Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 04, 2017 | |
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-Q | |
Document period end date | Jun. 30, 2017 | |
Document fiscal year focus | 2,017 | |
Document fiscal period focus | Q2 | |
Amendment flag | false | |
Ordinary Voting Common Shares | ||
Document and Entity Information [Line Items] | ||
Common stock, shares outstanding (in shares) | 11,930,703 | |
Restricted Voting Common Shares | ||
Document and Entity Information [Line Items] | ||
Common stock, shares outstanding (in shares) | 100,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investments, available for sale | ||
Fixed income securities, at fair value (amortized cost $153,761 and $157,451) | $ 153,826 | $ 156,487 |
Equity securities, at fair value (cost $4,401 and $5,598) | 4,841 | 6,223 |
Other investments | 33,914 | 32,181 |
Total Investments | 192,581 | 194,891 |
Cash and cash equivalents | 49,228 | 29,888 |
Accrued investment income | 1,656 | 1,228 |
Premiums receivable (net of allowance of $2,980 and $2,366) | 95,685 | 77,386 |
Reinsurance recoverables on amounts paid | 6,646 | 7,786 |
Reinsurance recoverables on amounts unpaid | 27,938 | 35,370 |
Prepaid reinsurance premiums | 14,002 | 13,372 |
Deferred policy acquisition costs | 17,228 | 13,222 |
Deferred tax asset, net | 17,327 | 18,498 |
Goodwill | 2,726 | 2,726 |
Intangible assets, net | 4,340 | 4,535 |
Property and equipment, net | 12,680 | 11,770 |
Other assets | 8,429 | 12,905 |
Total Assets | 450,466 | 423,577 |
Liabilities | ||
Claims liabilities | 118,989 | 139,004 |
Unearned premiums | 143,271 | 113,171 |
Due to reinsurers | 8,747 | 8,369 |
Notes payable, net | 23,935 | 19,187 |
Other liabilities and accrued expenses | 16,667 | 16,504 |
Total Liabilities | 311,609 | 296,235 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred shares, $0.001 par value, 100,000,000 shares authorized, shares issued and outstanding: June 30, 2017 and December 31, 2016 - 0. Liquidation value $1.00 per share | 0 | 0 |
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued and outstanding: June 30, 2017 - 11,930,703 and December 31, 2016 - 11,895,104 | 36 | 36 |
Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: June 30, 2017 - 100,000 and December 31, 2016 - 128,191 | 0 | 0 |
Additional paid-in capital | 199,849 | 199,244 |
Retained deficit | (61,356) | (71,718) |
Accumulated other comprehensive income (loss), net of tax | 328 | (220) |
Total Shareholders’ Equity | 138,857 | 127,342 |
Total Liabilities and Shareholders’ Equity | $ 450,466 | $ 423,577 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Position (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement [Line Items] | ||
Fixed income securities at fair value, amortized cost | $ 153,761 | $ 157,451 |
Equity securities, at fair value, cost | 4,401 | 5,598 |
Premiums receivable, allowance | $ 2,980 | $ 2,366 |
Shareholders’ Equity | ||
Preferred stock, par value (USD per Share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, liquidation preference per share (USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 300,000,001 | |
Common stock, shares outstanding (in shares) | 12,030,703 | 12,023,295 |
Ordinary Voting Common Shares | ||
Shareholders’ Equity | ||
Common stock, par value (USD per share) | $ 0.003 | $ 0.003 |
Common stock, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common stock, shares issued (in shares) | 11,930,703 | 11,895,104 |
Common stock, shares outstanding (in shares) | 11,930,703 | 11,895,104 |
Restricted Voting Common Shares | ||
Shareholders’ Equity | ||
Common stock, par value (USD per share) | $ 0.003 | $ 0.003 |
Common stock, shares authorized (in shares) | 33,333,334 | 33,333,334 |
Common stock, shares issued (in shares) | 100,000 | 128,191 |
Common stock, shares outstanding (in shares) | 100,000 | 128,191 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Net premiums earned | $ 54,049 | $ 41,802 | $ 102,475 | $ 83,555 |
Net investment income | 1,266 | 1,112 | 2,409 | 1,765 |
Net realized investment gains | 284 | 155 | 418 | 394 |
Other income | 103 | 127 | 217 | 229 |
Total revenue | 55,702 | 43,196 | 105,519 | 85,943 |
Net claims incurred | 32,469 | 24,574 | 61,769 | 49,514 |
Acquisition costs | 6,670 | 3,970 | 11,766 | 8,023 |
Other underwriting expenses | 7,342 | 6,783 | 14,933 | 13,354 |
Amortization of intangible assets | 98 | 98 | 195 | 195 |
Interest expense | 644 | 266 | 912 | 499 |
Expenses recovered pursuant to stock purchase agreements | 0 | 0 | 0 | (402) |
Total expenses | 47,223 | 35,691 | 89,575 | 71,183 |
Income from operations before income tax expense | 8,479 | 7,505 | 15,944 | 14,760 |
Income tax expense | 2,969 | 2,605 | 5,582 | 5,049 |
Net income | 5,510 | 4,900 | 10,362 | 9,711 |
Less: Preferred share dividends | 0 | 78 | 0 | 161 |
Net income attributable to common shareholders | $ 5,510 | $ 4,822 | $ 10,362 | $ 9,550 |
Basic weighted average common shares outstanding (in shares) | 12,045,519 | 12,045,519 | 12,045,519 | 12,045,519 |
Earnings per common share basic (in dollars per share) | $ 0.46 | $ 0.40 | $ 0.86 | $ 0.79 |
Diluted weighted average common shares outstanding (in shares) | 12,181,880 | 12,747,751 | 12,191,646 | 12,749,083 |
Earnings per common share diluted (in dollars per share) | $ 0.45 | $ 0.38 | $ 0.85 | $ 0.76 |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net income | $ 5,510 | $ 4,900 | $ 10,362 | $ 9,711 |
Other comprehensive income: | ||||
Changes in net unrealized investment gains | 733 | 1,756 | 1,082 | 4,661 |
Reclassification to net income | (150) | 288 | (239) | 248 |
Effect of income tax | (204) | (715) | (295) | (1,718) |
Other comprehensive income | 379 | 1,329 | 548 | 3,191 |
Total comprehensive income | $ 5,889 | $ 6,229 | $ 10,910 | $ 12,902 |
Condensed Consolidated Stateme5
Condensed 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 (Loss)/Income |
Balance at beginning of period at Dec. 31, 2015 | $ 129,622 | $ 6,941 | $ 36 | $ 0 | $ 198,041 | $ (74,364) | $ (1,032) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 9,711 | 9,711 | |||||
Retirement of preferred shares | (402) | (402) | |||||
Other comprehensive income | 3,191 | 3,191 | |||||
Share-based compensation | 836 | 836 | |||||
Balance at end of period at Jun. 30, 2016 | 142,958 | 6,539 | 36 | 0 | 198,877 | (64,653) | 2,159 |
Balance at beginning of period at Dec. 31, 2016 | 127,342 | 0 | 36 | 0 | 199,244 | (71,718) | (220) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 10,362 | 10,362 | |||||
Other comprehensive income | 548 | 548 | |||||
Share-based compensation | 605 | 605 | |||||
Balance at end of period at Jun. 30, 2017 | $ 138,857 | $ 0 | $ 36 | $ 0 | $ 199,849 | $ (61,356) | $ 328 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | ||
Net income | $ 10,362 | $ 9,711 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 553 | 480 |
Share-based compensation expense | 605 | 836 |
Amortization of deferred gain on sale of headquarters building | (17) | (21) |
Amortization of intangible assets | 195 | 195 |
Deferred income taxes | 875 | 1,361 |
Net realized investment gains | (418) | (394) |
Gain in equity of investees | (504) | (215) |
Amortization of bond premiums and discounts | 479 | 683 |
Amortization of financing costs | 252 | 34 |
Expenses recovered pursuant to stock purchase agreements | 0 | (402) |
Net changes in operating assets and liabilities: | ||
Accrued investment income | (428) | 118 |
Premiums receivable, net | (18,298) | (5,046) |
Due from reinsurers and prepaid reinsurance premiums | 7,942 | (3,090) |
Deferred policy acquisition costs | (4,005) | (422) |
Other assets | 4,475 | 10,206 |
Claims liabilities | (20,015) | (14,554) |
Unearned premiums | 30,100 | 4,235 |
Due to reinsurers | 378 | 147 |
Other liabilities and accrued expenses | 179 | (1,811) |
Net cash flows provided by operating activities | 12,710 | 2,051 |
Purchases of: | ||
Fixed income securities | (21,367) | (36,827) |
Equity securities | (3,100) | (2,000) |
Other investments | (1,828) | (5,361) |
Property, equipment and other | (1,463) | (252) |
Proceeds from sale and maturity of: | ||
Fixed income securities | 24,709 | 40,601 |
Equity securities | 4,582 | 0 |
Other investments | 600 | 1,472 |
Net cash flows provided by (used in) investing activities | 2,133 | (2,367) |
Financing activities: | ||
Proceeds from notes payable, net of issuance costs | 23,897 | 500 |
Repayment of notes payable | (19,400) | (100) |
Net cash flows provided by financing activities | 4,497 | 400 |
Net change in cash and cash equivalents | 19,340 | 84 |
Cash and cash equivalents, beginning of period | 29,888 | 22,354 |
Cash and cash equivalents, end of period | 49,228 | 22,438 |
Supplemental disclosure of cash information: | ||
Cash (recovered) paid for income taxes | (236) | 3,353 |
Cash paid for interest expense | 510 | 358 |
Gateway Insurance Company | ||
Supplemental disclosure of noncash investing and financing activities: | ||
Redemption of preferred shares related to Gateway stock purchase agreement | $ 0 | $ (402) |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [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”); and other non-insurance company subsidiaries: 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 42 of those states plus the District of Columbia. The Insurance Subsidiaries share common management and operating infrastructure. Atlas’ ordinary voting common shares are listed on the NASDAQ stock exchange under the symbol “AFH.” Basis of presentation - These statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Atlas and the entities it controls. Equity investments in entities that we do not consolidate, including corporate entities in which we have significant influence and partnership and partnership-like entities in which we have more than minor influence over operating and financial policies, are accounted for under the equity method unless we have elected the fair value option. All significant intercompany accounts and transactions have been eliminated. It is the opinion of management that these financial statements reflect all adjustments necessary for a fair statement of the interim results. The results for the three and six month periods ended June 30, 2017 are not necessarily indicative of the results expected for the full calendar year. The accompanying unaudited condensed consolidated financial statements, in accordance with Securities and Exchange Commission (“SEC”) rules for interim periods, do not include all of the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements and should be read in conjunction with the Atlas’ Annual Report on Form 10-K for the year ended December 31, 2016 , which provides a more complete understanding of the Company’s accounting policies, financial position, operating results, business properties, and other matters. Atlas has consistently applied the same accounting policies throughout all periods presented. 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 claims and claims adjustment expenses and related amounts recoverable from reinsurers represents the most significant estimate in the accompanying financial statements, and differences between such estimates and actual results could be material. Significant estimates in the accompanying financial statements also include the fair values of investments, deferred policy acquisition cost recoverability, deferred tax asset valuation and business combinations. 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, our New York “excess taxi program” 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. Segmentation - The Company has one reportable business segment. Resources are allocated and management assesses financial performance based on this reportable segment. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS With the exception of the accounting and disclosure pronouncements discussed below, there have been no recent pronouncements or changes in pronouncements during the six month period ended June 30, 2017 , as compared to those described in our Annual Report on Form 10-K for the twelve month period ended December 31, 2016 , that are of significance or potential significance to Atlas. Pertinent Accounting Standard Updates (“ASUs”) are issued from time to time by the Financial Accounting Standards Board (“FASB”) and are adopted by the Company as they become effective. All recently issued accounting pronouncements with effective dates prior to July 1, 2017 have been adopted by the Company. Recently Adopted In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The provisions of this update simplify the subsequent measurement of goodwill by eliminating Step 2 from the quantitative analysis. For public entities, this guidance is effective for years beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted after January 1, 2017. Atlas has goodwill associated with one of the insurance subsidiaries and is subject to annual goodwill impairment testing. Atlas early adopted this ASU beginning with the 2017 goodwill impairment testing. The adoption of this ASU does not have any required prior period adjustments and did not have an impact on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) . The provisions of this update simplify certain areas around share-based compensation transactions including income taxes and cash flow classifications. Each amendment within this update has specific guidance on the method of application, which includes prospective, retrospective, and modified retrospective applications. For public entities, this guidance is effective for years beginning after December 15, 2016, including interim periods within those years. Early adoption is permitted. The Company adopted this ASU in the first quarter of 2017. Atlas did not have any tax “windfall” net operating loss carryforwards as of January 1, 2017, therefore no cumulative effect adjustment is needed. All tax related cash flows are included in the operating section of the Consolidated Statements of Cash Flows with other income taxes retrospectively. Atlas has made the election to estimate future forfeitures, which is consistent with current accounting treatment. Not Yet Adopted In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting . This update provides guidance on when an entity should apply modification accounting when changes are made to a share-based compensation award. For public entities, this guidance is effective for years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted. The Company plans on adopting the update on the required effective date using the prescribed prospective approach. The adoption of this ASU is not expected to have a material impact on the consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . This update shortens the amortization period for certain callable fixed income securities held at a premium to the earliest possible call date. For public entities, this guidance is effective for years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. The Company plans on adopting the update on the required effective date using the prescribed modified retrospective approach. Atlas has a number of fixed income securities that are callable and held at a premium. The amount of the difference in amortization from current accounting treatment to the change prescribed in this ASU will be recorded upon adoption as an adjustment to retained earnings and treated as a change in accounting principle. Atlas is currently evaluating the potential impact of the ASU on these certain securities, which will change as securities mature, are sold, or are purchased. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The provisions of this update modify the income tax consequences for intra-entity transaction not involving inventory. For public entities, this guidance is effective for years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted. The Company plans on adopting the update on the required effective date using the prescribed modified retrospective approach. Atlas has a number of fixed income securities that were transferred between companies owned by Atlas creating temporary tax differences that will be reversed upon adoption as an adjustment to retained earnings. The current balance of this adjustment is not considered material to the consolidated financial statement results. The amount of the adjustment may decline as certain of these securities mature or are sold. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) . The provisions of this update address the diversity in practice of eight issues on the statement of cash flows. For public entities, this guidance is effective for years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted. The Company plans on adopting the update on the required effective date by retrospectively restating all required amounts for the periods presented in the consolidated financial statements. Atlas’ current presentation of the statement of cash flows is not expected to change as a result of this ASU. Atlas plans to elect the cumulative earnings approach for distributions from equity method investees upon adoption, which is consistent with current practice. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) . The provisions of this update require an entity to broaden the information that it considers in developing its allowance for credit losses for assets. For public entities, this guidance is effective for years beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted. The Company plans on adopting the update on the required effective date. Atlas does not currently have any investments with credit losses recorded, therefore the provisions of this update are not expected to have a material impact on the consolidated financial statements. Atlas will continue to monitor the investment portfolio and other financial instruments until adoption for any changes. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The provisions of this update impact the classification criteria, disclosure requirements, and other specific transactions in lease accounting. The update requires the use of a modified retrospective approach, which requires leases to be measured at the beginning of the earliest period presented. For public entities, this guidance is effective for years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. The Company plans on adopting the update on the required effective date using the modified retrospective approach to restate beginning with the earliest period presented. See Note 8, ‘Commitments and Contingencies’ for further discussion of the future lease commitments. The adoption of this update is expected to increase both assets and liabilities, equally, on the consolidated statements of financial position by the present value of the leases at each reporting date. There is no expected impact to any of Atlas’ current financial covenants as a result of the increase to reported liabilities. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. One provision of this update requires that equity investments, except those accounted for under the equity method, be measured at fair value and changes in fair value recognized in net income. The provisions of this update are recognized as a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. For public entities, this guidance is effective for years beginning after December 15, 2017, including interim periods within those years. Early adoption is not permitted, except for certain provisions. The Company plans on adopting the update on the required effective date. Atlas has a small portion of its investment portfolio invested in equities covered within the scope of this ASU that will require an adjustment to retained earnings upon adoption. The amount of the adjustment is not expected to be material to the consolidated financial statements. While the current impact of adoption is not expected to be material, the impact of this ASU could potentially add volatility to the Company’s earnings as a result of market risk. The FASB issued ASU 2014-09, ASU 2015-14, ASU 2016-10, ASU 2016-12, ASU 2016-20 and ASU 2017-05, Revenue from Contracts with Customers (Topic 606) . This update is a comprehensive revenue recognition standard that applies to all entities that have contracts with customers, except for those that fall within the scope of other standards, such as insurance contracts. Updates may be applied retrospectively to each period presented or retrospectively with the cumulative effect recognized at the date of initial application. The update is now effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but only for interim and annual periods beginning after December 15, 2016. The Company plans to adopt the update on the required effective date. While these updates to Topic 606 are expected to have a significant impact on many companies, most of Atlas’ revenue is derived from transactions that do not fall within the scope of Topic 606, namely insurance contracts and lease income. The adoption of these ASUs are not expected to have a material impact on the consolidated financial statements. Atlas will continue to monitor and examine transactions that could potentially fall within the scope of Topic 606. All other recently issued pronouncements with effective dates after June 30, 2017 are not expected to have a material impact on the consolidated financial statements. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS The following table presents a summary of intangible assets by major asset class as of June 30, 2017 and December 31, 2016 : ($ in ‘000s) As of June 30, 2017 Economic Useful Life Gross Carrying Amount Accumulated Amortization Net Trade name and trademark 15 years $ 1,800 $ 277 $ 1,523 Customer relationship 10 years 2,700 623 2,077 State insurance licenses Indefinite 740 — 740 $ 5,240 $ 900 $ 4,340 As of December 31, 2016 Economic Useful Life Gross Carrying Amount Accumulated Amortization Net Trade name and trademark 15 years $ 1,800 $ 217 $ 1,583 Customer relationship 10 years 2,700 488 2,212 State insurance licenses Indefinite 740 — 740 $ 5,240 $ 705 $ 4,535 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Earnings per ordinary voting common share, restricted voting common share, and participative restricted stock unit (“RSU”) (collectively, the “common shares”) for the three and six month periods ended June 30, 2017 and 2016 are as follows: Three Month Periods Ended Six Month Periods Ended ($ in ‘000s, except share and per share amounts) June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Basic: Income from operations before income tax expense $ 8,479 $ 7,505 $ 15,944 $ 14,760 Income tax expense 2,969 2,605 5,582 5,049 Net income $ 5,510 $ 4,900 $ 10,362 $ 9,711 Less: Preferred share dividends — 78 — 161 Net income attributable to common shareholders $ 5,510 $ 4,822 $ 10,362 $ 9,550 Basic weighted average common shares outstanding 12,045,519 12,045,519 12,045,519 12,045,519 Earnings per common share basic $ 0.46 $ 0.40 $ 0.86 $ 0.79 Diluted: Basic weighted average common shares outstanding 12,045,519 12,045,519 12,045,519 12,045,519 Add: Dilutive stock options outstanding 136,361 179,835 146,127 181,167 Dilutive shares upon preferred share conversion — 522,397 — 522,397 Diluted weighted average common shares outstanding 12,181,880 12,747,751 12,191,646 12,749,083 Earnings per common share diluted $ 0.45 $ 0.38 $ 0.85 $ 0.76 Earnings per common share diluted 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). Atlas’ dilutive potential ordinary voting common shares consist of outstanding stock options to purchase ordinary voting common shares and, for the 2016 computation, preferred shares potentially convertible to ordinary voting common shares at the option of the holders at any date after December 31, 2018 ( 2,538,560 preferred shares at the rate of 0.1270 ordinary voting common shares for each preferred share, all of which were redeemed during the third quarter of 2016) and after March 11, 2020 ( 4,000,000 preferred shares at the rate of 0.0500 ordinary voting common shares for each preferred share, all of which were canceled as of December 31, 2016). The effects of these convertible instruments are excluded from the computation of earnings per common share diluted in periods in which the effect would be anti-dilutive. Convertible preferred shares are anti-dilutive when the amount of dividends declared or accumulated in the current period per common share obtainable upon conversion exceeds earnings per common share basic. In the three and six month periods ended June 30, 2017 , all exercisable stock options were deemed to be dilutive. In the three and six month periods ended June 30, 2016 , all exercisable stock options and all of the convertible preferred shares were deemed to be dilutive. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2017 | |
Investments [Abstract] | |
Investments | INVESTMENTS The cost or amortized cost, gross unrealized gains and losses and fair value for Atlas’ investments in fixed income securities and equities are as follows ($ in ‘000s): As of June 30, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 22,793 $ 8 $ (165 ) $ 22,636 States, municipalities and political subdivisions 11,568 71 (72 ) 11,567 Corporate Banking/financial services 21,171 200 (43 ) 21,328 Consumer goods 8,973 92 (43 ) 9,022 Capital goods 7,765 174 (2 ) 7,937 Energy 4,933 100 (43 ) 4,990 Telecommunications/utilities 11,197 86 (87 ) 11,196 Health care 1,005 6 (9 ) 1,002 Total Corporate 55,044 658 (227 ) 55,475 Mortgage Backed Mortgage backed - agency 28,219 83 (246 ) 28,056 Mortgage backed - commercial 23,637 177 (224 ) 23,590 Total Mortgage Backed 51,856 260 (470 ) 51,646 Other asset backed 12,500 19 (17 ) 12,502 Total Fixed Income Securities $ 153,761 $ 1,016 $ (951 ) $ 153,826 Equities 4,401 440 — 4,841 Totals $ 158,162 $ 1,456 $ (951 ) $ 158,667 As of December 31, 2016 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 22,716 $ 15 $ (257 ) $ 22,474 States, municipalities and political subdivisions 10,647 25 (202 ) 10,470 Corporate Banking/financial services 22,890 105 (143 ) 22,852 Consumer goods 8,637 45 (89 ) 8,593 Capital goods 7,807 109 (43 ) 7,873 Energy 3,689 88 (42 ) 3,735 Telecommunications/utilities 7,746 22 (151 ) 7,617 Health care 1,376 3 (22 ) 1,357 Total Corporate 52,145 372 (490 ) 52,027 Mortgage Backed Mortgage backed - agency 34,332 98 (416 ) 34,014 Mortgage backed - commercial 21,277 132 (251 ) 21,158 Total Mortgage Backed 55,609 230 (667 ) 55,172 Other asset backed 16,334 39 (29 ) 16,344 Total Fixed Income Securities $ 157,451 $ 681 $ (1,645 ) $ 156,487 Equities 5,598 625 — 6,223 Totals $ 163,049 $ 1,306 $ (1,645 ) $ 162,710 The following table summarizes the amortized cost and fair value of fixed income securities by contractual maturity ($ in ‘000s). As certain securities and debentures have the right to call or prepay obligations, the actual settlement dates may differ from contractual maturity. As of June 30, 2017 Amortized Cost Fair Value One year or less $ 9,337 $ 9,342 One to five years 41,490 41,577 Five to ten years 33,028 33,219 More than ten years 5,550 5,540 Total contractual maturity 89,405 89,678 Total mortgage and asset backed 64,356 64,148 Total $ 153,761 $ 153,826 Management performs a quarterly analysis of Atlas’ investment holdings to determine if declines in fair value are other than temporary. The analysis includes some or all of the following procedures as deemed appropriate by management: ◦ identifying all security holdings in unrealized loss positions that have existed for at least six months or other circumstances that management believes may impact the recoverability of the security; ◦ obtaining a valuation analysis from third party investment managers regarding these holdings based on their knowledge, experience and other market-based valuation techniques; ◦ reviewing the trading range of certain securities over the preceding calendar period; ◦ assessing 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. There were no other-than-temporary impairments recorded for the three and six month periods ended June 30, 2017 and 2016 as a result of the above analysis performed by management. The aging of unrealized losses on the Company’s investments in fixed income securities and equities is presented as follows ($ in ‘000s): Less Than 12 Months More Than 12 Months Total As of June 30, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 18,305 $ (165 ) $ — $ — $ 18,305 $ (165 ) States, municipalities and political subdivisions 4,700 (72 ) — — 4,700 (72 ) Corporate Banking/financial services 7,664 (43 ) — — 7,664 (43 ) Consumer goods 3,809 (33 ) 198 (10 ) 4,007 (43 ) Capital goods 100 (2 ) — — 100 (2 ) Energy 1,568 (43 ) — — 1,568 (43 ) Telecommunications/utilities 4,494 (58 ) 323 (29 ) 4,817 (87 ) Health care 640 (9 ) — — 640 (9 ) Total Corporate 18,275 (188 ) 521 (39 ) 18,796 (227 ) Mortgage Backed Mortgage backed - agency 17,931 (213 ) 2,005 (33 ) 19,936 (246 ) Mortgage backed - commercial 12,070 (174 ) 1,917 (50 ) 13,987 (224 ) Total Mortgage Backed 30,001 (387 ) 3,922 (83 ) 33,923 (470 ) Other asset backed 4,891 (5 ) 1,152 (12 ) 6,043 (17 ) Total Fixed Income Securities $ 76,172 $ (817 ) $ 5,595 $ (134 ) $ 81,767 $ (951 ) Less Than 12 Months More Than 12 Months Total As of December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 16,187 $ (257 ) $ — $ — $ 16,187 $ (257 ) States, municipalities and political subdivisions 7,604 (202 ) — — 7,604 (202 ) Corporate Banking/financial services 12,429 (143 ) 132 — 12,561 (143 ) Consumer goods 5,453 (83 ) 222 (6 ) 5,675 (89 ) Capital goods 3,224 (37 ) 100 (6 ) 3,324 (43 ) Energy 229 (1 ) 959 (41 ) 1,188 (42 ) Telecommunications/utilities 2,620 (73 ) 962 (78 ) 3,582 (151 ) Health care 476 (22 ) — — 476 (22 ) Total Corporate 24,431 (359 ) 2,375 (131 ) 26,806 (490 ) Mortgage Backed Mortgage backed - agency 21,818 (372 ) 2,092 (44 ) 23,910 (416 ) Mortgage backed - commercial 10,235 (205 ) 2,053 (46 ) 12,288 (251 ) Total Mortgage Backed 32,053 (577 ) 4,145 (90 ) 36,198 (667 ) Other asset backed 977 (2 ) 4,118 (27 ) 5,095 (29 ) Total Fixed Income Securities $ 81,252 $ (1,397 ) $ 10,638 $ (248 ) $ 91,890 $ (1,645 ) As of June 30, 2017 , we held 261 individual fixed income securities that were in an unrealized loss position, of which 23 individual fixed income securities were in a continuous loss position for longer than 12 months. As of December 31, 2016 , we held 316 individual fixed income securities that were in an unrealized loss position, of which 39 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 three and six month periods ended June 30, 2017 or for the year ended December 31, 2016 , 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 three and six month periods ended June 30, 2017 and 2016 ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Total investment income Interest income $ 917 $ 937 $ 1,805 $ 1,919 Income from other investments 573 399 1,049 296 Investment expenses (224 ) (224 ) (445 ) (450 ) Net investment income $ 1,266 $ 1,112 $ 2,409 $ 1,765 The following table presents the aggregate proceeds, gross realized gains and gross realized losses from sales and calls of fixed income securities and equities for the three and six month periods ended June 30, 2017 and 2016 ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Fixed income securities 1 : Proceeds from sales and calls $ 9,130 $ 7,733 $ 14,352 $ 29,258 Gross realized gains 110 191 164 515 Gross realized losses (22 ) (36 ) (32 ) (121 ) Equities: Proceeds from sales $ 3,128 $ — $ 4,582 $ — Gross realized gains 196 — 288 — Gross realized losses — — (2 ) — Total: Proceeds from sales and calls $ 12,258 $ 7,733 $ 18,934 $ 29,258 Gross realized gains 306 191 452 515 Gross realized losses (22 ) (36 ) (34 ) (121 ) 1 - The proceeds from sales and calls, gross realized gains and gross realized losses on fixed income securities for the three and six month periods ended June 30, 2016 were restated to include both voluntary and involuntary calls. The following table summarizes the components of net investment realized gains for the three and six month periods ended June 30, 2017 and 2016 ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Fixed income securities $ 88 $ 155 $ 132 $ 394 Equities 196 — 286 — Net investment realized gains $ 284 $ 155 $ 418 $ 394 Other Investments: Atlas’ other investments are comprised of collateral loans and various limited partnerships that invest in income-producing real estate, equities, or insurance linked securities. Atlas accounts for these limited partnership investments using the equity method of accounting. The carrying values of the equity method limited partnerships were $26.3 million and $24.9 million as of June 30, 2017 and December 31, 2016 , respectively. The carrying value of these investments is Atlas’ share of the net book value for each limited partnership, an amount that approximates fair value. Atlas receives payments on a routine basis that approximate the income earned on one of the limited partnerships that invests in income-producing real estate. The carrying value of the collateral loans was $7.6 million and $7.2 million as of June 30, 2017 and December 31, 2016 , respectively. The Company recognizes an impairment loss for equity method limited partnerships when evidence demonstrates that the loss is other than temporary. To determine if an other-than-temporary impairment has occurred, the Company evaluates whether or not the investee could sustain a level of earnings that would justify the carrying amount of the investment. Collateral loans are considered impaired when it is probable that the Company will not collect the contractual principal and interest. Valuation allowances are established for impaired loans equal to the fair value of the collateral less costs to sell or the present value of the loan’s expected future repayment cash flows discounted at the loan’s original effective interest rate. Valuation allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell or the present value of the loan’s expected future repayment cash flows. As of June 30, 2017 and as of December 31, 2016 , the Company had no valuation allowances established for impaired loans. Collateral pledged: As of June 30, 2017 and as of December 31, 2016 , bonds and term deposits with a fair value of $15.1 million 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. As of June 30, 2017 and as of December 31, 2016 , the amounts of such pledged securities were $11.2 million and $5.6 million , respectively. 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 | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS U.S. GAAP requires certain assets and liabilities to be reported at fair value in the financial statements and provides a framework for establishing that fair value. Level 1 inputs are given the highest priority in the hierarchy, while Level 3 inputs are given the lowest priority. Assets and liabilities carried at fair value are classified in one of the following three categories based on the nature of the inputs to the valuation technique used: Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 - Unobservable inputs that are not corroborated by market data. These inputs reflect management’s best estimate of fair value using its own assumptions about the assumptions a market participant would use in pricing the asset or liability. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Atlas’ assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the placement of the asset or liability within the fair value hierarchy levels. The following is a summary of significant valuation techniques for assets measured at fair value on a recurring basis: Level 1 Equities: Comprised of publicly-traded common stocks. Valuation is based on unadjusted quoted prices for identical assets in active markets that Atlas can access. Fixed Income: Comprised of certain U.S. Treasury fixed income securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that Atlas can access. Level 2 States, Municipalities and Political Subdivisions: Comprised of U.S. States, Territories and Possessions, U.S. Political Subdivisions of States, Territories and Possessions, U.S. Special Revenue and Special Assessment Obligations. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Corporate Bonds: Comprised of investment-grade fixed income securities. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Mortgage-backed and Other asset-backed: Comprised of securities that are collateralized by mortgage obligations and other assets. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields, collateral performance and credit spreads. The following table summarizes Atlas’ investments at fair value as of June 30, 2017 and as of December 31, 2016 ($ in ‘000s): As of June 30, 2017 Level 1 Level 2 Level 3 Total Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 22,636 $ — $ — $ 22,636 States, municipalities and political subdivisions — 11,567 — 11,567 Corporate Banking/financial services — 21,328 — 21,328 Consumer goods — 9,022 — 9,022 Capital goods — 7,937 — 7,937 Energy — 4,990 — 4,990 Telecommunications/utilities — 11,196 — 11,196 Health care — 1,002 — 1,002 Total Corporate — 55,475 — 55,475 Mortgage Backed Mortgage backed - agency — 28,056 — 28,056 Mortgage backed - commercial — 23,590 — 23,590 Total Mortgage Backed — 51,646 — 51,646 Other asset backed — 12,502 — 12,502 Total Fixed Income Securities $ 22,636 $ 131,190 $ — $ 153,826 Equities 4,841 — — 4,841 Totals $ 27,477 $ 131,190 $ — $ 158,667 As of December 31, 2016 Level 1 Level 2 Level 3 Total Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 22,474 $ — $ — $ 22,474 States, municipalities and political subdivisions — 10,470 — 10,470 Corporate Banking/financial services — 22,852 — 22,852 Consumer goods — 8,593 — 8,593 Capital goods — 7,873 — 7,873 Energy — 3,735 — 3,735 Telecommunications/utilities — 7,617 — 7,617 Health care — 1,357 — 1,357 Total Corporate — 52,027 — 52,027 Mortgage Backed Mortgage backed - agency — 34,014 — 34,014 Mortgage backed - commercial — 21,158 — 21,158 Total Mortgage Backed — 55,172 — 55,172 Other asset backed — 16,344 — 16,344 Total Fixed Income Securities $ 22,474 $ 134,013 $ — $ 156,487 Equities 6,223 — — 6,223 Totals $ 28,697 $ 134,013 $ — $ 162,710 Atlas primarily uses the services of external securities pricing vendors to obtain these values. Atlas then reviews these valuations to ensure that the values are accurately recorded and that the data inputs and valuation techniques utilized are appropriate, consistently applied, and that the assumptions are reasonable and consistent with the objective of determining fair value. Though Atlas believes the valuation methods used in determining fair value are appropriate, different methodologies or assumptions could result in a different fair value as of June 30, 2017 . 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. The Company had no fair value investments classified as Level 3 as of June 30, 2017 or as of December 31, 2016 . There were no transfers in or out of Level 2 or Level 3 during the three and six month periods ended June 30, 2017 and 2016 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Atlas’ effective tax rate was 35.0% for each of the three and six month periods ended June 30, 2017 and 34.7% and 34.2% for the three and six month periods ended June 30, 2016 , respectively. The table below reconciles the U.S. statutory marginal income tax rate to the effective tax rate ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Amount % Amount % Amount % Amount % Provision for taxes at U.S. statutory marginal income tax rate $ 2,968 35.0 % $ 2,627 35.0 % $ 5,581 35.0 % $ 5,166 35.0 % Nondeductible expenses 6 0.1 % 9 0.1 % 27 0.2 % 9 0.1 % Tax-exempt income (5 ) (0.1 )% (12 ) (0.1 )% (10 ) (0.1 )% (24 ) (0.2 )% State tax (net of federal benefit) — — % (19 ) (0.3 )% (2 ) — % 39 0.3 % Nondeductible acquisition accounting adjustment — — % — — % — — % (141 ) (1.0 )% Other — — % — — % (14 ) (0.1 )% — — % Provision for income taxes for continuing operations $ 2,969 35.0 % $ 2,605 34.7 % $ 5,582 35.0 % $ 5,049 34.2 % Income tax expense consists of the following for the three and six month periods ended June 30, 2017 and 2016 ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Current tax expense $ 2,304 $ 2,025 $ 4,707 $ 3,689 Deferred tax expense 665 580 875 1,360 Total $ 2,969 $ 2,605 $ 5,582 $ 5,049 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 the valuation allowance. On July 22, 2013, due to 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 as a result of this “ownership change” for tax purposes, which is defined as a cumulative change of more than 50% during any three-year period by shareholders 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 $13.0 million as of June 30, 2017 . The components of net deferred income tax assets and liabilities as of June 30, 2017 and December 31, 2016 are as follows ($ in ‘000s): June 30, 2017 December 31, 2016 Gross deferred tax assets: Losses carried forward $ 13,034 $ 14,535 Claims liabilities and unearned premiums 10,418 8,546 Tax credits 662 662 Investments 2 — Commissions 1,025 1,269 Other 2,674 2,184 Total gross deferred tax assets 27,815 27,196 Gross deferred tax liabilities: Deferred policy acquisition costs 6,029 4,628 Investments 727 475 Fixed assets 559 559 Intangible assets 1,260 1,328 Other 1,913 1,708 Total gross deferred tax liabilities 10,488 8,698 Net deferred tax assets $ 17,327 $ 18,498 Amounts and expiration dates of the operating loss carryforwards as of June 30, 2017 are as follows ($ in ‘000s): Year of Occurrence Year of Expiration Amount 2001 2021 $ 3,058 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 1,826 2012 2032 9,236 Total $ 37,240 Atlas has not established a valuation allowance for its gross future deferred tax assets as of June 30, 2017 or as of December 31, 2016 . 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. Atlas accounts for uncertain tax positions in accordance with the income taxes accounting guidance. Atlas has analyzed filing positions in the federal and state jurisdictions 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 three and six month periods ended June 30, 2017 and 2016 . The Internal Revenue Service (“IRS”) completed its audit of tax year 2012 during the three month period ended March 31, 2016. No changes to tax year 2012 were made to our reported tax. Tax year 2013 and years thereafter are subject to examination by the IRS. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES On May 22, 2012, Atlas closed the sale and leaseback of its 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 was deferred and recognized over the five year lease term, which ended in May 2017. Atlas recognized $6,000 and $10,000 as an offset to rent expense for the three month periods ended June 30, 2017 and 2016 , respectively. Total rental expense recognized on the headquarters building was $201,000 and $187,000 for the three month periods ended June 30, 2017 and 2016 , respectively. Atlas recognized $17,000 and $21,000 as an offset to rent expense for the six month periods ended June 30, 2017 and 2016 , respectively. Total rental expense recognized on the headquarters building was $398,000 and $370,000 for the six month periods ended June 30, 2017 and 2016 , respectively. The increase in rental expense on the headquarters building for the three and six month periods ended June 30, 2017 was primarily due to the leasing of additional space. As of June 30, 2017 , Atlas has the following future minimum rentals, related principally to office space, required under operating leases having initial or remaining noncancelable lease terms in excess of one year ($ in ‘000s): Year 2017 2018 2019 2020 2021 2022 & Beyond Total Amount $ 517 $ 993 $ 996 $ 990 $ 946 $ 146 $ 4,588 The Company has entered into various contracts to renovate and furnish the building that was purchased in 2016 to serve as the Company’s new headquarters (see Note 9). As of June 30, 2017 , the remaining contractual obligations related to the renovation and furnishing of Atlas’ new headquarters building are $8.9 million . The Company has entered into subscription agreements to allow for participation by the Company in limited liability investments, which invest in income-producing real estate, equities and insurance linked securities. As of June 30, 2017 , the unfunded commitments are $2.8 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 claims handling expenses and the unfunded amount of “covered” claims and unearned premium obligations of impaired or insolvent insurance companies, either up to the policy’s limit, the applicable guaranty fund covered claims 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 claims based insurance-related assessments, including non-voluntary assigned risk pools, underwriting associations, workers’ compensation second-injury funds, reinsurance funds and other state insurance facilities. Atlas’ proportionate share of these various premium or claims based insurance-related assessments, including non-voluntary assigned risk pools, underwriting associations, workers’ compensation second-injury funds, reinsurance funds and other state insurance facilities is not material. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Atlas held the following property and equipment, including internal use software, as of June 30, 2017 and as of December 31, 2016 (excluding assets held for sale) ($ in ‘000s): June 30, 2017 December 31, 2016 Buildings $ 7,433 $ 7,425 Land 1,840 1,840 Building improvements 642 139 Leasehold improvements 579 527 Internal use software 8,662 8,078 Computer equipment 2,719 2,464 Furniture and other office equipment 647 586 Total 22,522 21,059 Accumulated depreciation (9,842 ) (9,289 ) Total property and equipment, net $ 12,680 $ 11,770 Depreciation expense and amortization was $280 ,000 and $218 ,000 for the three month periods ended June 30, 2017 and 2016 , respectively. Depreciation expense and amortization was $553 ,000 and $480 ,000 for the six month periods ended June 30, 2017 and 2016 , respectively. For the year ended December 31, 2016 , depreciation expense and amortization was $1.0 million . During 2016, Atlas purchased a building and land for $9.3 million to serve as its new corporate headquarters to replace the current leased office space. There was no depreciation expense related to the building recorded for the three and six month periods ended June 30, 2017 or for the year ended December 31, 2016 . |
Reinsurance Ceded
Reinsurance Ceded | 6 Months Ended |
Jun. 30, 2017 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | |
Reinsurance Ceded | REINSURANCE CEDED As is customary in the insurance industry, Atlas reinsures portions of certain insurance policies it writes, thereby providing a greater diversification of risk and minimizing exposure on larger risks. Atlas remains contingently at risk with respect to any reinsurance ceded and would incur an additional loss if an assuming company were unable to meet its obligation under the reinsurance treaty. Atlas monitors the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Letters of credit are maintained for any unauthorized reinsurer to cover ceded unearned premium, ceded claims and claims adjustment expense reserve balances and ceded paid claims. These policies mitigate the risk of credit quality or dispute from becoming a danger to financial strength. To date, the Company has not experienced any material difficulties in collecting reinsurance recoverables. Premiums written, premiums earned and amounts related to reinsurance as of and for the three and six month periods ended June 30, 2017 and 2016 are as follows ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Direct premiums written $ 56,409 $ 48,312 $ 147,474 $ 109,380 Assumed premiums written 945 41 8,376 2,998 Ceded premiums written (11,042 ) (13,096 ) (23,905 ) (27,050 ) Net premiums written $ 46,312 $ 35,257 $ 131,945 $ 85,328 Direct premiums earned $ 63,474 $ 53,877 $ 121,839 $ 106,661 Assumed premiums earned 2,254 864 3,911 1,482 Ceded premiums earned (11,679 ) (12,939 ) (23,275 ) (24,588 ) Net premiums earned $ 54,049 $ 41,802 $ 102,475 $ 83,555 Ceded claims and claims adjustment expenses $ 3,109 $ 4,685 $ 6,834 $ 9,122 Ceding commissions 3,085 4,299 6,785 6,232 |
Claims Liabilities
Claims Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Insurance Loss Reserves [Abstract] | |
Claims Liabilities | CLAIMS LIABILITIES Unpaid claims and claims adjustment expenses The changes in the provision for unpaid claims and claims adjustment expenses, net of amounts recoverable from reinsurers, for the three and six month periods ended June 30, 2017 and 2016 were as follows ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Unpaid claims and claims adjustment expenses, beginning of period $ 127,971 $ 121,379 $ 139,004 $ 127,011 Less: reinsurance recoverable 33,223 28,272 35,370 29,399 Net unpaid claims and claims adjustment expenses, beginning of period 94,748 93,107 103,634 97,612 Change in retroactive reinsurance ceded 62 271 45 274 Incurred related to: Current year 32,315 24,513 61,328 49,150 Prior years 154 61 441 364 32,469 24,574 61,769 49,514 Paid related to: Current year 10,147 8,453 15,551 13,740 Prior years 26,081 22,733 58,846 46,894 36,228 31,186 74,397 60,634 Net unpaid claims and claims adjustment expenses, end of period 91,051 86,766 91,051 86,766 Add: reinsurance recoverable 27,938 25,691 27,938 25,691 Unpaid claims and claims adjustment expenses, end of period $ 118,989 $ 112,457 $ 118,989 $ 112,457 The process of establishing the estimated provision for unpaid claims and claims adjustment expenses 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 unfavorable development for the three and six month periods ended June 30, 2017 and the six month period ended June 30, 2016 primarily resulted from Atlas’ participation in non-voluntary assigned risk pools. The unfavorable development for the three month period ended June 30, 2016 resulted from Atlas’ participation in non-voluntary assigned risk pools offset by favorable development on the run-off surety program. Assigned risk pools are established by state governments to cover high-risk insureds who cannot purchase insurance through conventional means. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
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 six month periods ended June 30, 2017 and 2016 follows (prices in Canadian dollars designated with “C$” and United States dollars designated with “US$”): Six Month Periods Ended June 30, 2017 June 30, 2016 C$ Denominated: Number of Shares Average Exercise Price Number of Shares Average Exercise Price Outstanding, beginning of period 187,728 C$6.22 187,728 C$6.22 Granted — — — — Exercised — — — — Outstanding, end of period 187,728 C$6.22 187,728 C$6.22 Six Month Periods Ended June 30, 2017 June 30, 2016 US$ Denominated: Number of Shares Average Exercise Price Number of Shares Average Exercise Price Outstanding, beginning of period 375,000 US$17.01 375,000 US$17.01 Granted — — — — Exercised — — — — Outstanding, end of period 375,000 US$17.01 375,000 US$17.01 There are 362,728 stock options that are exercisable as of June 30, 2017 . The stock option grants outstanding have a weighted average remaining life of 6.33 years and have an intrinsic value of $2.3 million as of June 30, 2017 . Under the Equity Incentive Plan, a director who either directly or indirectly purchases up to $100,000 of Atlas ordinary voting common stock on the open market, through the employee stock purchase plan, or via other means acceptable under this plan (see Note 13) will receive a 3 to 1 matching grant of restricted stock grants for ordinary voting common shares (or for Canadian taxpayers, restricted stock units) based on the aggregate purchase price of ordinary voting common shares the director purchases during the six month period that began on June 18, 2013 and ended on December 31, 2013 , or for new directors within 6 months of their initial appointment date (the “Purchase Period”). Matching share grants of 148,152 restricted stock grants for ordinary voting common shares and 37,038 restricted stock units were made on February 28, 2014 (the “Grant Date”). The number of ordinary voting common shares issued on the Grant Date were determined by dividing (A) the dollar amount of the Company matching contribution due based on purchases during the Purchase Period by (B) the closing common share price of one share of Company ordinary voting common stock at close of market on June 17, 2013 (the “Closing Price”) which was $8.10 per share. The restricted stock grants for ordinary voting common shares will vest 20% on each anniversary of the Grant Date, subject to the terms of the Guidelines. The matching grant will be subject to all of the terms and conditions of the Equity Incentive Plan and applicable grant agreements. 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 five equal annual installments of 20% , provided that an installment shall not vest unless an annual performance target based on specific book value growth rates linked to return on equity goals 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. For the three and six month periods ended June 30, 2017 , 40,000 shares vested. The Monte-Carlo simulation model was used, for both the options and restricted voting common 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 voting common share grants, respectively. This expense will be amortized over the anticipated vesting period. Restricted shares - The activity for the restricted voting common shares and restricted share units for the six month periods ended June 30, 2017 and 2016 are as follows: Six Month Periods Ended June 30, 2017 June 30, 2016 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 311,120 $ 15.92 348,155 $ 15.53 Granted — — — — Vested (77,040 ) 15.21 (37,035 ) 12.20 Non-vested, end of period 234,080 $ 16.15 311,120 $ 15.92 In accordance with ASC 718 (Stock-Based Compensation), Atlas has recognized share-based compensation expense on a straight-line basis over the requisite service period of the last separately vesting portion of the award. Share-based compensation expense is a component of other underwriting expenses on the statements of income and comprehensive income. Atlas recognized $285,000 and $388,000 in share-based compensation expense, including income tax expense, for the three month periods ended June 30, 2017 and 2016 , respectively. Atlas recognized $605,000 and $836,000 in share-based compensation expense, including income tax expense, for the six month periods ended June 30, 2017 and 2016 , respectively. Total unearned share-based compensation expense was $812,000 related to all stock option grants and $1.8 million related to restricted voting common shares and restricted share units as of June 30, 2017 . This unearned share-based compensation expense will be amortized over the next 32 months. |
Other Employee Benefit Plans
Other Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2017 | |
Other Employee Benefit Plans [Abstract] | |
Other Employee Benefit Plans | OTHER EMPLOYEE BENEFIT PLANS Defined Contribution Plan - Atlas has a defined contribution 401(k) plan covering all qualified employees of Atlas and its subsidiaries. Contributions to this plan are limited based on IRS guidelines. 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 $114,000 and $106,000 for the three month periods ended June 30, 2017 and 2016 , respectively. Company contributions were $242,000 and $217,000 for the six month periods ended June 30, 2017 and 2016 , respectively. Employee Stock Purchase Plan - The Atlas Employee Stock Purchase Plan (the “ESPP”) encourages employee interest in the operation, growth and development of Atlas and provides an additional investment opportunity to employees. Full time and permanent part time employees working more than 30 hours per week were allowed to invest up to 7.5% of adjusted salary in Atlas ordinary voting common shares. 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. Atlas’ costs incurred related to the matching portion of the ESPP were $50,000 and $52,000 for the three month periods ended June 30, 2017 and 2016 , respectively, and $105,000 and $96,000 for the six month periods ended June 30, 2017 and 2016 , respectively. Share purchases pursuant to this plan are made in the open market. |
Share Capital
Share Capital | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Share Capital | SHARE CAPITAL The share capital is as follows: June 30, 2017 December 31, 2016 Shares Authorized Shares Issued and Outstanding Amount ($ in ‘000s) Shares Issued and Outstanding Amount ($ in ‘000s) Preferred shares 100,000,000 — $ — — $ — Ordinary voting common shares 266,666,667 11,930,703 $ 36 11,895,104 $ 36 Restricted voting common shares 33,333,334 100,000 — 128,191 — Total common shares 300,000,001 12,030,703 $ 36 12,023,295 $ 36 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. During the second quarter of 2017, 28,191 restricted voting common shares were converted to ordinary voting common shares due to the sale by Kingsway of the shares to a non-affiliate. There were 14,816 and 22,224 non-vested restricted stock units (“RSUs”) as of June 30, 2017 and December 31, 2016 , 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 six month period ended June 30, 2017 , the Company issued 7,408 ordinary voting common shares as a result of the vesting of RSUs. During the six month period ended June 30, 2016 , the Company issued 7,407 ordinary voting common shares as a result of the vesting of RSUs. These shares were granted and issued under the Company’s Equity Incentive Plan. In the first quarter of 2017, the Company’s Board of Directors approved a Share Repurchase Program of up to 650,000 shares of common stock. Over the next 12 months, the repurchases may be made from time to time in open market transactions, privately-negotiated transactions, block purchases, or otherwise in accordance with securities laws at the discretion of the Company’s management. The Company’s decisions around the timing, volume, and nature of share repurchases, and the ultimate amount of shares repurchased, will be dependent on market conditions, applicable securities laws, and other factors. The share repurchase program and the Board’s authorization of the program may be modified, suspended, or discontinued at any time. During the six month period ended June 30, 2017 , no shares were repurchased under this Share Repurchase Program. During the first quarter of 2016, the Company canceled 401,940 preferred shares pursuant to the Gateway stock purchase agreement. During the third quarter of 2016, the Company redeemed all 2,538,560 of the remaining preferred shares issued to the former owner of Gateway. During the fourth quarter of 2016, the Company canceled the remaining 4,000,000 preferred shares pursuant to the Anchor stock purchase agreement. There were no preferred shares outstanding as of June 30, 2017 and as of December 31, 2016 . The preferred shares redeemed and canceled during 2016 have been recorded as a recovery of 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 acquisition. In accordance with U.S. GAAP, such adjustments are reflected in the statements of income and comprehensive income in the period that the contingency is re-estimated. 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. Preferred shareholders are not entitled to vote. On September 30, 2016, Atlas paid $409,000 in dividends earned on the preferred shares to the former owner of Gateway, the cumulative amount to which they were entitled through September 15, 2016, leaving no accrued and unpaid dividends owed to the former owner of Gateway. As of June 30, 2017 and December 31, 2016 , Atlas accrued $333 ,000 in dividends on the preferred shares for the former owner of Anchor, which remain unpaid. The paid claims development on Global Liberty’s pre-acquisition claims reserves was in excess of $4.0 million , and as a result, pursuant to the terms of the Anchor stock purchase agreement, dividends will no longer accrue to the former owner of Anchor. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS Deferred policy acquisition costs for the six month periods ended June 30, 2017 and 2016 consisted of the following ($ in ‘000s): Six Month Periods Ended June 30, 2017 June 30, 2016 Balance, beginning of period $ 13,222 $ 10,235 Acquisition costs deferred 15,772 8,445 Amortization charged to income (11,766 ) (8,023 ) Balance, end of period $ 17,228 $ 10,657 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS During the periods presented, a portion of the Company’s investment portfolio, which is included in “Other investments” on the Condensed Consolidated Statements of Financial Position, included investment vehicles that are considered related-party transactions. As of June 30, 2017 and December 31, 2016 these related-party transactions comprised 9.1% and 8.4% , respectively, of our investment portfolio. In these transactions, one or more of the Company’s directors or entities affiliated with such directors may invest in and manage these vehicles. These related-party transactions are consistent with the Company’s investment guidelines and have been reviewed and approved by the Investment Committee of the Company’s Board of Directors. The Company believes that these transactions leverage investment resources that would otherwise not be available to the Company. |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTES PAYABLE On April 26, 2017, Atlas issued $25 million of five -year 6.625% senior unsecured notes and received net proceeds of approximately $23.9 million after deducting underwriting discounts and commissions and other estimated offering expenses. Interest on the senior unsecured notes is payable quarterly on each January 26, April 26, July 26 and October 26. Atlas may, at its option, beginning with the interest payment date of April 26, 2020, and on any scheduled interest payment date thereafter, redeem the senior unsecured notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest to, but excluding, the date of redemption. The senior unsecured notes will rank senior in right of payment to any of Atlas’ existing and future indebtedness that is by its terms expressly subordinated or junior in right of payment to the senior unsecured notes. The senior unsecured notes will rank equally in right of payment to all of Atlas’ existing and future senior indebtedness, but will be effectively subordinated to any secured indebtedness to the extent of the value of the collateral securing such secured indebtedness. In addition, the senior unsecured notes will be structurally subordinated to the indebtedness and other obligations of Atlas’ subsidiaries. The senior unsecured notes were issued under an indenture and supplemental indenture that contains covenants that, among other things, limit: (i) the ability of Atlas to merge or consolidate, or lease, sell, assign or transfer all or substantially all of its assets; (ii) the ability of Atlas to sell or otherwise dispose of the equity securities of certain of its subsidiaries; (iii) the ability of certain of Atlas’ subsidiaries to issue equity securities; (iv) the ability of Atlas to permit certain of its subsidiaries to merge or consolidate, or lease, sell, assign or transfer all or substantially all of their respective assets; and (v) the ability of Atlas and its subsidiaries to incur debt secured by equity securities of certain of its subsidiaries. On March 9, 2015, American Insurance Acquisition, Inc. (“American Acquisition”), a wholly-owned direct subsidiary of Atlas, entered into a loan and security agreement (“Loan Agreement”) for a $35.0 million loan facility with Fifth Third Bank. On May 7, 2016, American Acquisition entered into a Modification of Loan Documents with Fifth Third Bank to amend its Loan Agreement. The Loan Agreement, as modified, included a $30.0 million line of credit (“Draw Amount”), which could have been drawn in increments at any time until December 31, 2016. The $30.0 million line of credit had a five year term and bore interest at one-month LIBOR plus 4.5% . The Loan Agreement also included a $5.0 million revolving line of credit (“Revolver”), which could have been drawn upon until May 7, 2018, that bore interest at one-month LIBOR plus 2.75% . The Loan Agreement was terminated in April 2017. Atlas used a portion of the net proceeds of the senior unsecured notes offering, together with cash on hand, for the repayment of all outstanding balances under the Draw Amount and Revolver, $15.5 million and $3.9 million , respectively. Interest expense on notes payables was $640,000 and $266,000 for the three month periods ended June 30, 2017 and 2016 , respectively. Interest expense on notes payable was $915,000 and $499,000 for the six month periods ended June 30, 2017 and 2016 , respectively. Notes payable outstanding as of June 30, 2017 and as of December 31, 2016 ($ in ‘000s): June 30, 2017 December 31, 2016 6.625% Senior Unsecured Notes due April 26, 2022 $ 25,000 $ — Revolver — 3,900 Draw Amount — 15,500 Total outstanding borrowings 25,000 19,400 Unamortized issuance costs (1,065 ) (213 ) Total notes payable $ 23,935 $ 19,187 |
Statutory Information
Statutory Information | 6 Months Ended |
Jun. 30, 2017 | |
Statutory Information [Abstract] | |
Statutory Information | STATUTORY INFORMATION 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 the 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 for the ASI Pool Subsidiaries is the greater of statutory net income or 10% of total statutory capital and surplus. The dividend restriction for Global Liberty is the lower of 10% of statutory surplus or 100% of adjusted net investment income for the preceding twelve month period. As of June 30, 2017 , our Insurance Subsidiaries had a combined statutory surplus of $124.6 million and had combined net written premiums and combined statutory net income for the six month period ended June 30, 2017 of $131.9 million and $9.3 million , respectively. As of December 31, 2016 , our Insurance Subsidiaries had a combined statutory surplus of $113.9 million and had combined net written premiums and combined statutory net loss for the twelve month period ended December 31, 2016 of $180.1 million and $3.6 million , respectively. Atlas did not declare or pay any dividends to its common shareholders during the six month period ended June 30, 2017 or during the year ended December 31, 2016 . |
Nature of Operations and Basi25
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of presentation - These statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Atlas and the entities it controls. Equity investments in entities that we do not consolidate, including corporate entities in which we have significant influence and partnership and partnership-like entities in which we have more than minor influence over operating and financial policies, are accounted for under the equity method unless we have elected the fair value option. All significant intercompany accounts and transactions have been eliminated. It is the opinion of management that these financial statements reflect all adjustments necessary for a fair statement of the interim results. The results for the three and six month periods ended June 30, 2017 are not necessarily indicative of the results expected for the full calendar year. The accompanying unaudited condensed consolidated financial statements, in accordance with Securities and Exchange Commission (“SEC”) rules for interim periods, do not include all of the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements and should be read in conjunction with the Atlas’ Annual Report on Form 10-K for the year ended December 31, 2016 , which provides a more complete understanding of the Company’s accounting policies, financial position, operating results, business properties, and other matters. Atlas has consistently applied the same accounting policies throughout all periods presented. |
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 claims and claims adjustment expenses and related amounts recoverable from reinsurers represents the most significant estimate in the accompanying financial statements, and differences between such estimates and actual results could be material. Significant estimates in the accompanying financial statements also include the fair values of investments, deferred policy acquisition cost recoverability, deferred tax asset valuation and business combinations. |
Segmentation | Segmentation - The Company has one reportable business segment. Resources are allocated and management assesses financial performance based on this reportable segment. |
New Accounting Standards | Pertinent Accounting Standard Updates (“ASUs”) are issued from time to time by the Financial Accounting Standards Board (“FASB”) and are adopted by the Company as they become effective. All recently issued accounting pronouncements with effective dates prior to July 1, 2017 have been adopted by the Company. Recently Adopted In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The provisions of this update simplify the subsequent measurement of goodwill by eliminating Step 2 from the quantitative analysis. For public entities, this guidance is effective for years beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted after January 1, 2017. Atlas has goodwill associated with one of the insurance subsidiaries and is subject to annual goodwill impairment testing. Atlas early adopted this ASU beginning with the 2017 goodwill impairment testing. The adoption of this ASU does not have any required prior period adjustments and did not have an impact on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) . The provisions of this update simplify certain areas around share-based compensation transactions including income taxes and cash flow classifications. Each amendment within this update has specific guidance on the method of application, which includes prospective, retrospective, and modified retrospective applications. For public entities, this guidance is effective for years beginning after December 15, 2016, including interim periods within those years. Early adoption is permitted. The Company adopted this ASU in the first quarter of 2017. Atlas did not have any tax “windfall” net operating loss carryforwards as of January 1, 2017, therefore no cumulative effect adjustment is needed. All tax related cash flows are included in the operating section of the Consolidated Statements of Cash Flows with other income taxes retrospectively. Atlas has made the election to estimate future forfeitures, which is consistent with current accounting treatment. Not Yet Adopted In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting . This update provides guidance on when an entity should apply modification accounting when changes are made to a share-based compensation award. For public entities, this guidance is effective for years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted. The Company plans on adopting the update on the required effective date using the prescribed prospective approach. The adoption of this ASU is not expected to have a material impact on the consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . This update shortens the amortization period for certain callable fixed income securities held at a premium to the earliest possible call date. For public entities, this guidance is effective for years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. The Company plans on adopting the update on the required effective date using the prescribed modified retrospective approach. Atlas has a number of fixed income securities that are callable and held at a premium. The amount of the difference in amortization from current accounting treatment to the change prescribed in this ASU will be recorded upon adoption as an adjustment to retained earnings and treated as a change in accounting principle. Atlas is currently evaluating the potential impact of the ASU on these certain securities, which will change as securities mature, are sold, or are purchased. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The provisions of this update modify the income tax consequences for intra-entity transaction not involving inventory. For public entities, this guidance is effective for years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted. The Company plans on adopting the update on the required effective date using the prescribed modified retrospective approach. Atlas has a number of fixed income securities that were transferred between companies owned by Atlas creating temporary tax differences that will be reversed upon adoption as an adjustment to retained earnings. The current balance of this adjustment is not considered material to the consolidated financial statement results. The amount of the adjustment may decline as certain of these securities mature or are sold. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) . The provisions of this update address the diversity in practice of eight issues on the statement of cash flows. For public entities, this guidance is effective for years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted. The Company plans on adopting the update on the required effective date by retrospectively restating all required amounts for the periods presented in the consolidated financial statements. Atlas’ current presentation of the statement of cash flows is not expected to change as a result of this ASU. Atlas plans to elect the cumulative earnings approach for distributions from equity method investees upon adoption, which is consistent with current practice. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) . The provisions of this update require an entity to broaden the information that it considers in developing its allowance for credit losses for assets. For public entities, this guidance is effective for years beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted. The Company plans on adopting the update on the required effective date. Atlas does not currently have any investments with credit losses recorded, therefore the provisions of this update are not expected to have a material impact on the consolidated financial statements. Atlas will continue to monitor the investment portfolio and other financial instruments until adoption for any changes. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The provisions of this update impact the classification criteria, disclosure requirements, and other specific transactions in lease accounting. The update requires the use of a modified retrospective approach, which requires leases to be measured at the beginning of the earliest period presented. For public entities, this guidance is effective for years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. The Company plans on adopting the update on the required effective date using the modified retrospective approach to restate beginning with the earliest period presented. See Note 8, ‘Commitments and Contingencies’ for further discussion of the future lease commitments. The adoption of this update is expected to increase both assets and liabilities, equally, on the consolidated statements of financial position by the present value of the leases at each reporting date. There is no expected impact to any of Atlas’ current financial covenants as a result of the increase to reported liabilities. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. One provision of this update requires that equity investments, except those accounted for under the equity method, be measured at fair value and changes in fair value recognized in net income. The provisions of this update are recognized as a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. For public entities, this guidance is effective for years beginning after December 15, 2017, including interim periods within those years. Early adoption is not permitted, except for certain provisions. The Company plans on adopting the update on the required effective date. Atlas has a small portion of its investment portfolio invested in equities covered within the scope of this ASU that will require an adjustment to retained earnings upon adoption. The amount of the adjustment is not expected to be material to the consolidated financial statements. While the current impact of adoption is not expected to be material, the impact of this ASU could potentially add volatility to the Company’s earnings as a result of market risk. The FASB issued ASU 2014-09, ASU 2015-14, ASU 2016-10, ASU 2016-12, ASU 2016-20 and ASU 2017-05, Revenue from Contracts with Customers (Topic 606) . This update is a comprehensive revenue recognition standard that applies to all entities that have contracts with customers, except for those that fall within the scope of other standards, such as insurance contracts. Updates may be applied retrospectively to each period presented or retrospectively with the cumulative effect recognized at the date of initial application. The update is now effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but only for interim and annual periods beginning after December 15, 2016. The Company plans to adopt the update on the required effective date. While these updates to Topic 606 are expected to have a significant impact on many companies, most of Atlas’ revenue is derived from transactions that do not fall within the scope of Topic 606, namely insurance contracts and lease income. The adoption of these ASUs are not expected to have a material impact on the consolidated financial statements. Atlas will continue to monitor and examine transactions that could potentially fall within the scope of Topic 606. All other recently issued pronouncements with effective dates after June 30, 2017 are not expected to have a material impact on the consolidated financial statements. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets, excluding Goodwill | The following table presents a summary of intangible assets by major asset class as of June 30, 2017 and December 31, 2016 : ($ in ‘000s) As of June 30, 2017 Economic Useful Life Gross Carrying Amount Accumulated Amortization Net Trade name and trademark 15 years $ 1,800 $ 277 $ 1,523 Customer relationship 10 years 2,700 623 2,077 State insurance licenses Indefinite 740 — 740 $ 5,240 $ 900 $ 4,340 As of December 31, 2016 Economic Useful Life Gross Carrying Amount Accumulated Amortization Net Trade name and trademark 15 years $ 1,800 $ 217 $ 1,583 Customer relationship 10 years 2,700 488 2,212 State insurance licenses Indefinite 740 — 740 $ 5,240 $ 705 $ 4,535 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Earnings per ordinary voting common share, restricted voting common share, and participative restricted stock unit (“RSU”) (collectively, the “common shares”) for the three and six month periods ended June 30, 2017 and 2016 are as follows: Three Month Periods Ended Six Month Periods Ended ($ in ‘000s, except share and per share amounts) June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Basic: Income from operations before income tax expense $ 8,479 $ 7,505 $ 15,944 $ 14,760 Income tax expense 2,969 2,605 5,582 5,049 Net income $ 5,510 $ 4,900 $ 10,362 $ 9,711 Less: Preferred share dividends — 78 — 161 Net income attributable to common shareholders $ 5,510 $ 4,822 $ 10,362 $ 9,550 Basic weighted average common shares outstanding 12,045,519 12,045,519 12,045,519 12,045,519 Earnings per common share basic $ 0.46 $ 0.40 $ 0.86 $ 0.79 Diluted: Basic weighted average common shares outstanding 12,045,519 12,045,519 12,045,519 12,045,519 Add: Dilutive stock options outstanding 136,361 179,835 146,127 181,167 Dilutive shares upon preferred share conversion — 522,397 — 522,397 Diluted weighted average common shares outstanding 12,181,880 12,747,751 12,191,646 12,749,083 Earnings per common share diluted $ 0.45 $ 0.38 $ 0.85 $ 0.76 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments [Abstract] | |
Schedule of Available-for-sale Securities | The cost or amortized cost, gross unrealized gains and losses and fair value for Atlas’ investments in fixed income securities and equities are as follows ($ in ‘000s): As of June 30, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 22,793 $ 8 $ (165 ) $ 22,636 States, municipalities and political subdivisions 11,568 71 (72 ) 11,567 Corporate Banking/financial services 21,171 200 (43 ) 21,328 Consumer goods 8,973 92 (43 ) 9,022 Capital goods 7,765 174 (2 ) 7,937 Energy 4,933 100 (43 ) 4,990 Telecommunications/utilities 11,197 86 (87 ) 11,196 Health care 1,005 6 (9 ) 1,002 Total Corporate 55,044 658 (227 ) 55,475 Mortgage Backed Mortgage backed - agency 28,219 83 (246 ) 28,056 Mortgage backed - commercial 23,637 177 (224 ) 23,590 Total Mortgage Backed 51,856 260 (470 ) 51,646 Other asset backed 12,500 19 (17 ) 12,502 Total Fixed Income Securities $ 153,761 $ 1,016 $ (951 ) $ 153,826 Equities 4,401 440 — 4,841 Totals $ 158,162 $ 1,456 $ (951 ) $ 158,667 As of December 31, 2016 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 22,716 $ 15 $ (257 ) $ 22,474 States, municipalities and political subdivisions 10,647 25 (202 ) 10,470 Corporate Banking/financial services 22,890 105 (143 ) 22,852 Consumer goods 8,637 45 (89 ) 8,593 Capital goods 7,807 109 (43 ) 7,873 Energy 3,689 88 (42 ) 3,735 Telecommunications/utilities 7,746 22 (151 ) 7,617 Health care 1,376 3 (22 ) 1,357 Total Corporate 52,145 372 (490 ) 52,027 Mortgage Backed Mortgage backed - agency 34,332 98 (416 ) 34,014 Mortgage backed - commercial 21,277 132 (251 ) 21,158 Total Mortgage Backed 55,609 230 (667 ) 55,172 Other asset backed 16,334 39 (29 ) 16,344 Total Fixed Income Securities $ 157,451 $ 681 $ (1,645 ) $ 156,487 Equities 5,598 625 — 6,223 Totals $ 163,049 $ 1,306 $ (1,645 ) $ 162,710 |
Summary of Carrying Amounts of Fixed Income Securities, by Contractual Maturity | The following table summarizes the amortized cost and fair value of fixed income securities by contractual maturity ($ in ‘000s). As certain securities and debentures have the right to call or prepay obligations, the actual settlement dates may differ from contractual maturity. As of June 30, 2017 Amortized Cost Fair Value One year or less $ 9,337 $ 9,342 One to five years 41,490 41,577 Five to ten years 33,028 33,219 More than ten years 5,550 5,540 Total contractual maturity 89,405 89,678 Total mortgage and asset backed 64,356 64,148 Total $ 153,761 $ 153,826 |
Schedule of Unrealized Loss on Investments | The aging of unrealized losses on the Company’s investments in fixed income securities and equities is presented as follows ($ in ‘000s): Less Than 12 Months More Than 12 Months Total As of June 30, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 18,305 $ (165 ) $ — $ — $ 18,305 $ (165 ) States, municipalities and political subdivisions 4,700 (72 ) — — 4,700 (72 ) Corporate Banking/financial services 7,664 (43 ) — — 7,664 (43 ) Consumer goods 3,809 (33 ) 198 (10 ) 4,007 (43 ) Capital goods 100 (2 ) — — 100 (2 ) Energy 1,568 (43 ) — — 1,568 (43 ) Telecommunications/utilities 4,494 (58 ) 323 (29 ) 4,817 (87 ) Health care 640 (9 ) — — 640 (9 ) Total Corporate 18,275 (188 ) 521 (39 ) 18,796 (227 ) Mortgage Backed Mortgage backed - agency 17,931 (213 ) 2,005 (33 ) 19,936 (246 ) Mortgage backed - commercial 12,070 (174 ) 1,917 (50 ) 13,987 (224 ) Total Mortgage Backed 30,001 (387 ) 3,922 (83 ) 33,923 (470 ) Other asset backed 4,891 (5 ) 1,152 (12 ) 6,043 (17 ) Total Fixed Income Securities $ 76,172 $ (817 ) $ 5,595 $ (134 ) $ 81,767 $ (951 ) Less Than 12 Months More Than 12 Months Total As of December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 16,187 $ (257 ) $ — $ — $ 16,187 $ (257 ) States, municipalities and political subdivisions 7,604 (202 ) — — 7,604 (202 ) Corporate Banking/financial services 12,429 (143 ) 132 — 12,561 (143 ) Consumer goods 5,453 (83 ) 222 (6 ) 5,675 (89 ) Capital goods 3,224 (37 ) 100 (6 ) 3,324 (43 ) Energy 229 (1 ) 959 (41 ) 1,188 (42 ) Telecommunications/utilities 2,620 (73 ) 962 (78 ) 3,582 (151 ) Health care 476 (22 ) — — 476 (22 ) Total Corporate 24,431 (359 ) 2,375 (131 ) 26,806 (490 ) Mortgage Backed Mortgage backed - agency 21,818 (372 ) 2,092 (44 ) 23,910 (416 ) Mortgage backed - commercial 10,235 (205 ) 2,053 (46 ) 12,288 (251 ) Total Mortgage Backed 32,053 (577 ) 4,145 (90 ) 36,198 (667 ) Other asset backed 977 (2 ) 4,118 (27 ) 5,095 (29 ) Total Fixed Income Securities $ 81,252 $ (1,397 ) $ 10,638 $ (248 ) $ 91,890 $ (1,645 ) |
Summary of Components of Net Investment Income | The following table summarizes the components of net investment income for the three and six month periods ended June 30, 2017 and 2016 ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Total investment income Interest income $ 917 $ 937 $ 1,805 $ 1,919 Income from other investments 573 399 1,049 296 Investment expenses (224 ) (224 ) (445 ) (450 ) Net investment income $ 1,266 $ 1,112 $ 2,409 $ 1,765 |
Schedule of Realized Gain (Loss) | The following table presents the aggregate proceeds, gross realized gains and gross realized losses from sales and calls of fixed income securities and equities for the three and six month periods ended June 30, 2017 and 2016 ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Fixed income securities 1 : Proceeds from sales and calls $ 9,130 $ 7,733 $ 14,352 $ 29,258 Gross realized gains 110 191 164 515 Gross realized losses (22 ) (36 ) (32 ) (121 ) Equities: Proceeds from sales $ 3,128 $ — $ 4,582 $ — Gross realized gains 196 — 288 — Gross realized losses — — (2 ) — Total: Proceeds from sales and calls $ 12,258 $ 7,733 $ 18,934 $ 29,258 Gross realized gains 306 191 452 515 Gross realized losses (22 ) (36 ) (34 ) (121 ) 1 - The proceeds from sales and calls, gross realized gains and gross realized losses on fixed income securities for the three and six month periods ended June 30, 2016 were restated to include both voluntary and involuntary calls. |
Summary of Components of Net Investment Realized Gains | The following table summarizes the components of net investment realized gains for the three and six month periods ended June 30, 2017 and 2016 ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Fixed income securities $ 88 $ 155 $ 132 $ 394 Equities 196 — 286 — Net investment realized gains $ 284 $ 155 $ 418 $ 394 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Investments at Fair Value | The following table summarizes Atlas’ investments at fair value as of June 30, 2017 and as of December 31, 2016 ($ in ‘000s): As of June 30, 2017 Level 1 Level 2 Level 3 Total Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 22,636 $ — $ — $ 22,636 States, municipalities and political subdivisions — 11,567 — 11,567 Corporate Banking/financial services — 21,328 — 21,328 Consumer goods — 9,022 — 9,022 Capital goods — 7,937 — 7,937 Energy — 4,990 — 4,990 Telecommunications/utilities — 11,196 — 11,196 Health care — 1,002 — 1,002 Total Corporate — 55,475 — 55,475 Mortgage Backed Mortgage backed - agency — 28,056 — 28,056 Mortgage backed - commercial — 23,590 — 23,590 Total Mortgage Backed — 51,646 — 51,646 Other asset backed — 12,502 — 12,502 Total Fixed Income Securities $ 22,636 $ 131,190 $ — $ 153,826 Equities 4,841 — — 4,841 Totals $ 27,477 $ 131,190 $ — $ 158,667 As of December 31, 2016 Level 1 Level 2 Level 3 Total Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 22,474 $ — $ — $ 22,474 States, municipalities and political subdivisions — 10,470 — 10,470 Corporate Banking/financial services — 22,852 — 22,852 Consumer goods — 8,593 — 8,593 Capital goods — 7,873 — 7,873 Energy — 3,735 — 3,735 Telecommunications/utilities — 7,617 — 7,617 Health care — 1,357 — 1,357 Total Corporate — 52,027 — 52,027 Mortgage Backed Mortgage backed - agency — 34,014 — 34,014 Mortgage backed - commercial — 21,158 — 21,158 Total Mortgage Backed — 55,172 — 55,172 Other asset backed — 16,344 — 16,344 Total Fixed Income Securities $ 22,474 $ 134,013 $ — $ 156,487 Equities 6,223 — — 6,223 Totals $ 28,697 $ 134,013 $ — $ 162,710 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The table below reconciles the U.S. statutory marginal income tax rate to the effective tax rate ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Amount % Amount % Amount % Amount % Provision for taxes at U.S. statutory marginal income tax rate $ 2,968 35.0 % $ 2,627 35.0 % $ 5,581 35.0 % $ 5,166 35.0 % Nondeductible expenses 6 0.1 % 9 0.1 % 27 0.2 % 9 0.1 % Tax-exempt income (5 ) (0.1 )% (12 ) (0.1 )% (10 ) (0.1 )% (24 ) (0.2 )% State tax (net of federal benefit) — — % (19 ) (0.3 )% (2 ) — % 39 0.3 % Nondeductible acquisition accounting adjustment — — % — — % — — % (141 ) (1.0 )% Other — — % — — % (14 ) (0.1 )% — — % Provision for income taxes for continuing operations $ 2,969 35.0 % $ 2,605 34.7 % $ 5,582 35.0 % $ 5,049 34.2 % |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consists of the following for the three and six month periods ended June 30, 2017 and 2016 ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Current tax expense $ 2,304 $ 2,025 $ 4,707 $ 3,689 Deferred tax expense 665 580 875 1,360 Total $ 2,969 $ 2,605 $ 5,582 $ 5,049 |
Schedule of Deferred Tax Assets and Liabilities | The components of net deferred income tax assets and liabilities as of June 30, 2017 and December 31, 2016 are as follows ($ in ‘000s): June 30, 2017 December 31, 2016 Gross deferred tax assets: Losses carried forward $ 13,034 $ 14,535 Claims liabilities and unearned premiums 10,418 8,546 Tax credits 662 662 Investments 2 — Commissions 1,025 1,269 Other 2,674 2,184 Total gross deferred tax assets 27,815 27,196 Gross deferred tax liabilities: Deferred policy acquisition costs 6,029 4,628 Investments 727 475 Fixed assets 559 559 Intangible assets 1,260 1,328 Other 1,913 1,708 Total gross deferred tax liabilities 10,488 8,698 Net deferred tax assets $ 17,327 $ 18,498 |
Summary of Operating Loss Carryforwards | Amounts and expiration dates of the operating loss carryforwards as of June 30, 2017 are as follows ($ in ‘000s): Year of Occurrence Year of Expiration Amount 2001 2021 $ 3,058 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 1,826 2012 2032 9,236 Total $ 37,240 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of June 30, 2017 , 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 ($ in ‘000s): Year 2017 2018 2019 2020 2021 2022 & Beyond Total Amount $ 517 $ 993 $ 996 $ 990 $ 946 $ 146 $ 4,588 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Atlas held the following property and equipment, including internal use software, as of June 30, 2017 and as of December 31, 2016 (excluding assets held for sale) ($ in ‘000s): June 30, 2017 December 31, 2016 Buildings $ 7,433 $ 7,425 Land 1,840 1,840 Building improvements 642 139 Leasehold improvements 579 527 Internal use software 8,662 8,078 Computer equipment 2,719 2,464 Furniture and other office equipment 647 586 Total 22,522 21,059 Accumulated depreciation (9,842 ) (9,289 ) Total property and equipment, net $ 12,680 $ 11,770 |
Reinsurance Ceded (Tables)
Reinsurance Ceded (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | |
Schedule of Effects of Reinsurance | Premiums written, premiums earned and amounts related to reinsurance as of and for the three and six month periods ended June 30, 2017 and 2016 are as follows ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Direct premiums written $ 56,409 $ 48,312 $ 147,474 $ 109,380 Assumed premiums written 945 41 8,376 2,998 Ceded premiums written (11,042 ) (13,096 ) (23,905 ) (27,050 ) Net premiums written $ 46,312 $ 35,257 $ 131,945 $ 85,328 Direct premiums earned $ 63,474 $ 53,877 $ 121,839 $ 106,661 Assumed premiums earned 2,254 864 3,911 1,482 Ceded premiums earned (11,679 ) (12,939 ) (23,275 ) (24,588 ) Net premiums earned $ 54,049 $ 41,802 $ 102,475 $ 83,555 Ceded claims and claims adjustment expenses $ 3,109 $ 4,685 $ 6,834 $ 9,122 Ceding commissions 3,085 4,299 6,785 6,232 |
Claims Liabilities (Tables)
Claims Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The changes in the provision for unpaid claims and claims adjustment expenses, net of amounts recoverable from reinsurers, for the three and six month periods ended June 30, 2017 and 2016 were as follows ($ in ‘000s): Three Month Periods Ended Six Month Periods Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Unpaid claims and claims adjustment expenses, beginning of period $ 127,971 $ 121,379 $ 139,004 $ 127,011 Less: reinsurance recoverable 33,223 28,272 35,370 29,399 Net unpaid claims and claims adjustment expenses, beginning of period 94,748 93,107 103,634 97,612 Change in retroactive reinsurance ceded 62 271 45 274 Incurred related to: Current year 32,315 24,513 61,328 49,150 Prior years 154 61 441 364 32,469 24,574 61,769 49,514 Paid related to: Current year 10,147 8,453 15,551 13,740 Prior years 26,081 22,733 58,846 46,894 36,228 31,186 74,397 60,634 Net unpaid claims and claims adjustment expenses, end of period 91,051 86,766 91,051 86,766 Add: reinsurance recoverable 27,938 25,691 27,938 25,691 Unpaid claims and claims adjustment expenses, end of period $ 118,989 $ 112,457 $ 118,989 $ 112,457 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Activity | Stock option activity for the six month periods ended June 30, 2017 and 2016 follows (prices in Canadian dollars designated with “C$” and United States dollars designated with “US$”): Six Month Periods Ended June 30, 2017 June 30, 2016 C$ Denominated: Number of Shares Average Exercise Price Number of Shares Average Exercise Price Outstanding, beginning of period 187,728 C$6.22 187,728 C$6.22 Granted — — — — Exercised — — — — Outstanding, end of period 187,728 C$6.22 187,728 C$6.22 Six Month Periods Ended June 30, 2017 June 30, 2016 US$ Denominated: Number of Shares Average Exercise Price Number of Shares Average Exercise Price Outstanding, beginning of period 375,000 US$17.01 375,000 US$17.01 Granted — — — — Exercised — — — — Outstanding, end of period 375,000 US$17.01 375,000 US$17.01 |
Schedule of Restricted Stock and Restricted Stock Units Activity | The activity for the restricted voting common shares and restricted share units for the six month periods ended June 30, 2017 and 2016 are as follows: Six Month Periods Ended June 30, 2017 June 30, 2016 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 311,120 $ 15.92 348,155 $ 15.53 Granted — — — — Vested (77,040 ) 15.21 (37,035 ) 12.20 Non-vested, end of period 234,080 $ 16.15 311,120 $ 15.92 |
Share Capital (Tables)
Share Capital (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Stock by Class | The share capital is as follows: June 30, 2017 December 31, 2016 Shares Authorized Shares Issued and Outstanding Amount ($ in ‘000s) Shares Issued and Outstanding Amount ($ in ‘000s) Preferred shares 100,000,000 — $ — — $ — Ordinary voting common shares 266,666,667 11,930,703 $ 36 11,895,104 $ 36 Restricted voting common shares 33,333,334 100,000 — 128,191 — Total common shares 300,000,001 12,030,703 $ 36 12,023,295 $ 36 |
Deferred Policy Acquisition C37
Deferred Policy Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs Roll Forward | Deferred policy acquisition costs for the six month periods ended June 30, 2017 and 2016 consisted of the following ($ in ‘000s): Six Month Periods Ended June 30, 2017 June 30, 2016 Balance, beginning of period $ 13,222 $ 10,235 Acquisition costs deferred 15,772 8,445 Amortization charged to income (11,766 ) (8,023 ) Balance, end of period $ 17,228 $ 10,657 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | Notes payable outstanding as of June 30, 2017 and as of December 31, 2016 ($ in ‘000s): June 30, 2017 December 31, 2016 6.625% Senior Unsecured Notes due April 26, 2022 $ 25,000 $ — Revolver — 3,900 Draw Amount — 15,500 Total outstanding borrowings 25,000 19,400 Unamortized issuance costs (1,065 ) (213 ) Total notes payable $ 23,935 $ 19,187 |
Nature of Operations and Basi39
Nature of Operations and Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2017statesegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states licensed to write property and casualty insurance (state) | 49 |
Number of states, core products actively distributed (state) | 42 |
Number of business segments (segment) | segment | 1 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule of Intangible Assets [Line Items] | ||
Intangible assets, accumulated amortization | $ 900 | $ 705 |
Intangible assets, gross (excluding goodwill) | 5,240 | 5,240 |
Intangible assets, net | 4,340 | 4,535 |
State insurance licenses | ||
Schedule of Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets (excluding goodwill) | $ 740 | $ 740 |
Trade names and trademarks | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible asset, economic useful life | 15 years | 15 years |
Finite-lived intangible assets, gross carrying amount | $ 1,800 | $ 1,800 |
Intangible assets, accumulated amortization | 277 | 217 |
Finite-lived intangible assets, net | $ 1,523 | $ 1,583 |
Customer relationships | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible asset, economic useful life | 10 years | 10 years |
Finite-lived intangible assets, gross carrying amount | $ 2,700 | $ 2,700 |
Intangible assets, accumulated amortization | 623 | 488 |
Finite-lived intangible assets, net | $ 2,077 | $ 2,212 |
Earnings Per Share Schedule of
Earnings Per Share Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Income from operations before income tax expense | $ 8,479 | $ 7,505 | $ 15,944 | $ 14,760 |
Income tax expense | 2,969 | 2,605 | 5,582 | 5,049 |
Net income | 5,510 | 4,900 | 10,362 | 9,711 |
Less: Preferred share dividends | 0 | 78 | 0 | 161 |
Net income attributable to common shareholders | $ 5,510 | $ 4,822 | $ 10,362 | $ 9,550 |
Basic: | ||||
Weighted average common shares outstanding (includes RSUs) (in shares) | 12,045,519 | 12,045,519 | 12,045,519 | 12,045,519 |
Earnings per common share basic (in dollars per share) | $ 0.46 | $ 0.40 | $ 0.86 | $ 0.79 |
Diluted: | ||||
Dilutive stock options outstanding (in shares) | 136,361 | 179,835 | 146,127 | 181,167 |
Dilutive shares upon preferred share conversion (in shares) | 0 | 522,397 | 0 | 522,397 |
Diluted weighted average common shares outstanding (includes RSUs) (in shares) | 12,181,880 | 12,747,751 | 12,191,646 | 12,749,083 |
Earnings per common share diluted (in dollars per share) | $ 0.45 | $ 0.38 | $ 0.85 | $ 0.76 |
Earnings Per Share Narrative (D
Earnings Per Share Narrative (Details) - shares | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 |
Gateway Insurance Company | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Preferred stock, shares retired or canceled (in shares) | 2,538,560 | 2,538,560 | 401,940 | |
Anchor Holdings Group, Inc. et. al. | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Preferred stock, shares retired or canceled (in shares) | 4,000,000 | 4,000,000 | ||
Former Parent of Gateway | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Number of ordinary shares for each preferred share converted (in shares) | 0.1270 | |||
Former Parent of Anchor | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Number of ordinary shares for each preferred share converted (in shares) | 0.05 |
Investments Schedule of Availab
Investments Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | $ 153,761 | $ 157,451 |
Fixed income securities | 153,826 | 156,487 |
Available-for-sale equity securities, amortized cost basis | 4,401 | 5,598 |
Equities | 4,841 | 6,223 |
Cost or Amortized Cost | 158,162 | 163,049 |
Gross Unrealized Gains | 1,456 | 1,306 |
Gross Unrealized Losses | (951) | (1,645) |
Fair value, available-for-sale securities | 158,667 | 162,710 |
Fixed Income Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 153,761 | 157,451 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 1,016 | 681 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (951) | (1,645) |
Fixed income securities | 153,826 | 156,487 |
US Government Agencies Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 22,793 | 22,716 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 8 | 15 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (165) | (257) |
Fixed income securities | 22,636 | 22,474 |
US States and Political Subdivisions Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 11,568 | 10,647 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 71 | 25 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (72) | (202) |
Fixed income securities | 11,567 | 10,470 |
Total Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 55,044 | 52,145 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 658 | 372 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (227) | (490) |
Fixed income securities | 55,475 | 52,027 |
Corporate Debt Securities, Banking and Financial Services | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 21,171 | 22,890 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 200 | 105 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (43) | (143) |
Fixed income securities | 21,328 | 22,852 |
Corporate Debt Securities, Consumer Goods | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 8,973 | 8,637 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 92 | 45 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (43) | (89) |
Fixed income securities | 9,022 | 8,593 |
Corporate Debt Securities, Capital Goods | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 7,765 | 7,807 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 174 | 109 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (2) | (43) |
Fixed income securities | 7,937 | 7,873 |
Corporate Debt Securities, Energy | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 4,933 | 3,689 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 100 | 88 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (43) | (42) |
Fixed income securities | 4,990 | 3,735 |
Corporate Debt Securities, Telecommunications and Utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 11,197 | 7,746 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 86 | 22 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (87) | (151) |
Fixed income securities | 11,196 | 7,617 |
Corporate Debt Securities, Health Care | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 1,005 | 1,376 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 6 | 3 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (9) | (22) |
Fixed income securities | 1,002 | 1,357 |
Total Mortgage Backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 51,856 | 55,609 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 260 | 230 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (470) | (667) |
Fixed income securities | 51,646 | 55,172 |
Fixed Income, U.S., Mortgage Backed, Agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 28,219 | 34,332 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 83 | 98 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (246) | (416) |
Fixed income securities | 28,056 | 34,014 |
Commercial Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 23,637 | 21,277 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 177 | 132 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (224) | (251) |
Fixed income securities | 23,590 | 21,158 |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 12,500 | 16,334 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 19 | 39 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (17) | (29) |
Fixed income securities | 12,502 | 16,344 |
Equities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale equity securities, amortized cost basis | 4,401 | 5,598 |
Available-for-sale equity securities, accumulated gross unrealized gain, before tax | 440 | 625 |
Available-for-sale equity securities, accumulated gross unrealized loss, before tax | 0 | 0 |
Equities | $ 4,841 | $ 6,223 |
Investments Classified by Contr
Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investments [Abstract] | ||
Available-for-sale securities, debt maturities, rolling twelve months, amortized cost | $ 9,337 | |
Available-for-sale securities, debt maturities, rolling year two through five, amortized cost | 41,490 | |
Available-for-sale securities, debt maturities, rolling year six through ten, amortized cost | 33,028 | |
Available-for-sale securities, debt maturities, rolling after year ten, amortized cost | 5,550 | |
Available-for-sale securities, debt maturities, single maturity date, amortized cost | 89,405 | |
Available-for-sale securities, debt maturities, without single maturity date, amortized cost | 64,356 | |
Available-for-sale debt securities, amortized cost basis | 153,761 | $ 157,451 |
Available-for-sale securities, debt maturities, next twelve months, fair value | 9,342 | |
Available-for-sale securities, debt maturities, rolling year two through five, fair value | 41,577 | |
Available-for-sale securities, debt maturities, rolling year six through ten, fair value | 33,219 | |
Available-for-sale securities, debt maturities, rolling after year ten, fair value | 5,540 | |
Available-for-sale Securities, debt maturities, single maturity date, fair value | 89,678 | |
Available-for-sale securities, debt maturities, without single maturity date, fair value | 64,148 | |
Available-for-sale securities, debt securities | $ 153,826 | $ 156,487 |
Investments Analysis of Investm
Investments Analysis of Investments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investments [Abstract] | ||||
Other than temporary impairment losses, investments | $ 0 | $ 0 | $ 0 | $ 0 |
Investments Unrealized Losses (
Investments Unrealized Losses (Details) $ in Thousands | Jun. 30, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Fixed Income Securities | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | $ 76,172 | $ 81,252 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (817) | (1,397) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 5,595 | 10,638 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (134) | (248) |
Available-for-sale securities, continuous unrealized loss position, fair value | 81,767 | 91,890 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | $ (951) | $ (1,645) |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | security | 261 | 316 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | security | 23 | 39 |
US Government Agencies Debt Securities | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | $ 18,305 | $ 16,187 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (165) | (257) |
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 | 18,305 | 16,187 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (165) | (257) |
US States and Political Subdivisions Debt Securities | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 4,700 | 7,604 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (72) | (202) |
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 | 4,700 | 7,604 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (72) | (202) |
Total Corporate | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 18,275 | 24,431 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (188) | (359) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 521 | 2,375 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (39) | (131) |
Available-for-sale securities, continuous unrealized loss position, fair value | 18,796 | 26,806 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (227) | (490) |
Corporate Debt Securities, Banking and Financial Services | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 7,664 | 12,429 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (43) | (143) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 0 | 132 |
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 | 7,664 | 12,561 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (43) | (143) |
Corporate Debt Securities, Consumer Goods | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 3,809 | 5,453 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (33) | (83) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 198 | 222 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (10) | (6) |
Available-for-sale securities, continuous unrealized loss position, fair value | 4,007 | 5,675 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (43) | (89) |
Corporate Debt Securities, Capital Goods | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 100 | 3,224 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (2) | (37) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 0 | 100 |
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 | 100 | 3,324 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (2) | (43) |
Corporate Debt Securities, Energy | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 1,568 | 229 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (43) | (1) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 0 | 959 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 0 | (41) |
Available-for-sale securities, continuous unrealized loss position, fair value | 1,568 | 1,188 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (43) | (42) |
Corporate Debt Securities, Telecommunications and Utilities | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 4,494 | 2,620 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (58) | (73) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 323 | 962 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (29) | (78) |
Available-for-sale securities, continuous unrealized loss position, fair value | 4,817 | 3,582 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (87) | (151) |
Corporate Debt Securities, Health Care | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 640 | 476 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (9) | (22) |
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 | 640 | 476 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (9) | (22) |
Total Mortgage Backed | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 30,001 | 32,053 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (387) | (577) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 3,922 | 4,145 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (83) | (90) |
Available-for-sale securities, continuous unrealized loss position, fair value | 33,923 | 36,198 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (470) | (667) |
Fixed Income, U.S., Mortgage Backed, Agency | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 17,931 | 21,818 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (213) | (372) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 2,005 | 2,092 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (33) | (44) |
Available-for-sale securities, continuous unrealized loss position, fair value | 19,936 | 23,910 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (246) | (416) |
Commercial Mortgage Backed Securities | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 12,070 | 10,235 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (174) | (205) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 1,917 | 2,053 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (50) | (46) |
Available-for-sale securities, continuous unrealized loss position, fair value | 13,987 | 12,288 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (224) | (251) |
Asset-backed Securities | ||
Aging of Unrealized Losses [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 4,891 | 977 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (5) | (2) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 1,152 | 4,118 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (12) | (27) |
Available-for-sale securities, continuous unrealized loss position, fair value | 6,043 | 5,095 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | $ (17) | $ (29) |
Investments Schedule of Investm
Investments Schedule of Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investments [Abstract] | ||||
Interest income | $ 917 | $ 937 | $ 1,805 | $ 1,919 |
Income from other investments | 573 | 399 | 1,049 | 296 |
Investment expenses | (224) | (224) | (445) | (450) |
Net investment income | $ 1,266 | $ 1,112 | $ 2,409 | $ 1,765 |
Investments Schedule of Gross R
Investments Schedule of Gross Realized Gains (Losses) on Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, proceeds from sales | $ 12,258 | $ 7,733 | $ 18,934 | $ 29,258 |
Available-for-sale securities, gross realized gains | 306 | 191 | 452 | 515 |
Available-for-sale securities, gross realized losses | (22) | (36) | (34) | (121) |
Fixed income securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, proceeds from sales | 9,130 | 7,733 | 14,352 | 29,258 |
Available-for-sale securities, gross realized gains | 110 | 191 | 164 | 515 |
Available-for-sale securities, gross realized losses | (22) | (36) | (32) | (121) |
Equities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities, proceeds from sales | 3,128 | 0 | 4,582 | 0 |
Available-for-sale securities, gross realized gains | 196 | 0 | 288 | 0 |
Available-for-sale securities, gross realized losses | $ 0 | $ 0 | $ (2) | $ 0 |
Investments Schedule of Inves49
Investments Schedule of Investment Gains (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Gain (Loss) on Investments [Line Items] | ||||
Net realized investment gains | $ 284 | $ 155 | $ 418 | $ 394 |
Fixed income securities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized investment gains | 88 | 155 | 132 | 394 |
Equities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized investment gains | $ 196 | $ 0 | $ 286 | $ 0 |
Investments Other Investments (
Investments Other Investments (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investments [Abstract] | ||
Equity method limited partnership | $ 26.3 | $ 24.9 |
Collateral Loans | $ 7.6 | $ 7.2 |
Investments Collateral Pledged
Investments Collateral Pledged (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investments [Abstract] | ||
Bonds and term deposits, fair value | $ 15.1 | $ 15.1 |
Pledged collateral | $ 11.2 | $ 5.6 |
Fair Value of Financial Instr52
Fair Value of Financial Instruments Assets Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | $ 153,826,000 | $ 153,826,000 | $ 156,487,000 | ||
Equities | 4,841,000 | 4,841,000 | 6,223,000 | ||
Fair value, available-for-sale securities | 158,667,000 | 158,667,000 | 162,710,000 | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | $ 0 | 0 | $ 0 | |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | 0 | |
Fair Value, Asset Transfers Into Level 3 | 0 | 0 | 0 | 0 | |
Fair Value, Asset Transfers out of Level 3 | 0 | $ 0 | 0 | $ 0 | |
US Government Agencies Debt Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 22,636,000 | 22,636,000 | 22,474,000 | ||
US States and Political Subdivisions Debt Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 11,567,000 | 11,567,000 | 10,470,000 | ||
Total Corporate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 55,475,000 | 55,475,000 | 52,027,000 | ||
Corporate Debt Securities, Banking and Financial Services | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 21,328,000 | 21,328,000 | 22,852,000 | ||
Corporate Debt Securities, Consumer Goods | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 9,022,000 | 9,022,000 | 8,593,000 | ||
Corporate Debt Securities, Capital Goods | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 7,937,000 | 7,937,000 | 7,873,000 | ||
Corporate Debt Securities, Energy | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 4,990,000 | 4,990,000 | 3,735,000 | ||
Corporate Debt Securities, Telecommunications and Utilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 11,196,000 | 11,196,000 | 7,617,000 | ||
Corporate Debt Securities, Health Care | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 1,002,000 | 1,002,000 | 1,357,000 | ||
Total Mortgage Backed | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 51,646,000 | 51,646,000 | 55,172,000 | ||
Fixed Income, U.S., Mortgage Backed, Agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 28,056,000 | 28,056,000 | 34,014,000 | ||
Commercial Mortgage Backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 23,590,000 | 23,590,000 | 21,158,000 | ||
Asset-backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 12,502,000 | 12,502,000 | 16,344,000 | ||
Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 22,636,000 | 22,636,000 | 22,474,000 | ||
Equities | 4,841,000 | 4,841,000 | 6,223,000 | ||
Fair value, available-for-sale securities | 27,477,000 | 27,477,000 | 28,697,000 | ||
Level 1 | US Government Agencies Debt Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 22,636,000 | 22,636,000 | 22,474,000 | ||
Level 1 | US States and Political Subdivisions Debt Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 1 | Total Corporate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 1 | Corporate Debt Securities, Banking and Financial Services | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 1 | Corporate Debt Securities, Consumer Goods | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 1 | Corporate Debt Securities, Capital Goods | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 1 | Corporate Debt Securities, Energy | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 1 | Corporate Debt Securities, Telecommunications and Utilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 1 | Corporate Debt Securities, Health Care | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 1 | Total Mortgage Backed | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 1 | Fixed Income, U.S., Mortgage Backed, Agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 1 | Commercial Mortgage Backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 1 | Asset-backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 131,190,000 | 131,190,000 | 134,013,000 | ||
Equities | 0 | 0 | 0 | ||
Fair value, available-for-sale securities | 131,190,000 | 131,190,000 | 134,013,000 | ||
Level 2 | US Government Agencies Debt Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 2 | US States and Political Subdivisions Debt Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 11,567,000 | 11,567,000 | 10,470,000 | ||
Level 2 | Total Corporate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 55,475,000 | 55,475,000 | 52,027,000 | ||
Level 2 | Corporate Debt Securities, Banking and Financial Services | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 21,328,000 | 21,328,000 | 22,852,000 | ||
Level 2 | Corporate Debt Securities, Consumer Goods | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 9,022,000 | 9,022,000 | 8,593,000 | ||
Level 2 | Corporate Debt Securities, Capital Goods | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 7,937,000 | 7,937,000 | 7,873,000 | ||
Level 2 | Corporate Debt Securities, Energy | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 4,990,000 | 4,990,000 | 3,735,000 | ||
Level 2 | Corporate Debt Securities, Telecommunications and Utilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 11,196,000 | 11,196,000 | 7,617,000 | ||
Level 2 | Corporate Debt Securities, Health Care | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 1,002,000 | 1,002,000 | 1,357,000 | ||
Level 2 | Total Mortgage Backed | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 51,646,000 | 51,646,000 | 55,172,000 | ||
Level 2 | Fixed Income, U.S., Mortgage Backed, Agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 28,056,000 | 28,056,000 | 34,014,000 | ||
Level 2 | Commercial Mortgage Backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 23,590,000 | 23,590,000 | 21,158,000 | ||
Level 2 | Asset-backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 12,502,000 | 12,502,000 | 16,344,000 | ||
Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Equities | 0 | 0 | 0 | ||
Fair value, available-for-sale securities | 0 | 0 | 0 | ||
Level 3 | US Government Agencies Debt Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 3 | US States and Political Subdivisions Debt Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 3 | Total Corporate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 3 | Corporate Debt Securities, Banking and Financial Services | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 3 | Corporate Debt Securities, Consumer Goods | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 3 | Corporate Debt Securities, Capital Goods | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 3 | Corporate Debt Securities, Energy | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 3 | Corporate Debt Securities, Telecommunications and Utilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 3 | Corporate Debt Securities, Health Care | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 3 | Total Mortgage Backed | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 3 | Fixed Income, U.S., Mortgage Backed, Agency | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 3 | Commercial Mortgage Backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | 0 | 0 | 0 | ||
Level 3 | Asset-backed Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed income securities | $ 0 | $ 0 | $ 0 |
Income Taxes Rate Reconciliatio
Income Taxes Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Provision for taxes at U.S. statutory marginal income tax rate | $ 2,968 | $ 2,627 | $ 5,581 | $ 5,166 |
Nondeductible expenses | 6 | 9 | 27 | 9 |
Tax-exempt income | (5) | (12) | (10) | (24) |
State tax (net of federal benefit) | 0 | (19) | (2) | 39 |
Nondeductible acquisition accounting adjustment | 0 | 0 | 0 | (141) |
Other | 0 | 0 | (14) | 0 |
Provision for income taxes for continuing operations | $ 2,969 | $ 2,605 | $ 5,582 | $ 5,049 |
Provision for taxes at U.S. statutory marginal income tax rate, percent | 35.00% | 35.00% | 35.00% | 35.00% |
Nondeductible expenses, percent | 0.10% | 0.10% | 0.20% | 0.10% |
Tax-exempt income, percent | (0.10%) | (0.10%) | (0.10%) | (0.20%) |
State tax (net of federal benefit), percent | 0.00% | (0.30%) | 0.00% | 0.30% |
Nondeductible acquisition accounting adjustment, percent | 0.00% | 0.00% | 0.00% | (1.00%) |
Other, percent | 0.00% | 0.00% | (0.10%) | 0.00% |
Effective income tax rate | 35.00% | 34.70% | 35.00% | 34.20% |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Current tax expense | $ 2,304 | $ 2,025 | $ 4,707 | $ 3,689 |
Deferred tax expense | 665 | 580 | 875 | 1,360 |
Provision for income taxes for continuing operations | $ 2,969 | $ 2,605 | $ 5,582 | $ 5,049 |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Gross deferred tax assets: | ||
Losses carried forward | $ 13,034 | $ 14,535 |
Claims liabilities and unearned premiums | 10,418 | 8,546 |
Tax credits | 662 | 662 |
Investments | 2 | 0 |
Commissions | 1,025 | 1,269 |
Other | 2,674 | 2,184 |
Total gross deferred tax assets | 27,815 | 27,196 |
Gross deferred tax liabilities: | ||
Deferred policy acquisition costs | 6,029 | 4,628 |
Investments | 727 | 475 |
Fixed assets | 559 | 559 |
Intangible assets | 1,260 | 1,328 |
Other | 1,913 | 1,708 |
Total gross deferred tax liabilities | 10,488 | 8,698 |
Net deferred tax assets | $ 17,327 | $ 18,498 |
Income Taxes Schedule of Tax Ca
Income Taxes Schedule of Tax Carryforwards (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | $ 37,240 |
Carryforward Expiring in 2021 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | 3,058 |
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 | 1,826 |
Carryforward Expiring in 2032 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, subject to expiration | $ 9,236 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) - USD ($) $ in Thousands | May 22, 2012 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Property, Plant and Equipment [Line Items] | |||||
Sale leaseback, deferred gain | $ 213 | ||||
Sale leaseback, lease term | 5 years | ||||
Sale leaseback, gain recognized in period | $ 6 | $ 10 | $ 17 | $ 21 | |
Rent expense, headquarter building | 201 | $ 187 | 398 | $ 370 | |
Unfunded commitments | 2,800 | 2,800 | |||
Building Renovation and Furnishings | |||||
Property, Plant and Equipment [Line Items] | |||||
Contractual Obligation | $ 8,900 | $ 8,900 |
Commitments and Contingencies F
Commitments and Contingencies Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 517 |
2,018 | 993 |
2,019 | 996 |
2,020 | 990 |
2,021 | 946 |
2022 & Beyond | 146 |
Total | $ 4,588 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | $ 22,522,000 | $ 22,522,000 | $ 21,059,000 | ||
Accumulated depreciation | (9,842,000) | (9,842,000) | (9,289,000) | ||
Total property and equipment, net | 12,680,000 | 12,680,000 | 11,770,000 | ||
Depreciation and amortization of property and equipment | 280,000 | $ 218,000 | 553,000 | $ 480,000 | 1,000,000 |
Buildings and land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and land, addition | 9,300,000 | ||||
Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 7,433,000 | 7,433,000 | 7,425,000 | ||
Depreciation and amortization of property and equipment | 0 | 0 | 0 | ||
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 1,840,000 | 1,840,000 | 1,840,000 | ||
Building improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 642,000 | 642,000 | 139,000 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 579,000 | 579,000 | 527,000 | ||
Internal use software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 8,662,000 | 8,662,000 | 8,078,000 | ||
Computer equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | 2,719,000 | 2,719,000 | 2,464,000 | ||
Furniture and other office equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment gross | $ 647,000 | $ 647,000 | $ 586,000 |
Reinsurance Ceded (Details)
Reinsurance Ceded (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | ||||
Direct premiums written | $ 56,409 | $ 48,312 | $ 147,474 | $ 109,380 |
Assumed premiums written | 945 | 41 | 8,376 | 2,998 |
Ceded premiums written | (11,042) | (13,096) | (23,905) | (27,050) |
Net premiums written | 46,312 | 35,257 | 131,945 | 85,328 |
Direct premiums earned | 63,474 | 53,877 | 121,839 | 106,661 |
Assumed premiums earned | 2,254 | 864 | 3,911 | 1,482 |
Ceded premiums earned | (11,679) | (12,939) | (23,275) | (24,588) |
Net premiums earned | 54,049 | 41,802 | 102,475 | 83,555 |
Ceded claims and claims adjustment expenses | 3,109 | 4,685 | 6,834 | 9,122 |
Ceding commissions | $ 3,085 | $ 4,299 | $ 6,785 | $ 6,232 |
Unpaid Claims (Details)
Unpaid Claims (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Unpaid claims and claims adjustment expenses, beginning of period | $ 127,971 | $ 121,379 | $ 139,004 | $ 127,011 |
Less: reinsurance recoverable, beginning of period | 33,223 | 28,272 | 35,370 | 29,399 |
Net unpaid claims and claims adjustment expenses, beginning of period | 94,748 | 93,107 | 103,634 | 97,612 |
Change in retroactive reinsurance ceded | 62 | 271 | 45 | 274 |
Incurred related to: | ||||
Current year | 32,315 | 24,513 | 61,328 | 49,150 |
Prior years | 154 | 61 | 441 | 364 |
Total incurred current and prior years | 32,469 | 24,574 | 61,769 | 49,514 |
Paid related to: | ||||
Current year | 10,147 | 8,453 | 15,551 | 13,740 |
Prior years | 26,081 | 22,733 | 58,846 | 46,894 |
Total paid current and prior years | 36,228 | 31,186 | 74,397 | 60,634 |
Net unpaid claims and claims adjustment expenses, end of period | 91,051 | 86,766 | 91,051 | 86,766 |
Add: reinsurance recoverable, end of period | 27,938 | 25,691 | 27,938 | 25,691 |
Unpaid claims and claims adjustment expenses, end of period | $ 118,989 | $ 112,457 | $ 118,989 | $ 112,457 |
Share-Based Compensation Schedu
Share-Based Compensation Schedule of Outstanding Options and Restricted Shares (Details) | 6 Months Ended | |||
Jun. 30, 2017$ / sharesshares | Jun. 30, 2017CAD / sharesshares | Jun. 30, 2016$ / sharesshares | Jun. 30, 2016CAD / sharesshares | |
Prior to December 31, 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Option, outstanding (in shares), beginning of period | 187,728 | 187,728 | 187,728 | 187,728 |
Options, granted in period (in shares) | 0 | 0 | 0 | 0 |
Options, exercised in period (in shares) | 0 | 0 | 0 | 0 |
Option, outstanding (in shares), end of period | 187,728 | 187,728 | 187,728 | 187,728 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Options, outstanding, weighted average exercise price beginning balance (in US or Canadian dollars per share) | CAD / shares | CAD 6.22 | CAD 6.22 | ||
Options, granted in period, weighted average exercise price (in US or Canadian dollars per share) | CAD / shares | 0 | 0 | ||
Options, exercises in period, weighted average exercise price (in US or Canadian dollars per share) | CAD / shares | 0 | 0 | ||
Options, outstanding, weighted average exercise price, ending balance (in US or Canadian dollars per share) | CAD / shares | CAD 6.22 | CAD 6.22 | ||
After December 31, 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Option, outstanding (in shares), beginning of period | 375,000 | 375,000 | 375,000 | 375,000 |
Options, granted in period (in shares) | 0 | 0 | 0 | 0 |
Options, exercised in period (in shares) | 0 | 0 | 0 | 0 |
Option, outstanding (in shares), end of period | 375,000 | 375,000 | 375,000 | 375,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Options, outstanding, weighted average exercise price beginning balance (in US or Canadian dollars per share) | $ / shares | $ 17.01 | $ 17.01 | ||
Options, granted in period, weighted average exercise price (in US or Canadian dollars per share) | $ / shares | 0 | 0 | ||
Options, exercises in period, weighted average exercise price (in US or Canadian dollars per share) | $ / shares | 0 | 0 | ||
Options, outstanding, weighted average exercise price, ending balance (in US or Canadian dollars per share) | $ / shares | $ 17.01 | $ 17.01 |
Share-Based Compensation Narrat
Share-Based Compensation Narrative (Details) $ / shares in Units, $ in Thousands | Mar. 12, 2015shares | Feb. 28, 2014shares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($) | Dec. 31, 2013USD ($) | Jun. 17, 2013$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, exercisable (in shares) | shares | 362,728 | 362,728 | ||||||
Grants, weighted average remaining life | 6 years 3 months 29 days | |||||||
Options outstanding, intrinsic value | $ 2,300 | $ 2,300 | ||||||
Award vesting period | 5 years | |||||||
Share-based compensation expense | 285 | $ 388 | $ 605 | $ 836 | ||||
Unearned share-based compensation expense, remaining amortization period | 32 months | |||||||
Stock Option Grants | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unearned share-based compensation expense | 812 | $ 812 | ||||||
Restricted share and restricted share units grants | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unearned share-based compensation expense | 1,800 | 1,800 | ||||||
Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share price (in dollars per share) | $ / shares | $ 8.10 | |||||||
Equity Incentive Plan | Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights, percentage | 20.00% | |||||||
Ordinary Voting Common Shares | Equity Incentive Plan | Director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Equity Incentive Plan Threshold by Direct or Indirect Purchase of Stock | $ 100 | |||||||
Matching shares granted in period (in shares) | shares | 148,152 | |||||||
Ordinary Voting Common Shares | March 12, 2015 | Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, granted in period (in shares) | shares | 200,000 | |||||||
Options, non-vested, fair value | $ 1,500 | $ 1,500 | ||||||
Restricted Stock | Equity Incentive Plan | Director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Equity Incentive Plan Ratio Matching Grant of Restricted Stock for Common Stock (in shares) | 3 | |||||||
Matching shares granted in period (in shares) | shares | 37,038 | |||||||
Award vesting rights, percentage | 20.00% | |||||||
Restricted Stock | March 12, 2015 | Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares granted during period (shares) | shares | 200,000 | |||||||
Restricted shares vested during period (shares) | shares | 40,000 | 40,000 | ||||||
Restricted share awards, non-vested, fair value | $ 1,900 | $ 1,900 |
Share-Based Compensation Sche64
Share-Based Compensation Schedule of Restricted Shares and Restricted Share Units (Details) - Restricted stock and restricted stock units (RSUs) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Restricted shares nonvested at period start (shares) | 311,120 | 348,155 |
Restricted shares granted during period (shares) | 0 | 0 |
Restricted shares vested during period (shares) | (77,040) | (37,035) |
Restricted shares nonvested at period end (shares) | 234,080 | 311,120 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average fair value at grant date, restricted shares nonvested at period start (USD per share) | $ 15.92 | $ 15.53 |
Weighted average fair value at grant date, restricted shares granted during period (USD per share) | 0 | 0 |
Weighted average fair value at grant date, restricted shares vested during period (USD per share) | 15.21 | 12.20 |
Weighted average fair value at grant date, restricted shares nonvested at period end (USD per share) | $ 16.15 | $ 15.92 |
Other Employee Benefit Plans De
Other Employee Benefit Plans Defined Contribution Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Employee Benefit Plans [Abstract] | ||||
Defined contribution plan, percent of employee contribution matched by employer, up to 2.5% annual earnings | 100.00% | |||
Defined contribution plan, percent of employees annual earnings employer will match 100% | 2.50% | |||
Defined contribution plan, percent of employer match on additional employee contributions, up to 2.5% annual earnings | 50.00% | |||
Defined contribution plan, percent of additional employees annual earnings employer will match 50% | 2.50% | |||
Defined contribution plan, employer matching contribution, maximum percent of employees' gross pay | 3.75% | |||
Defined contribution plan, employee contribution vesting percentage | 100.00% | |||
Defined contribution plan, employers matching contribution, vesting period | 5 years | |||
Defined contribution plan, company contributions | $ 114 | $ 106 | $ 242 | $ 217 |
Other Employee Benefit Plans Em
Other Employee Benefit Plans Employee Stock Purchase Plan (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Other Employee Benefit Plans [Abstract] | ||||
Employee stock purchase plan, hours per week threshold to be eligible | 30 hours | |||
Employee stock purchase plan, maximum annual contribution percent of annual earnings per employee | 0.075 | |||
Employee stock purchase plan, percent of employee contribution matched by employer, up to 2.5% annual earnings | 1 | |||
Employee stock purchase plan, percent of employees annual earnings employer will match 100% | 2.50% | |||
Employee stock purchase plan, percent of employer match on additional employee contributions, up to 5% annual earnings | 50.00% | |||
Employee stock purchase plan, percent of additional employees annual earnings employer will match 50% | 5.00% | |||
Employee stock purchase plan, employer matching contribution, maximum percent of employee's gross pay | 5.00% | |||
Employee stock purchase plan, company cost | $ 50 | $ 52 | $ 105 | $ 96 |
Share Capital Schedule of Stock
Share Capital Schedule of Stock by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 300,000,001 | |
Common stock, shares outstanding (in shares) | 12,030,703 | 12,023,295 |
Common stock, value, outstanding | $ 36 | $ 36 |
Preferred Shares | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, value, outstanding | $ 0 | $ 0 |
Ordinary Voting Common Shares | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common stock, shares outstanding (in shares) | 11,930,703 | 11,895,104 |
Common stock, value, outstanding | $ 36 | $ 36 |
Restricted Voting Common Shares | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 33,333,334 | 33,333,334 |
Common stock, shares outstanding (in shares) | 100,000 | 128,191 |
Common stock, value, outstanding | $ 0 | $ 0 |
Share Capital Narrative (Detail
Share Capital Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Mar. 31, 2016 | |
Class of Stock [Line Items] | ||||||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 650,000 | 650,000 | ||||
Treasury stock, shares acquired (in shares) | 0 | |||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | |||
Preferred stock, dividend rate, (USD per share) | $ 0.045 | |||||
Preferred stock, dividend rate, percentage | 4.50% | |||||
Preferred stock, liquidation preference per share (USD per share) | $ 1 | $ 1 | $ 1 | |||
Conversion of Restricted Voting Common Shares to Ordinary Voting Common Shares | ||||||
Class of Stock [Line Items] | ||||||
Conversion of stock (in shares) | 28,191 | |||||
Former Parent of Gateway | ||||||
Class of Stock [Line Items] | ||||||
Preferred dividends paid | $ 409,000 | |||||
Preferred stock, amount of preferred dividends in arrears | $ 0 | |||||
Former Parent of Anchor | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, amount of preferred dividends in arrears | $ 333,000 | $ 333,000 | ||||
Gateway Insurance Company | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares retired or canceled (in shares) | 2,538,560 | 2,538,560 | 401,940 | |||
Anchor Holdings Group, Inc. et. al. | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares retired or canceled (in shares) | 4,000,000 | 4,000,000 | ||||
Reserve development protection | $ 4,000,000 | |||||
Restricted Stock Units (RSUs) | ||||||
Class of Stock [Line Items] | ||||||
Nonvested restricted stock units (RSUs) (shares) | 14,816 | 14,816 | 22,224 | |||
Ordinary voting common shares issued, RSU vesting (in shares) | 7,408 | 7,407 | ||||
Restricted voting common shares | ||||||
Class of Stock [Line Items] | ||||||
Percentage of aggregate vote eligible to be voted by restricted voting common shareholders, maximum | 30.00% | 30.00% |
Deferred Policy Acquisition C69
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance, beginning of period | $ 13,222 | $ 10,235 | ||
Acquisition costs deferred | 15,772 | 8,445 | ||
Amortization charged to income | $ (6,670) | $ (3,970) | (11,766) | (8,023) |
Balance, end of period | $ 17,228 | $ 10,657 | $ 17,228 | $ 10,657 |
Related Party Transactions (Det
Related Party Transactions (Details) | Jun. 30, 2017 | Dec. 31, 2016 |
Director or Director Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Percent of invested assets considered related party transactions | 9.10% | 8.40% |
Notes Payable Narrative (Detail
Notes Payable Narrative (Details) - USD ($) | Apr. 26, 2017 | Mar. 09, 2015 | Apr. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Line of Credit Facility [Line Items] | |||||||
Interest expense, including non-utilization fees | $ 640,000 | $ 266,000 | $ 915,000 | $ 499,000 | |||
Loan Agreement | American Insurance Acquisition | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 35,000,000 | ||||||
Loan Agreement | American Insurance Acquisition | Draw Amount | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | ||||||
Repayments of amounts borrowed in period | $ 15,500,000 | ||||||
Loan Agreement | American Insurance Acquisition | Draw Amount | London Interbank Offered Rate (LIBOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 4.50% | ||||||
Loan Agreement | American Insurance Acquisition | Revolver | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | ||||||
Repayments of amounts borrowed in period | $ 3,900,000 | ||||||
Loan Agreement | American Insurance Acquisition | Revolver | London Interbank Offered Rate (LIBOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.75% | ||||||
Senior unsecured notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Face Amount | $ 25,000,000 | ||||||
Debt Instrument, Term | 5 years | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | ||||||
Amounts of funds accessed in period | $ 23,900,000 |
Notes Payable Debt Outstanding
Notes Payable Debt Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||
Notes payable, outstanding gross of unamortized issuance costs | $ 25,000 | $ 19,400 |
Unamortized issuance costs | (1,065) | (213) |
Notes payable, net | 23,935 | 19,187 |
Loan Agreement | American Insurance Acquisition | Revolver | ||
Line of Credit Facility [Line Items] | ||
Notes payable, outstanding gross of unamortized issuance costs | 0 | 3,900 |
Loan Agreement | American Insurance Acquisition | Draw Amount | ||
Line of Credit Facility [Line Items] | ||
Notes payable, outstanding gross of unamortized issuance costs | 0 | 15,500 |
Senior unsecured notes | ||
Line of Credit Facility [Line Items] | ||
Notes payable, outstanding gross of unamortized issuance costs | $ 25,000 | $ 0 |
Statutory Information (Details)
Statutory Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus, balance | $ 124.6 | $ 113.9 |
Statutory net written premium amount | 131.9 | 180.1 |
Statutory net income/loss amount | 9.3 | $ (3.6) |
Illinois | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus required, minimum | 1.5 | |
Missouri | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus required, minimum | 2.4 | |
New York | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus required, minimum | $ 3.5 |