounts in '000s): December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed Income: U.S. Government $ 45,529 $ 244 $ (136 ) $ 45,637 Corporate Banking/financial services 21,963 117 (166 ) 21,914 Consumer goods 7,813 43 (121 ) 7,735 Capital goods 15,524 127 (556 ) 15,095 Energy 4,807 — (401 ) 4,406 Telecommunications/utilities 12,298 27 (450 ) 11,875 Health care 3,038 — (17 ) 3,021 Total Corporate 65,443 314 (1,711 ) 64,046 Mortgage backed - agency 34,874 112 (313 ) 34,673 Mortgage backed - commercial 19,961 158 (244 ) 19,875 Total Mortgage Backed 54,835 270 (557 ) 54,548 Other asset backed 19,648 14 (120 ) 19,542 Total Fixed Income 185,455 842 (2,524 ) 183,773 Equities 4,147 139 (46 ) 4,240 Totals $ 189,602 $ 981 $ (2,570 ) $ 188,013 December 31, 2014 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 Totals $ 128,921 $ 1,079 $ (958 ) $ 129,042 |
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, 2015 One year or less One to five years Five to ten years More than ten years Total Amortized Cost $ 12,504 $ 69,082 $ 42,631 $ 61,238 $ 185,455 Fair Value $ 12,527 $ 68,412 $ 42,285 $ 60,549 $ 183,773 Percentage of total 6.8 % 37.2 % 23.0 % 33.0 % 100.0 % At December 31, 2014 One year or less One to five years Five to ten years More than ten years Total Amortized Cost $ 1,786 $ 54,315 $ 23,432 $ 47,168 $ 126,701 Fair Value $ 1,875 $ 54,349 $ 23,166 $ 47,559 $ 126,949 Percentage of total 1.5 % 42.8 % 18.2 % 37.5 % 100.0 % |
Schedule of Unrealized Loss on Investments | The aging of unrealized losses on the Company's investments in fixed income and equity securities is presented as follows (all amounts in '000s): Less Than 12 Months More Than 12 Months Total As of December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Income Securities: U.S. Government $ 15,582 $ (95 ) $ 3,809 $ (41 ) $ 19,391 $ (136 ) Corporate Banking/financial services 12,216 (161 ) 595 (5 ) 12,811 (166 ) Consumer goods 6,044 (121 ) — — 6,044 (121 ) Capital goods 9,425 (428 ) 755 (128 ) 10,180 (556 ) Energy 3,862 (337 ) 544 (64 ) 4,406 (401 ) Telecommunications/utilities 8,811 (450 ) — — 8,811 (450 ) Health care 3,021 (17 ) — — 3,021 (17 ) Total Corporate 43,379 (1,514 ) 1,894 (197 ) 45,273 (1,711 ) Mortgage backed - agency 25,168 (255 ) 1,921 (58 ) 27,089 (313 ) Mortgage backed - commercial 10,022 (129 ) 3,445 (115 ) 13,467 (244 ) Total Mortgage Backed 35,190 (384 ) 5,366 (173 ) 40,556 (557 ) Other asset backed 16,203 (113 ) 1,084 (7 ) 17,287 (120 ) Total Fixed Income Securities 110,354 (2,106 ) 12,153 (418 ) 122,507 (2,524 ) Equities 1,062 (46 ) — — 1,062 (46 ) Totals $ 111,416 $ (2,152 ) $ 12,153 $ (418 ) $ 123,569 $ (2,570 ) Less Than 12 Months More Than 12 Months Total As of December 31, 2014 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Income Securities: U.S. Government $ 2,228 $ (3 ) $ 9,395 $ (156 ) $ 11,623 $ (159 ) Corporate Banking/financial services 3,298 (14 ) 1,523 (17 ) 4,821 (31 ) Consumer goods 269 — 714 (13 ) 983 (13 ) Capital goods 2,599 (19 ) 1,543 (33 ) 4,142 (52 ) Energy 2,583 (82 ) 86 (2 ) 2,669 (84 ) Telecommunications/utilities 1,371 (7 ) 168 (1 ) 1,539 (8 ) Health care 1,443 (10 ) 488 (6 ) 1,931 (16 ) Total Corporate 11,563 (132 ) 4,522 (72 ) 16,085 (204 ) Mortgage backed - agency 4,196 (28 ) 9,202 (132 ) 13,398 (160 ) Mortgage backed - commercial 1,409 (5 ) 9,781 (264 ) 11,190 (269 ) Total Mortgage Backed 5,605 (33 ) 18,983 (396 ) 24,588 (429 ) Other asset backed 10,021 (27 ) — — 10,021 (27 ) Total Fixed Income Securities 29,417 (195 ) 32,900 (624 ) 62,317 (819 ) Equities 1,230 (139 ) — — 1,230 (139 ) Totals $ 30,647 $ (334 ) $ 32,900 $ (624 ) $ 63,547 $ (958 ) |
Summary of the Components of Net Investment Income | The following table summarizes the components of net investment income for the years ended December 31, 2015, 2014, and 2013 (all amounts in '000s): Year Ended December 31, 2015 2014 2013 Total investment income Interest income $ 3,371 $ 2,848 $ 2,716 Dividends 43 20 9 Income (loss) from other investments 1,344 693 (84 ) Investment expenses (782 ) (451 ) (500 ) Net investment income $ 3,976 $ 3,110 $ 2,141 |
Schedule of Realized Gain (Loss) | The following table presents the gross realized gains and gross realized losses from sales of fixed income and equity securities for the years ended December 31, 2015, 2014, and 2013 (all amounts in '000s): 2015 2014 2013 Gross Realized Gains Gross Realized Losses Gross Realized Gains Gross Realized Losses Gross Realized Gains Gross Realized Losses Fixed income securities $ 574 $ (86 ) $ 425 $ (59 ) $ 1,587 $ (1,225 ) Equities 69 (81 ) 6 — 394 — Total $ 643 $ (167 ) $ 431 $ (59 ) $ 1,981 $ (1,225 ) |
Summary of the Components of Net Investment Realized Gains | The following table summarizes the components of net investment realized gains (losses) for the years ended December 31, 2015, 2014, and 2013 (all amounts in '000s): Year Ended December 31, 2015 2014 2013 Fixed income securities $ 487 $ 366 $ 362 Equities (12 ) 6 394 Other (20 ) 10 84 Net investment realized gains before OTTI 455 382 840 OTTI — — (311 ) Net investment realized gains $ 455 $ 382 $ 529 |
Equity Method Investments | The following table summarizes investments in equity method investments by investment type at December 31, 2015 and December 31, 2014 (all amounts in '000s): Unfunded Commitments Carrying Value As of December 31, 2015 2015 2014 Real estate $ 1,775 $ 10,300 $ 2,754 Insurance linked securities — 8,747 8,266 Activist hedge funds — 3,685 3,346 Venture capital 700 205 — Total Equity Method Investments $ 2,475 $ 22,937 $ 14,366 |
Fair Value of Financial Instr34
Fair Value of Financial Instruments and Capital Management (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and December 31, 2014 (all amounts in '000s): December 31, 2015 Level 1 Level 2 Level 3 Total Fixed income securities $ 23,483 $ 160,290 $ — $ 183,773 Equities 4,240 — — 4,240 Totals $ 27,723 $ 160,290 $ — $ 188,013 December 31, 2014 Level 1 Level 2 Level 3 Total Fixed income securities $ 12,608 $ 114,341 $ — $ 126,949 Equities 2,093 — — 2,093 Totals $ 14,701 $ 114,341 $ — $ 129,042 |
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, 2015 and 2014 are presented below (all amounts in '000s): Year Ended December 31, 2015 2014 Balance at beginning of year $ — $ 617 Total gains included in: Consolidated statement of income — 383 Settlements — (1,000 ) Balance at end of year $ — $ — |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate was 34.5% , (48.3)% , and 1.2% for the years ended December 31, 2015, 2014, and 2013 , respectively. The table below reconciles the U.S. statutory income tax rate to the effective tax rate ($ in '000s): Year Ended December 31, 2015 2014 2013 Amount % Amount % Amount % Provision for taxes at U.S. statutory marginal income tax rate $ 7,716 35.0 % $ 4,058 34.0 % $ 2,126 34.0 % Provision for deferred tax assets deemed unrealizable (valuation allowance) — — % (9,446 ) (79.1 )% (2,802 ) (44.8 )% Nondeductible expenses 124 0.6 % 136 1.1 % 100 1.6 % Tax-exempt income (89 ) (0.4 )% — — % — — % State tax (net of federal benefit) 118 0.5 % 11 0.1 % 47 0.8 % Tax net operating loss limitation write-down (excluding valuation allowance) — — % (519 ) (4.3 )% 626 10.0 % Nondeductible purchase accounting adjustment 329 1.5 % — — % — — % Change in statutory tax rate (471 ) (2.1 )% — — % — — % Other (111 ) (0.6 )% (7 ) (0.1 )% (25 ) (0.4 )% Provision for income taxes for continuing operations $ 7,616 34.5 % $ (5,767 ) (48.3 )% $ 72 1.2 % |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following for the years ended December 31, 2015, 2014, and 2013 (all amounts in '000s): Year Ended December 31, 2015 2014 2013 Current tax expense $ 7,790 $ 3,009 $ 1,144 Deferred tax benefit, net of change in valuation allowance (174 ) (8,776 ) (1,072 ) Total $ 7,616 $ (5,767 ) $ 72 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred income tax assets and liabilities as of December 31, 2015 and December 31, 2014 are as follows (all amounts in '000s): December 31, 2015 December 31, 2014 Deferred tax assets: Losses carried forward $ 12,656 $ 14,212 Unpaid claims and unearned premiums 8,122 5,560 Tax credits 662 662 Investments 36 — Commissions 1,306 319 All other 1,457 476 Total gross deferred tax assets 24,239 21,229 Deferred tax liabilities: Deferred policy acquisition costs 3,582 2,776 Investments — 740 Fixed assets 401 396 Intangible assets 1,465 — All other 1,625 — Total gross deferred tax liabilities 7,073 3,912 Net deferred tax assets $ 17,166 $ 17,317 |
Summary of Operating Loss Carryforwards | Amounts and expiration dates of the operating loss carryforwards as of December 31, 2015 are as follows (all amounts in '000s): Year of Occurrence Year of Expiration Amount 2001 2021 $ 5,481 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 4,669 2012 2032 2,890 Total $ 36,160 |
Internal Use Software and Cap36
Internal Use Software and Capital Assets Internal Use Software and Capital Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and December 31, 2014 (excluding assets held for sale) (all amounts in '000s): As of December 31, 2015 2014 Leasehold improvements $ 507 $ 501 Internal use software 7,611 7,372 Computer equipment 2,225 1,844 Furniture and other office equipment 593 397 Total 10,936 10,114 Accumulated depreciation (8,347 ) (7,295 ) Balance, end of period $ 2,589 $ 2,819 |
Reinsurance Ceded Underwriting
Reinsurance Ceded Underwriting Policy and Reinsurance Ceded (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, 2014, and 2013 are as follows (all amounts in '000s): 2015 2014 2013 Direct premiums written $ 208,570 $ 122,339 $ 92,487 Assumed premiums written 716 93 573 Ceded premiums written (39,609 ) (11,011 ) (12,580 ) Net premiums written $ 169,677 $ 111,421 $ 80,480 Direct premiums earned $ 182,376 $ 107,587 $ 83,358 Assumed premiums earned 634 126 528 Ceded premiums earned (30,946 ) (9,589 ) (12,542 ) Net premiums earned $ 152,064 $ 98,124 $ 71,344 Ceded losses and loss adjustment expenses 19,113 8,783 4,883 Ceding commissions 7,798 2,374 2,241 Ceded unpaid losses and loss adjustment expenses 29,399 18,421 18,144 Prepaid reinsurance premiums 17,412 3,628 2,207 Other amounts due from reinsurers 3,277 2,230 1,002 |
Unpaid Claims Unpaid Claims (Ta
Unpaid Claims Unpaid Claims (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, 2014, and 2013 were as follows (all amounts in '000s): As of the year ended December 31, 2015 2014 2013 Unpaid claims, beginning of period $ 102,430 $ 101,385 $ 70,067 Less: reinsurance recoverable 18,421 18,144 5,680 Net beginning unpaid claims reserves 84,009 83,241 64,387 Net reserves acquired 19,396 — 29,923 Change in retroactive reinsurance ceded 2,037 2,415 (5,919 ) Incurred related to: Current year 89,828 61,680 45,604 Prior years 166 (602 ) 8 89,994 61,078 45,612 Paid related to: Current year 32,402 19,427 12,874 Prior years 65,422 43,298 37,888 97,824 62,725 50,762 Net unpaid claims, end of period 97,612 84,009 83,241 Add: reinsurance recoverable 29,399 18,421 18,144 Unpaid claims, end of period $ 127,011 $ 102,430 $ 101,385 |
Share Based Compensation Share
Share Based Compensation Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Activity | Stock option activity for the years ended December 31, 2015 and 2014 follows (prices in Canadian dollars designated with "C$" and United States dollars designated with "US$"): 2015 2014 C$ Denominated: Number Avg. Price Number Avg. Price Outstanding, beginning of period 224,623 C$ 6.05 224,623 C$ 6.05 Granted — — — — Exercised (36,895 ) 5.21 — — Outstanding, end of period 187,728 C$ 6.22 224,623 C$ 6.05 2015 2014 US$ Denominated: Number Avg. Price Number Avg. Price Outstanding, beginning of period 175,000 US$13.26 — — Granted 200,000 US$20.29 175,000 US$13.26 Exercised — — — — Outstanding, end of period 375,000 US$17.01 175,000 US$13.26 |
Schedule of Option Outstanding | Information about options outstanding at December 31, 2015 is as follows: Grant Date Expiration Date Number Outstanding Number Exercisable March 18, 2010 March 15, 2020 — — January 18, 2011 January 18, 2021 96,060 96,060 January 11, 2013 January 11, 2023 91,668 61,112 March 6, 2014 March 6, 2024 175,000 58,333 March 12, 2015 March 12, 2025 200,000 — Total 562,728 215,505 |
Schedule of Restricted Stock and Restricted Stock Units Activity | The activity for the restricted shares and restricted share units for the years ended December 31, 2015 and 2014 are as follows: 2015 2014 Number of Shares Weighted Average Fair Value at Grant Date Number of Shares Weighted Average Fair Value at Grant Date Non-vested, beginning of period 185,190 $ 12.20 — $ — Granted 200,000 17.99 185,190 12.20 Vested (37,035 ) 12.20 — — Non-vested, end of period 348,155 $ 15.53 185,190 $ 12.20 |
Share Capital Share Capital (Ta
Share Capital Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share Capital [Abstract] | |
Schedule of Stock by Class | The share capital is as follows: At December 31, 2015 2014 Shares Authorized Shares Issued and Outstanding Amount (in '000s) Shares Issued and Outstanding Amount (in '000s) Preferred Shares 100,000,000 6,940,500 $ 6,941 2,000,000 $ 2,000 Ordinary voting common shares 266,666,667 11,883,025 $ 36 11,638,723 $ 34 Restricted voting common shares 33,333,334 132,863 — 132,863 — Total common shares 300,000,001 12,015,888 $ 36 11,771,586 $ 34 |
Deferred Policy Acquisition C41
Deferred Policy Acquisition Costs Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred Policy Acquisition Costs Roll Forward | Deferred policy acquisition costs for the years ended December 31, 2015 , December 31, 2014 , and December 31, 2013 (all amounts in '000s): Year Ended December 31, 2015 2014 2013 Balance, beginning of period $ 8,166 $ 6,674 $ 3,764 Acquisition costs deferred 20,661 15,540 13,283 Amortization charged to income 18,592 14,048 10,373 Balance, end of period $ 10,235 $ 8,166 $ 6,674 |
Selected Quarterly Financial 42
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data (Unaudited) | (in ‘000s, except per share data) 2015 Q4 Q3 Q2 Q1 Gross premium written $ 52,423 $ 65,315 $ 46,575 $ 44,973 Net premium earned 41,927 41,666 38,304 30,167 Underwriting income 1 4,954 4,946 5,175 4,763 Net income 4,333 4,024 3,936 2,137 Net income attributable to common shareholders 4,253 3,943 3,856 2,102 Basic earnings per common share $ 0.35 $ 0.33 $ 0.32 $ 0.18 Diluted earnings per common share $ 0.34 $ 0.32 $ 0.31 $ 0.17 (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 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 $ 0.80 $ 0.29 $ 0.24 $ 0.23 Diluted earnings per common share $ 0.77 $ 0.29 $ 0.23 $ 0.22 1 - We reclassified interest expense from underwriting expense to non-operating expense during the fourth quarter. As a result, underwriting income was restated and increased by $139,000 and $269,000 for the three months ended June 30, 2015 and September 30, 2015, respectively. |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 (all amounts in '000s): Year 2016 2017 2018 2019 2020 2021 & Beyond Total Amount $ 1,731 $ 1,240 $ 919 $ 929 $ 955 $ 1,058 $ 6,832 |
Line of Credit Line of Credit (
Line of Credit Line of Credit (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table provides the rollforward of Atlas' total debt outstanding for the year ended December 31, 2015 (all amounts in '000s): Balance at Issuances Maturities and Repayments Balance at Year Ended Ended December 31, 2015 December 31, 2014 December 31, 2015 Revolver $ — $ 2,500 $ (500 ) $ 2,000 Draw Amount — 15,500 — 15,500 Total Borrowings $ — $ 18,000 $ (500 ) $ 17,500 |
Nature of Operations and Basi45
Nature of Operations and Basis of Presentation Operations (Details) | Dec. 07, 2012 | Dec. 31, 2015state |
Accounting Policies [Abstract] | ||
Number of states in which entity operates | 49 | |
Number of States, Core Products Actively Distributed | 41 | |
Stock Split, Conversion Ratio | 0.3333 |
Nature of Operations and Basi46
Nature of Operations and Basis of Presentation Goodwill (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Accounting Policies [Abstract] | |
Goodwill Impairment | $ 0 |
Nature of Operations and Basi47
Nature of Operations and Basis of Presentation Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | $ 0 | |
Amortization of intangible assets | $ 315,000 | $ 0 | $ 0 |
Trademarks and Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Nature of Operations and Basi48
Nature of Operations and Basis of Presentation Office Equipment and Software (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Furniture | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Enterprise Software | |
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 Basi49
Nature of Operations and Basis of Presentation Operating Segments (Details) | 12 Months Ended |
Dec. 31, 2015segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Acquisitions Anchor Holdings Ac
Acquisitions Anchor Holdings Acquisition (Details) $ / shares in Units, $ in Thousands | Mar. 11, 2015USD ($)state$ / sharesshares | Dec. 31, 2015USD ($)state | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | ||||
Net written premiums | $ 169,677 | $ 111,421 | $ 80,480 | |
Number of states in which entity operates | state | 49 | |||
Goodwill | $ 2,726 | 0 | ||
Amortization of intangible assets | 315 | 0 | 0 | |
Expenses incurred related to acquisition | 999 | 694 | $ 406 | |
Anchor Holdings Group, Inc. et. al. | ||||
Business Acquisition [Line Items] | ||||
Net written premiums | $ 40,000 | |||
Number of states in which entity operates | state | 13 | |||
Total Purchase Price | $ 23,199 | |||
Purchase price to book value percentage | 1.3 | |||
Purchase Price, Cash Paid | $ 19,199 | |||
Purchase Price, Preferred stock issued | $ 4,000 | |||
Equity Interests Issued (USD per share) | $ / shares | $ 1 | |||
Reserve development protection | $ 4,000 | |||
Intangible assets | 4,500 | |||
Goodwill | 2,726 | |||
Expenses incurred related to acquisition | $ 999 | $ 694 | ||
Anchor Holdings Group, Inc. et. al. | Nonredeemable Convertible Preferred Stock | ||||
Business Acquisition [Line Items] | ||||
Purchase Price, Preferred stock issued | $ 4,000 | |||
Equity interest issued (in shares) | shares | 4,000,000 | |||
Cash Paid By Atlas | Anchor Holdings Group, Inc. et. al. | ||||
Business Acquisition [Line Items] | ||||
Purchase Price, Cash Paid | $ 19,200 |
Acquisitions Anchor Holdings 51
Acquisitions Anchor Holdings Acquisition Pro Forma (Details) - Anchor Holdings Group, Inc. et. al. - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||
Revenue | $ 162,311 | $ 134,883 |
Income from operations before income tax expense | 23,601 | 16,212 |
Net income | $ 15,420 | $ 20,370 |
Basic earnings per share | $ 1.26 | $ 1.84 |
Diluted earnings per share | $ 1.21 | $ 1.77 |
Revenue of acquiree since acquisition date | $ 27,500 | |
Earnings or loss acquiree since acquisition date | $ 2,400 |
Acquisitions Anchor Holdings 52
Acquisitions Anchor Holdings Acquisition Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 11, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Combination, Recognized Identifiable Assets Acquired | |||
Goodwill | $ 2,726 | $ 0 | |
Anchor Holdings Group, Inc. et. al. | |||
Purchase Consideration | |||
Cash | $ 19,199 | ||
Preferred stock | 4,000 | ||
Total | 23,199 | ||
Business Combination, Recognized Identifiable Assets Acquired | |||
Cash and investments | 48,508 | ||
Other current assets | 33,303 | ||
Property and equipment | 22 | ||
Goodwill | 2,726 | ||
Intangible assets | 4,500 | ||
Total Assets | 89,059 | ||
Business Combination, Recognized Identifiable Liabilities Assumed | |||
Claims liabilities | 30,731 | ||
Unearned premiums | 22,976 | ||
Accounts payable and other liabilities | 11,231 | ||
Deferred tax liabilities | 922 | ||
Total Liabilities | 65,860 | ||
Net assets acquired | $ 23,199 |
Acquisitions Finite-Lived Intan
Acquisitions Finite-Lived Intangible Assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Gross | $ 4,500 |
Finite-Lived Intangible Assets, Accumulated Amortization | 315 |
Finite-Lived Intangible Assets, Net | 4,185 |
Estimated Future Amortization Expense, 2016 | 390 |
Estimated Future Amortization Expense, 2017 | 390 |
Estimated Future Amortization Expense, 2018 | 390 |
Estimated Future Amortization Expense, 2019 | 390 |
Estimated Future Amortization Expense, 2020 | $ 390 |
Trademarks and Trade Names | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Finite-Lived Intangible Assets, Gross | $ 1,800 |
Finite-Lived Intangible Assets, Accumulated Amortization | 97 |
Finite-Lived Intangible Assets, Net | $ 1,703 |
Customer Relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Finite-Lived Intangible Assets, Gross | $ 2,700 |
Finite-Lived Intangible Assets, Accumulated Amortization | 218 |
Finite-Lived Intangible Assets, Net | $ 2,482 |
Acquisitions Gateway Acquisitio
Acquisitions Gateway Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 02, 2013 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||
Expenses incurred related to acquisition | $ 999 | $ 694 | $ 406 | ||
Gateway Insurance Company | |||||
Business Acquisition [Line Items] | |||||
Total Purchase Price | $ 14,282 | ||||
Purchase Price, Cash Paid | 12,282 | ||||
Purchase Price, Preferred stock issued | $ 2,000 | ||||
Equity interest issued (in shares) | 2,000,000 | ||||
Equity Interests Issued (USD per share) | $ 1 | ||||
Reserve development protection | $ 2,000 | ||||
Reserve development protection payable | 2,000 | ||||
Intangible assets | 740 | ||||
Expenses incurred related to acquisition | 406 | ||||
Severance costs | 337 | ||||
Integration related costs | 372 | ||||
Preferred Shares Issued | $ 941 | $ 941 | $ 0 | $ 0 | |
Gateway Insurance Company | Dividend Paid By Gateway | |||||
Business Acquisition [Line Items] | |||||
Purchase Price, Cash Paid | 6,000 | ||||
Gateway Insurance Company | Cash Paid By Atlas | |||||
Business Acquisition [Line Items] | |||||
Purchase Price, Cash Paid | $ 6,300 |
Acquisitions Gateway Insurance
Acquisitions Gateway Insurance Company Purchase Price Allocation (Details) - Gateway Insurance Company $ in Thousands | Jan. 02, 2013USD ($) |
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 Liabilities Assumed | |
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 ($) $ / shares in Units, $ in Thousands | Aug. 01, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Income from operations before income tax expense | $ 22,046 | $ 11,935 | $ 6,252 | |||||||||
Income tax expense (benefit) | 7,616 | (5,767) | 72 | |||||||||
Net income | $ 4,333 | $ 4,024 | $ 3,936 | $ 2,137 | $ 9,458 | $ 3,493 | $ 2,559 | $ 2,192 | 14,430 | 17,702 | 6,180 | |
Add: Discount from preferred share buyback | 0 | 0 | 1,800 | |||||||||
Less: Preferred share dividends | 276 | 94 | 619 | |||||||||
Net income attributable to common shareholders | $ 4,253 | $ 3,943 | $ 3,856 | $ 2,102 | $ 9,434 | $ 3,469 | $ 2,536 | $ 2,169 | 14,154 | 17,608 | 7,361 | |
Net income attributable to common shareholders for dilutive earnings per common share | $ 14,430 | $ 17,702 | $ 7,980 | |||||||||
Basic: | ||||||||||||
Weighted average common shares outstanding (in shares) | 11,975,579 | 10,937,181 | 8,007,458 | |||||||||
Earnings per common share, basic (USD per share) | $ 0.35 | $ 0.33 | $ 0.32 | $ 0.18 | $ 0.80 | $ 0.29 | $ 0.24 | $ 0.23 | $ 1.18 | $ 1.61 | $ 0.92 | |
Diluted: | ||||||||||||
Dilutive stock options outstanding (in shares) | 186,656 | 150,407 | 87,825 | |||||||||
Dilutive warrants (in shares) | 0 | 0 | 1,158,085 | |||||||||
Dilutive shares upon preferred share conversion (in shares) | 573,444 | 254,000 | 1,587,500 | |||||||||
Dilutive average common shares outstanding (in shares) | 12,735,679 | 11,341,588 | 10,840,868 | |||||||||
Earnings per common share, diluted (USD per share) | $ 0.34 | $ 0.32 | $ 0.31 | $ 0.17 | $ 0.77 | $ 0.29 | $ 0.23 | $ 0.22 | $ 1.13 | $ 1.56 | $ 0.74 | |
Warrants, Outstanding | 0 | 0 | 0 | 0 | ||||||||
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 | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Add: Discount from preferred share buyback | $ 1,800 | |||||||||||
Diluted: | ||||||||||||
Preferred shares repurchased (in shares) | 18,000,000 | |||||||||||
Gateway Insurance Company | ||||||||||||
Diluted: | ||||||||||||
Number of ordinary shares for each preferred share converted (in shares) | 0.1270 | 0.1270 | ||||||||||
Gateway Insurance Company | Preferred Shares | ||||||||||||
Diluted: | ||||||||||||
Preferred shares potentially convertible to ordinary common shares at the option of the holder (in shares) | 2,940,500 | |||||||||||
Anchor Holdings Group, Inc. et. al. | ||||||||||||
Diluted: | ||||||||||||
Number of ordinary shares for each preferred share converted (in shares) | 0.05 | 0.05 | ||||||||||
Anchor Holdings Group, Inc. et. al. | Preferred Shares | ||||||||||||
Diluted: | ||||||||||||
Preferred shares potentially convertible to ordinary common shares at the option of the holder (in shares) | 4,000,000 |
Investments Schedule of Availab
Investments Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | $ 185,455 | $ 126,701 |
Fixed income securities | 183,773 | 126,949 |
Available-for-sale Equity Securities, Amortized Cost Basis | 4,147 | 2,220 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 139 | 12 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | (46) | (139) |
Equities | 4,240 | 2,093 |
Amortized Cost | 189,602 | 128,921 |
Gross Unrealized Gains | 981 | 1,079 |
Gross Unrealized Losses | (2,570) | (958) |
Fair Value, Available-for-sale Securities | 188,013 | 129,042 |
Fixed income securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 842 | 1,067 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (2,524) | (819) |
Fixed income securities | 183,773 | 126,949 |
U.S. Government Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 45,529 | 20,506 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 244 | 32 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (136) | (159) |
Fixed income securities | 45,637 | 20,379 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 65,443 | 43,388 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 314 | 686 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (1,711) | (204) |
Fixed income securities | 64,046 | 43,870 |
Banking/financial services | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 21,963 | 15,551 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 117 | 215 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (166) | (31) |
Fixed income securities | 21,914 | 15,735 |
Consumer goods | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 7,813 | 3,478 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 43 | 50 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (121) | (13) |
Fixed income securities | 7,735 | 3,515 |
Capital goods | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 15,524 | 14,285 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 127 | 354 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (556) | (52) |
Fixed income securities | 15,095 | 14,587 |
Energy | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 4,807 | 2,829 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (401) | (84) |
Fixed income securities | 4,406 | 2,745 |
Telecommunications/utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 12,298 | 5,297 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 27 | 67 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (450) | (8) |
Fixed income securities | 11,875 | 5,356 |
Health care | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 3,038 | 1,948 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (17) | (16) |
Fixed income securities | 3,021 | 1,932 |
Fixed Income, U.S., Mortgage Backed, Total | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 54,835 | 47,546 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 270 | 329 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (557) | (429) |
Fixed income securities | 54,548 | 47,446 |
Mortgage backed - agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 34,874 | 30,772 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 112 | 250 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (313) | (160) |
Fixed income securities | 34,673 | 30,862 |
Mortgage backed - commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 19,961 | 16,774 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 158 | 79 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (244) | (269) |
Fixed income securities | 19,875 | 16,584 |
Other asset backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 19,648 | 15,261 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 14 | 20 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (120) | (27) |
Fixed income securities | $ 19,542 | $ 15,254 |
Investments Investments Classif
Investments Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $ 12,504 | $ 1,786 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | $ 12,527 | $ 1,875 |
One year or less, percentage of total fair value | 6.80% | 1.50% |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | $ 69,082 | $ 54,315 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | $ 68,412 | $ 54,349 |
One to five years, percentage of total fair value | 37.20% | 42.80% |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | $ 42,631 | $ 23,432 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | $ 42,285 | $ 23,166 |
Five to ten years, percentage of total fair value | 23.00% | 18.20% |
Available-for-sale Securities, Debt Maturities, after Year Ten, Amortized Cost Basis | $ 61,238 | $ 47,168 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | $ 60,549 | $ 47,559 |
More than ten years, percentage of total fair value | 33.00% | 37.50% |
Available-for-sale Debt Securities, Amortized Cost Basis | $ 185,455 | $ 126,701 |
Fixed income securities | $ 183,773 | $ 126,949 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments [Abstract] | |||
Impairment losses, investments | $ 0 | $ 0 | $ 311 |
Fair value of securities currently in an unrealized loss position | 123,569 | 63,547 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ 2,570 | $ 958 |
Investments Unrealized Losses (
Investments Unrealized Losses (Details) $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 111,416 | $ 30,647 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2,152) | (334) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 12,153 | 32,900 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (418) | (624) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 123,569 | 63,547 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (2,570) | (958) |
Fixed income securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 110,354 | 29,417 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2,106) | (195) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 12,153 | 32,900 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (418) | (624) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 122,507 | 62,317 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (2,524) | $ (819) |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 435 | 153 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 35 | 49 |
U.S. Government Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 15,582 | $ 2,228 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (95) | (3) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 3,809 | 9,395 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (41) | (156) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 19,391 | 11,623 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (136) | (159) |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 43,379 | 11,563 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1,514) | (132) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,894 | 4,522 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (197) | (72) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 45,273 | 16,085 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,711) | (204) |
Banking/financial services | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 12,216 | 3,298 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (161) | (14) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 595 | 1,523 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (5) | (17) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 12,811 | 4,821 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (166) | (31) |
Consumer goods | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 6,044 | 269 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (121) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 714 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (13) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,044 | 983 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (121) | (13) |
Capital goods | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 9,425 | 2,599 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (428) | (19) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 755 | 1,543 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (128) | (33) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 10,180 | 4,142 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (556) | (52) |
Energy | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,862 | 2,583 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (337) | (82) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 544 | 86 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (64) | (2) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,406 | 2,669 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (401) | (84) |
Telecommunications/utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 8,811 | 1,371 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (450) | (7) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 168 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 8,811 | 1,539 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (450) | (8) |
Health care | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,021 | 1,443 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (17) | (10) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 488 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (6) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,021 | 1,931 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (17) | (16) |
Fixed Income, U.S., Mortgage Backed, Total | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 35,190 | 5,605 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (384) | (33) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 5,366 | 18,983 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (173) | (396) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 40,556 | 24,588 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (557) | (429) |
Mortgage backed - agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 25,168 | 4,196 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (255) | (28) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,921 | 9,202 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (58) | (132) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 27,089 | 13,398 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (313) | (160) |
Mortgage backed - commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 10,022 | 1,409 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (129) | (5) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 3,445 | 9,781 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (115) | (264) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 13,467 | 11,190 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (244) | (269) |
Other asset backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 16,203 | 10,021 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (113) | (27) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,084 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (7) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 17,287 | 10,021 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (120) | (27) |
Equities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,062 | 1,230 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (46) | (139) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,062 | 1,230 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (46) | $ (139) |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1 | 3 |
Investments Schedule of Investm
Investments Schedule of Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments [Abstract] | |||
Investment interest income | $ 3,371 | $ 2,848 | $ 2,716 |
Investment income, dividends | 43 | 20 | 9 |
Investment income from other investments | 1,344 | 693 | (84) |
Investment expenses | (782) | (451) | (500) |
Net investment income | $ 3,976 | $ 3,110 | $ 2,141 |
Investments Schedule of Gross R
Investments Schedule of Gross Realized Gains (Losses) on Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Gross Realized Gains | $ 643 | $ 431 | $ 1,981 |
Available-for-sale Securities, Gross Realized Losses | (167) | (59) | (1,225) |
Available for Sale Securities Sold, Fair Value | 39,800 | 25,000 | 86,700 |
Fixed income securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Gross Realized Gains | 574 | 425 | 1,587 |
Available-for-sale Securities, Gross Realized Losses | (86) | (59) | (1,225) |
Equities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Gross Realized Gains | 69 | 6 | 394 |
Available-for-sale Securities, Gross Realized Losses | $ (81) | $ 0 | $ 0 |
Investments Schedule of Inves63
Investments Schedule of Investment Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gain (Loss) on Investments [Line Items] | |||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | $ 455 | $ 382 | $ 840 |
Impairment losses, investments | 0 | 0 | (311) |
Net realized investment gains | 455 | 382 | 529 |
Fixed income securities | |||
Gain (Loss) on Investments [Line Items] | |||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | 487 | 366 | 362 |
Equities | |||
Gain (Loss) on Investments [Line Items] | |||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | (12) | 6 | 394 |
Other Investments [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | $ (20) | $ 10 | $ 84 |
Investments Other Investments (
Investments Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Unfunded Commitments | $ 2,475 | |
Carrying Value, Limited Partnerships | 22,937 | $ 14,366 |
Real Estate Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Unfunded Commitments | 1,775 | |
Carrying Value, Limited Partnerships | 10,300 | 2,754 |
Insurance Linked Securities Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Unfunded Commitments | 0 | |
Carrying Value, Limited Partnerships | 8,747 | 8,266 |
Activist Hedge Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Unfunded Commitments | 0 | |
Carrying Value, Limited Partnerships | 3,685 | 3,346 |
Venture Capital Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Unfunded Commitments | 700 | |
Carrying Value, Limited Partnerships | $ 205 | $ 0 |
Collateral (Details)
Collateral (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Bonds and term deposits, fair value | $ 15.8 | $ 14.5 |
Available-for-sale securities pledged as collateral | $ 3.6 | $ 6.8 |
Fair Value of Financial Instr66
Fair Value of Financial Instruments and Capital Management - Fair Value of Assets Measured on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | $ 183,773 | $ 126,949 |
Equities | 4,240 | 2,093 |
Fair Value, Available-for-sale Securities | 188,013 | 129,042 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Available-for-sale Securities | 27,723 | 14,701 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Available-for-sale Securities | 160,290 | 114,341 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Available-for-sale Securities | 0 | 0 |
Fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 183,773 | 126,949 |
Fixed income securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 23,483 | 12,608 |
Fixed income securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 160,290 | 114,341 |
Fixed income securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income securities | 0 | 0 |
Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 4,240 | 2,093 |
Equities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equities | 4,240 | 2,093 |
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 |
Fair Value of Financial Instr67
Fair Value of Financial Instruments and Capital Management Summary of Change in Level 3 Investments (Details) - Fixed income securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of year | $ 0 | $ 617 |
Gains (losses) included in earnings | 0 | 383 |
Settlements | 0 | (1,000) |
Balance at end of year | $ 0 | $ 0 |
Fair Value of Financial Instr68
Fair Value of Financial Instruments and Capital Management Statutory Accounting Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 118.5 | $ 63 |
American Country Insurance Company | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Net Income Amount | 3.4 | 2 |
American Service Insurance Company | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Net Income Amount | 6.1 | 4 |
Gateway Insurance Company | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Net Income Amount | 2 | $ 1.7 |
Global Liberty Insurance Company of New York | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Net Income Amount | 1.2 | |
ILLINOIS | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 1.5 | |
MISSOURI | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 2.4 | |
NEW YORK | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 3.5 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate | 34.50% | (48.30%) | 1.20% |
Operating Loss Carryforward | $ 12,656 | $ 14,212 |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Provision for taxes at U.S. statutory marginal income tax rate | $ 7,716 | $ 4,058 | $ 2,126 |
Provision for deferred tax assets deemed unrealizable (valuation allowance) | 0 | (9,446) | (2,802) |
Nondeductible expenses | 124 | 136 | 100 |
Tax-exempt income | (89) | 0 | 0 |
State tax (net of federal benefit) | 118 | 11 | 47 |
Tax net operating loss limitation write-down (excluding valuation allowance) | 0 | (519) | 626 |
Nondeductible purchase accounting adjustment | 329 | 0 | 0 |
Change in statutory tax rate | (471) | 0 | 0 |
Other | (111) | (7) | (25) |
Total | $ 7,616 | $ (5,767) | $ 72 |
Provision for taxes at U.S. statutory marginal income tax rate, percent | 35.00% | 34.00% | 34.00% |
Provision for deferred tax assets deemed unrealizable, valuation allowance, percent | 0.00% | (79.10%) | (44.80%) |
Nondeductible expenses, percent | 0.60% | 1.10% | 1.60% |
Tax exempt income, percent | (0.40%) | (0.00%) | (0.00%) |
State tax (net of federal benefit), percent | 0.50% | 0.10% | 0.80% |
Tax net operating loss limitation write-down (excluding valuation allowance), percent | 0.00% | (4.30%) | 10.00% |
Nondeductible purchase accounting adjustment, percent | 1.50% | 0.00% | 0.00% |
Change in statutory tax rate, percent | (2.10%) | 0.00% | 0.00% |
Other, percent | (0.60%) | (0.10%) | (0.40%) |
Effective Income Tax Rate | 34.50% | (48.30%) | 1.20% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current tax expense | $ 7,790 | $ 3,009 | $ 1,144 |
Deferred tax benefit, net of change in valuation allowance | (174) | (8,776) | (1,072) |
Total | $ 7,616 | $ (5,767) | $ 72 |
Income Taxes - Deferred Tax As
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Losses carried forward | $ 12,656 | $ 14,212 |
Unpaid claims and unearned premiums | 8,122 | 5,560 |
Tax credits | 662 | 662 |
Investments | 36 | 0 |
Commissions | 1,306 | 319 |
All other | 1,457 | 476 |
Total gross deferred tax assets | 24,239 | 21,229 |
Deferred tax liabilities: | ||
Deferred policy acquisition costs | 3,582 | 2,776 |
Securities | 0 | 740 |
Fixed Assets | 401 | 396 |
Intangible Assets | 1,465 | 0 |
All Other | 1,625 | 0 |
Total gross deferred tax liabilities | 7,073 | 3,912 |
Net deferred tax assets | $ 17,166 | $ 17,317 |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Carryforwards (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | $ 36,160 |
Carryforward Expiring in 2021 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 5,481 |
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 | 4,669 |
Carryforward Expiring in 2032 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | $ 2,890 |
Assets Held for Sale Assets Hel
Assets Held for Sale Assets Held for Sale (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Assets Held for Sale [Abstract] | |
Loss on Disposition of Assets Held for Sale | $ 20 |
Internal Use Software and Cap75
Internal Use Software and Capital Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 01, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Capitalized Computer Software | $ 7,611 | $ 7,372 | ||
Leasehold improvements | 507 | 501 | ||
Internal use software | 7,611 | 7,372 | ||
Computer equipment | 2,225 | 1,844 | ||
Furniture and other office equipment | 593 | 397 | ||
Total | 10,936 | 10,114 | ||
Accumulated depreciation | (8,347) | (7,295) | ||
Balance, end of period | 2,589 | 2,819 | ||
Depreciation and amortization of fixed assets | 966 | $ 856 | $ 795 | |
Policy Management Software | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized Computer Software | $ 2,000 | |||
Capitalized Computer Software, Amortization | $ 186 | |||
Internal use software | $ 2,000 |
Reinsurance Ceded (Details)
Reinsurance Ceded (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | ||||||||||||
Direct premiums written | $ 208,570 | $ 122,339 | $ 92,487 | |||||||||
Assumed premiums written | 716 | 93 | 573 | |||||||||
Ceded premiums written | (39,609) | (11,011) | (12,580) | |||||||||
Net premiums written | 169,677 | 111,421 | 80,480 | |||||||||
Direct premiums earned | 182,376 | 107,587 | 83,358 | |||||||||
Assumed premiums earned | 634 | 126 | 528 | |||||||||
Ceded premiums earned | (30,946) | (9,589) | (12,542) | |||||||||
Net premiums earned | $ 41,927 | $ 41,666 | $ 38,304 | $ 30,167 | $ 27,289 | $ 25,575 | $ 23,306 | $ 21,954 | 152,064 | 98,124 | 71,344 | |
Ceded losses and loss adjustment expenses | 19,113 | 8,783 | 4,883 | |||||||||
Ceding commissions | 7,798 | 2,374 | 2,241 | |||||||||
Ceded unpaid losses and loss adjustment expenses | 29,399 | 18,421 | 29,399 | 18,421 | 18,144 | $ 5,680 | ||||||
Prepaid reinsurance premiums | 17,412 | 3,628 | 17,412 | 3,628 | 2,207 | |||||||
Other amounts due from reinsurers | $ 3,277 | $ 2,230 | $ 3,277 | $ 2,230 | $ 1,002 |
Unpaid Claims (Details)
Unpaid Claims (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Unpaid claims, beginning of period | $ 102,430 | $ 101,385 | $ 70,067 |
Less: reinsurance recoverable | 18,421 | 18,144 | 5,680 |
Net beginning unpaid claims reserves | 84,009 | 83,241 | 64,387 |
Net reserves acquired | 19,396 | 0 | 29,923 |
Change in retroactive reinsurance ceded | 2,037 | 2,415 | (5,919) |
Incurred related to: | |||
Incurred related to, current year | 89,828 | 61,680 | 45,604 |
Incurred related to, prior years | 166 | (602) | 8 |
Total incurred current and prior years | 89,994 | 61,078 | 45,612 |
Paid related to: | |||
Paid related to, current year | 32,402 | 19,427 | 12,874 |
Paid related to, prior years | 65,422 | 43,298 | 37,888 |
Total paid related to, current and prior years | 97,824 | 62,725 | 50,762 |
Net unpaid claims, end of period | 97,612 | 84,009 | 83,241 |
Reinsurance recoverable | 29,399 | 18,421 | 18,144 |
Unpaid claims, end of period | 127,011 | 102,430 | $ 101,385 |
Property and Casualty, Commercial Insurance Product Line | |||
Incurred related to: | |||
Incurred related to, prior years | (475) | (352) | |
Non-core Lines of Business | |||
Incurred related to: | |||
Incurred related to, prior years | $ 641 | $ (250) |
Share Based Compensation - Sche
Share Based Compensation - Schedule of Activity Related Share-Based Compensation (Details) | 12 Months Ended | |||||
Dec. 31, 2015$ / sharesshares | Dec. 31, 2015CAD / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2014CAD / sharesshares | Dec. 31, 2013$ / sharesshares | Dec. 31, 2013CAD / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options, exercised in period (in shares) | (1,000) | (1,000) | ||||
Options, outstanding (in shares), end of period | 562,728 | 562,728 | ||||
Prior to December 31, 2013 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options, outstanding (in shares), beginning of period | 224,623 | 224,623 | 224,623 | 224,623 | ||
Options, granted in period (in shares) | 0 | 0 | 0 | 0 | ||
Options, exercised in period (in shares) | (36,895) | (36,895) | 0 | 0 | ||
Options, outstanding (in shares), end of period | 187,728 | 187,728 | 224,623 | 224,623 | 224,623 | 224,623 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Options, outstanding, weighted average exercise price, beginning balance | CAD / shares | CAD 6.05 | CAD 6.05 | ||||
Options, grants in period, weighted average exercise price | CAD / shares | 0 | 0 | ||||
Options, exercised in period, weighted average exercise price | CAD / shares | 5.21 | 0 | ||||
Options, outstanding, weighted average exercise price, end of period | CAD / shares | CAD 6.22 | CAD 6.05 | CAD 6.05 | |||
After December 31, 2013 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options, outstanding (in shares), beginning of period | 175,000 | 175,000 | 0 | 0 | ||
Options, granted in period (in shares) | 200,000 | 200,000 | 175,000 | 175,000 | ||
Options, exercised in period (in shares) | 0 | 0 | 0 | 0 | ||
Options, outstanding (in shares), end of period | 375,000 | 375,000 | 175,000 | 175,000 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Options, outstanding, weighted average exercise price, beginning balance | $ / shares | $ 13.26 | $ 0 | ||||
Options, grants in period, weighted average exercise price | $ / shares | 20.29 | 13.26 | ||||
Options, exercised in period, weighted average exercise price | $ / shares | 0 | 0 | ||||
Options, outstanding, weighted average exercise price, end of period | $ / shares | $ 17.01 | $ 13.26 | $ 0 |
Share Based Compensation - Sc79
Share Based Compensation - Schedule of Outstanding Options (Details) | Dec. 31, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, outstanding (in shares) | 562,728 |
Options, exercisable (in shares) | 215,505 |
March 18, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, outstanding (in shares) | 0 |
Options, exercisable (in shares) | 0 |
January 18, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, outstanding (in shares) | 96,060 |
Options, exercisable (in shares) | 96,060 |
January 11, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, outstanding (in shares) | 91,668 |
Options, exercisable (in shares) | 61,112 |
March 6, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, outstanding (in shares) | 175,000 |
Options, exercisable (in shares) | 58,333 |
March 12, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, outstanding (in shares) | 200,000 |
Options, exercisable (in shares) | 0 |
Share Based Compensation - Supp
Share Based Compensation - Supplementary Disclosures Related to Stock Options (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, exercisable (in shares) | 215,505 | ||
Grants, weighted average remaining life | 7 years 10 months | ||
Options, outstanding, intrinsic value | $ 3,900 | ||
Award Vesting Period | 5 years | ||
Stock compensation cost | $ 1,800 | $ 1,500 | $ 247 |
Compensation Cost Not yet Recognized | $ 1,700 | ||
Unrecognized stock compensation expense, period for recognition | 50 months | ||
After December 31, 2013 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, granted in period (in shares) | 200,000 | 175,000 | |
March 12, 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, exercisable (in shares) | 0 | ||
Equity Incentive Plan | Each Anniversary of Grant Date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award Vesting Rights, Percentage | 20.00% | ||
Officer | Equity Incentive Plan | After December 31, 2013 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, granted in period (in shares) | 200,000 | ||
Restricted Stock | Officer | March 12, 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share awards, nonvested, fair value | $ 1,900 | ||
Restricted Stock | Officer | Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Awards (in shares) | 200,000 | ||
Ordinary Shares | Officer | March 12, 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, nonvested, fair value | $ 1,500 | ||
Restricted stock and restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Awards (in shares) | 200,000 | 185,190 | |
Compensation Cost Not yet Recognized | $ 3,000 |
Share Based Compensation - Sc81
Share Based Compensation - Schedule of Restricted Shares and Restricted Share Units (Details) - Restricted stock and restricted stock units (RSUs) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested at period start (in shares) | 185,190 | 0 |
Granted (in shares) | 200,000 | 185,190 |
Vested (in shares) | (37,035) | 0 |
Nonvested at period end (in shares) | 348,155 | 185,190 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Nonvested at period start (USD per share) | $ 12.20 | $ 0 |
Granted (USD per share) | 17.99 | 12.20 |
Vested (USD per share) | 12.20 | 0 |
Nonvested at period end (USD per share) | $ 15.53 | $ 12.20 |
Other Employee Benefit Plans -
Other Employee Benefit Plans - Defined Contribution Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | 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 | $ 18,000 | ||
Defined contribution plan, additional annual contributions for employees over 50 years old, amount | $ 6,000 | ||
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% | ||
Employee contribution vesting percentage | 100.00% | ||
Defined contribution plan, employers matching contribution, vesting period | 5 years | ||
Defined contribution plan, cost recognized | $ 300,000 | $ 204,000 | $ 118,000 |
Other Employee Benefit Plans 83
Other Employee Benefit Plans - Employee Stock Purchase Plan (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
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 | 0.05 | ||
Employee stock purchase plan, employer matching contribution percent of match | 1 | ||
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 | $ 151 | $ 113 | $ 58 |
Share Capital - Schedule of Sto
Share Capital - Schedule of Stock by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | |||
Preferred shares, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Preferred stock, shares outstanding (in shares) | 6,940,500 | 2,000,000 | |
Common shares, shares authorized (in shares) | 300,000,001 | 300,000,001 | |
Common stock, shares, outstanding (in shares) | 12,015,888 | 11,771,586 | |
Common stock outstanding | $ 36 | $ 34 | |
Preferred Shares | |||
Class of Stock [Line Items] | |||
Preferred shares, shares authorized (in shares) | 100,000,000 | ||
Preferred stock, shares outstanding (in shares) | 6,940,500 | 2,000,000 | |
Preferred stock outstanding | $ 6,941 | $ 2,000 | |
Ordinary Shares | |||
Class of Stock [Line Items] | |||
Common shares, shares authorized (in shares) | 266,666,667 | 266,666,667 | |
Common stock, shares, outstanding (in shares) | 11,883,025 | 11,638,723 | |
Common stock outstanding | $ 36 | $ 34 | |
Restricted Voting Common Shares | |||
Class of Stock [Line Items] | |||
Common shares, shares authorized (in shares) | 33,333,334 | 33,333,334 | |
Common stock, shares, outstanding (in shares) | 132,863 | 132,863 | 132,863 |
Common stock outstanding | $ 0 | $ 0 |
Share Capital - Stock Activity
Share Capital - Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | May. 13, 2014 | Nov. 13, 2013 | Oct. 18, 2013 | Aug. 01, 2013 | Feb. 11, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Preferred shares, shares issued (in shares) | 6,940,500 | 2,000,000 | |||||||
Preferred stock, dividend rate (in USD per share) | $ 0.045 | ||||||||
Preferred stock, dividend rate, percentage | 4.50% | ||||||||
Preferred stock, liquidation preference per share (USD per share) | $ 1 | $ 1 | |||||||
Shares Sold in U.S. Initial Public Offering | 4,125,000 | ||||||||
Initial public offering (in USD per share) | $ 5.85 | ||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 2,000,000 | ||||||||
Proceeds from U.S. public offering, net of offering costs | $ 9,800 | $ 0 | $ 25,021 | $ 9,756 | |||||
Dividends paid | 0 | 0 | 2,145 | ||||||
Benefit related to the discount on repurchase of stock | $ 0 | $ 0 | $ 1,800 | ||||||
Restricted voting common shares, shares, outstanding (in shares) | 12,015,888 | 11,771,586 | |||||||
Warrants converted to common shares | 1,327,840 | ||||||||
Options, exercised in period (in shares) | 1,000 | ||||||||
Stock Issued During Period, Shares, Stock Options and Warrants Exercised (in shares) | 1,328,840 | ||||||||
Shares Issued, Price Per Share (in USD per share) | $ 12.50 | ||||||||
Proceeds from issuance of common stock, Net | $ 25,000 | ||||||||
Anchor Holdings Group, Inc. et. al. | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Preferred shares, shares issued (in shares) | 4,000,000 | ||||||||
Gateway Insurance Company | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Preferred shares, shares issued (in shares) | 940,500 | ||||||||
Former Parent of Gateway | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Preferred shares, shares issued (in shares) | 2,940,500 | ||||||||
Convertible preferred stock, shares issued upon conversion | 0.1270 | ||||||||
Preferred stock, amount of preferred dividends in arrears, earned in current year | $ 130 | ||||||||
Preferred stock, amount of preferred dividends in arrears | $ 314 | ||||||||
Former Parent of Anchor | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Preferred shares, shares issued (in shares) | 4,000,000 | ||||||||
Convertible preferred stock, shares issued upon conversion | 0.0500 | ||||||||
Preferred stock, amount of preferred dividends in arrears | $ 146 | ||||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Nonvested restricted stock units (RSUs) | 29,631 | 37,038 | |||||||
Stock Issued During Period, Shares, Share-based Compensation (in shares) | 7,407 | ||||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock Issued During Period, Shares, Share-based Compensation (in shares) | 200,000 | ||||||||
Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock Issued During Period, Shares, Share-based Compensation (in shares) | 36,895 | ||||||||
Preferred Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Dividends paid | $ 2,100 | ||||||||
Preferred shares repurchased (in shares) | 18,000,000 | ||||||||
Benefit related to the discount on repurchase of stock | $ 1,800 | ||||||||
Restricted Voting Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted common shares converted to common shares (in shares) | 600,000 | 529,608 | |||||||
Restricted voting common shares, shares, outstanding (in shares) | 132,863 | 132,863 | 132,863 | ||||||
Restricted voting common shares, percent of total common shares outstanding | 1.40% | ||||||||
Over-Allotment Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Additional shares to be purchased by underwriters to cover overallotments (in shares) | 300,000 | ||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 161,000 | ||||||||
Shares Issued, Price Per Share (in USD per share) | $ 12.50 | ||||||||
Shares Sold by Atlas | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares Sold in U.S. Initial Public Offering | 1,500,000 | ||||||||
Shares Sold by Kingsway | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares Sold in U.S. Initial Public Offering | 2,625,000 | ||||||||
Shares Issued to Underwriters to Cover Over-allotments | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Initial public offering (in USD per share) | $ 5.85 | ||||||||
Additional shares to be purchased by underwriters to cover overallotments (in shares) | 618,750 | ||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 451,500 |
Deferred Policy Acquisition C86
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of period | $ 8,166 | $ 6,674 | $ 3,764 |
Acquisition costs deferred | 20,661 | 15,540 | 13,283 |
Amortization charged to income | 18,592 | 14,048 | 10,373 |
Balance, end of period | $ 10,235 | $ 8,166 | $ 6,674 |
Selected Quarterly Financial 87
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Gross premium written | $ 52,423 | $ 65,315 | $ 46,575 | $ 44,973 | $ 26,361 | $ 42,046 | $ 22,801 | $ 31,224 | $ 209,286 | $ 122,432 | $ 93,060 |
Net premiums earned | 41,927 | 41,666 | 38,304 | 30,167 | 27,289 | 25,575 | 23,306 | 21,954 | 152,064 | 98,124 | 71,344 |
Underwriting income | 4,954 | 4,946 | 5,175 | 4,763 | 3,164 | 2,666 | 1,883 | 1,422 | |||
Net income | 4,333 | 4,024 | 3,936 | 2,137 | 9,458 | 3,493 | 2,559 | 2,192 | 14,430 | 17,702 | 6,180 |
Net income attributable to common shareholders | $ 4,253 | $ 3,943 | $ 3,856 | $ 2,102 | $ 9,434 | $ 3,469 | $ 2,536 | $ 2,169 | $ 14,154 | $ 17,608 | $ 7,361 |
Basic earnings per common share (USD per share) | $ 0.35 | $ 0.33 | $ 0.32 | $ 0.18 | $ 0.80 | $ 0.29 | $ 0.24 | $ 0.23 | $ 1.18 | $ 1.61 | $ 0.92 |
Diluted earnings per common share (USD per share) | $ 0.34 | $ 0.32 | $ 0.31 | $ 0.17 | $ 0.77 | $ 0.29 | $ 0.23 | $ 0.22 | $ 1.13 | $ 1.56 | $ 0.74 |
Underwriting Expense | |||||||||||
Prior period reclassification adjustment | $ (269) | $ (139) | |||||||||
Nonoperating Income (Expense) | |||||||||||
Prior period reclassification adjustment | $ 269 | $ 139 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | May. 22, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Deferred gain | $ 213 | |||
Lease term | 5 years | |||
Gain recognized in period | $ 43 | $ 43 | $ 43 | |
Rent expense | 704 | $ 707 | $ 699 | |
Long-term Purchase Commitment, Amount | 6,800 | |||
Unfunded Commitments | $ 2,475 |
Commitments and Contingencies O
Commitments and Contingencies Operating Lease Payment Due on HQ Building (Details) - Elk Grove Village Headquarters Building $ in Thousands | Dec. 31, 2015USD ($) |
Minimum Lease Payments Related to Elk Grove Village HQ Building [Line Items] | |
2,016 | $ 1,731 |
2,017 | 1,240 |
2,018 | 919 |
2,019 | 929 |
2,020 | 955 |
2021 & Beyond | 1,058 |
Operating Leases, Future Minimum Payments Due | $ 6,832 |
Line of Credit (Details)
Line of Credit (Details) - USD ($) | Mar. 09, 2015 | May. 07, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | |||||
Outstanding borrowings | $ 17,500,000 | $ 0 | |||
Former Loan Agreement | Revolving Credit Facility | American Insurance Acquisition, Inc. | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | ||||
Line of credit facility, commitment fee amount | $ 10,000,000 | ||||
Former Loan Agreement | Revolving Credit Facility | American Insurance Acquisition, Inc. | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate spread | 2.75% | ||||
Former Loan Agreement | Revolving Credit Facility | American Insurance Acquisition, Inc. | Maximum | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate spread | 5.00% | ||||
Loan Agreement | American Insurance Acquisition, Inc. | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 35,000,000 | ||||
Line of credit facility, commitment fee amount | 56,000 | ||||
Outstanding borrowings | 15,500,000 | 0 | |||
Interest expense | 638,000 | ||||
Unamortized bank fees | $ 281,000 | ||||
Unamortized bank fees, amortization period | 50 months | ||||
Loan Agreement | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Minimum net worth required for compliance | $ 60,000,000 | ||||
Loan Agreement | Revolving Credit Facility | American Insurance Acquisition, Inc. | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 5,000,000 | ||||
Effective percentage | 3.18% | ||||
Letter of credit, maximum borrowing capacity | $ 2,000,000 | ||||
Outstanding borrowings | $ 2,000,000 | $ 0 | |||
Remaining borrowing capacity | $ 3,000,000 | ||||
Loan Agreement | Revolving Credit Facility | American Insurance Acquisition, Inc. | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate spread | 2.75% | ||||
Loan Agreement | Line of Credit | American Insurance Acquisition, Inc. | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | ||||
Effective percentage | 4.92% | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | ||||
Outstanding borrowings | $ 15,500,000 | ||||
Remaining borrowing capacity | $ 14,500,000 | ||||
Loan Agreement | Line of Credit | American Insurance Acquisition, Inc. | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate spread | 4.50% |
Line of Credit Schedule of Debt
Line of Credit Schedule of Debt (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Debt Outstanding [Roll Forward] | |
Balance at the beginning of period | $ 0 |
Proceeds from Issuance of Debt | 18,000 |
Repayments of Debt | (500) |
Balance at period end | 17,500 |
Loan Agreement | American Insurance Acquisition, Inc. | |
Debt Outstanding [Roll Forward] | |
Balance at the beginning of period | 0 |
Proceeds from Issuance of Debt | 15,500 |
Repayments of Debt | 0 |
Balance at period end | 15,500 |
Loan Agreement | American Insurance Acquisition, Inc. | Revolving Credit Facility | |
Debt Outstanding [Roll Forward] | |
Balance at the beginning of period | 0 |
Proceeds from Issuance of Debt | 2,500 |
Repayments of Debt | (500) |
Balance at period end | $ 2,000 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant Condensed Statement of Comprehensive Income, Parent Company (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net investment gain | $ 455 | $ 382 | $ 529 | ||||||||
Other underwriting expense | 23,325 | 13,863 | 11,255 | ||||||||
Income from operations before income tax expense | 22,046 | 11,935 | 6,252 | ||||||||
Income tax benefit | 7,616 | (5,767) | 72 | ||||||||
Net income | $ 4,333 | $ 4,024 | $ 3,936 | $ 2,137 | $ 9,458 | $ 3,493 | $ 2,559 | $ 2,192 | 14,430 | 17,702 | 6,180 |
Changes in net unrealized investment (losses) gains | (1,912) | 2,029 | (4,354) | ||||||||
Reclassification to income of net realized investment gains (losses) | 203 | 257 | (469) | ||||||||
Effect of income tax | 597 | (777) | 1,642 | ||||||||
Other comprehensive (loss) income | (1,112) | 1,509 | (3,181) | ||||||||
Total comprehensive income | 13,318 | 19,211 | 2,999 | ||||||||
Parent Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net investment gain | 7 | 16 | 96 | ||||||||
Other underwriting expense | 2,566 | 1,825 | 542 | ||||||||
Income from operations before income tax expense | (2,559) | (1,809) | (446) | ||||||||
Income tax benefit | (577) | (498) | (67) | ||||||||
Loss before equity in net income of subsidiaries | (1,982) | (1,311) | (379) | ||||||||
Equity in net income of subsidiaries | 16,412 | 19,013 | 6,559 | ||||||||
Net income | 14,430 | 17,702 | 6,180 | ||||||||
Changes in net unrealized investment (losses) gains | (1,912) | 2,029 | (4,354) | ||||||||
Reclassification to income of net realized investment gains (losses) | 203 | 257 | (469) | ||||||||
Effect of income tax | 597 | (777) | 1,642 | ||||||||
Other comprehensive (loss) income | (1,112) | 1,509 | (3,181) | ||||||||
Total comprehensive income | $ 13,318 | $ 19,211 | $ 2,999 |
Schedule II - Condensed Finan93
Schedule II - Condensed Financial Information of Registrant Condensed Balance Sheet, Parent Company (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Cash and cash equivalents | $ 22,354 | $ 36,586 | $ 9,811 | $ 19,912 |
Accrued investment income | 1,036 | 660 | ||
Deferred tax asset, net | 17,166 | 17,317 | ||
Total Assets | 411,573 | 283,911 | ||
Liabilities | ||||
Other liabilities and accrued expenses | 18,457 | 10,676 | ||
Total Liabilities | 281,951 | 174,512 | ||
Shareholders’ Equity | ||||
Preferred shares, $0.001 par value, 100,000,000 shares authorized, shares issued and outstanding: 2015 - 6,940,500 and 2014 - 2,000,000. Liquidation value $1.00 per share | 6,941 | 2,000 | ||
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued and outstanding: 2015 - 11,883,025 and 2014 - 11,638,723 | 36 | 34 | ||
Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: 2015 and 2014 - 132,863 | 0 | 0 | ||
Additional paid-in capital | 198,041 | 196,079 | ||
Retained deficit | (74,364) | (88,794) | ||
Accumulated other comprehensive (loss) income, net of tax | (1,032) | 80 | ||
Total Shareholders’ Equity | 129,622 | 109,399 | 63,698 | 59,864 |
Total Liabilities and Shareholders’ Equity | 411,573 | 283,911 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 162 | 23,428 | $ 289 | $ 67 |
Accrued investment income | 0 | 3 | ||
Accounts receivable and other assets | 479 | 0 | ||
Deferred tax asset, net | 766 | 515 | ||
Investment in subsidiaries | 128,215 | 85,486 | ||
Total Assets | 129,622 | 109,432 | ||
Liabilities | ||||
Other liabilities and accrued expenses | 0 | 33 | ||
Total Liabilities | 0 | 33 | ||
Shareholders’ Equity | ||||
Preferred shares, $0.001 par value, 100,000,000 shares authorized, shares issued and outstanding: 2015 - 6,940,500 and 2014 - 2,000,000. Liquidation value $1.00 per share | 6,941 | 2,000 | ||
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued and outstanding: 2015 - 11,883,025 and 2014 - 11,638,723 | 36 | 34 | ||
Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: 2015 and 2014 - 132,863 | 0 | 0 | ||
Additional paid-in capital | 198,041 | 196,079 | ||
Retained deficit | (74,364) | (88,794) | ||
Accumulated other comprehensive (loss) income, net of tax | (1,032) | 80 | ||
Total Shareholders’ Equity | 129,622 | 109,399 | ||
Total Liabilities and Shareholders’ Equity | $ 129,622 | $ 109,432 |
Schedule II - Condensed Finan94
Schedule II - Condensed Financial Information of Registrant Condensed Balance Sheet, Parent Company - Additional (Details) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Preferred shares, par value (USD per share) | $ 0.001 | $ 0.001 | |
Preferred shares, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Preferred shares, shares issued (in shares) | 6,940,500 | 2,000,000 | |
Preferred stock, shares outstanding (in shares) | 6,940,500 | 2,000,000 | |
Preferred shares, liquidation preference per share (USD per share) | $ 1 | $ 1 | |
Common shares, shares authorized (in shares) | 300,000,001 | 300,000,001 | |
Common stock, shares, outstanding (in shares) | 12,015,888 | 11,771,586 | |
Parent Company | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Preferred shares, par value (USD per share) | $ 0.001 | $ 0.001 | |
Preferred shares, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Preferred shares, shares issued (in shares) | 6,940,500 | 2,000,000 | |
Preferred stock, shares outstanding (in shares) | 6,940,500 | 2,000,000 | |
Preferred shares, liquidation preference per share (USD per share) | $ 1 | $ 1 | |
Ordinary Shares | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common shares, par value (USD per share) | $ 0.003 | $ 0.003 | |
Common shares, shares authorized (in shares) | 266,666,667 | 266,666,667 | |
Common shares, shares issued (in shares) | 11,883,025 | 11,638,723 | |
Common stock, shares, outstanding (in shares) | 11,883,025 | 11,638,723 | |
Ordinary Shares | Parent Company | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common shares, par value (USD per share) | $ 0.003 | $ 0.003 | |
Common shares, shares authorized (in shares) | 266,666,667 | 266,666,667 | |
Common shares, shares issued (in shares) | 11,883,025 | 11,638,723 | |
Common stock, shares, outstanding (in shares) | 11,883,025 | 11,638,723 | |
Restricted Voting Common Shares | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common shares, par value (USD per share) | $ 0.003 | $ 0.003 | |
Common shares, shares authorized (in shares) | 33,333,334 | 33,333,334 | |
Common shares, shares issued (in shares) | 132,863 | 132,863 | |
Common stock, shares, outstanding (in shares) | 132,863 | 132,863 | 132,863 |
Restricted Voting Common Shares | Parent Company | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common shares, par value (USD per share) | $ 0.003 | $ 0.003 | |
Common shares, shares authorized (in shares) | 33,333,334 | 33,333,334 | |
Common shares, shares issued (in shares) | 132,863 | 132,863 | |
Common stock, shares, outstanding (in shares) | 132,863 | 132,863 |
Schedule II - Condensed Finan95
Schedule II - Condensed Financial Information of Registrant Condensed Statement of Cash Flows, Parent Company (Details) - USD ($) $ in Thousands | Feb. 11, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Activities | ||||||||||||
Net income | $ 4,333 | $ 4,024 | $ 3,936 | $ 2,137 | $ 9,458 | $ 3,493 | $ 2,559 | $ 2,192 | $ 14,430 | $ 17,702 | $ 6,180 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Share-based compensation expense | 1,819 | 1,469 | 247 | |||||||||
Deferred income taxes | (174) | (8,776) | (1,072) | |||||||||
Expenses incurred pursuant to Gateway stock purchase agreement | 941 | 0 | 0 | |||||||||
Net changes in operating assets and liabilities (net of acquisition): | ||||||||||||
Accounts payable and accrued liabilities | 1,376 | 3,369 | 531 | |||||||||
Net cash flows provided by (used in) operating activities | 8,477 | 13,716 | (5,920) | |||||||||
Investing activities: | ||||||||||||
Net cash flows used in investing activities | (40,354) | (11,963) | (2,776) | |||||||||
Financing activities: | ||||||||||||
Preferred share buyback | 0 | 0 | (16,200) | |||||||||
Proceeds from U.S. public offering, net of offering costs | $ 9,800 | 0 | 25,021 | 9,756 | ||||||||
Warrants exercised | 0 | 0 | 7,181 | |||||||||
Dividends paid | 0 | 0 | (2,145) | |||||||||
Options exercised | 145 | 1 | 3 | |||||||||
Net cash flows provided by (used in) financing activities | 17,645 | 25,022 | (1,405) | |||||||||
Net change in cash and cash equivalents | (14,232) | 26,775 | (10,101) | |||||||||
Cash and cash equivalents, beginning of period | 36,586 | 9,811 | 36,586 | 9,811 | 19,912 | |||||||
Cash and cash equivalents, end of period | 22,354 | 36,586 | 22,354 | 36,586 | 9,811 | |||||||
Supplemental disclosure of cash information (in '000s): | ||||||||||||
Cash paid for interest | 567 | 0 | 129 | |||||||||
Cash paid for income taxes | 8,636 | 3,308 | 1,430 | |||||||||
Parent Company | ||||||||||||
Operating Activities | ||||||||||||
Net income | 14,430 | 17,702 | 6,180 | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Equity in net income of subsidiaries | (16,412) | (19,013) | (6,559) | |||||||||
Share-based compensation expense | 1,819 | 1,469 | 247 | |||||||||
Deferred income taxes | (251) | (301) | (112) | |||||||||
Expenses incurred pursuant to Gateway stock purchase agreement | 941 | 0 | 0 | |||||||||
Net changes in operating assets and liabilities (net of acquisition): | ||||||||||||
Other assets and accrued investment income | (476) | 22 | (25) | |||||||||
Accounts payable and accrued liabilities | (34) | (112) | 144 | |||||||||
Net cash flows provided by (used in) operating activities | 17 | (233) | (125) | |||||||||
Investing activities: | ||||||||||||
Capital contributions made to subsidiaries | (23,428) | (1,650) | 0 | |||||||||
Net cash flows used in investing activities | (23,428) | (1,650) | 0 | |||||||||
Financing activities: | ||||||||||||
Preferred share buyback | 0 | 0 | (16,200) | |||||||||
Proceeds from U.S. public offering, net of offering costs | 0 | 0 | 9,756 | |||||||||
Issuance of common shares | 0 | 25,021 | 0 | |||||||||
Warrants exercised | 0 | 0 | 7,181 | |||||||||
Dividends paid | 0 | 0 | (2,145) | |||||||||
Dividends received | 0 | 0 | 1,752 | |||||||||
Options exercised | 145 | 1 | 3 | |||||||||
Net cash flows provided by (used in) financing activities | 145 | 25,022 | 347 | |||||||||
Net change in cash and cash equivalents | (23,266) | 23,139 | 222 | |||||||||
Cash and cash equivalents, beginning of period | 23,428 | $ 289 | 23,428 | 289 | 67 | |||||||
Cash and cash equivalents, end of period | $ 162 | $ 23,428 | 162 | 23,428 | 289 | |||||||
Supplemental disclosure of cash information (in '000s): | ||||||||||||
Cash paid for interest | 0 | 0 | 129 | |||||||||
Cash paid for income taxes | 85 | (210) | 25 | |||||||||
Anchor Holdings Group, Inc. et. al. | ||||||||||||
Supplemental disclosure of noncash investing and financing activities (in '000's): | ||||||||||||
Preferred Shares Issued | 4,000 | 0 | 2,000 | |||||||||
Anchor Holdings Group, Inc. et. al. | Parent Company | ||||||||||||
Supplemental disclosure of noncash investing and financing activities (in '000's): | ||||||||||||
Preferred Shares Issued | 4,000 | 0 | 2,000 | |||||||||
Gateway Insurance Company | ||||||||||||
Supplemental disclosure of noncash investing and financing activities (in '000's): | ||||||||||||
Preferred Shares Issued | $ 941 | 941 | 0 | 0 | ||||||||
Gateway Insurance Company | Parent Company | ||||||||||||
Supplemental disclosure of noncash investing and financing activities (in '000's): | ||||||||||||
Preferred Shares Issued | $ 941 | $ 0 | $ 0 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |||||||||||
Premiums earned, gross amount | $ 182,376 | $ 107,587 | $ 83,358 | ||||||||
Premiums earned, ceded to other companies | (30,946) | (9,589) | (12,542) | ||||||||
Premiums earned, assumed from other companies | 634 | 126 | 528 | ||||||||
Net premiums earned | $ 41,927 | $ 41,666 | $ 38,304 | $ 30,167 | $ 27,289 | $ 25,575 | $ 23,306 | $ 21,954 | $ 152,064 | $ 98,124 | $ 71,344 |
Premiums earned, percent of amount assumed to net | 0.40% | 0.10% | 0.70% |
Schedule V - Valuation and qu97
Schedule V - Valuation and qualifying accounts Valuation and Qualifying Accounts Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for uncollectible receivables | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of the year | $ 560 | $ 776 | $ 484 |
Charged to Expenses | 566 | 505 | 764 |
Other Additions | 8 | 172 | 281 |
Deductions | (288) | (893) | (753) |
Balance at the end of the year | 846 | 560 | 776 |
Valuation allowance for deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of the year | 0 | 9,446 | 11,242 |
Charged to Expenses | 0 | (9,446) | 0 |
Other Additions | 0 | 0 | 1,006 |
Deductions | 0 | 0 | (2,802) |
Balance at the end of the year | $ 0 | $ 0 | $ 9,446 |
Schedule VI - Supplemental in98
Schedule VI - Supplemental information concerning property-casualty insurance operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | ||||||||||||
Deferred policy acquisition costs | $ 10,235 | $ 8,166 | $ 10,235 | $ 8,166 | $ 6,674 | $ 3,764 | ||||||
Reserves for insurance claims and claims expense | 127,011 | 102,430 | 127,011 | 102,430 | 101,385 | $ 70,067 | ||||||
Unearned premiums | 108,202 | 58,950 | 108,202 | 58,950 | 44,232 | |||||||
Earned premiums | 41,927 | $ 41,666 | $ 38,304 | $ 30,167 | 27,289 | $ 25,575 | $ 23,306 | $ 21,954 | 152,064 | 98,124 | 71,344 | |
Net investment income | 3,976 | 3,110 | 2,141 | |||||||||
Claims and claims adjustment expense incurred, current year | 89,828 | 61,680 | 45,604 | |||||||||
Claims and claims adjustment expense incurred, prior year | 166 | (602) | 8 | |||||||||
Amortization charged to income | 18,592 | 14,048 | 10,373 | |||||||||
Paid claims and claim adjustment expense | 97,824 | 62,725 | 50,762 | |||||||||
Gross premium written | $ 52,423 | $ 65,315 | $ 46,575 | $ 44,973 | $ 26,361 | $ 42,046 | $ 22,801 | $ 31,224 | $ 209,286 | $ 122,432 | $ 93,060 |