Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 13, 2018 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 153 | ||
Ordinary Voting Common Shares | |||
Document and Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 11,936,970 | ||
Restricted Voting Common Shares | |||
Document and Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 0 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, available for sale | ||
Fixed income securities, at fair value (amortized cost $158,411 and $157,451) | $ 157,984 | $ 156,487 |
Equity securities, at fair value (cost $7,969 and $5,598) | 8,446 | 6,223 |
Other investments | 31,438 | 32,181 |
Total Investments | 197,868 | 194,891 |
Cash and cash equivalents | 45,615 | 29,888 |
Accrued investment income | 1,248 | 1,228 |
Premiums receivable (net of allowance of $3,418 and $2,366) | 79,664 | 77,386 |
Reinsurance recoverables on amounts paid | 7,982 | 7,786 |
Reinsurance recoverables on amounts unpaid | 53,402 | 35,370 |
Prepaid reinsurance premiums | 12,878 | 13,372 |
Deferred policy acquisition costs | 14,797 | 13,222 |
Deferred tax asset, net | 16,985 | 18,498 |
Goodwill | 2,726 | 2,726 |
Intangible assets, net | 4,145 | 4,535 |
Property and equipment, net | 24,439 | 11,770 |
Other assets | 20,754 | 12,905 |
Total Assets | 482,503 | 423,577 |
Liabilities | ||
Claims liabilities | 211,648 | 139,004 |
Unearned premium reserves | 128,043 | 113,171 |
Due to reinsurers | 8,411 | 8,369 |
Notes payable, net | 24,031 | 19,187 |
Other liabilities and accrued expenses | 19,725 | 16,504 |
Total Liabilities | 391,858 | 296,235 |
Commitments and contingencies | ||
Shareholders’ Equity | ||
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued and outstanding: December 31, 2017 - 12,164,041 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: December 31, 2017 - 0 and December 31, 2016 - 128,191 | 0 | 0 |
Additional paid-in capital | 201,105 | 199,244 |
Retained deficit | (110,535) | (71,718) |
Accumulated other comprehensive income (loss), net of tax | 39 | (220) |
Total Shareholders' Equity | 90,645 | 127,342 |
Total Liabilities and Shareholders' Equity | $ 482,503 | $ 423,577 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Position (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed income securities at fair value, amortized cost | $ 158,411 | $ 157,451 |
Equity securities, at fair value, cost | 7,969 | 5,598 |
Premium receivable, allowance | $ 3,418 | $ 2,366 |
Shareholders’ Equity | ||
Common shares, shares authorized (in shares) | 300,000,001 | |
Common stock, shares, outstanding (in shares) | 12,164,041 | 12,023,295 |
Ordinary Voting Common Shares | ||
Shareholders’ Equity | ||
Common shares, par value (USD per share) | $ 0.003 | $ 0.003 |
Common shares, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common shares, shares issued (in shares) | 12,164,041 | 11,895,104 |
Common stock, shares, outstanding (in shares) | 12,164,041 | 11,895,104 |
Restricted Voting Common Shares | ||
Shareholders’ Equity | ||
Common shares, par value (USD per share) | $ 0.003 | $ 0.003 |
Common shares, shares authorized (in shares) | 33,333,334 | 33,333,334 |
Common shares, shares issued (in shares) | 0 | 128,191 |
Common stock, shares, outstanding (in shares) | 0 | 128,191 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net premiums earned | $ 215,771 | $ 171,058 | $ 152,064 |
Net investment income | 4,897 | 4,824 | 3,976 |
Net realized gains | 872 | 1,230 | 455 |
Other income | 435 | 467 | 356 |
Total revenue | 221,975 | 177,579 | 156,851 |
Net claims incurred | 203,873 | 134,746 | 89,994 |
Acquisition costs | 27,885 | 18,803 | 18,592 |
Other underwriting expenses | 32,140 | 28,399 | 23,269 |
Amortization of intangible assets | 390 | 390 | 315 |
Interest expense | 1,840 | 1,026 | 694 |
Expenses (recovered) incurred pursuant to stock purchase agreements | 0 | (6,297) | 942 |
Expenses incurred related to acquisition of subsidiaries | 0 | 0 | 999 |
Total expenses | 266,128 | 177,067 | 134,805 |
(Loss) income from operations before income taxes | (44,153) | 512 | 22,046 |
Income tax (benefit) expense | (5,343) | (2,134) | 7,616 |
Net (loss) income | (38,810) | 2,646 | 14,430 |
Less: Preferred share dividends | 0 | 281 | 276 |
Net (loss) income attributable to common shareholders | $ (38,810) | $ 2,365 | $ 14,154 |
Basic weighted average common shares outstanding (in shares) | 12,064,880 | 12,045,519 | 11,975,579 |
(Loss) earnings per common share basic (in dollars per share) | $ (3.22) | $ 0.20 | $ 1.18 |
Diluted weighted average common shares outstanding (in shares) | 12,064,880 | 12,222,883 | 12,735,679 |
(Loss) earnings per common share diluted (in dollars per share) | $ (3.22) | $ 0.19 | $ 1.13 |
Consolidated Statements of Comprehensive Income | |||
Net (loss) income | $ (38,810) | $ 2,646 | $ 14,430 |
Other comprehensive income (loss): | |||
Changes in net unrealized investment gains (losses) | 437 | 855 | (1,912) |
Reclassification to net (loss) income | (49) | 394 | 203 |
Effect of income taxes | (136) | (437) | 597 |
Other comprehensive income (loss) | 252 | 812 | (1,112) |
Total comprehensive (loss) income | $ (38,558) | $ 3,458 | $ 13,318 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Ordinary Voting Common Shares | Restricted Voting Common Shares | Additional Paid-In Capital | Retained Deficit | Accumulated Other Comprehensive Income (Loss) | |
Balance at beginning of period at Dec. 31, 2014 | $ 107,399 | [1] | $ 34 | $ 0 | $ 196,079 | $ (88,794) | $ 80 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 14,430 | 14,430 | |||||
Other comprehensive income (loss) | (1,112) | (1,112) | |||||
Options exercised | 145 | 0 | 145 | ||||
Share-based compensation | 1,819 | 2 | 1,817 | ||||
Balance at end of period at Dec. 31, 2015 | 122,681 | [1] | 36 | 0 | 198,041 | (74,364) | (1,032) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 2,646 | 2,646 | |||||
Preferred dividends paid | (409) | (409) | |||||
Other comprehensive income (loss) | 812 | 812 | |||||
Share-based compensation | 1,612 | 1,612 | |||||
Balance at end of period at Dec. 31, 2016 | 127,342 | 36 | 0 | 199,244 | (71,718) | (220) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (38,810) | (38,810) | |||||
Other comprehensive income (loss) | 252 | 252 | |||||
Options exercised | 655 | 0 | 655 | ||||
Share-based compensation | 1,176 | 0 | 1,176 | ||||
Other | 30 | 30 | |||||
Balance at end of period at Dec. 31, 2017 | 90,645 | $ 36 | $ 0 | $ 201,105 | (110,535) | 39 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
ASU 2018-02, reclassification of certain tax effects | $ 0 | $ (7) | $ 7 | ||||
[1] | r - Prior to the year ended December 31, 2017, the Company presented preferred shares issued as contingent consideration within the permanent equity section of the Consolidated Statements of Financial Position. In accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 480 - Distinguishing Liabilities from Equity, contingent consideration issued as preferred shares wherein the number of shares to be issued is variable should be classified outside of permanent equity and reflected as mezzanine equity on the Consolidated Statements of Financial Position.For the year ended December 31, 2017, the Company has restated the Consolidated Statements of Shareholders’ Equity to remove the preferred shares and related activity as previously stated for the periods as of January 1, 2015 and for the years ended December 31, 2015 and 2016. Although this impacted total equity for 2015, it had no impact on total equity as of December 31, 2016 due to the redemption and clawback of preferred shares previously issued. In addition, this change did not impact the Consolidated Statements of Financial Position, Consolidated Statements of Income (Loss) and Comprehensive Income (Loss), earnings per common share or the Consolidated Statements of Cash Flows. The Company has evaluated the effect of the incorrect presentation in the prior period, both qualitatively and quantitatively, and concluded that it did not have a material impact on, nor did it require amendment of, any previously filed annual or quarterly consolidated financial statements. See Note 20, ‘Change in Accounting Principle and Error Corrections’ for additional information regarding the preferred shares restatement. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net (loss) income | $ (38,810) | $ 2,646 | $ 14,430 |
Adjustments to reconcile net (loss) income to net cash flows provided by operating activities: | |||
Depreciation and amortization of property and equipment | 1,372 | 1,000 | 966 |
Share-based compensation expense | 1,176 | 1,612 | 1,819 |
Amortization of deferred gain on sale of headquarters building | (17) | (43) | (43) |
Amortization of intangible assets | 390 | 390 | 315 |
Deferred income taxes | 1,376 | 452 | (174) |
Net realized gains | (872) | (1,230) | (455) |
Gain in equity of investees | (810) | (1,271) | (1,238) |
Amortization of bond premiums and discounts | 961 | 1,217 | 1,525 |
Amortization of financing costs | 365 | 67 | 56 |
Expenses (recovered) incurred pursuant to stock purchase agreements | 0 | (6,623) | 941 |
Net changes in operating assets and liabilities: | |||
Accrued investment income | (20) | (192) | (13) |
Premiums receivable, net | (2,278) | 5,143 | (35,144) |
Due from reinsurers and prepaid reinsurance premiums | (17,735) | (6,440) | (7,931) |
Deferred policy acquisition costs | (1,575) | (2,987) | (240) |
Other assets | (7,847) | (6,210) | 8,956 |
Claims liabilities | 72,644 | 11,993 | (6,150) |
Unearned premium reserves | 14,872 | 4,969 | 26,276 |
Due to reinsurers | 42 | (2,412) | 3,542 |
Other liabilities and accrued expenses | 3,238 | (1,911) | 1,376 |
Net cash flows provided by operating activities | 26,472 | 170 | 8,814 |
Investing activities: | |||
Purchase of subsidiary (net of cash acquired) | 0 | 0 | (10,956) |
Purchases of: | |||
Fixed income securities | (48,529) | (58,061) | (78,921) |
Equity securities | (7,900) | (2,000) | (3,340) |
Other investments | (3,615) | (11,404) | (7,332) |
Property, equipment and other | (14,055) | (10,181) | (713) |
Proceeds from sale and maturity of: | |||
Fixed income securities | 46,853 | 86,013 | 59,395 |
Equity securities | 6,161 | 615 | 1,402 |
Other investments | 5,174 | 3,430 | 0 |
Property, equipment and other | 2 | 0 | 0 |
Assets held for sale | 0 | 0 | 111 |
Net cash flows (used in) provided by investing activities | (15,909) | 8,412 | (40,354) |
Financing activities: | |||
Preferred share buyback | 0 | (2,539) | 0 |
Capital contributions | 30 | 0 | 0 |
Proceeds from notes payable, net of issuance costs | 23,879 | 2,000 | 17,663 |
Repayment of notes payable | (19,400) | (100) | (500) |
Preferred dividends paid | 0 | (409) | 0 |
Options exercised | 655 | 0 | 145 |
Net cash flows provided by (used in) financing activities | 5,164 | (1,048) | 17,308 |
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | |||
Net change in cash and cash equivalents | 15,727 | 7,534 | (14,232) |
Cash and cash equivalents, beginning of period | 29,888 | 22,354 | 36,586 |
Cash and cash equivalents, end of period | 45,615 | 29,888 | 22,354 |
Supplemental disclosure of cash information: | |||
Cash paid for income taxes | 744 | 7,015 | 8,636 |
Cash paid for interest | 1,338 | 885 | 567 |
Anchor Holdings Group, Inc. et. al. | |||
Supplemental disclosure of noncash investing and financing activities: | |||
Preferred Shares Issued | 0 | 0 | 4,000 |
Preferred Shares Canceled | 0 | (4,000) | 0 |
Gateway Insurance Company | |||
Supplemental disclosure of noncash investing and financing activities: | |||
Preferred Shares Issued | 0 | 0 | 941 |
Preferred Shares Canceled | $ 0 | $ (2,297) | $ 0 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION Atlas Financial Holdings, Inc. (“Atlas” or “We” or the “Company”) commenced operations on December 31, 2010. The primary business of Atlas is underwriting commercial automobile insurance in the United States, with a niche market orientation and focus on insurance for the “light” commercial automobile sector. This sector includes taxi cabs, non-emergency para-transit, limousine, livery and business autos. Automobile insurance products provide insurance coverage in three major areas: liability, accident benefits and physical damage. Liability insurance provides coverage subject to policy terms and conditions where the insured is determined to be responsible and/or liable for an automobile accident, for the payment for injuries and property damage to third parties. Accident benefit policies or personal injury protection policies provide coverage for loss of income, medical and rehabilitation expenses for insured persons who are injured in an automobile accident, regardless of fault. Physical damage coverage subject to policy terms and conditions provides for the payment of damages to an insured automobile arising from a collision with another object or from other risks such as fire or theft. In the short run, automobile physical damage and liability coverage generally provides more predictable results than automobile accident benefit or personal injury insurance. Atlas’ business is carried out through its “Insurance Subsidiaries”: American Country Insurance Company (“American Country”), American Service Insurance Company, Inc. (“American Service”), Gateway Insurance Company (“Gateway”), and as of March 11, 2015, Global Liberty Insurance Company of New York (“Global Liberty”); and other non-insurance company subsidiaries: Anchor Group Management Inc. (“Anchor Management”), Plainview Premium Finance Company, Inc. (“Plainview Delaware”), Plainview Delaware’s wholly owned subsidiary, Plainview Premium Finance Company of California, Inc. (“Plainview California” and together with Plainview Delaware, “Plainview”), UBI Holdings Inc. (“UBI Holdings”) and UBI Holdings’ wholly-owned subsidiary, DriveOn Digital IP Inc. (“DOIP” and together with UBI Holdings, “UBI”). 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. Seasonality - The property and casualty (“P&C”) insurance business is seasonal in nature. While Atlas’ net premiums earned are generally stable from quarter to quarter, Atlas’ gross premiums written follow the common renewal dates for the “light” commercial risks that represent its core lines of business. For example, January 1 and March 1 are common taxi cab renewal dates in Illinois and New York, respectively. Additionally, we implemented our New York “excess taxi program” in the third quarter of 2012, which has an annual renewal date in the third quarter. Net underwriting income is driven mainly by the timing and nature of claims, which can vary widely. Summary of Significant Accounting Policies Principles of consolidation - The consolidated financial statements include the accounts of Atlas and the entities it controls. Subsidiaries are entities over which Atlas, directly or indirectly, has the power to govern the financial and operating policies in order to obtain the benefits from their activities, generally accompanying an equity shareholding of more than one half of the voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to Atlas and would be de-consolidated from the date that control ceases. The operating results of subsidiaries acquired or disposed of during the year will be included in the consolidated statements of income (loss) and comprehensive income (loss) from the effective date of acquisition and up to the effective date of disposal, as appropriate. All significant intercompany transactions and balances are eliminated in consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by Atlas. The following are Atlas’ subsidiaries, all of which are 100% owned, either directly or indirectly, together with the jurisdiction of incorporation, that are included in consolidated financial statements: American Insurance Acquisition Inc. (Delaware) American Country Insurance Company (Illinois) American Service Insurance Company, Inc. (Illinois) Camelot Services, Inc. (Missouri) - merged into American Insurance Acquisition Inc. during 2014 Gateway Insurance Company (Missouri) Anchor Holdings Group, Inc. (New York) Global Liberty Insurance Company of New York (New York) Plainview Premium Finance Company, Inc. (Delaware) Plainview Premium Finance Company of California, Inc. (California) Anchor Group Management Inc. (New York) UBI Holdings Inc. (Delaware) DriveOn Digital IP Inc. (Delaware) Prior to the year ended December 31, 2017, the Company presented preferred shares issued as contingent consideration within the permanent equity section of the Consolidated Statements of Financial Position. In accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 480 - Distinguishing Liabilities from Equity, contingent consideration issued as preferred shares wherein the number of shares to be issued is variable should be classified outside of permanent equity and reflected as mezzanine equity on the Consolidated Statements of Financial Position. For the year ended December 31, 2017, the Company has restated the Consolidated Statements of Shareholders’ Equity to remove the preferred shares and related activity as previously stated for the periods as of January 1, 2015 and for the years ended December 31, 2015 and 2016. Although this impacted total equity for 2015, it had no impact on total equity as of December 31, 2016 due to the redemption and clawback of preferred shares previously issued. In addition, this change did not impact the Consolidated Statements of Financial Position, Consolidated Statements of Income (Loss) and Comprehensive Income (Loss), earnings per common share or the Consolidated Statements of Cash Flows. The Company has evaluated the effect of the incorrect presentation in the prior period, both qualitatively and quantitatively, and concluded that it did not have a material impact on, nor did it require amendment of, any previously filed annual or quarterly consolidated financial statements. See Note 20, ‘Change in Accounting Principle and Error Corrections’ for additional information regarding the preferred shares restatement. 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. Financial instruments - Financial instruments are recognized and unrecognized using trade date accounting, since that is the date Atlas contractually commits to the purchase or sale with the counterparty. Effective interest method - For securities other than mortgage backed and asset backed, Atlas utilizes the effective interest method to calculate the amortized cost of the financial asset and to amortize the premium or accrete the discount over the remaining life. The effective interest rate is the rate that discounts the estimated future cash flows through the expected life of the financial instrument. Mortgage backed and asset backed securities are valued using the retrospective adjustment method, which uses the effective interest method and includes anticipated prepayments. Interest income is reported net of amortization of premium and accretion of discount. Realized gains and losses on disposition of available-for-sale securities are based on the net proceeds and the adjusted cost of the securities sold using the specific identification method. Cash and cash equivalents - Cash and cash equivalents include cash and highly liquid securities with original maturities of 90 days or less. Available for sale - Investments in fixed income and equity securities are classified as available for sale. Securities are classified as available for sale when Atlas may decide to sell those securities due to changes in market interest rates, liquidity needs, changes in yields or alternative investments, and for other reasons. Available-for-sale securities are carried at fair value, with unrealized gains and losses, net of income taxes, included as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. Impairment of financial assets - Atlas assesses, on a quarterly basis, whether there is evidence that a financial asset or group of financial assets is impaired. An investment is considered impaired when the fair value of the investment is less than its cost or amortized cost. When an investment is impaired, the Company must make a determination as to whether the impairment is other than temporary. The analysis includes some or all of the following procedures as deemed appropriate by management: ◦ identifying all security holdings in unrealized loss positions that have existed for at least six months or other circumstances that management believes may impact the recoverability of the security; ◦ obtaining a valuation analysis from third party investment managers regarding these holdings based on their knowledge, experience and other market based valuation techniques; ◦ reviewing the trading range of certain securities over the preceding calendar period; ◦ assessing whether declines in market value are other than temporary for debt security holdings based on credit ratings from third party security rating agencies; and ◦ determining the necessary provision for declines in market value that are considered other than temporary based on the analyses performed. The risks and uncertainties inherent in the assessment methodology utilized to determine declines in market value that are other than temporary include, but may not be limited to, the following: ◦ the opinion of professional investment managers could prove to be incorrect; ◦ the past trading patterns of individual securities may not reflect future valuation trends; ◦ the credit ratings assigned by independent credit rating agencies may prove to be incorrect due to unforeseen or unknown facts related to a company’s financial situation; and ◦ the debt service pattern of non-investment grade securities may not reflect future debt service capabilities and may not reflect a company’s unknown underlying financial problems. Under Accounting Standards Codification (“ASC”), with respect to an investment in an impaired debt security, other-than-temporary impairment (“OTTI”) occurs if (a) there is intent to sell the debt security, (b) it is more likely than not it will be required to sell the debt security before its anticipated recovery, or (c) it is probable that all amounts due will be unable to be collected such that the entire cost basis of the security will not be recovered. If Atlas intends to sell the debt security, or will more likely than not be required to sell the debt security before the anticipated recovery, a loss in the entire amount of the impairment is reflected in net investment gains (losses) on investments in the consolidated statements of income (loss). If Atlas determines that it is probable it will be unable to collect all amounts and Atlas has no intent to sell the debt security, a credit loss is recognized in net investment gains (losses) on investments in the consolidated statements of income (loss) to the extent that the present value of expected cash flows is less than the amortized cost basis; any difference between fair value and the new amortized cost basis (net of the credit loss) is reflected in other comprehensive income (losses), net of applicable income taxes. For equity securities, the Company evaluates its ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Evidence considered to determine anticipated recovery are analysts’ reports on the near-term prospects of the issuer and the financial condition of the issuer or the industry, in addition to the length and extent of the market value decline. If an OTTI is identified, the equity security is adjusted to fair value through a charge to earnings. Fair values of financial instruments - Atlas has used the following methods and assumptions in estimating its fair value disclosures: Fair values for investments are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or values obtained from independent pricing services. Atlas’ fixed income portfolio is managed by a SEC registered investment advisor specializing in the management of insurance company portfolios. Management works directly with them to ensure that Atlas benefits from their expertise and also evaluates investments as well as specific positions independently using internal resources. Atlas’ investment advisor has a team of credit analysts for all investment grade fixed income sectors. The investment process begins with an independent analyst review of each security’s credit worthiness using both quantitative tools and qualitative review. At the issuer level, this includes reviews of past financial data, trends in financial stability, projections for the future, reliability of the management team in place, market data (credit spread, equity prices, trends in this data for the issuer and the issuer’s industry). Reviews also consider industry trends and the macro-economic environment. This analysis is continuous, integrating new information as it becomes available. As of December 31, 2017 , this process did not generate any significant difference in the rating assessment between Atlas’ review and the rating agencies. Atlas employs specific control processes to determine the reasonableness of the fair value of its financial assets. These processes are designed to supplement those performed by Atlas’ investment advisor to ensure that the values received from them are accurately recorded and that the data inputs and the valuation techniques utilized are appropriate, consistently applied, and that the assumptions are reasonable and consistent with the objective of determining fair value. For example, on a continuing basis, Atlas assesses the reasonableness of individual security values that have stale prices or whose changes exceed certain thresholds as compared to previous values received from Atlas’ investment advisor or to expected prices. The portfolio is reviewed routinely for transaction volumes, new issuances, any changes in spreads, as well as the overall movement of interest rates along the yield curve to determine if sufficient activity and liquidity exists to provide a credible source for market valuations. When fair value determinations are expected to be more variable, they are validated through reviews by members of management or the Board of Directors who have relevant expertise and who are independent of those charged with executing investment transactions. Atlas employs a fair value hierarchy to categorize the inputs it uses in valuation techniques to measure the fair value. The hierarchy is comprised of quoted prices in active markets (Level 1), third party pricing models using available trade, bid and market information (Level 2) and internal models without observable market information (Level 3). The Company recognizes transfers between levels of the fair value hierarchy at the end of the period in which events occur impacting the availability of inputs to the fair value methodology. Premiums receivable - Premiums receivable include premium balances due and uncollected and installment premiums not yet due from agents and insureds. Atlas evaluates the collectibility of accounts receivable based on a combination of factors. When aware of a specific customer’s inability to meet its financial obligations, such as in the case of bankruptcy or deterioration in the customer’s operating results or financial position, Atlas records a specific reserve for bad debt to reduce the related receivable to the amount Atlas reasonably believes is collectible. Atlas also records reserves for bad debt for all other customers based on a variety of factors, including the length of time the receivables are past due and historical collection experience. Accounts are reviewed for potential write-off on a case-by-case basis. Accounts deemed uncollectible are written off, net of expected recoveries. If circumstances related to specific customers change, estimates of the recoverability of receivables could be further adjusted. Deferred policy acquisition costs (“DPAC”) - Atlas defers producers’ commissions, premium taxes and other underwriting costs directly relating to the successful acquisition of premiums written to the extent they are considered recoverable. These costs are then expensed as the related premiums are earned. The method followed in determining the deferred policy acquisition costs limits the deferral to its realizable value by giving consideration to estimated future claims and expenses to be incurred as premiums are earned. Changes in estimates, if any, are recorded in the accounting period in which they are determined. Anticipated investment income is included in determining the realizable value of the deferred policy acquisition costs. Atlas’ deferred policy acquisition costs are reported net of deferred ceding commissions. When anticipated claims, claims adjustment expenses, commissions and other acquisition costs exceed recorded unearned premium and any future installment premiums on existing policies, a premium deficiency reserve is recognized by recording a reduction to DPAC with a corresponding charge to operations. Atlas utilizes anticipated investment income as a factor in its premium deficiency calculation. Atlas concluded that no premium deficiency adjustments were necessary in any of the years ended December 31, 2017, 2016, and 2015 . Income taxes - Income taxes expense (benefit) includes all taxes based on taxable income (loss) of Atlas and its subsidiaries, and are recognized in the statements of income and comprehensive income except to the extent that they relate to items recognized directly in other comprehensive income, in which case the income tax effect is also recognized in other comprehensive income. Deferred taxes are recognized based on the differences in the tax basis of assets, liabilities and items recognized directly in equity and the financial reporting basis of such items. Deferred tax assets are recognized only to the extent that it is probable that future taxable income will be available against which they can be utilized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on future tax assets and liabilities of a change in tax rates is recognized in income in the period of enactment. When considering the extent of the valuation allowance on Atlas’ deferred tax asset, weight is given by management to both positive and negative evidence. U.S. GAAP states that a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome in determining that a valuation allowance is not needed against deferred tax assets. However, the strength and trend of earnings, as well as other relevant factors are considered. Atlas accounts for uncertain tax positions in accordance with the income taxes accounting guidance. Atlas analyzes filing positions in the federal and state jurisdiction where it is required to file tax returns, as well as the open tax years in these jurisdictions. Atlas would recognize interest and penalties related to unrecognized tax benefits as a component of the provision for federal income taxes. Goodwill – Atlas recognized goodwill as part of the acquisition of Anchor Holdings Group, Inc. The amounts recognized represent the cost of the acquisition above the fair value of the net assets acquired. Atlas reviews goodwill at least annually for impairment. Atlas concluded that there was no goodwill impairment in any of the years ended December 31, 2017, 2016, and 2015 . Intangible assets – Atlas recognized intangible assets as part of the acquisitions of Gateway and Anchor Holdings Group, Inc. The intangible assets are classified as either indefinite-lived or definite-lived depending on whether the useful lives can be identified. Atlas indefinite-lived intangible assets consist of state insurance licenses, and these intangible assets are reviewed for impairment at least annually. Atlas concluded that there was no indefinite-lived intangible asset impairment in any of the years ended December 31, 2017, 2016, and 2015 . Definite-lived intangible assets are amortized over their useful lives on a straight-line basis except for customer related intangibles, which are on an accelerated basis. Atlas definite-lived intangible assets consist of trade names and trademarks with useful lives of 15 years and customer relationships with useful lives of 10 years . Business combinations - The value of certain assets and liabilities acquired are subject to adjustment from the initial purchase price allocation as additional information is obtained, including, but not limited to, valuation of separately identifiable intangibles, the preferred stock issued to the seller, and deferred taxes. The valuations are finalized within 12 months of the close of the acquisition (not including claims reserve development consideration, if applicable). The changes upon finalization to the initial purchase price allocation and valuation of assets and liabilities may result in an adjustment to identifiable intangible assets and goodwill. Adjustments to the provisional amounts identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. The effect of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date, are recorded in the financial statements and presented separately on the statements of income and comprehensive income in the reporting period in which the adjustment amounts are determined. Property and equipment – Buildings, office equipment, and internal use software are stated at historical cost less depreciation. Subsequent costs are included in the asset’s carrying amount or capitalized as a separate asset only when it is probable that future economic benefits will be realized. Land is stated at historical cost. Repairs and maintenance are recognized as an expense during the period incurred. Depreciation on buildings and building improvements are provided on a straight-line basis over the estimated useful life of 33 years. Depreciation on equipment is provided on a straight-line basis over the estimated useful lives which range from 5 years for vehicles, 5 years for furniture, 5 years for enterprise software and 3 years for all other software and computer equipment and the term of the lease for leased equipment. Insurance contracts – Contracts under which Atlas’ Insurance Subsidiaries accept risk at the inception of the contract from another party (the insured holder of the policy) by agreeing to compensate the policyholder or other insured beneficiary if a specified future event (the insured event) adversely affects the holder of the policy are classified as insurance contracts. All policies are short-duration contracts. Revenue recognition - Premium income is recognized on a pro rata basis over the terms of the respective insurance contracts. Unearned premium reserves represent the portion of premiums written that are related to the unexpired terms of the policies in force. Claims liabilities - The provision for unpaid claims represent the estimated liabilities for reported claims, plus those incurred but not yet reported and the related estimated claims adjustment expenses, such as legal fees. Unpaid claims adjustment expenses are determined using case-basis evaluations and statistical analyses, including insurance industry claims data, and represent estimates of the ultimate cost of all claims incurred. Although considerable variability is inherent in such estimates, management believes that the liability for unpaid claims and claims adjustment expenses is adequate. The estimates are continually reviewed and adjusted as necessary; such adjustments are included in current operations and are accounted for as changes in estimates. Reinsurance - As part of Atlas’ insurance risk management policies, portions of its insurance risk is ceded to reinsurers. Reinsurance premiums and claims expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums and claims ceded to other companies have been reported as a reduction of premium revenue and claims incurred. Commissions paid to Atlas by reinsurers on business ceded have been accounted for as a reduction of the related policy acquisition costs. Reinsurance recoverables are recorded for that portion of paid and unpaid claims and claims adjustment expenses that are ceded to other companies. Prepaid reinsurance premiums are recorded for unearned premiums that have been ceded to other companies. Share-based compensation - Atlas has a share-based compensation plan that is described in Note 12, ‘Share-Based Compensation,’ to the Consolidated Financial Statements. Atlas uses the fair-value method of accounting to determine and account for equity settled transactions and to determine stock-based compensation for awards granted to employees and non-employees. For stock-based compensation for awards granted to employees and non-employees that include a performance provision, the Monte-Carlo simulation model is utilized to determine fair value. Stock-based compensation prior to 2015 was valued using the Black-Scholes option pricing model. Compensation expense is recognized over the period that the stock options vest, with a corresponding increase to additional paid in capital. For option awards with graded vesting, expense is recognized on a straight line basis over the service period for the entire award. Operating segments - Atlas operates in one business segment, the property and casualty insurance business. Reclassifications - Certain accounts in the prior years’ consolidated financial statement have been reclassified for comparative purposes to conform to the current year’s presentation. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Pertinent Accounting Standard Updates (“ASUs”) are issued from time to time by the FASB and are adopted by the Company as they become effective. All recently issued accounting pronouncements with effective dates prior to January 1, 2018 have been adopted by the Company. Recently Adopted In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This update provides guidance on the reclassification of stranded tax effects in accumulated other comprehensive income (“AOCI”) resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). Companies will have the option to reclassify the effect of the change in the federal corporate tax rate on gross deferred tax items and related valuation allowances for item in AOCI. For public entities, this guidance is effective for years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. This update can be applied retrospectively or at the beginning of the period of adoption. The Company elected to early adopt and will apply the change at the beginning of the period of adoption within the Consolidated Statements of Financial Position and Consolidated Statements of Shareholders’ Equity. The adoption of this ASU resulted in a increase to AOCI and an decrease in retained earnings of $7,000 for the year ended December 31, 2017 with no net effect on total shareholders’ equity. 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 did 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. Although Atlas has a number of fixed income securities that were transferred between companies owned by Atlas, this ASU will not affect the consolidated financial statements, because the transactions are between two U.S. entities that are part of the same consolidated group, the transactions were elected to be deferred for U.S. tax purposes until the items leave the group, which is consistent with the pre-tax GAAP treatment, and the Company already reports as part of its computational approach, the State tax results (which are zero) under the new ASU. If the sales were between a U.S. company and a foreign affiliate or between non-consolidated U.S. affiliates this would be applicable. However, the investment sales did not fall under either of these two fact patterns. 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 its Consolidated Statements 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 or other significant credit allowances, therefore the provisions of this update are not expected to have a material impact on the consolidated financial statements upon adoption. 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. The adoption of this ASU will result in the recognition of $377 ,000 of net after-tax unrealized gains on equity investments as a cumulative-effect adjustment to increase retained earnings and decrease AOCI. 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. 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, the majority of Atlas’ revenue is derived from transactions that do not fall within the scope of Topic 606, namely insurance contracts, investment income, and lease income. The adoption of these ASUs will not 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 December 31, 2017 are not expected to have a material impact on the consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Acquisition of Anchor Holdings Group, Inc. et. al. On March 11, 2015, Atlas acquired Anchor Holdings Group, Inc., a privately owned insurance holding company, and its wholly owned subsidiary, Global Liberty, along with its affiliated entities, Anchor Management, and Plainview (collectively, “Anchor”), from an unaffiliated third party. Anchor provides specialized commercial insurance products, including commercial automobile insurance to niche markets such as taxi, black car and sedan service owners and operators primarily in the New York market. Atlas’ acquisition of Anchor expands our distribution channel for core commercial automobile lines and provides incremental licensure as well as important infrastructure in the large New York market. Global Liberty also wrote homeowners insurance in the northeast, which was put into runoff, subject to applicable regulatory requirements, prior to the transaction. Under the terms of the stock purchase agreement, the purchase price was based on the combined U.S. GAAP book value of Anchor as of December 31, 2014. The total purchase price for the combined entities of Anchor was $23.2 million , consisting of a combination of cash and Atlas preferred shares, and was approximately 1.3 times combined U.S. GAAP book value. Consideration consisted of approximately $19.2 million in cash and $4.0 million of Atlas preferred shares (consisting of a total of 4,000,000 preferred shares at $1.00 per preferred share), subject to the future development of Global Liberty’s actual claims reserves for certain lines of business during the five year period after the acquisition. During the fourth quarter of 2016, Atlas canceled all 4,000,000 of the preferred shares pursuant to the terms of the Anchor stock purchase agreement due to the adverse development of Global Liberty’s pre-acquisition claims reserves. The Anchor acquisition was accounted for using the acquisition method. Atlas began consolidating Anchor on March 11, 2015, therefore their financial results are included in Atlas’ consolidated financial results starting with the three month period ended March 31, 2015. However, the following unaudited pro forma summary presents Atlas’ consolidated financial information for the year ended December 31, 2015 as if Anchor had been acquired on January 1, 2014. These amounts have been calculated after applying the Company’s accounting policies had the acquisition been completed on January 1, 2014. These results were prepared for comparative purposes only and do not purport to be indicative of the results of operations that may have actually resulted had the acquisition occurred on the indicated dates, nor are they indicative of potential future operating results of the Company. ($ in ‘000s, except per share information) Year Ended December 31, 2015 Revenue $ 162,311 Income from operations before income taxes 1 23,601 Net income 1 15,420 Earnings per common share basic 1 $ 1.26 Earnings per common share diluted 1 $ 1.21 1 - Excludes expenses incurred in the connection with the Anchor acquisition From the date of acquisition through December 31, 2015, Anchor earned revenue of $27.5 million and net income of $2.4 million . The acquisition of Anchor resulted in the recognition of intangible assets and goodwill valued at $4.5 million and $2.7 million , respectively. The Company recorded an adjustment to the purchase price allocation and amortization related to the identified intangible assets during the fourth quarter of 2015. Atlas recognized amortization expense of $390,000 , $390,000 and $315,000 for the years ended December 31, 2017 , 2016 and 2015 , respectively, related to intangible assets acquired in the Anchor transaction. Atlas incurred no transaction expenses related to the Anchor acquisition for the years ended December 31, 2017 and 2016 , and $999,000 in transaction expenses for the year ended December 31, 2015 . Intangible Assets The following table presents a summary of definite-lived intangible assets by major asset class as of December 31, 2017 and December 31, 2016 : ($ in ‘000s) As of December 31, 2017 Economic Useful Life Gross Carrying Amount Accumulated Amortization Net Trade name and trademark 15 years $ 1,800 $ 337 $ 1,463 Customer relationship 10 years 2,700 758 1,942 State insurance licenses Indefinite 740 — 740 $ 5,240 $ 1,095 $ 4,145 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 Estimated future amortization expense for definite-lived intangible assets is $390,000 for each of the next five years. Acquisition of Gateway Insurance Company In 2013 we acquired Camelot Services, Inc. (“Camelot Services”), a privately owned insurance holding company, and its sole subsidiary Gateway from an unaffiliated third party. Gateway provides specialized commercial insurance products, including commercial automobile insurance to niche markets such as taxi, black car and sedan service owners and operators. During the third quarter of 2016, the Company and the former owner of Camelot Services agreed to settle the additional consideration related to future claim development and the utilization of certain tax assets. Atlas redeemed all 2,538,560 of the remaining preferred shares issued as additional consideration and paid all accrued dividends. The acquisition of Gateway resulted in the recognition of intangible assets, comprised entirely of state insurance licenses valued at $740,000 . The state insurance licenses are considered to have an indefinite life and will not be amortized, but will be evaluated for impairment at least annually. Thus, Atlas recognized no amortization expense during the years ended December 31, 2017, 2016, and 2015 related to intangible assets acquired in the Gateway transaction. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Earnings per ordinary voting common share, restricted voting common share, and participative restricted stock unit (“RSU”) (collectively, the “common shares”) for the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 are as follows ($ in ‘000s, except share and per share amounts): Year Ended December 31, 2017 2016 2015 Basic: (Loss) income from operations before income taxes $ (44,153 ) $ 512 $ 22,046 Income tax (benefit) expense (5,343 ) (2,134 ) 7,616 Net (loss) income $ (38,810 ) $ 2,646 $ 14,430 Less: Preferred share dividends — 281 276 Net (loss) income attributable to common shareholders $ (38,810 ) $ 2,365 $ 14,154 Basic weighted average common shares outstanding 12,064,880 12,045,519 11,975,579 (Loss) earnings per common share basic $ (3.22 ) $ 0.20 $ 1.18 Diluted: Basic weighted average common shares outstanding 12,064,880 12,045,519 11,975,579 Dilutive potential ordinary shares: Dilutive stock options outstanding — 177,364 186,656 Dilutive shares upon preferred share conversion — — 573,444 Diluted weighted average common shares outstanding 12,064,880 12,222,883 12,735,679 (Loss) earnings per common share diluted $ (3.22 ) $ 0.19 $ 1.13 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 and 2015 computation, preferred shares potentially convertible to ordinary voting common shares at the option of the holder 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 related to the Gateway acquisition, all of which were redeemed during the third quarter of 2016, are considered to have been redeemed on the last day of 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 related to the Anchor acquisition, all of which were canceled as of December 31, 2016). Refer to Note 14, ‘Share Capital and Mezzanine Equity,’ to the Consolidated Financial Statements for further discussion regarding the redemption and cancellation of the preferred shares. 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. For the year ended December 31, 2017 , all exercisable stock options were deemed to be anti-dilutive. For the year ended December 31, 2016 , all exercisable stock options were deemed to be dilutive and all of the convertible preferred shares were deemed to be anti-dilutive. The potentially dilutive impact for the convertible preferred stock excluded from the calculation due to anti-dilution is 441,357 common shares for the year ended December 31, 2016 . For the year ended December 31, 2015 , all of the convertible preferred shares and all exercisable stock options were deemed to be dilutive. |
Investments
Investments | 12 Months Ended |
Dec. 31, 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 as of ($ in ‘000s): December 31, 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 $ 21,488 $ — $ (302 ) $ 21,186 States, municipalities and political subdivisions 13,265 78 (100 ) 13,243 Corporate Banking/financial services 21,246 189 (53 ) 21,382 Consumer goods 9,674 70 (65 ) 9,679 Capital goods 7,822 181 (11 ) 7,992 Energy 7,460 81 (26 ) 7,515 Telecommunications/utilities 11,179 109 (73 ) 11,215 Health care 1,112 1 (54 ) 1,059 Total Corporate 58,493 631 (282 ) 58,842 Mortgage Backed Mortgage backed - agency 30,920 57 (364 ) 30,613 Mortgage backed - commercial 22,689 153 (255 ) 22,587 Total Mortgage Backed 53,609 210 (619 ) 53,200 Other asset backed 11,556 8 (51 ) 11,513 Total Fixed Income Securities $ 158,411 $ 927 $ (1,354 ) $ 157,984 Equities 7,969 503 (26 ) 8,446 Totals $ 166,380 $ 1,430 $ (1,380 ) $ 166,430 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 December 31, 2017 Amortized Cost Fair Value Due in less than one year $ 11,149 $ 11,141 Due in one through five years 33,941 33,857 Due after five through ten years 41,542 41,538 Due after ten years 6,614 6,735 Total contractual maturity 93,246 93,271 Total mortgage and asset backed 65,165 64,713 Total $ 158,411 $ 157,984 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 years ended December 31, 2017, 2016, and 2015 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 December 31, 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 $ 11,179 $ (110 ) $ 10,007 $ (192 ) $ 21,186 $ (302 ) States, municipalities and political subdivisions 5,355 (36 ) 2,818 (64 ) 8,173 (100 ) Corporate Banking/financial services 6,021 (26 ) 1,931 (27 ) 7,952 (53 ) Consumer goods 5,835 (47 ) 710 (18 ) 6,545 (65 ) Capital goods 2,611 (10 ) 101 (1 ) 2,712 (11 ) Energy 3,368 (26 ) — — 3,368 (26 ) Telecommunications/utilities 4,488 (23 ) 938 (50 ) 5,426 (73 ) Health care 607 (7 ) 322 (47 ) 929 (54 ) Total Corporate 22,930 (139 ) 4,002 (143 ) 26,932 (282 ) Mortgage Backed Mortgage backed - agency 13,203 (136 ) 9,786 (228 ) 22,989 (364 ) Mortgage backed - commercial 10,360 (53 ) 6,553 (202 ) 16,913 (255 ) Total Mortgage Backed 23,563 (189 ) 16,339 (430 ) 39,902 (619 ) Other asset backed 9,817 (44 ) 1,087 (7 ) 10,904 (51 ) Total Fixed Income Securities $ 72,844 $ (518 ) $ 34,253 $ (836 ) $ 107,097 $ (1,354 ) Equities 1,007 (26 ) — — 1,007 (26 ) Totals $ 73,851 $ (544 ) $ 34,253 $ (836 ) $ 108,104 $ (1,380 ) 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 December 31, 2017 , we held 346 and 2 individual fixed income and equity securities, respectively, that were in an unrealized loss position, of which 103 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 years ended December 31, 2017 and 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 years ended December 31, 2017, 2016, and 2015 ($ in ‘000s): Year Ended December 31, 2017 2016 2015 Total investment income Interest income $ 3,834 $ 3,747 $ 3,371 Dividends — — 43 Income from other investments 1,911 1,942 1,344 Investment expenses (848 ) (865 ) (782 ) Net investment income $ 4,897 $ 4,824 $ 3,976 The following table presents the aggregate proceeds, gross realized investment gains and gross realized investment losses from sales and calls of fixed income securities and equities for the years ended December 31, 2017, 2016, and 2015 ($ in ‘000s): Year Ended December 31, 2017 2016 2015 Fixed income securities 1 : Proceeds from sales and calls $ 24,274 $ 59,161 $ 32,089 Gross realized investment gains 300 1,296 686 Gross realized investment losses (55 ) (131 ) (199 ) Equities: Proceeds from sales 6,161 662 1,402 Gross realized investment gains 635 65 69 Gross realized investment losses (2 ) — (81 ) Total: Proceeds from sales and calls $ 30,435 $ 59,823 $ 33,491 Gross realized investment gains 935 1,361 755 Gross realized investment losses (57 ) (131 ) (280 ) 1 - The proceeds from sales and calls, gross realized investment gains and gross realized investment losses on fixed income securities for the years ended December 31, 2016 and 2015 were restated to include both voluntary and involuntary calls. The following table summarizes the components of net realized gains (losses) for the years ended December 31, 2017, 2016, and 2015 ($ in ‘000s): Year Ended December 31, 2017 2016 2015 Fixed income securities $ 245 $ 1,165 $ 487 Equities 633 65 (12 ) Other (6 ) — (20 ) Net realized gains $ 872 $ 1,230 $ 455 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. As of December 31, 2017 , the carrying values of these other investments were approximately $31.4 million versus approximately $32.2 million as of December 31, 2016 . The carrying values of the equity method limited partnerships were $25.3 million and $24.9 million as of December 31, 2017 and December 31, 2016 , respectively. The carrying value of these investments is Atlas’ share of the net book value for each limited partnership. The carrying value of the collateral loans was $6.2 million and $7.2 million as of December 31, 2017 and December 31, 2016 , respectively. Net realized investment gains were $6,000 for the year ended December 31, 2017 and resulted from the sale of one equity method investment. There were no net realized investment gains or losses for the years ended December 31, 2016 and 2015 . The following table summarizes investments in equity method investments by investment type as of December 31, 2017 and December 31, 2016 ($ in ‘000s): Unfunded Commitments Carrying Value As of December 31, 2017 2017 2016 Real estate 1 $ 2,842 $ 10,660 $ 10,797 Insurance linked securities — 9,073 9,178 Activist hedge funds — 4,367 4,336 Venture capital 1 4,150 853 623 Other joint venture — 325 — Total Equity Method Investments $ 6,992 $ 25,278 $ 24,934 1 - We recategorized the carrying value of one limited partnership that was valued at $283,000 as of December 31, 2016 from ‘Venture capital’ to ‘Real estate’ based on its operations. 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 December 31, 2017 and as of December 31, 2016 , the Company had no valuation allowances established for impaired loans. Collateral pledged: As of December 31, 2017 and 2016 , bonds, cash and cash equivalents with a fair value of $15.0 million and $15.1 million , respectively, were on deposit with state and provincial regulatory authorities. Also, from time to time, the Company pledges securities to and deposits cash with third parties to collateralize liabilities incurred under its policies of reinsurance assumed and other commitments made by the Company. As of December 31, 2017 and 2016 , the amounts of such pledged securities were $12.2 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 | 12 Months Ended |
Dec. 31, 2017 | |
Financial and Credit Risk Management [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 December 31, 2017 and December 31, 2016 ($ in ‘000s): December 31, 2017 Level 1 Level 2 Level 3 Total Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 21,186 $ — $ — $ 21,186 States, municipalities and political subdivisions — 13,243 — 13,243 Corporate Banking/financial services — 21,382 — 21,382 Consumer goods — 9,679 — 9,679 Capital goods — 7,992 — 7,992 Energy — 7,515 — 7,515 Telecommunications/utilities — 11,215 — 11,215 Health care — 1,059 — 1,059 Total Corporate — 58,842 — 58,842 Mortgage Backed Mortgage backed - agency — 30,613 — 30,613 Mortgage backed - commercial — 22,587 — 22,587 Total Mortgage Backed — 53,200 — 53,200 Other asset backed — 11,513 — 11,513 Total Fixed Income Securities $ 21,186 $ 136,798 $ — $ 157,984 Equities 8,446 — — 8,446 Totals $ 29,632 $ 136,798 $ — $ 166,430 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 December 31, 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 December 31, 2017 and December 31, 2016 . There were no transfers in or out of Level 2 or Level 3 during the years ended December 31, 2017 and 2016 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On December 22, 2017, the Tax Act was signed into law. Among other things, beginning with the 2018 tax year, the Tax Act reduced the Company’s corporate federal tax rate from a marginal rate of 35% to a flat 21%, eliminated the corporate Alternative Minimum Tax (“AMT”), changed reserving and other aspects of the computation of taxable income for insurance companies, and modified the net operating loss carryback and carryforward provisions for all entities in the group except for those subject to tax as property and casualty companies. The modified net operating loss provisions no longer allow a carryback to prior years to recover past taxes, but now allow an indefinite carryforward period subject to a yearly utilization limit. As discussed above, any net operating losses with respect to the insurance entities taxed as property and casualty companies retain the current net operating loss carryback and carryover provisions, which are two years carryback and 20 years carryforward. As of December 31, 2016, the Company measured its deferred tax items at the enacted rate in effect of 35%. Due to the Tax Act’s enactment, the Company’s deferred tax assets and liabilities as of December 31, 2017 have been re-measured at the new enacted tax rate of 21%. For the year ended December 31, 2017 , the Company recognized income tax expense of $10.5 million related to reduction in the net deferred tax asset a result of this re-measurement. Atlas’ effective tax rate was 12.1% , (416.8)% , and 34.5% for the years ended December 31, 2017, 2016, and 2015 , respectively. The table below reconciles the U.S. statutory marginal income tax rate to the effective tax rate ($ in ‘000s): Year Ended December 31, 2017 2016 2015 Amount % Amount % Amount % Provision for taxes at U.S. statutory marginal income tax rate $ (15,453 ) 35.0 % $ 179 35.0 % $ 7,716 35.0 % Nondeductible expenses 51 (0.1 )% 24 4.7 % 124 0.6 % Tax-exempt income (23 ) 0.1 % (39 ) (7.6 )% (89 ) (0.4 )% State tax (net of federal benefit) (2 ) — % 28 5.5 % 118 0.5 % Stock compensation (445 ) 1.0 % — — % — — % Nondeductible acquisition accounting adjustment — — % (2,204 ) (430.5 )% 329 1.5 % Change in statutory tax rate 10,542 (23.9 )% — — % (471 ) (2.1 )% Other (13 ) — % (122 ) (23.9 )% (111 ) (0.6 )% Provision for income taxes for continuing operations $ (5,343 ) 12.1 % $ (2,134 ) (416.8 )% $ 7,616 34.5 % Income tax (benefit) expense consists of the following for the years ended December 31, 2017, 2016, and 2015 ($ in ‘000s): Year Ended December 31, 2017 2016 2015 Current tax (benefit) expense $ (6,719 ) $ (2,586 ) $ 7,790 Deferred tax expense (benefit) 1,376 452 (174 ) Total $ (5,343 ) $ (2,134 ) $ 7,616 Upon the transaction forming Atlas on December 31, 2010, a yearly limitation as required by U.S. Internal Revenue Code of 1986 (as amended, “IRC”) Section 382 that applies to changes in ownership on the future utilization of Atlas’ net operating loss carryforwards was calculated. The Insurance Subsidiaries’ prior parent retained those tax assets previously attributed to the Insurance Subsidiaries, which could not be utilized by Atlas as a result of this limitation. As a result, Atlas’ ability to recognize future tax benefits associated with a portion of its deferred tax assets generated during prior years has been permanently limited to the amount determined under IRC Section 382. The result is a maximum expected net deferred tax asset that Atlas has available after the merger, which is believed more-likely-than-not to be utilized in the future, after consideration of valuation allowance. On July 22, 2013, 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 generated prior to the “triggering event” 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 $13.3 million as of December 31, 2017 . The components of net deferred income tax assets and liabilities as of December 31, 2017 and December 31, 2016 are as follows ($ in ‘000s): December 31, 2017 December 31, 2016 Gross deferred tax assets: Losses carried forward $ 13,313 $ 14,535 Claims liabilities and unearned premium reserves 6,171 8,546 Tax credits 1,172 662 Commissions 623 1,269 Stock compensation 602 1,157 Other 1,094 1,027 Total gross deferred tax assets 22,975 27,196 Gross deferred tax liabilities: Deferred policy acquisition costs 3,107 4,628 Investments 213 475 Fixed assets 847 559 Intangible assets 715 1,328 Other 1,108 1,708 Total gross deferred tax liabilities 5,990 8,698 Net deferred tax assets $ 16,985 $ 18,498 Amounts and expiration dates of the operating loss carryforwards as of December 31, 2017 are as follows ($ in ‘000s): Year of Occurrence Year of Expiration Amount 2001 2021 $ 5,007 2002 2022 4,317 2006 2026 7,825 2007 2027 5,131 2008 2028 1,949 2009 2029 1,949 2010 2030 1,949 2011 2031 4,166 2012 2032 9,236 2015 2035 1 2017 2037 21,864 Total $ 63,394 NOLs and other carryforwards generated in 2015 and 2017 are not limited by IRC Section 382. Atlas has not established a valuation allowance for its gross future deferred tax assets as of December 31, 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. However, there can be no guarantee that a valuation allowance will not be required in the future. 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 years ended December 31, 2017, 2016, and 2015 . 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 years 2014 and years thereafter are subject to examination by the IRS. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES On May 22, 2012, Atlas closed the sale and leaseback of the former 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 initial five year lease term, which ended in May 2017. The deferred gain was completely recognized at the end of the second quarter. Atlas recognized $17,000 as an offset to rent expense for the year ended December 31, 2017 and $43,000 for each of the years ended December 31, 2016 and 2015 . Total rental expense recognized on the former headquarters building was $740,000 , $743,000 and $704,000 for the years ended December 31, 2017, 2016, and 2015 , respectively. As of December 31, 2017 , Atlas has the following future minimum rentals, related principally to office space, required under operating leases having initial or remaining noncancelable lease terms in excess of one year ($ in ‘000s): Year 2018 2019 2020 2021 2022 2023 & Beyond Total Amount $ 1,053 $ 1,066 $ 1,056 $ 937 $ 157 $ — $ 4,269 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, which the Company moved into on October 27, 2017. As of December 31, 2017 , the remaining contractual obligations related to the renovation and furnishing of Atlas’ new headquarters building are $1.2 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 December 31, 2017 , the unfunded commitments are $7.0 million . In the ordinary course of its business, Atlas is involved in legal proceedings, including lawsuits, regulatory examinations and inquiries. 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 expected to be material. |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 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 December 31, 2017 and December 31, 2016 (excluding assets held for sale) ($ in ‘000s): As of December 31, 2017 2016 Buildings $ 7,425 $ 7,425 Land 1,840 1,840 Building improvements 7,900 139 Leasehold improvements 140 527 Internal use software 9,567 8,078 Computer equipment 1,465 2,464 Furniture and other office equipment 2,582 586 Total $ 30,919 $ 21,059 Accumulated depreciation (6,480 ) (9,289 ) Total property and equipment, net $ 24,439 $ 11,770 Depreciation expense and amortization was $1.4 million , $1.0 million , and $966,000 for the years ended December 31, 2017, 2016, and 2015 , respectively. During the year ended December 31, 2016, Atlas purchased a building and land for $9.3 million to serve as its new corporate headquarters to replace its former leased office space. Atlas’ Chicago area staff moved into this space in late October 2017 and occupies approximately 70,000 square feet on the second and third floors of the building. An unrelated tenant occupies the remaining office space on the first floor of the building. Rental income related to this lease agreement for the years ended December 31, 2017 and 2016 , was $415,000 and $69,000 , respectively. Depreciation expense related to the building and its improvements was $171,000 for the year ended December 31, 2017 . There was no depreciation expense related to the building and its improvements recorded for the year ended December 31, 2016 . Net realized losses on the disposal and sales of equipment were $12,000 for the year ended December 31, 2017 . There were no realized gains or losses on the disposal of property or equipment for the year ended December 31, 2016 . For the year ended December 31, 2015 , the Company sold property in Alabama and recognized a loss of $20,000 . |
Reinsurance Ceded
Reinsurance Ceded | 12 Months Ended |
Dec. 31, 2017 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | |
Reinsurance Ceded | REINSURANCE CEDED As is customary in the insurance industry, Atlas reinsures portions of certain insurance policies it writes, thereby providing a greater diversification of risk and minimizing exposure on larger risks. Atlas remains contingently at risk with respect to any reinsurance ceded and would incur an additional loss if an assuming company were unable to meet its obligation under the reinsurance treaty. Atlas monitors the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Letters of credit are maintained for any unauthorized reinsurer to cover ceded unearned premium reserves, ceded claims and claims adjustment expense reserve balances and ceded paid claims. These policies mitigate the risk of credit quality or dispute from becoming a danger to financial strength. To date, the Company has not experienced any material difficulties in collecting reinsurance recoverables. Premiums written, premiums earned and amounts related to reinsurance as of and for the years ended December 31, 2017, 2016, and 2015 are as follows ($ in ‘000s): 2017 2016 2015 Direct premiums written $ 261,276 $ 221,723 $ 208,570 Assumed premiums written 14,685 3,372 716 Ceded premiums written (44,825 ) (45,028 ) (39,609 ) Net premiums written $ 231,136 $ 180,067 $ 169,677 Direct premiums earned $ 251,293 $ 217,053 $ 182,376 Assumed premiums earned 9,796 3,074 634 Ceded premiums earned (45,318 ) (49,069 ) (30,946 ) Net premiums earned $ 215,771 $ 171,058 $ 152,064 Ceded claims and claims adjustment expenses 46,643 32,496 19,113 Ceding commissions 11,304 12,065 7,798 Reinsurance recoverables on unpaid claims and claims adjustment expenses 53,402 35,370 29,399 Prepaid reinsurance premiums 12,878 13,372 17,412 Reinsurance recoverables on paid claims and claims adjustment expenses 7,982 7,786 3,277 |
Claim Liabilities
Claim Liabilities | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2017, 2016, and 2015 were as follows ($ in ‘000s): As of the year ended December 31, 2017 2016 2015 Unpaid claims and claims adjustment expenses, beginning of period $ 139,004 $ 127,011 $ 102,430 Less: reinsurance recoverable 35,370 29,399 18,421 Net unpaid claims and claims adjustment expenses, beginning of period 103,634 97,612 84,009 Net reserves acquired — — 19,396 Change in retroactive reinsurance ceded 1,361 107 2,037 Incurred related to: Current year 128,476 102,133 89,828 Prior years 75,397 32,613 166 203,873 134,746 89,994 Paid related to: Current year 50,626 39,652 32,402 Prior years 99,996 89,179 65,422 150,622 128,831 97,824 Net unpaid claims and claims adjustment expenses, end of period 158,246 103,634 97,612 Add: reinsurance recoverable 53,402 35,370 29,399 Unpaid claims and claims adjustment expenses, end of period $ 211,648 $ 139,004 $ 127,011 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 process of determining the provision necessarily involves risks that the actual results may deviate, perhaps substantially, from the best estimates made. Atlas experienced $75.4 million in unfavorable prior accident year development for the year ended December 31, 2017 as reflected as incurred related to prior years in the table above. The unfavorable development is primarily from our core commercial automobile liability line. Atlas previously identified that claim expenses in Michigan were significantly outpacing other states and took a significant charge. Although exposure in Michigan was reduced to approximately 1.4% of the Company’s insured vehicles inforce by year end 2017, payments for claims in this state continued to be disproportionate to historic premiums earned. In addition, the remaining liability for non-New York Global Liberty business written prior to 2016 is expected to settle for greater amounts than previously expected. Overall, the actuarially determined liability for remaining claims related to accident year 2015 and prior in general, across all jurisdictions, was indicated to be higher than carried reserves. Atlas experienced $32.6 million in unfavorable prior accident year development for the year ended December 31, 2016 as reflected as incurred related to prior years in the table above. The unfavorable development is primarily from our core commercial automobile liability line. Excluding pre-acquisition Global Liberty reserve development, the development of our core lines on prior accident years was $23.2 million for the year ended December 31, 2016 . Michigan commercial automobile claims accounted for approximately 62.5% of this development. Pre-acquisition Global Liberty claims reserve development was $7.9 million for the year ended December 31, 2016 . The remaining unfavorable prior year development of $1.5 million for the year ended December 31, 2016 is attributable to assigned risk pools and run-off of non-core business. Atlas experienced $166,000 in unfavorable prior accident year development during the year ended December 31, 2015 as reflected as incurred related to prior years in the table above. Prior accident year unfavorable development on non-core lines and assigned risk pools was $870,000 for the year ended December 31, 2015 . The unfavorable development on non-core lines and assigned risk pools was offset by favorable prior accident year development of $475,000 and $230,000 on our core lines and pre-acquisition Global Liberty claims reserves, respectively. This favorable development on our core lines was attributable to our traditional taxi and excess taxi products. Short-duration insurance contracts For purposes of this discussion, Atlas will disaggregate data based on the type of coverage into commercial automobile liability, including personal injury protection, and all other lines. Commercial automobile liability is the main line of business that Atlas operates. All other lines includes commercial automobile physical damage, taxi workers’ compensation, other liability and Atlas’ short duration lines that are currently in run-off. Amounts related to the Gateway and Global Liberty acquisitions have been included retrospectively for all years presented in the tables below. Claims payments and changes in reserves may be made on accidents that occurred in prior years, not solely on business that is currently insured. Calendar year claims consist of payments and reserve changes that have been recorded in the financial statements during the applicable reporting period, without regard to the period in which the accident occurred. Calendar year results do not change after the end of the applicable reporting period, even as new claim information develops. Accident year claims consist of payments and reserve changes that are assigned to the period in which the accident occurred. Accident year results will change over time as the estimates of claims change due to payments and reserve changes for all accidents that occurred during that period. The following is information about incurred and paid claims and claims adjustment expenses development for the year ended December 31, 2017 , net of reinsurance, as well as cumulative claim frequency and the total of incurred but not reported liabilities plus expected development on reported claims included within the net incurred claims amounts. The information about incurred and paid claims development for the years ended December 31, 2008 to 2015, is presented as unaudited supplementary information. Commercial Automobile Liability Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s, except cumulative number of reported claims) For the Years Ended December 31, As of the year ended December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Incurred but Not Reported Liabilities, Net of Reinsurance Cumulative Number of Reported Claims 2008 $ 29,391 $ 29,434 $ 29,225 $ 29,543 $ 27,922 $ 28,015 $ 27,474 $ 28,005 $ 28,496 $ 28,789 $ 31 15,764 2009 37,394 40,309 43,889 43,604 42,909 42,326 42,987 43,728 43,902 61 13,238 2010 35,877 34,677 35,711 37,026 37,205 38,002 38,841 39,246 122 8,575 2011 31,044 38,822 34,887 34,720 35,136 36,080 36,472 149 7,833 2012 35,948 37,839 38,972 40,429 44,627 46,755 804 9,376 2013 48,449 48,636 53,656 64,687 73,749 3,446 11,725 2014 61,145 53,005 69,555 92,245 8,432 14,659 2015 69,060 67,184 96,521 14,255 19,021 2016 80,824 87,516 20,274 19,373 2017 101,983 46,580 18,516 Total Total $ 647,178 Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s) For the Years Ended December 31, Accident Year 2008 2009 1 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 6,201 $ (6,438 ) $ 7,256 $ 16,010 $ 20,234 $ 23,282 $ 25,060 $ 27,039 $ 28,136 $ 28,601 2009 (3,218 ) 10,711 24,468 31,784 36,385 39,664 42,030 43,287 43,707 2010 10,097 20,483 26,654 31,300 34,831 37,051 38,187 38,930 2011 8,725 18,980 24,978 29,660 33,217 35,324 36,058 2012 8,385 18,230 26,995 35,563 41,587 44,835 2013 10,358 27,198 43,117 59,973 68,612 2014 15,404 38,257 60,486 81,141 2015 18,597 49,556 76,398 2016 21,850 53,812 2017 27,977 Total $ 500,071 All outstanding liabilities before 2008, net of reinsurance 200 Liabilities for claims and allocated claims adjustment expenses, net of reinsurance $ 147,307 1 - year 2009 - negative amounts resulted from the termination of reinsurance agreements Other short-duration lines Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s, except cumulative number of reported claims) For the Years Ended December 31, As of the year ended December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Incurred but Not Reported Liabilities, Net of Reinsurance Cumulative Number of Reported Claims 2008 $ 34,673 $ 38,502 $ 36,796 $ 36,489 $ 36,580 $ 36,576 $ 36,222 $ 36,254 $ 36,260 $ 36,233 $ 4 47,047 2009 35,688 34,764 34,626 35,453 36,343 36,202 36,736 37,061 37,070 54 27,847 2010 26,884 27,729 24,714 24,922 24,392 24,456 24,477 24,478 4 14,330 2011 20,315 22,176 22,310 21,782 22,122 22,941 22,414 22 10,002 2012 13,054 12,723 13,634 13,854 13,934 14,109 308 3,615 2013 5,897 4,754 4,556 4,687 4,711 90 2,149 2014 6,645 6,849 6,978 7,580 571 2,945 2015 8,320 8,616 9,591 1,148 3,968 2016 9,357 9,960 428 4,686 2017 11,086 775 5,013 Total Total $ 177,232 Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s) For the Years Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 21,304 $ 23,263 $ 30,657 $ 33,915 $ 35,442 $ 36,112 $ 36,149 $ 36,222 $ 36,224 $ 36,224 2009 11,296 25,422 30,343 33,186 34,375 35,785 36,164 36,499 36,714 2010 14,182 20,420 22,596 23,812 24,225 24,368 24,414 24,452 2011 11,517 17,419 19,696 20,939 21,600 22,235 22,326 2012 6,446 9,789 11,554 12,782 13,343 13,317 2013 4,195 4,602 4,603 4,612 4,641 2014 6,154 6,677 6,728 6,820 2015 7,886 8,154 8,291 2016 9,413 9,802 2017 10,619 Total $ 173,206 All outstanding liabilities before 2008, net of reinsurance 699 Liabilities for claims and allocated claims adjustment expenses, net of reinsurance $ 4,725 Incurred claims and allocated claim adjustment expenses, net of reinsurance, show how the initial estimate of incurred claims develop for each of the past 10 accident years. Incurred but not reported liabilities, net of reinsurance, by accident year are estimates that are based on the difference between the reported claims and the estimate of the ultimate paid claims and claims adjustment expenses for known and unknown claims. These estimates involve actuarial and statistical projections at a given point in time of what we expect the cost of the ultimate settlement and administration of known and unknown claims. The process reflects the uncertainties and significant judgmental factors inherent in estimating future results of both known and unknown claims, and as such, the process is inherently complex and imprecise. We utilize a third party actuarial firm to assist us in the estimation process. The cumulative number of reported claims for commercial automobile liability was calculated using actual number of claims at the feature/coverage level. For the other lines, claim counts were calculated using actual claim counts at the feature/coverage level for all claims excluding those from assigned risk pools and surety. The actual claim counts for assigned risk pools and surety may not be available for all years presented and are therefore not included in the reported claims amounts. The reconciliation of the net incurred and paid claims and claims adjustment expenses development tables to the liability for claims and claims adjustment expenses in the consolidated statement of financial position as of December 31, 2017 is as follows ($ in ‘000s): As of December 31, 2017 Net outstanding liabilities: Commercial automobile liability $ 147,307 Other short-duration lines 4,725 Unpaid claims and allocated claims adjustment expenses, net of reinsurance 152,032 Reinsurance recoverable on unpaid claims and claims adjustment expenses: Commercial automobile liability 51,335 Other short-duration lines 2,067 Total reinsurance recoverable on unpaid claims and claims adjustment expenses 53,402 Unallocated claims adjustment expenses 6,214 Unpaid claims and claims adjustment expenses, gross of reinsurance $ 211,648 The following is supplementary information about the average annual percentage payout of incurred claims by age, net of amounts recoverable from reinsurers, for the year ended December 31, 2017 (amounts are unaudited). Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Commercial automobile liability 18.4 % 20.0 % 25.4 % 19.3 % 11.4 % 7.3 % 4.1 % 3.9 % 2.4 % 1.6 % Other short-duration lines 68.7 % 15.7 % 8.4 % 5.3 % 2.8 % 1.8 % 0.4 % 0.4 % 0.3 % — % |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2017 and 2016 follows (prices in Canadian dollars designated with “C$” and United States dollars designated with “US$”): 2017 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 (133,338 ) C$6.31 — — Outstanding, end of period 54,390 C$6.00 187,728 C$6.22 2017 2016 US$ 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 Information about options outstanding as of December 31, 2017 is as follows: Grant Date Expiration Date Number Outstanding Number Exercisable January 18, 2011 January 18, 2021 54,390 54,390 March 6, 2014 March 6, 2024 175,000 175,000 March 12, 2015 March 12, 2025 200,000 — Total 429,390 229,390 There are 229,390 stock options that are exercisable as of December 31, 2017 . The stock option grants outstanding have a weighted average remaining life of 6.26 years and have an intrinsic value of $2.2 million as of December 31, 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, ‘Other Employee Benefit Plans’) 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 stock grants for ordinary voting common shares of the Company and (ii) 200,000 options to acquire ordinary voting common shares to the executive officers of the Company as part of the Company’s annual compensation process. The awards were made under the Company’s Equity Incentive Plan. The awards vest in 5 equal annual installments of 20% , provided that an installment shall not vest unless an annual performance target based on specific 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 year ended December 31, 2017 , 40,000 shares of each of the restricted stock grants for ordinary voting common shares and the options to acquire ordinary voting common shares vested. For the year ended December 31, 2016 , performance targets linked to these awards were not achieved, and therefore no vesting occurred. The Monte-Carlo simulation model was used, for both the options and restricted stock grants for ordinary voting common shares, 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 stock grants for ordinary voting common shares, 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 years ended December 31, 2017 and 2016 are as follows: 2017 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 $1.2 million , $1.6 million and $1.8 million in share-based compensation expense, including income tax expense, for the years ended December 31, 2017, 2016, and 2015 , respectively. Total unearned share-based compensation expense was $660,000 related to all stock option grants and $1.4 million related to restricted stock grants for ordinary voting common shares and restricted share units as of December 31, 2017 . This unearned share-based compensation expense will be amortized over the next 26 months . |
Other Employee Benefit Plans
Other Employee Benefit Plans | 12 Months Ended |
Dec. 31, 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 $441,000 , $424,000 , and $300,000 for the years ended December 31, 2017, 2016, and 2015 , 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 are 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. For the years ended December 31, 2017, 2016, and 2015 , Atlas’ costs incurred related to the matching portion of the ESPP were $212,000 , $199,000 , and $151,000 , respectively. Share purchases pursuant to this plan are made in the open market. |
Share Capital and Mezzanine Equ
Share Capital and Mezzanine Equity | 12 Months Ended |
Dec. 31, 2017 | |
Share Capital and Mezzanine Equity [Abstract] | |
Share Capital and Mezzanine Equity | SHARE CAPITAL AND MEZZANINE EQUITY Share Capital The share capital is as follows: As of December 31, 2017 2016 Shares Authorized Shares Issued and Outstanding Amount ($ in ‘000s) Shares Issued and Outstanding Amount ($ in ‘000s) Ordinary voting common shares 266,666,667 12,164,041 $ 36 11,895,104 $ 36 Restricted voting common shares 33,333,334 — — 128,191 — Total common shares 300,000,001 12,164,041 $ 36 12,023,295 $ 36 During 2017, the 128,191 restricted voting common shares that were beneficially owned or controlled by Kingsway Financial Services, Inc. (including its subsidiaries and affiliated companies, “Kingsway”) were sold to non-affiliates of 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 Kingsway-owned restricted voting common shares automatically converted to ordinary voting common shares upon their sale to non-affiliates of Kingsway. There are no restricted voting common shares outstanding as of December 31, 2017 . There were 14,816 and 22,224 non-vested restricted stock units (“RSUs”) as of December 31, 2017 and December 31, 2016 , respectively. These RSUs are participative and are included in the computations of earnings per common share and book value per common share for these periods. During the year ended December 31, 2017, the Company issued 7,408 ordinary voting common shares as a result of the vesting of RSUs. During the year ended December 31, 2017, the Company issued 133,338 ordinary voting common shares as a result of the exercise of options. During the year ended December 31, 2016, the Company issued 7,407 ordinary voting common shares as a result of the vesting of RSUs. On March 21, 2017, the Company’s Board of Directors approved a Share Repurchase Program of up to 650,000 shares of common stock. 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 until March 21, 2018. 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 2017, no shares were repurchased under this Share Repurchase Program. Mezzanine Equity Prior to the year ended December 31, 2017, the Company presented preferred shares issued as contingent consideration within the permanent equity section of the Consolidated Statements of Financial Position. In accordance with FASB ASC Topic 480 - Distinguishing Liabilities from Equity, contingent consideration issued as preferred shares wherein the number of shares to be issued is variable should be classified outside of permanent equity and reflected as mezzanine equity on the Consolidated Statements of Financial Position. For the year ended December 31, 2017, the Company has restated the Consolidated Statements of Shareholders’ Equity to remove the preferred shares and related activity as previously stated for the periods as of January 1, 2015 and for the years ended December 31, 2015 and 2016. Although this impacted total equity for 2015, it had no impact on total equity as of December 31, 2016 due to the redemption and clawback of preferred shares previously issued. In addition, this change did not impact the Consolidated Statements of Financial Position, Consolidated Statements of Income (Loss) and Comprehensive Income (Loss), earnings per common share or the Consolidated Statements of Cash Flows. The Company has evaluated the effect of the incorrect presentation in the prior period, both qualitatively and quantitatively, and concluded that it did not have a material impact on, nor did it require amendment of, any previously filed annual or quarterly consolidated financial statements. During the first quarter of 2015, the Company issued 4,000,000 preferred shares as a portion of the consideration related to the Anchor acquisition and an additional 940,500 preferred shares pursuant to the Gateway stock purchase agreement. 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. As of December 31, 2017 and December 31, 2016 , there were no outstanding preferred shares. The preferred shares redeemed and canceled during 2016 and the preferred shares issued during the first quarter of 2015 pursuant to the Gateway stock purchase agreement have been recorded as a recovery of acquisition expense and additional acquisition expense, respectively, 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. The Anchor cancellation was recorded as a recovery of acquisition expense. 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 December 31, 2017 and December 31, 2016 , Atlas has accrued $333,000 in dividends on the preferred shares for the former owner of Anchor, which remains unpaid. The paid claims development on Global Liberty’s pre-acquisition claims reserves was in excess of $4.0 million , and as a result, pursuant to the terms of the Anchor stock purchase agreement, dividends will no longer accrue to the former owner of Anchor. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS Deferred policy acquisition costs represent those costs that are incremental and directly related to the successful acquisition of new or renewal written premium. Such deferred policy acquisition costs generally include agent commissions, premium taxes and a portion of employee compensation and benefits directly related to time spent performing specific acquisition or renewal activities. The method followed in determining the deferred policy acquisition costs limits the deferral to its realizable value by giving consideration to estimated future claims and expenses to be incurred as premiums are earned. Changes in estimates, if any, are recorded in the accounting period in which they are determined. Anticipated investment income is included in determining the realizable value of the deferred policy acquisition costs. Atlas’ deferred policy acquisition costs are reported net of deferred ceding commissions. Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, typically 12 months. Deferred policy acquisition costs for the years ended December 31, 2017, 2016, and 2015 ($ in ‘000s) were: Year Ended December 31, 2017 2016 2015 Balance, beginning of period $ 13,222 $ 10,235 $ 8,166 Acquisition costs deferred 29,460 21,790 20,661 Amortization charged to income (27,885 ) (18,803 ) (18,592 ) Balance, end of period $ 14,797 $ 13,222 $ 10,235 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 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 Consolidated Statements of Financial Position, included investment vehicles that are considered related-party transactions. As of December 31, 2017 and December 31, 2016 these related-party transactions comprised 8.4% 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/or 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. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) ($ in ‘000s, except per share data) 2017 Q4 Q3 Q2 Q1 Gross premiums written $ 54,213 $ 65,898 $ 57,354 $ 98,496 Net premiums earned 57,431 55,865 54,049 48,426 Net (loss) income (54,297 ) 5,125 5,510 4,852 Net (loss) income attributable to common shareholders (54,297 ) 5,125 5,510 4,852 (Loss) earnings per common share basic $ (4.48 ) $ 0.43 $ 0.46 $ 0.40 (Loss) earnings per common share diluted $ (4.48 ) $ 0.42 $ 0.45 $ 0.40 ($ in ‘000s, except per share data) 2016 Q4 Q3 Q2 Q1 Gross premiums written $ 51,984 $ 60,733 $ 48,353 $ 64,025 Net premiums earned 44,252 43,251 41,802 41,753 Net (loss) income (13,561 ) 6,496 4,900 4,811 Net (loss) income attributable to common shareholders (13,608 ) 6,423 4,822 4,728 (Loss) earnings per common share basic $ (1.13 ) $ 0.53 $ 0.40 $ 0.39 (Loss) earnings per common share diluted $ (1.13 ) $ 0.51 $ 0.38 $ 0.38 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 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 contain 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 also provided for the issuance of letters of credit in an amount up to $2.0 million outstanding at any time. In addition, there was a non-utilization fee for each of the $30.0 million line of credit and $5.0 million revolving line of credit equal to 0.50% per annum of an amount equal to $30.0 million and $5.0 million , respectively, less the daily average of the aggregate principal amount outstanding under such credit lines (plus, in the case of the $30.0 million line of credit, the aggregate amount of the letter of credit obligations outstanding). The Loan Agreement 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. At December 31, 2016, American Acquisition was in compliance with the covenants of the Loan Agreement. In February 2017, American Acquisition filed its statutorily required financial statements for the year ended December 31, 2016, which are used to determine on-going compliance with the covenants contained in the Loan Agreement. As a result of the reserve strengthening and its effect on American Acquisition’s December 31, 2016 financial statements, American Acquisition was not in compliance with the Loan Agreements’ EBITDA Ratio covenant as of March 13, 2017. American Acquisition had a thirty day period to cure this covenant non-compliance, and the Company and American Acquisition agreed with the lender to a modification to the loan covenants to more specifically address the effects of reserve modifications and/or obtaining a waiver with respect to the existing non-compliance. Interest expense on notes payable was $1.8 million , $1.0 million , and $694,000 for the years ended December 31, 2017, 2016, and 2015 , respectively. Notes payable outstanding as of December 31, 2017 and 2016 ($ in ‘000s) were: December 31, 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 (969 ) (213 ) Total notes payable $ 24,031 $ 19,187 |
Statutory Information
Statutory Information | 12 Months Ended |
Dec. 31, 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 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. Net loss computed under statutory-basis accounting was $9.1 million , $15.2 million , $5.9 million , and $5.1 million for American Country, American Service, Gateway and Global Liberty, respectively, for the year ended December 31, 2017 . Net loss for the year ended December 31, 2016 was $1.3 million , $1.2 million , $1.1 million , and $49,000 for American Country, American Service, Gateway and Global Liberty, respectively. The combined statutory capital and surplus of the Insurance Subsidiaries was $87.8 million and $113.9 million as of December 31, 2017 and December 31, 2016 , respectively. Atlas did not declare or pay any dividends to its common shareholders during the years ended December 31, 2017 and 2016 . |
Change in Accounting Principle
Change in Accounting Principle and Error Corrections | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Change in Accounting Principle and Error Corrections | CHANGE IN ACCOUNTING PRINCIPLE AND ERROR CORRECTIONS Change in Accounting Principle The Company elected to early adopt ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, for the year ended December 31, 2017. This update provides guidance on the reclassification of stranded tax effects in AOCI resulting from the Tax Act. We reclassified the effect of the change in the federal corporate tax rate on gross deferred tax items and related valuation allowances for item in AOCI. The adoption of this ASU resulted in a increase to AOCI and an decrease in retained earnings of $7,000 for the year ended December 31, 2017 with no net effect on total shareholders’ equity. Error Corrections Prior to the year ended December 31, 2017, the Company presented preferred shares issued as contingent consideration within the permanent equity section of the Consolidated Statements of Financial Position. In accordance with FASB ASC Topic 480 - Distinguishing Liabilities from Equity, contingent consideration issued as preferred shares wherein the number of shares to be issued is variable should be classified outside of permanent equity and reflected as mezzanine equity on the Consolidated Statements of Financial Position. For the year ended December 31, 2017, the Company has restated the Consolidated Statements of Shareholders’ Equity to remove the preferred shares and related activity as previously stated for the periods as of January 1, 2015 and for the years ended December 31, 2015 and 2016. Although this impacted total equity for 2015, it had no impact on total equity as of December 31, 2016 due to the redemption and clawback of preferred shares previously issued. In addition, this change did not impact the Consolidated Statements of Financial Position, Consolidated Statements of Income (Loss) and Comprehensive Income (Loss), earnings per common share or the Consolidated Statements of Cash Flows. The Company has evaluated the effect of the incorrect presentation in the prior period, both qualitatively and quantitatively, and concluded that it did not have a material impact on, nor did it require amendment of, any previously filed annual or quarterly consolidated financial statements. The following line items presented in the Consolidated Statements of Shareholders’ Equity were affected by the restatement: ($ in ‘000s) As Originally Reported As Adjusted Effect of Change Impact on Total Shareholders’ Equity column as of: December 31, 2014 109,399 107,399 (2,000 ) December 31, 2015 129,622 122,681 (6,941 ) December 31, 2016 127,342 127,342 — |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. SUBSEQUENT EVENTS On March 5, 2018, a complaint was filed in the U.S. District Court for the Northern District of Illinois asserting claims under the federal securities laws against the Company and two of its executive officers on behalf of a putative class of purchasers of the Company’s securities, styled Fryman v. Atlas Financial Holdings, Inc., et al. , No. 1:18-cv-01640 (N.D. Ill.). In the complaint, the plaintiff asserts claims on behalf of a putative class consisting of purchasers of the Company’s securities between March 13, 2017 and March 2, 2018. The complaint alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making allegedly false and misleading statements or failing to disclose certain information regarding the adequacy of the Company’s reserves. The complaint seeks, among other remedies, unspecified damages, attorneys’ fees and other costs, equitable and/or injunctive relief, and such other relief as the court may find just and proper. Under applicable provisions of the federal securities laws, motions for appointment as lead plaintiffs must be filed within sixty days after a notice announcing the filing of the Fryman complaint. The Company and the other defendants anticipate that they will file a motion to dismiss the complaint for failure to state a claim upon which relief can be granted. Under the federal securities laws, discovery and other proceedings automatically will be stayed during the pendency of any such motion to dismiss. |
Schedule II - Condensed Financ
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | Schedule II – Condensed Financial Information of Registrant Statements of Income (Loss) and Comprehensive Income (Loss) ($ in ‘000s) Year ended December 31, 2017 2016 2015 Net investment (expense) income $ (4 ) $ — $ 7 Other underwriting expense (income) 1,436 (4,550 ) 2,566 Interest expense 1,266 — — (Loss) income from operations before income taxes (2,706 ) 4,550 (2,559 ) Income tax benefit (115 ) (559 ) (577 ) (Loss) income before equity in net income of subsidiaries $ (2,591 ) $ 5,109 $ (1,982 ) Equity in net (loss) income of subsidiaries (36,219 ) (2,463 ) 16,412 Net (loss) income $ (38,810 ) $ 2,646 $ 14,430 Other comprehensive income (loss): Changes in net unrealized investment gains (losses) 437 855 (1,912 ) Reclassification to net (loss) income (49 ) 394 203 Effect of income taxes (136 ) (437 ) 597 Other comprehensive income (loss) 252 812 (1,112 ) Total comprehensive (loss) income $ (38,558 ) $ 3,458 $ 13,318 See accompanying Notes to Condensed Financial Information of Registrant Schedule II – Condensed Financial Information of Registrant (continued) Statements of Financial Position ($ in ‘000s, except share and per share data ) December 31, 2017 2016 Assets Cash and cash equivalents $ 4,233 $ 271 Deferred tax asset, net 4,116 3,404 Investment in subsidiaries 109,897 126,564 Total Assets $ 118,246 $ 130,239 Liabilities Notes payable, net $ 24,031 $ — Other liabilities and accrued expenses 3,570 2,897 Total Liabilities $ 27,601 $ 2,897 Shareholders’ Equity Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued and outstanding: December 31, 2017 - 12,164,041 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: December 31, 2017 - 0 and December 31, 2016 - 128,191 — — Additional paid-in capital 201,105 199,244 Retained deficit (110,535 ) (71,718 ) Accumulated other comprehensive income (loss), net of tax 39 (220 ) Total Shareholders’ Equity 90,645 127,342 Total Liabilities and Shareholders’ Equity $ 118,246 $ 130,239 See accompanying notes to Condensed Financial Information of Registrant Schedule II – Condensed Financial Information of Registrant (continued) Statements of Cash Flow ($ in ‘000s) Year Ended December 31, 2017 2016 2015 Operating Activities: Net (loss) income $ (38,810 ) $ 2,646 $ 14,430 Adjustments to reconcile net (loss) income to net cash flows (used in) provided by operating activities: Equity in net loss (income) of subsidiaries 36,219 2,463 (16,412 ) Share-based compensation expense 1,176 1,612 1,819 Deferred income taxes (712 ) (417 ) (251 ) Amortization of financing costs 152 — — Expenses (recovered) incurred pursuant to stock purchase agreements — (6,623 ) 941 Net changes in operating assets and liabilities: Other assets — 479 (476 ) Other liabilities and accrued expenses 673 2,897 (34 ) Net cash flows (used in) provided by operating activities (1,302 ) 3,057 17 Investing activities: Capital contributions made to subsidiaries (19,300 ) — (23,428 ) Net cash flows used in investing activities (19,300 ) — (23,428 ) Financing activities: Preferred share buyback — (2,539 ) — Capital contribution 30 — — Proceeds from notes payable, net of issuance costs 23,879 — — Preferred dividends paid — (409 ) — Options exercised 655 — 145 Net cash flows provided by (used in) financing activities 24,564 (2,948 ) 145 Net change in cash and cash equivalents 3,962 109 (23,266 ) Cash and cash equivalents, beginning of year 271 162 23,428 Cash and cash equivalents, end of year $ 4,233 $ 271 $ 162 Supplemental disclosure of cash information: Cash paid (recovered) for: Interest $ 828 $ — $ — Income taxes (192 ) (3,464 ) 85 Supplemental disclosure of noncash investing and financing activities: Issuance of preferred shares related to acquisition of subsidiary $ — $ — $ 4,000 Issuance of preferred shares related to Gateway stock purchase agreement — — 941 Redemption of preferred shares related to Gateway stock purchase agreement — (2,297 ) — Cancellation of preferred shares related to Anchor stock purchase agreement — (4,000 ) — See accompanying notes to Condensed Financial Information of Registrant Schedule II – Condensed Financial Information of Registrant (continued) Notes to Condensed Financial Information The financial statements of the Registrant should be read in conjunction with the Consolidated Financial Statements and notes thereto included in Item 8. On April 26, 2017, Atlas issued $25 million of five -year 6.625% senior unsecured notes and received net proceeds of approximately $23.9 million after deducting underwriting discounts and commissions and other estimated offering expenses, as described in Note 18, ‘Notes Payable’. Atlas has no other long-term debt obligations. See Note 21, ‘Subsequent Events’ for the details of potential litigation. Atlas has no material contingencies or guarantees except as disclosed in Note 21, ‘Subsequent Event’ to the Consolidated Financial Statements. Atlas has not received cash dividends from its subsidiaries since its inception on December 31, 2010. |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Schedule IV - Reinsurance | Schedule IV – Reinsurance ($ in ‘000s) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount % of Amount Assumed to Net December 31, 2017 Premiums earned $ 251,293 $ (45,318 ) $ 9,796 $ 215,771 4.5 % December 31, 2016 Premiums earned $ 217,053 $ (49,069 ) $ 3,074 $ 171,058 1.8 % December 31, 2015 Premiums earned $ 182,376 $ (30,946 ) $ 634 $ 152,064 0.4 % |
Schedule V - Valuation and qual
Schedule V - Valuation and qualifying accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and qualifying accounts | Schedule V – Valuation and qualifying accounts ($ in ‘000s) Balance at Beginning of Period Charged to Expenses Other Additions Deductions Balance at End of Period December 31, 2017 Allowance for uncollectible receivables $ 2,366 $ 2,365 $ — $ (1,313 ) $ 3,418 Valuation allowance for deferred tax assets — — — — — December 31, 2016 Allowance for uncollectible receivables $ 846 $ 2,397 $ 12 $ (889 ) $ 2,366 Valuation allowance for deferred tax assets — — — — — December 31, 2015 Allowance for uncollectible receivables $ 560 $ 566 $ 8 $ (288 ) $ 846 Valuation allowance for deferred tax assets — — — — — |
Schedule VI - Supplemental info
Schedule VI - Supplemental information concerning property-casualty insurance operations | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |
Schedule VI - Supplemental Information concerning property-casualty insurance operations | Schedule VI - Supplemental information concerning property-casualty insurance operations ($ in ‘000s) Year Ended December 31, 2017 2016 2015 Deferred policy acquisition costs $ 14,797 $ 13,222 $ 10,235 Claims liabilities 211,648 139,004 127,011 Unearned premium reserves 128,043 113,171 108,202 Net premiums earned 215,771 171,058 152,064 Net investment income 4,897 4,824 3,976 Claims and claims adjustment expenses incurred Current year 128,476 102,133 89,828 Prior year 75,397 32,613 166 Amortization of deferred policy acquisition costs 27,885 18,803 18,592 Paid claims and claims adjustment expenses 150,622 128,831 97,824 Gross premiums written 275,961 225,095 209,286 |
Nature of Operations and Basi32
Nature of Operations and Basis of Presentation Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation - The consolidated financial statements include the accounts of Atlas and the entities it controls. Subsidiaries are entities over which Atlas, directly or indirectly, has the power to govern the financial and operating policies in order to obtain the benefits from their activities, generally accompanying an equity shareholding of more than one half of the voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to Atlas and would be de-consolidated from the date that control ceases. The operating results of subsidiaries acquired or disposed of during the year will be included in the consolidated statements of income (loss) and comprehensive income (loss) from the effective date of acquisition and up to the effective date of disposal, as appropriate. All significant intercompany transactions and balances are eliminated in consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by Atlas. The following are Atlas’ subsidiaries, all of which are 100% owned, either directly or indirectly, together with the jurisdiction of incorporation, that are included in consolidated financial statements: American Insurance Acquisition Inc. (Delaware) American Country Insurance Company (Illinois) American Service Insurance Company, Inc. (Illinois) Camelot Services, Inc. (Missouri) - merged into American Insurance Acquisition Inc. during 2014 Gateway Insurance Company (Missouri) Anchor Holdings Group, Inc. (New York) Global Liberty Insurance Company of New York (New York) Plainview Premium Finance Company, Inc. (Delaware) Plainview Premium Finance Company of California, Inc. (California) Anchor Group Management Inc. (New York) UBI Holdings Inc. (Delaware) DriveOn Digital IP Inc. (Delaware) Prior to the year ended December 31, 2017, the Company presented preferred shares issued as contingent consideration within the permanent equity section of the Consolidated Statements of Financial Position. In accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 480 - Distinguishing Liabilities from Equity, contingent consideration issued as preferred shares wherein the number of shares to be issued is variable should be classified outside of permanent equity and reflected as mezzanine equity on the Consolidated Statements of Financial Position. For the year ended December 31, 2017, the Company has restated the Consolidated Statements of Shareholders’ Equity to remove the preferred shares and related activity as previously stated for the periods as of January 1, 2015 and for the years ended December 31, 2015 and 2016. Although this impacted total equity for 2015, it had no impact on total equity as of December 31, 2016 due to the redemption and clawback of preferred shares previously issued. In addition, this change did not impact the Consolidated Statements of Financial Position, Consolidated Statements of Income (Loss) and Comprehensive Income (Loss), earnings per common share or the Consolidated Statements of Cash Flows. The Company has evaluated the effect of the incorrect presentation in the prior period, both qualitatively and quantitatively, and concluded that it did not have a material impact on, nor did it require amendment of, any previously filed annual or quarterly consolidated financial statements. See Note 20, ‘Change in Accounting Principle and Error Corrections’ for additional information regarding the preferred shares restatement. |
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. |
Investments | Financial instruments - Financial instruments are recognized and unrecognized using trade date accounting, since that is the date Atlas contractually commits to the purchase or sale with the counterparty. Effective interest method - For securities other than mortgage backed and asset backed, Atlas utilizes the effective interest method to calculate the amortized cost of the financial asset and to amortize the premium or accrete the discount over the remaining life. The effective interest rate is the rate that discounts the estimated future cash flows through the expected life of the financial instrument. Mortgage backed and asset backed securities are valued using the retrospective adjustment method, which uses the effective interest method and includes anticipated prepayments. Interest income is reported net of amortization of premium and accretion of discount. Realized gains and losses on disposition of available-for-sale securities are based on the net proceeds and the adjusted cost of the securities sold using the specific identification method. Cash and cash equivalents - Cash and cash equivalents include cash and highly liquid securities with original maturities of 90 days or less. Available for sale - Investments in fixed income and equity securities are classified as available for sale. Securities are classified as available for sale when Atlas may decide to sell those securities due to changes in market interest rates, liquidity needs, changes in yields or alternative investments, and for other reasons. Available-for-sale securities are carried at fair value, with unrealized gains and losses, net of income taxes, included as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. Impairment of financial assets - Atlas assesses, on a quarterly basis, whether there is evidence that a financial asset or group of financial assets is impaired. An investment is considered impaired when the fair value of the investment is less than its cost or amortized cost. When an investment is impaired, the Company must make a determination as to whether the impairment is other than temporary. The analysis includes some or all of the following procedures as deemed appropriate by management: ◦ identifying all security holdings in unrealized loss positions that have existed for at least six months or other circumstances that management believes may impact the recoverability of the security; ◦ obtaining a valuation analysis from third party investment managers regarding these holdings based on their knowledge, experience and other market based valuation techniques; ◦ reviewing the trading range of certain securities over the preceding calendar period; ◦ assessing whether declines in market value are other than temporary for debt security holdings based on credit ratings from third party security rating agencies; and ◦ determining the necessary provision for declines in market value that are considered other than temporary based on the analyses performed. The risks and uncertainties inherent in the assessment methodology utilized to determine declines in market value that are other than temporary include, but may not be limited to, the following: ◦ the opinion of professional investment managers could prove to be incorrect; ◦ the past trading patterns of individual securities may not reflect future valuation trends; ◦ the credit ratings assigned by independent credit rating agencies may prove to be incorrect due to unforeseen or unknown facts related to a company’s financial situation; and ◦ the debt service pattern of non-investment grade securities may not reflect future debt service capabilities and may not reflect a company’s unknown underlying financial problems. Under Accounting Standards Codification (“ASC”), with respect to an investment in an impaired debt security, other-than-temporary impairment (“OTTI”) occurs if (a) there is intent to sell the debt security, (b) it is more likely than not it will be required to sell the debt security before its anticipated recovery, or (c) it is probable that all amounts due will be unable to be collected such that the entire cost basis of the security will not be recovered. If Atlas intends to sell the debt security, or will more likely than not be required to sell the debt security before the anticipated recovery, a loss in the entire amount of the impairment is reflected in net investment gains (losses) on investments in the consolidated statements of income (loss). If Atlas determines that it is probable it will be unable to collect all amounts and Atlas has no intent to sell the debt security, a credit loss is recognized in net investment gains (losses) on investments in the consolidated statements of income (loss) to the extent that the present value of expected cash flows is less than the amortized cost basis; any difference between fair value and the new amortized cost basis (net of the credit loss) is reflected in other comprehensive income (losses), net of applicable income taxes. For equity securities, the Company evaluates its ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Evidence considered to determine anticipated recovery are analysts’ reports on the near-term prospects of the issuer and the financial condition of the issuer or the industry, in addition to the length and extent of the market value decline. If an OTTI is identified, the equity security is adjusted to fair value through a charge to earnings. |
Fair values of financial instruments | Fair values of financial instruments - Atlas has used the following methods and assumptions in estimating its fair value disclosures: Fair values for investments are based on quoted market prices, when available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or values obtained from independent pricing services. Atlas’ fixed income portfolio is managed by a SEC registered investment advisor specializing in the management of insurance company portfolios. Management works directly with them to ensure that Atlas benefits from their expertise and also evaluates investments as well as specific positions independently using internal resources. Atlas’ investment advisor has a team of credit analysts for all investment grade fixed income sectors. The investment process begins with an independent analyst review of each security’s credit worthiness using both quantitative tools and qualitative review. At the issuer level, this includes reviews of past financial data, trends in financial stability, projections for the future, reliability of the management team in place, market data (credit spread, equity prices, trends in this data for the issuer and the issuer’s industry). Reviews also consider industry trends and the macro-economic environment. This analysis is continuous, integrating new information as it becomes available. As of December 31, 2017 , this process did not generate any significant difference in the rating assessment between Atlas’ review and the rating agencies. Atlas employs specific control processes to determine the reasonableness of the fair value of its financial assets. These processes are designed to supplement those performed by Atlas’ investment advisor to ensure that the values received from them are accurately recorded and that the data inputs and the valuation techniques utilized are appropriate, consistently applied, and that the assumptions are reasonable and consistent with the objective of determining fair value. For example, on a continuing basis, Atlas assesses the reasonableness of individual security values that have stale prices or whose changes exceed certain thresholds as compared to previous values received from Atlas’ investment advisor or to expected prices. The portfolio is reviewed routinely for transaction volumes, new issuances, any changes in spreads, as well as the overall movement of interest rates along the yield curve to determine if sufficient activity and liquidity exists to provide a credible source for market valuations. When fair value determinations are expected to be more variable, they are validated through reviews by members of management or the Board of Directors who have relevant expertise and who are independent of those charged with executing investment transactions. Atlas employs a fair value hierarchy to categorize the inputs it uses in valuation techniques to measure the fair value. The hierarchy is comprised of quoted prices in active markets (Level 1), third party pricing models using available trade, bid and market information (Level 2) and internal models without observable market information (Level 3). The Company recognizes transfers between levels of the fair value hierarchy at the end of the period in which events occur impacting the availability of inputs to the fair value methodology. |
Premiums receivable | Premiums receivable - Premiums receivable include premium balances due and uncollected and installment premiums not yet due from agents and insureds. Atlas evaluates the collectibility of accounts receivable based on a combination of factors. When aware of a specific customer’s inability to meet its financial obligations, such as in the case of bankruptcy or deterioration in the customer’s operating results or financial position, Atlas records a specific reserve for bad debt to reduce the related receivable to the amount Atlas reasonably believes is collectible. Atlas also records reserves for bad debt for all other customers based on a variety of factors, including the length of time the receivables are past due and historical collection experience. Accounts are reviewed for potential write-off on a case-by-case basis. Accounts deemed uncollectible are written off, net of expected recoveries. If circumstances related to specific customers change, estimates of the recoverability of receivables could be further adjusted. |
Deferred policy acquisition costs (DPAC) | Deferred policy acquisition costs (“DPAC”) - Atlas defers producers’ commissions, premium taxes and other underwriting costs directly relating to the successful acquisition of premiums written to the extent they are considered recoverable. These costs are then expensed as the related premiums are earned. The method followed in determining the deferred policy acquisition costs limits the deferral to its realizable value by giving consideration to estimated future claims and expenses to be incurred as premiums are earned. Changes in estimates, if any, are recorded in the accounting period in which they are determined. Anticipated investment income is included in determining the realizable value of the deferred policy acquisition costs. Atlas’ deferred policy acquisition costs are reported net of deferred ceding commissions. When anticipated claims, claims adjustment expenses, commissions and other acquisition costs exceed recorded unearned premium and any future installment premiums on existing policies, a premium deficiency reserve is recognized by recording a reduction to DPAC with a corresponding charge to operations. Atlas utilizes anticipated investment income as a factor in its premium deficiency calculation. Atlas concluded that no premium deficiency adjustments were necessary in any of the years ended December 31, 2017, 2016, and 2015 . |
Income Taxes | Income taxes - Income taxes expense (benefit) includes all taxes based on taxable income (loss) of Atlas and its subsidiaries, and are recognized in the statements of income and comprehensive income except to the extent that they relate to items recognized directly in other comprehensive income, in which case the income tax effect is also recognized in other comprehensive income. Deferred taxes are recognized based on the differences in the tax basis of assets, liabilities and items recognized directly in equity and the financial reporting basis of such items. Deferred tax assets are recognized only to the extent that it is probable that future taxable income will be available against which they can be utilized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on future tax assets and liabilities of a change in tax rates is recognized in income in the period of enactment. When considering the extent of the valuation allowance on Atlas’ deferred tax asset, weight is given by management to both positive and negative evidence. U.S. GAAP states that a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome in determining that a valuation allowance is not needed against deferred tax assets. However, the strength and trend of earnings, as well as other relevant factors are considered. Atlas accounts for uncertain tax positions in accordance with the income taxes accounting guidance. Atlas analyzes filing positions in the federal and state jurisdiction where it is required to file tax returns, as well as the open tax years in these jurisdictions. Atlas would recognize interest and penalties related to unrecognized tax benefits as a component of the provision for federal income taxes. |
Goodwill | Goodwill – Atlas recognized goodwill as part of the acquisition of Anchor Holdings Group, Inc. The amounts recognized represent the cost of the acquisition above the fair value of the net assets acquired. Atlas reviews goodwill at least annually for impairment. Atlas concluded that there was no goodwill impairment in any of the years ended December 31, 2017, 2016, and 2015 . |
Intangible Assets | Intangible assets – Atlas recognized intangible assets as part of the acquisitions of Gateway and Anchor Holdings Group, Inc. The intangible assets are classified as either indefinite-lived or definite-lived depending on whether the useful lives can be identified. Atlas indefinite-lived intangible assets consist of state insurance licenses, and these intangible assets are reviewed for impairment at least annually. Atlas concluded that there was no indefinite-lived intangible asset impairment in any of the years ended December 31, 2017, 2016, and 2015 . Definite-lived intangible assets are amortized over their useful lives on a straight-line basis except for customer related intangibles, which are on an accelerated basis. Atlas definite-lived intangible assets consist of trade names and trademarks with useful lives of 15 years and customer relationships with useful lives of 10 years . |
Business Combinations | Business combinations - The value of certain assets and liabilities acquired are subject to adjustment from the initial purchase price allocation as additional information is obtained, including, but not limited to, valuation of separately identifiable intangibles, the preferred stock issued to the seller, and deferred taxes. The valuations are finalized within 12 months of the close of the acquisition (not including claims reserve development consideration, if applicable). The changes upon finalization to the initial purchase price allocation and valuation of assets and liabilities may result in an adjustment to identifiable intangible assets and goodwill. Adjustments to the provisional amounts identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. The effect of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date, are recorded in the financial statements and presented separately on the statements of income and comprehensive income in the reporting period in which the adjustment amounts are determined. |
Property and equipment | Property and equipment – Buildings, office equipment, and internal use software are stated at historical cost less depreciation. Subsequent costs are included in the asset’s carrying amount or capitalized as a separate asset only when it is probable that future economic benefits will be realized. Land is stated at historical cost. Repairs and maintenance are recognized as an expense during the period incurred. Depreciation on buildings and building improvements are provided on a straight-line basis over the estimated useful life of 33 years. Depreciation on equipment is provided on a straight-line basis over the estimated useful lives which range from 5 years for vehicles, 5 years for furniture, 5 years for enterprise software and 3 years for all other software and computer equipment and the term of the lease for leased equipment. |
Insurance contracts | Insurance contracts – Contracts under which Atlas’ Insurance Subsidiaries accept risk at the inception of the contract from another party (the insured holder of the policy) by agreeing to compensate the policyholder or other insured beneficiary if a specified future event (the insured event) adversely affects the holder of the policy are classified as insurance contracts. All policies are short-duration contracts. |
Revenue Recognition | Revenue recognition - Premium income is recognized on a pro rata basis over the terms of the respective insurance contracts. Unearned premium reserves represent the portion of premiums written that are related to the unexpired terms of the policies in force. |
Claims liabilities | Claims liabilities - The provision for unpaid claims represent the estimated liabilities for reported claims, plus those incurred but not yet reported and the related estimated claims adjustment expenses, such as legal fees. Unpaid claims adjustment expenses are determined using case-basis evaluations and statistical analyses, including insurance industry claims data, and represent estimates of the ultimate cost of all claims incurred. Although considerable variability is inherent in such estimates, management believes that the liability for unpaid claims and claims adjustment expenses is adequate. The estimates are continually reviewed and adjusted as necessary; such adjustments are included in current operations and are accounted for as changes in estimates. |
Reinsurance | Reinsurance - As part of Atlas’ insurance risk management policies, portions of its insurance risk is ceded to reinsurers. Reinsurance premiums and claims expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums and claims ceded to other companies have been reported as a reduction of premium revenue and claims incurred. Commissions paid to Atlas by reinsurers on business ceded have been accounted for as a reduction of the related policy acquisition costs. Reinsurance recoverables are recorded for that portion of paid and unpaid claims and claims adjustment expenses that are ceded to other companies. Prepaid reinsurance premiums are recorded for unearned premiums that have been ceded to other companies. |
Share-based payments | Share-based compensation - Atlas has a share-based compensation plan that is described in Note 12, ‘Share-Based Compensation,’ to the Consolidated Financial Statements. Atlas uses the fair-value method of accounting to determine and account for equity settled transactions and to determine stock-based compensation for awards granted to employees and non-employees. For stock-based compensation for awards granted to employees and non-employees that include a performance provision, the Monte-Carlo simulation model is utilized to determine fair value. Stock-based compensation prior to 2015 was valued using the Black-Scholes option pricing model. Compensation expense is recognized over the period that the stock options vest, with a corresponding increase to additional paid in capital. For option awards with graded vesting, expense is recognized on a straight line basis over the service period for the entire award. |
Operating segments | Operating segments - Atlas operates in one business segment, the property and casualty insurance business. |
Reclassifications | Reclassifications - Certain accounts in the prior years’ consolidated financial statement have been reclassified for comparative purposes to conform to the current year’s presentation. |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Finite-Lived Intangible Assets | The following table presents a summary of definite-lived intangible assets by major asset class as of December 31, 2017 and December 31, 2016 : ($ in ‘000s) As of December 31, 2017 Economic Useful Life Gross Carrying Amount Accumulated Amortization Net Trade name and trademark 15 years $ 1,800 $ 337 $ 1,463 Customer relationship 10 years 2,700 758 1,942 State insurance licenses Indefinite 740 — 740 $ 5,240 $ 1,095 $ 4,145 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 |
Schedule of Indefinite-Lived Intangible Assets | ($ in ‘000s) As of December 31, 2017 Economic Useful Life Gross Carrying Amount Accumulated Amortization Net Trade name and trademark 15 years $ 1,800 $ 337 $ 1,463 Customer relationship 10 years 2,700 758 1,942 State insurance licenses Indefinite 740 — 740 $ 5,240 $ 1,095 $ 4,145 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 |
Anchor Holdings Group, Inc. et. al. | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisition Pro Forma Information | These results were prepared for comparative purposes only and do not purport to be indicative of the results of operations that may have actually resulted had the acquisition occurred on the indicated dates, nor are they indicative of potential future operating results of the Company. ($ in ‘000s, except per share information) Year Ended December 31, 2015 Revenue $ 162,311 Income from operations before income taxes 1 23,601 Net income 1 15,420 Earnings per common share basic 1 $ 1.26 Earnings per common share diluted 1 $ 1.21 1 - Excludes expenses incurred in the connection with the Anchor acquisition |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Shares, 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 years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 are as follows ($ in ‘000s, except share and per share amounts): Year Ended December 31, 2017 2016 2015 Basic: (Loss) income from operations before income taxes $ (44,153 ) $ 512 $ 22,046 Income tax (benefit) expense (5,343 ) (2,134 ) 7,616 Net (loss) income $ (38,810 ) $ 2,646 $ 14,430 Less: Preferred share dividends — 281 276 Net (loss) income attributable to common shareholders $ (38,810 ) $ 2,365 $ 14,154 Basic weighted average common shares outstanding 12,064,880 12,045,519 11,975,579 (Loss) earnings per common share basic $ (3.22 ) $ 0.20 $ 1.18 Diluted: Basic weighted average common shares outstanding 12,064,880 12,045,519 11,975,579 Dilutive potential ordinary shares: Dilutive stock options outstanding — 177,364 186,656 Dilutive shares upon preferred share conversion — — 573,444 Diluted weighted average common shares outstanding 12,064,880 12,222,883 12,735,679 (Loss) earnings per common share diluted $ (3.22 ) $ 0.19 $ 1.13 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 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 as of ($ in ‘000s): December 31, 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 $ 21,488 $ — $ (302 ) $ 21,186 States, municipalities and political subdivisions 13,265 78 (100 ) 13,243 Corporate Banking/financial services 21,246 189 (53 ) 21,382 Consumer goods 9,674 70 (65 ) 9,679 Capital goods 7,822 181 (11 ) 7,992 Energy 7,460 81 (26 ) 7,515 Telecommunications/utilities 11,179 109 (73 ) 11,215 Health care 1,112 1 (54 ) 1,059 Total Corporate 58,493 631 (282 ) 58,842 Mortgage Backed Mortgage backed - agency 30,920 57 (364 ) 30,613 Mortgage backed - commercial 22,689 153 (255 ) 22,587 Total Mortgage Backed 53,609 210 (619 ) 53,200 Other asset backed 11,556 8 (51 ) 11,513 Total Fixed Income Securities $ 158,411 $ 927 $ (1,354 ) $ 157,984 Equities 7,969 503 (26 ) 8,446 Totals $ 166,380 $ 1,430 $ (1,380 ) $ 166,430 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 December 31, 2017 Amortized Cost Fair Value Due in less than one year $ 11,149 $ 11,141 Due in one through five years 33,941 33,857 Due after five through ten years 41,542 41,538 Due after ten years 6,614 6,735 Total contractual maturity 93,246 93,271 Total mortgage and asset backed 65,165 64,713 Total $ 158,411 $ 157,984 |
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 December 31, 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 $ 11,179 $ (110 ) $ 10,007 $ (192 ) $ 21,186 $ (302 ) States, municipalities and political subdivisions 5,355 (36 ) 2,818 (64 ) 8,173 (100 ) Corporate Banking/financial services 6,021 (26 ) 1,931 (27 ) 7,952 (53 ) Consumer goods 5,835 (47 ) 710 (18 ) 6,545 (65 ) Capital goods 2,611 (10 ) 101 (1 ) 2,712 (11 ) Energy 3,368 (26 ) — — 3,368 (26 ) Telecommunications/utilities 4,488 (23 ) 938 (50 ) 5,426 (73 ) Health care 607 (7 ) 322 (47 ) 929 (54 ) Total Corporate 22,930 (139 ) 4,002 (143 ) 26,932 (282 ) Mortgage Backed Mortgage backed - agency 13,203 (136 ) 9,786 (228 ) 22,989 (364 ) Mortgage backed - commercial 10,360 (53 ) 6,553 (202 ) 16,913 (255 ) Total Mortgage Backed 23,563 (189 ) 16,339 (430 ) 39,902 (619 ) Other asset backed 9,817 (44 ) 1,087 (7 ) 10,904 (51 ) Total Fixed Income Securities $ 72,844 $ (518 ) $ 34,253 $ (836 ) $ 107,097 $ (1,354 ) Equities 1,007 (26 ) — — 1,007 (26 ) Totals $ 73,851 $ (544 ) $ 34,253 $ (836 ) $ 108,104 $ (1,380 ) 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 the Components of Net Investment Income | The following table summarizes the components of net investment income for the years ended December 31, 2017, 2016, and 2015 ($ in ‘000s): Year Ended December 31, 2017 2016 2015 Total investment income Interest income $ 3,834 $ 3,747 $ 3,371 Dividends — — 43 Income from other investments 1,911 1,942 1,344 Investment expenses (848 ) (865 ) (782 ) Net investment income $ 4,897 $ 4,824 $ 3,976 |
Schedule of Realized Gain (Loss) | The following table presents the aggregate proceeds, gross realized investment gains and gross realized investment losses from sales and calls of fixed income securities and equities for the years ended December 31, 2017, 2016, and 2015 ($ in ‘000s): Year Ended December 31, 2017 2016 2015 Fixed income securities 1 : Proceeds from sales and calls $ 24,274 $ 59,161 $ 32,089 Gross realized investment gains 300 1,296 686 Gross realized investment losses (55 ) (131 ) (199 ) Equities: Proceeds from sales 6,161 662 1,402 Gross realized investment gains 635 65 69 Gross realized investment losses (2 ) — (81 ) Total: Proceeds from sales and calls $ 30,435 $ 59,823 $ 33,491 Gross realized investment gains 935 1,361 755 Gross realized investment losses (57 ) (131 ) (280 ) 1 - The proceeds from sales and calls, gross realized investment gains and gross realized investment losses on fixed income securities for the years ended December 31, 2016 and 2015 were restated to include both voluntary and involuntary calls. |
Summary of the Components of Net Investment Realized Gains | The following table summarizes the components of net realized gains (losses) for the years ended December 31, 2017, 2016, and 2015 ($ in ‘000s): Year Ended December 31, 2017 2016 2015 Fixed income securities $ 245 $ 1,165 $ 487 Equities 633 65 (12 ) Other (6 ) — (20 ) Net realized gains $ 872 $ 1,230 $ 455 |
Equity Method Investments | The following table summarizes investments in equity method investments by investment type as of December 31, 2017 and December 31, 2016 ($ in ‘000s): Unfunded Commitments Carrying Value As of December 31, 2017 2017 2016 Real estate 1 $ 2,842 $ 10,660 $ 10,797 Insurance linked securities — 9,073 9,178 Activist hedge funds — 4,367 4,336 Venture capital 1 4,150 853 623 Other joint venture — 325 — Total Equity Method Investments $ 6,992 $ 25,278 $ 24,934 1 - We recategorized the carrying value of one limited partnership that was valued at $283,000 as of December 31, 2016 from ‘Venture capital’ to ‘Real estate’ based on its operations. |
Fair Value of Financial Instr36
Fair Value of Financial Instruments Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial and Credit Risk Management [Abstract] | |
Summary of Investments at Fair Value | The following table summarizes Atlas’ investments at fair value as of December 31, 2017 and December 31, 2016 ($ in ‘000s): December 31, 2017 Level 1 Level 2 Level 3 Total Fixed Income Securities: U.S. Treasury and other U.S. government obligations $ 21,186 $ — $ — $ 21,186 States, municipalities and political subdivisions — 13,243 — 13,243 Corporate Banking/financial services — 21,382 — 21,382 Consumer goods — 9,679 — 9,679 Capital goods — 7,992 — 7,992 Energy — 7,515 — 7,515 Telecommunications/utilities — 11,215 — 11,215 Health care — 1,059 — 1,059 Total Corporate — 58,842 — 58,842 Mortgage Backed Mortgage backed - agency — 30,613 — 30,613 Mortgage backed - commercial — 22,587 — 22,587 Total Mortgage Backed — 53,200 — 53,200 Other asset backed — 11,513 — 11,513 Total Fixed Income Securities $ 21,186 $ 136,798 $ — $ 157,984 Equities 8,446 — — 8,446 Totals $ 29,632 $ 136,798 $ — $ 166,430 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 Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Atlas’ effective tax rate was 12.1% , (416.8)% , and 34.5% for the years ended December 31, 2017, 2016, and 2015 , respectively. The table below reconciles the U.S. statutory marginal income tax rate to the effective tax rate ($ in ‘000s): Year Ended December 31, 2017 2016 2015 Amount % Amount % Amount % Provision for taxes at U.S. statutory marginal income tax rate $ (15,453 ) 35.0 % $ 179 35.0 % $ 7,716 35.0 % Nondeductible expenses 51 (0.1 )% 24 4.7 % 124 0.6 % Tax-exempt income (23 ) 0.1 % (39 ) (7.6 )% (89 ) (0.4 )% State tax (net of federal benefit) (2 ) — % 28 5.5 % 118 0.5 % Stock compensation (445 ) 1.0 % — — % — — % Nondeductible acquisition accounting adjustment — — % (2,204 ) (430.5 )% 329 1.5 % Change in statutory tax rate 10,542 (23.9 )% — — % (471 ) (2.1 )% Other (13 ) — % (122 ) (23.9 )% (111 ) (0.6 )% Provision for income taxes for continuing operations $ (5,343 ) 12.1 % $ (2,134 ) (416.8 )% $ 7,616 34.5 % |
Schedule of Components of Income Tax Expense (Benefit) | Income tax (benefit) expense consists of the following for the years ended December 31, 2017, 2016, and 2015 ($ in ‘000s): Year Ended December 31, 2017 2016 2015 Current tax (benefit) expense $ (6,719 ) $ (2,586 ) $ 7,790 Deferred tax expense (benefit) 1,376 452 (174 ) Total $ (5,343 ) $ (2,134 ) $ 7,616 |
Schedule of Deferred Tax Assets and Liabilities | The components of net deferred income tax assets and liabilities as of December 31, 2017 and December 31, 2016 are as follows ($ in ‘000s): December 31, 2017 December 31, 2016 Gross deferred tax assets: Losses carried forward $ 13,313 $ 14,535 Claims liabilities and unearned premium reserves 6,171 8,546 Tax credits 1,172 662 Commissions 623 1,269 Stock compensation 602 1,157 Other 1,094 1,027 Total gross deferred tax assets 22,975 27,196 Gross deferred tax liabilities: Deferred policy acquisition costs 3,107 4,628 Investments 213 475 Fixed assets 847 559 Intangible assets 715 1,328 Other 1,108 1,708 Total gross deferred tax liabilities 5,990 8,698 Net deferred tax assets $ 16,985 $ 18,498 |
Summary of Operating Loss Carryforwards | Amounts and expiration dates of the operating loss carryforwards as of December 31, 2017 are as follows ($ in ‘000s): Year of Occurrence Year of Expiration Amount 2001 2021 $ 5,007 2002 2022 4,317 2006 2026 7,825 2007 2027 5,131 2008 2028 1,949 2009 2029 1,949 2010 2030 1,949 2011 2031 4,166 2012 2032 9,236 2015 2035 1 2017 2037 21,864 Total $ 63,394 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Atlas has the following future minimum rentals, related principally to office space, required under operating leases having initial or remaining noncancelable lease terms in excess of one year ($ in ‘000s): Year 2018 2019 2020 2021 2022 2023 & Beyond Total Amount $ 1,053 $ 1,066 $ 1,056 $ 937 $ 157 $ — $ 4,269 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Atlas held the following property and equipment, including internal use software, as of December 31, 2017 and December 31, 2016 (excluding assets held for sale) ($ in ‘000s): As of December 31, 2017 2016 Buildings $ 7,425 $ 7,425 Land 1,840 1,840 Building improvements 7,900 139 Leasehold improvements 140 527 Internal use software 9,567 8,078 Computer equipment 1,465 2,464 Furniture and other office equipment 2,582 586 Total $ 30,919 $ 21,059 Accumulated depreciation (6,480 ) (9,289 ) Total property and equipment, net $ 24,439 $ 11,770 |
Reinsurance Ceded Reinsurance C
Reinsurance Ceded Reinsurance Ceded (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2017, 2016, and 2015 are as follows ($ in ‘000s): 2017 2016 2015 Direct premiums written $ 261,276 $ 221,723 $ 208,570 Assumed premiums written 14,685 3,372 716 Ceded premiums written (44,825 ) (45,028 ) (39,609 ) Net premiums written $ 231,136 $ 180,067 $ 169,677 Direct premiums earned $ 251,293 $ 217,053 $ 182,376 Assumed premiums earned 9,796 3,074 634 Ceded premiums earned (45,318 ) (49,069 ) (30,946 ) Net premiums earned $ 215,771 $ 171,058 $ 152,064 Ceded claims and claims adjustment expenses 46,643 32,496 19,113 Ceding commissions 11,304 12,065 7,798 Reinsurance recoverables on unpaid claims and claims adjustment expenses 53,402 35,370 29,399 Prepaid reinsurance premiums 12,878 13,372 17,412 Reinsurance recoverables on paid claims and claims adjustment expenses 7,982 7,786 3,277 |
Claim Liabilities Claim Liabili
Claim Liabilities Claim Liabilities (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2017, 2016, and 2015 were as follows ($ in ‘000s): As of the year ended December 31, 2017 2016 2015 Unpaid claims and claims adjustment expenses, beginning of period $ 139,004 $ 127,011 $ 102,430 Less: reinsurance recoverable 35,370 29,399 18,421 Net unpaid claims and claims adjustment expenses, beginning of period 103,634 97,612 84,009 Net reserves acquired — — 19,396 Change in retroactive reinsurance ceded 1,361 107 2,037 Incurred related to: Current year 128,476 102,133 89,828 Prior years 75,397 32,613 166 203,873 134,746 89,994 Paid related to: Current year 50,626 39,652 32,402 Prior years 99,996 89,179 65,422 150,622 128,831 97,824 Net unpaid claims and claims adjustment expenses, end of period 158,246 103,634 97,612 Add: reinsurance recoverable 53,402 35,370 29,399 Unpaid claims and claims adjustment expenses, end of period $ 211,648 $ 139,004 $ 127,011 |
Short-duration Insurance Contracts, Claims Development | The following is information about incurred and paid claims and claims adjustment expenses development for the year ended December 31, 2017 , net of reinsurance, as well as cumulative claim frequency and the total of incurred but not reported liabilities plus expected development on reported claims included within the net incurred claims amounts. The information about incurred and paid claims development for the years ended December 31, 2008 to 2015, is presented as unaudited supplementary information. Commercial Automobile Liability Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s, except cumulative number of reported claims) For the Years Ended December 31, As of the year ended December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Incurred but Not Reported Liabilities, Net of Reinsurance Cumulative Number of Reported Claims 2008 $ 29,391 $ 29,434 $ 29,225 $ 29,543 $ 27,922 $ 28,015 $ 27,474 $ 28,005 $ 28,496 $ 28,789 $ 31 15,764 2009 37,394 40,309 43,889 43,604 42,909 42,326 42,987 43,728 43,902 61 13,238 2010 35,877 34,677 35,711 37,026 37,205 38,002 38,841 39,246 122 8,575 2011 31,044 38,822 34,887 34,720 35,136 36,080 36,472 149 7,833 2012 35,948 37,839 38,972 40,429 44,627 46,755 804 9,376 2013 48,449 48,636 53,656 64,687 73,749 3,446 11,725 2014 61,145 53,005 69,555 92,245 8,432 14,659 2015 69,060 67,184 96,521 14,255 19,021 2016 80,824 87,516 20,274 19,373 2017 101,983 46,580 18,516 Total Total $ 647,178 Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s) For the Years Ended December 31, Accident Year 2008 2009 1 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 6,201 $ (6,438 ) $ 7,256 $ 16,010 $ 20,234 $ 23,282 $ 25,060 $ 27,039 $ 28,136 $ 28,601 2009 (3,218 ) 10,711 24,468 31,784 36,385 39,664 42,030 43,287 43,707 2010 10,097 20,483 26,654 31,300 34,831 37,051 38,187 38,930 2011 8,725 18,980 24,978 29,660 33,217 35,324 36,058 2012 8,385 18,230 26,995 35,563 41,587 44,835 2013 10,358 27,198 43,117 59,973 68,612 2014 15,404 38,257 60,486 81,141 2015 18,597 49,556 76,398 2016 21,850 53,812 2017 27,977 Total $ 500,071 All outstanding liabilities before 2008, net of reinsurance 200 Liabilities for claims and allocated claims adjustment expenses, net of reinsurance $ 147,307 1 - year 2009 - negative amounts resulted from the termination of reinsurance agreements Other short-duration lines Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s, except cumulative number of reported claims) For the Years Ended December 31, As of the year ended December 31, 2017 Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Incurred but Not Reported Liabilities, Net of Reinsurance Cumulative Number of Reported Claims 2008 $ 34,673 $ 38,502 $ 36,796 $ 36,489 $ 36,580 $ 36,576 $ 36,222 $ 36,254 $ 36,260 $ 36,233 $ 4 47,047 2009 35,688 34,764 34,626 35,453 36,343 36,202 36,736 37,061 37,070 54 27,847 2010 26,884 27,729 24,714 24,922 24,392 24,456 24,477 24,478 4 14,330 2011 20,315 22,176 22,310 21,782 22,122 22,941 22,414 22 10,002 2012 13,054 12,723 13,634 13,854 13,934 14,109 308 3,615 2013 5,897 4,754 4,556 4,687 4,711 90 2,149 2014 6,645 6,849 6,978 7,580 571 2,945 2015 8,320 8,616 9,591 1,148 3,968 2016 9,357 9,960 428 4,686 2017 11,086 775 5,013 Total Total $ 177,232 Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s) For the Years Ended December 31, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 21,304 $ 23,263 $ 30,657 $ 33,915 $ 35,442 $ 36,112 $ 36,149 $ 36,222 $ 36,224 $ 36,224 2009 11,296 25,422 30,343 33,186 34,375 35,785 36,164 36,499 36,714 2010 14,182 20,420 22,596 23,812 24,225 24,368 24,414 24,452 2011 11,517 17,419 19,696 20,939 21,600 22,235 22,326 2012 6,446 9,789 11,554 12,782 13,343 13,317 2013 4,195 4,602 4,603 4,612 4,641 2014 6,154 6,677 6,728 6,820 2015 7,886 8,154 8,291 2016 9,413 9,802 2017 10,619 Total $ 173,206 All outstanding liabilities before 2008, net of reinsurance 699 Liabilities for claims and allocated claims adjustment expenses, net of reinsurance $ 4,725 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | The reconciliation of the net incurred and paid claims and claims adjustment expenses development tables to the liability for claims and claims adjustment expenses in the consolidated statement of financial position as of December 31, 2017 is as follows ($ in ‘000s): As of December 31, 2017 Net outstanding liabilities: Commercial automobile liability $ 147,307 Other short-duration lines 4,725 Unpaid claims and allocated claims adjustment expenses, net of reinsurance 152,032 Reinsurance recoverable on unpaid claims and claims adjustment expenses: Commercial automobile liability 51,335 Other short-duration lines 2,067 Total reinsurance recoverable on unpaid claims and claims adjustment expenses 53,402 Unallocated claims adjustment expenses 6,214 Unpaid claims and claims adjustment expenses, gross of reinsurance $ 211,648 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | The following is supplementary information about the average annual percentage payout of incurred claims by age, net of amounts recoverable from reinsurers, for the year ended December 31, 2017 (amounts are unaudited). Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Commercial automobile liability 18.4 % 20.0 % 25.4 % 19.3 % 11.4 % 7.3 % 4.1 % 3.9 % 2.4 % 1.6 % Other short-duration lines 68.7 % 15.7 % 8.4 % 5.3 % 2.8 % 1.8 % 0.4 % 0.4 % 0.3 % — % |
Share Based Compensation Share
Share Based Compensation Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Activity | Stock option activity for the years ended December 31, 2017 and 2016 follows (prices in Canadian dollars designated with “C$” and United States dollars designated with “US$”): 2017 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 (133,338 ) C$6.31 — — Outstanding, end of period 54,390 C$6.00 187,728 C$6.22 2017 2016 US$ 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 Option Outstanding | Information about options outstanding as of December 31, 2017 is as follows: Grant Date Expiration Date Number Outstanding Number Exercisable January 18, 2011 January 18, 2021 54,390 54,390 March 6, 2014 March 6, 2024 175,000 175,000 March 12, 2015 March 12, 2025 200,000 — Total 429,390 229,390 |
Schedule of Restricted Stock and Restricted Stock Units Activity | The activity for the restricted voting common shares and restricted share units for the years ended December 31, 2017 and 2016 are as follows: 2017 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 and Mezzanine E43
Share Capital and Mezzanine Equity Share Capital and Mezzanine Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share Capital and Mezzanine Equity [Abstract] | |
Schedule of Stock by Class | The share capital is as follows: As of December 31, 2017 2016 Shares Authorized Shares Issued and Outstanding Amount ($ in ‘000s) Shares Issued and Outstanding Amount ($ in ‘000s) Ordinary voting common shares 266,666,667 12,164,041 $ 36 11,895,104 $ 36 Restricted voting common shares 33,333,334 — — 128,191 — Total common shares 300,000,001 12,164,041 $ 36 12,023,295 $ 36 |
Deferred Policy Acquisition C44
Deferred Policy Acquisition Costs Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred Policy Acquisition Costs Roll Forward | Deferred policy acquisition costs for the years ended December 31, 2017, 2016, and 2015 ($ in ‘000s) were: Year Ended December 31, 2017 2016 2015 Balance, beginning of period $ 13,222 $ 10,235 $ 8,166 Acquisition costs deferred 29,460 21,790 20,661 Amortization charged to income (27,885 ) (18,803 ) (18,592 ) Balance, end of period $ 14,797 $ 13,222 $ 10,235 |
Selected Quarterly Financial 45
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data (Unaudited) | ($ in ‘000s, except per share data) 2017 Q4 Q3 Q2 Q1 Gross premiums written $ 54,213 $ 65,898 $ 57,354 $ 98,496 Net premiums earned 57,431 55,865 54,049 48,426 Net (loss) income (54,297 ) 5,125 5,510 4,852 Net (loss) income attributable to common shareholders (54,297 ) 5,125 5,510 4,852 (Loss) earnings per common share basic $ (4.48 ) $ 0.43 $ 0.46 $ 0.40 (Loss) earnings per common share diluted $ (4.48 ) $ 0.42 $ 0.45 $ 0.40 ($ in ‘000s, except per share data) 2016 Q4 Q3 Q2 Q1 Gross premiums written $ 51,984 $ 60,733 $ 48,353 $ 64,025 Net premiums earned 44,252 43,251 41,802 41,753 Net (loss) income (13,561 ) 6,496 4,900 4,811 Net (loss) income attributable to common shareholders (13,608 ) 6,423 4,822 4,728 (Loss) earnings per common share basic $ (1.13 ) $ 0.53 $ 0.40 $ 0.39 (Loss) earnings per common share diluted $ (1.13 ) $ 0.51 $ 0.38 $ 0.38 |
Notes Payable Notes Payable (Ta
Notes Payable Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | Notes payable outstanding as of December 31, 2017 and 2016 ($ in ‘000s) were: December 31, 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 (969 ) (213 ) Total notes payable $ 24,031 $ 19,187 |
Change in Accounting Principl47
Change in Accounting Principle and Error Corrections Change in Accounting Principle and Error Corrections (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The following line items presented in the Consolidated Statements of Shareholders’ Equity were affected by the restatement: ($ in ‘000s) As Originally Reported As Adjusted Effect of Change Impact on Total Shareholders’ Equity column as of: December 31, 2014 109,399 107,399 (2,000 ) December 31, 2015 129,622 122,681 (6,941 ) December 31, 2016 127,342 127,342 — |
Nature of Operations and Basi48
Nature of Operations and Basis of Presentation Operations (Details) | Dec. 31, 2017state |
Accounting Policies [Abstract] | |
Number of states licensed to write property and casualty insurance (state) | 49 |
Number of states, core products actively distributed (state) | 42 |
Nature of Operations and Basi49
Nature of Operations and Basis of Presentation Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Goodwill Impairment | $ 0 | $ 0 | $ 0 |
Nature of Operations and Basi50
Nature of Operations and Basis of Presentation Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible asset impairment | $ 0 | $ 0 | $ 0 |
Trade name and trademark | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definitive-lived intangible asset, economic useful life | 15 years | 15 years | |
Customer relationship | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definitive-lived intangible asset, economic useful life | 10 years | 10 years |
Nature of Operations and Basi51
Nature of Operations and Basis of Presentation Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Building and Building Improvements | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 33 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Furniture | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Enterprise Software | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Software and Development Costs | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Computer Equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Nature of Operations and Basi52
Nature of Operations and Basis of Presentation Operating Segments (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Accounting Policies [Abstract] | |
Number of operating segments (segment) | 1 |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | $ 0 | |
Accumulated Other Comprehensive Income | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | (7) | |
Accumulated Other Comprehensive Income | Subsequent Event | Accounting Standards Update 2016-01 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | $ 377 | |
Retained Deficit | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | 7 | |
Retained Deficit | Subsequent Event | Accounting Standards Update 2016-01 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | $ (377) | |
New Accounting Pronouncement, Early Adoption, Effect | Accumulated Other Comprehensive Income | Accounting Standards Update 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | (7) | |
New Accounting Pronouncement, Early Adoption, Effect | Retained Deficit | Accounting Standards Update 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | $ 7 |
Acquisitions Anchor Holdings Ac
Acquisitions Anchor Holdings Acquisition (Details) | Mar. 11, 2015USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,726,000 | $ 2,726,000 | ||
Amortization of intangible assets | 390,000 | 390,000 | $ 315,000 | |
Expenses incurred related to acquisition of subsidiaries | 0 | $ 0 | $ 999,000 | |
Anchor Holdings Group, Inc. et. al. | ||||
Business Acquisition [Line Items] | ||||
Total purchase price | $ 23,200,000 | |||
Purchase price to book value percentage | 1.3 | |||
Equity interests issued, price per share (USD per share) | $ / shares | $ 1 | |||
Preferred stock, shares retired or canceled (in shares) | shares | 4,000,000 | |||
Intangible assets | $ 4,500,000 | |||
Goodwill | 2,700,000 | |||
Expenses incurred related to acquisition of subsidiaries | $ 0 | |||
Anchor Holdings Group, Inc. et. al. | Nonredeemable Convertible Preferred Stock | ||||
Business Acquisition [Line Items] | ||||
Consideration, value of Atlas preferred shares | $ 4,000,000 | |||
Equity interest issued (in shares) | shares | 4,000,000 | |||
Anchor Holdings Group, Inc. et. al. | Cash Paid By Atlas | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 19,200,000 |
Acquisitions Anchor Holdings 55
Acquisitions Anchor Holdings Acquisition Pro Forma (Details) - Anchor Holdings Group, Inc. et. al. $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenue | $ 162,311 |
Income from operations before income tax expense | 23,601 |
Net income | $ 15,420 |
Earnings per common share basic (USD per share) | $ / shares | $ 1.26 |
Earnings per common share diluted (USD per share) | $ / shares | $ 1.21 |
Revenue of acquiree since acquisition date | $ 27,500 |
Net income of acquiree since acquisition date | $ 2,400 |
Acquisitions Intangible Assets
Acquisitions Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Accumulated Amortization | $ 1,095 | $ 705 |
Intangible assets, Gross | 5,240 | 5,240 |
Intangible assets, net | 4,145 | 4,535 |
Estimated future amortization expense, 2018 | 390 | |
Estimated future amortization expense, 2019 | 390 | |
Estimated future amortization expense, 2020 | 390 | |
Estimated future amortization expense, 2021 | 390 | |
Estimated future amortization expense, 2022 | 390 | |
State insurance licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
State insurance licenses, Gross Carrying Amount and Net | $ 740 | $ 740 |
Trade name and trademark | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definitive-lived intangible asset, economic useful life | 15 years | 15 years |
Finite-lived intangible assets, Gross Carrying Amount | $ 1,800 | $ 1,800 |
Finite-lived intangible assets, Accumulated Amortization | 337 | 217 |
Finite-lived intangible assets, Net | $ 1,463 | $ 1,583 |
Customer relationship | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definitive-lived intangible asset, economic useful life | 10 years | 10 years |
Finite-lived intangible assets, Gross Carrying Amount | $ 2,700 | $ 2,700 |
Finite-lived intangible assets, Accumulated Amortization | 758 | 488 |
Finite-lived intangible assets, Net | $ 1,942 | $ 2,212 |
Acquisitions Gateway Acquisitio
Acquisitions Gateway Acquisition (Details) - Gateway Insurance Company - USD ($) $ in Thousands | Sep. 30, 2016 | Mar. 31, 2016 | Jan. 02, 2013 |
Business Acquisition [Line Items] | |||
Preferred stock, shares retired or canceled (in shares) | 2,538,560 | 401,940 | |
State insurance licenses | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 740 |
Earnings Per Share Schedule of
Earnings Per Share Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
(Loss) income from operations before income tax expense | $ (44,153) | $ 512 | $ 22,046 | ||||||||
Income tax (benefit) expense | (5,343) | (2,134) | 7,616 | ||||||||
Net (loss) income | $ (54,297) | $ 5,125 | $ 5,510 | $ 4,852 | $ (13,561) | $ 6,496 | $ 4,900 | $ 4,811 | (38,810) | 2,646 | 14,430 |
Less: Preferred share dividends | 0 | 281 | 276 | ||||||||
Net (loss) income attributable to common shareholders | $ (54,297) | $ 5,125 | $ 5,510 | $ 4,852 | $ (13,608) | $ 6,423 | $ 4,822 | $ 4,728 | $ (38,810) | $ 2,365 | $ 14,154 |
Basic: | |||||||||||
Weighted average common shares outstanding (includes RSUs) (in shares) | 12,064,880 | 12,045,519 | 11,975,579 | ||||||||
(Loss) earnings per common share basic (in dollars per share) | $ (4.48) | $ 0.43 | $ 0.46 | $ 0.40 | $ (1.13) | $ 0.53 | $ 0.40 | $ 0.39 | $ (3.22) | $ 0.20 | $ 1.18 |
Diluted: | |||||||||||
Dilutive stock options outstanding (in shares) | 0 | 177,364 | 186,656 | ||||||||
Dilutive shares upon preferred share conversion (in shares) | 0 | 0 | 573,444 | ||||||||
Dilutive weighted average common shares outstanding (includes RSUs) (in shares) | 12,064,880 | 12,222,883 | 12,735,679 | ||||||||
(Loss) earnings per common share diluted (in dollars per share) | $ (4.48) | $ 0.42 | $ 0.45 | $ 0.40 | $ (1.13) | $ 0.51 | $ 0.38 | $ 0.38 | $ (3.22) | $ 0.19 | $ 1.13 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | |
Convertible preferred stock | ||||
Potential Dilutive Securities from Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 441,357 | |||
Former Parent of Gateway | ||||
Potential Dilutive Securities from Earnings Per Share [Line Items] | ||||
Number of ordinary shares for each preferred share converted (in shares) | 0.1270 | |||
Former Parent of Anchor | ||||
Potential Dilutive Securities from Earnings Per Share [Line Items] | ||||
Number of ordinary shares for each preferred share converted (in shares) | 0.05 | |||
Gateway Insurance Company | ||||
Potential Dilutive Securities from Earnings Per Share [Line Items] | ||||
Preferred stock, shares retired or canceled (in shares) | 2,538,560 | 401,940 | ||
Anchor Holdings Group, Inc. et. al. | ||||
Potential Dilutive Securities from Earnings Per Share [Line Items] | ||||
Preferred stock, shares retired or canceled (in shares) | 4,000,000 |
Investments Schedule of Availab
Investments Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | $ 158,411 | $ 157,451 |
Fixed Income Securities | 157,984 | 156,487 |
Available-for-sale Equity Securities, Cost Basis | 7,969 | 5,598 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 503 | 625 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | (26) | 0 |
Equities | 8,446 | 6,223 |
Cost or Amortized Cost | 166,380 | 163,049 |
Gross Unrealized Gains | 1,430 | 1,306 |
Gross Unrealized Losses | (1,380) | (1,645) |
Fair Value, Available-for-sale Securities | 166,430 | 162,710 |
Fixed income securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 158,411 | 157,451 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 927 | 681 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (1,354) | (1,645) |
Fixed Income Securities | 157,984 | 156,487 |
U.S. Treasury and other U.S. government obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 21,488 | 22,716 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 15 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (302) | (257) |
Fixed Income Securities | 21,186 | 22,474 |
U.S. States, municipalities and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 13,265 | 10,647 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 78 | 25 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (100) | (202) |
Fixed Income Securities | 13,243 | 10,470 |
Total Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 58,493 | 52,145 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 631 | 372 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (282) | (490) |
Fixed Income Securities | 58,842 | 52,027 |
Banking/financial services | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 21,246 | 22,890 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 189 | 105 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (53) | (143) |
Fixed Income Securities | 21,382 | 22,852 |
Consumer goods | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 9,674 | 8,637 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 70 | 45 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (65) | (89) |
Fixed Income Securities | 9,679 | 8,593 |
Capital goods | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 7,822 | 7,807 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 181 | 109 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (11) | (43) |
Fixed Income Securities | 7,992 | 7,873 |
Energy | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 7,460 | 3,689 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 81 | 88 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (26) | (42) |
Fixed Income Securities | 7,515 | 3,735 |
Telecommunications/utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 11,179 | 7,746 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 109 | 22 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (73) | (151) |
Fixed Income Securities | 11,215 | 7,617 |
Health care | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 1,112 | 1,376 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 1 | 3 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (54) | (22) |
Fixed Income Securities | 1,059 | 1,357 |
Total Mortgage Backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 53,609 | 55,609 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 210 | 230 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (619) | (667) |
Fixed Income Securities | 53,200 | 55,172 |
Mortgage backed - agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 30,920 | 34,332 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 57 | 98 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (364) | (416) |
Fixed Income Securities | 30,613 | 34,014 |
Mortgage backed - commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 22,689 | 21,277 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 153 | 132 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (255) | (251) |
Fixed Income Securities | 22,587 | 21,158 |
Other asset backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 11,556 | 16,334 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 8 | 39 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (51) | (29) |
Fixed Income Securities | $ 11,513 | $ 16,344 |
Investments Investments Classif
Investments Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments [Abstract] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost | $ 11,149 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost | 33,941 | |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost | 41,542 | |
Available-for-sale Securities, Debt Maturities, after Year Ten, Amortized Cost | 6,614 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost | 93,246 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost | 65,165 | |
Available-for-sale Debt Securities, Amortized Cost Basis | 158,411 | $ 157,451 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 11,141 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 33,857 | |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 41,538 | |
Available-for-sale Securities, Debt Maturities, after Year Ten, Fair Value | 6,735 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value | 93,271 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 64,713 | |
Available-for-sale Securities, Debt Securities | $ 157,984 | $ 156,487 |
Investments (Details)
Investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments [Abstract] | |||
Other than temporary impairment losses, investments | $ 0 | $ 0 | $ 0 |
Investments Unrealized Losses (
Investments Unrealized Losses (Details) $ in Thousands | Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 73,851 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (544) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 34,253 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (836) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 108,104 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,380) | |
Fixed income securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 72,844 | $ 81,252 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (518) | (1,397) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 34,253 | 10,638 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (836) | (248) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 107,097 | 91,890 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (1,354) | $ (1,645) |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 346 | 316 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 103 | 39 |
U.S. Treasury and other U.S. government obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 11,179 | $ 16,187 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (110) | (257) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 10,007 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (192) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 21,186 | 16,187 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (302) | (257) |
U.S. States, municipalities and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 5,355 | 7,604 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (36) | (202) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 2,818 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (64) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 8,173 | 7,604 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (100) | (202) |
Total Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 22,930 | 24,431 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (139) | (359) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,002 | 2,375 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (143) | (131) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 26,932 | 26,806 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (282) | (490) |
Banking/financial services | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 6,021 | 12,429 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (26) | (143) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,931 | 132 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (27) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 7,952 | 12,561 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (53) | (143) |
Consumer goods | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 5,835 | 5,453 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (47) | (83) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 710 | 222 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (18) | (6) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,545 | 5,675 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (65) | (89) |
Capital goods | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 2,611 | 3,224 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (10) | (37) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 101 | 100 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | (6) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,712 | 3,324 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (11) | (43) |
Energy | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,368 | 229 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (26) | (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 | 3,368 | 1,188 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (26) | (42) |
Telecommunications/utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 4,488 | 2,620 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (23) | (73) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 938 | 962 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (50) | (78) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,426 | 3,582 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (73) | (151) |
Health care | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 607 | 476 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (7) | (22) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 322 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (47) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 929 | 476 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (54) | (22) |
Total Mortgage Backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 23,563 | 32,053 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (189) | (577) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 16,339 | 4,145 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (430) | (90) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 39,902 | 36,198 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (619) | (667) |
Mortgage backed - agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 13,203 | 21,818 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (136) | (372) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 9,786 | 2,092 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (228) | (44) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 22,989 | 23,910 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (364) | (416) |
Mortgage backed - commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 10,360 | 10,235 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (53) | (205) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 6,553 | 2,053 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (202) | (46) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 16,913 | 12,288 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (255) | (251) |
Other asset backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 9,817 | 977 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (44) | (2) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,087 | 4,118 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (7) | (27) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 10,904 | 5,095 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (51) | $ (29) |
Equities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,007 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (26) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,007 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (26) | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 2 |
Investments Schedule of Investm
Investments Schedule of Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments [Abstract] | |||
Investment income, interest income | $ 3,834 | $ 3,747 | $ 3,371 |
Investment income, dividends | 0 | 0 | 43 |
Investment income, income from other investments | 1,911 | 1,942 | 1,344 |
Investment expenses | (848) | (865) | (782) |
Net investment income | $ 4,897 | $ 4,824 | $ 3,976 |
Investments Schedule of Gross R
Investments Schedule of Gross Realized Gains (Losses) on Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Proceeds from Sales | $ 30,435 | $ 59,823 | $ 33,491 |
Available-for-sale Securities, Gross Realized Investment Gains | 935 | 1,361 | 755 |
Available-for-sale Securities, Gross Realized Investment Losses | (57) | (131) | (280) |
Fixed income securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Proceeds from Sales | 24,274 | 59,161 | 32,089 |
Available-for-sale Securities, Gross Realized Investment Gains | 300 | 1,296 | 686 |
Available-for-sale Securities, Gross Realized Investment Losses | (55) | (131) | (199) |
Equities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Proceeds from Sales | 6,161 | 662 | 1,402 |
Available-for-sale Securities, Gross Realized Investment Gains | 635 | 65 | 69 |
Available-for-sale Securities, Gross Realized Investment Losses | $ (2) | $ 0 | $ (81) |
Investments Schedule of Inves66
Investments Schedule of Investment Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain (Loss) on Investments [Line Items] | |||
Net realized gains (losses) | $ 872 | $ 1,230 | $ 455 |
Other | |||
Gain (Loss) on Investments [Line Items] | |||
Net realized gains (losses) | (6) | 0 | (20) |
Fixed income securities | |||
Gain (Loss) on Investments [Line Items] | |||
Net realized gains (losses) | 245 | 1,165 | 487 |
Equities | |||
Gain (Loss) on Investments [Line Items] | |||
Net realized gains (losses) | $ 633 | $ 65 | $ (12) |
Investments Other Investments (
Investments Other Investments (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Schedule of Equity Method Investments [Line Items] | |||||
Other investments | $ 31,438,000 | $ 32,181,000 | |||
Equity Method Limited Partnerships | 25,278,000 | 24,934,000 | |||
Collateral Loans | 6,200,000 | 7,200,000 | |||
Unfunded commitments | 6,992,000 | ||||
Net realized gains (losses) | 872,000 | 1,230,000 | $ 455,000 | ||
Other Investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net realized gains (losses) | 6,000 | 0 | $ 0 | ||
Real Estate Funds | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Limited Partnerships | 10,660,000 | 10,797,000 | [1] | ||
Unfunded commitments | 2,842,000 | ||||
Prior period recategorization | [1] | 283,000 | |||
Insurance Linked Securities Funds | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Limited Partnerships | 9,073,000 | 9,178,000 | |||
Unfunded commitments | 0 | ||||
Activist Hedge Funds | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Limited Partnerships | 4,367,000 | 4,336,000 | |||
Unfunded commitments | 0 | ||||
Venture Capital Funds | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Limited Partnerships | 853,000 | 623,000 | [1] | ||
Unfunded commitments | 4,150,000 | ||||
Prior period recategorization | [1] | (283,000) | |||
Other Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Limited Partnerships | 325,000 | $ 0 | |||
Unfunded commitments | $ 0 | ||||
[1] | We recategorized the carrying value of one limited partnership that was valued at $283,000 as of December 31, 2016 from ‘Venture capital’ to ‘Real estate’ based on its operations. |
Investments Collateral (Details
Investments Collateral (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments [Abstract] | ||
Bonds and term deposits, fair value | $ 15 | $ 15.1 |
Pledged collateral | $ 12.2 | $ 5.6 |
Fair Value of Financial Instr69
Fair Value of Financial Instruments Fair Value of Assets Measured on Recurring and Nonrecurring Basis (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | $ 157,984,000 | $ 156,487,000 |
Equities | 8,446,000 | 6,223,000 |
Fair value, available-for-sale securities | 166,430,000 | 162,710,000 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 |
Fair Value, Asset Transfers Into Level 3 | 0 | 0 |
Fair Value, Asset Transfers out of Level 3 | 0 | 0 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 21,186,000 | 22,474,000 |
Equities | 8,446,000 | 6,223,000 |
Fair value, available-for-sale securities | 29,632,000 | 28,697,000 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 136,798,000 | 134,013,000 |
Equities | 0 | 0 |
Fair value, available-for-sale securities | 136,798,000 | 134,013,000 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Equities | 0 | 0 |
Fair value, available-for-sale securities | 0 | 0 |
U.S. Treasury and other U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 21,186,000 | 22,474,000 |
U.S. Treasury and other U.S. government obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 21,186,000 | 22,474,000 |
U.S. Treasury and other U.S. government obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
U.S. Treasury and other U.S. government obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
U.S. States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 13,243,000 | 10,470,000 |
U.S. States, municipalities and political subdivisions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
U.S. States, municipalities and political subdivisions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 13,243,000 | 10,470,000 |
U.S. States, municipalities and political subdivisions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Total Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 58,842,000 | 52,027,000 |
Total Corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Total Corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 58,842,000 | 52,027,000 |
Total Corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Banking/financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 21,382,000 | 22,852,000 |
Banking/financial services | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Banking/financial services | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 21,382,000 | 22,852,000 |
Banking/financial services | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Consumer goods | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 9,679,000 | 8,593,000 |
Consumer goods | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Consumer goods | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 9,679,000 | 8,593,000 |
Consumer goods | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Capital goods | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 7,992,000 | 7,873,000 |
Capital goods | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Capital goods | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 7,992,000 | 7,873,000 |
Capital goods | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 7,515,000 | 3,735,000 |
Energy | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Energy | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 7,515,000 | 3,735,000 |
Energy | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Telecommunications/utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 11,215,000 | 7,617,000 |
Telecommunications/utilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Telecommunications/utilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 11,215,000 | 7,617,000 |
Telecommunications/utilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Health care | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 1,059,000 | 1,357,000 |
Health care | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Health care | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 1,059,000 | 1,357,000 |
Health care | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Total Mortgage Backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 53,200,000 | 55,172,000 |
Total Mortgage Backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Total Mortgage Backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 53,200,000 | 55,172,000 |
Total Mortgage Backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Mortgage backed - agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 30,613,000 | 34,014,000 |
Mortgage backed - agency | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Mortgage backed - agency | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 30,613,000 | 34,014,000 |
Mortgage backed - agency | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Mortgage backed - commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 22,587,000 | 21,158,000 |
Mortgage backed - commercial | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Mortgage backed - commercial | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 22,587,000 | 21,158,000 |
Mortgage backed - commercial | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Other asset backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 11,513,000 | 16,344,000 |
Other asset backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Other asset backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 11,513,000 | 16,344,000 |
Other asset backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | $ 0 | $ 0 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax Cuts and Jobs Act, Incomplete Accounting, Provisional Income Tax Expense | $ 10,500 | ||
Effective Income Tax Rate | 12.10% | (416.80%) | 34.50% |
Operating Loss Carryforward | $ 13,313 | $ 14,535 |
Income Taxes Income Tax Rate Re
Income Taxes Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Provision for taxes at U.S. statutory marginal income tax rate | $ (15,453) | $ 179 | $ 7,716 |
Nondeductible expenses | 51 | 24 | 124 |
Tax-exempt income | (23) | (39) | (89) |
State tax (net of federal benefit) | (2) | 28 | 118 |
Stock compensation | (445) | 0 | 0 |
Nondeductible acquisition accounting adjustment | 0 | (2,204) | 329 |
Change in statutory tax rate | 10,542 | 0 | (471) |
Other | (13) | (122) | (111) |
Provision for income taxes for continuing operations | $ (5,343) | $ (2,134) | $ 7,616 |
Provision for taxes at U.S. statutory marginal income tax rate, percent | 35.00% | 35.00% | 35.00% |
Nondeductible expenses, percent | (0.10%) | 4.70% | 0.60% |
Tax-exempt income, percent | 0.10% | (7.60%) | (0.40%) |
State tax (net of federal benefit), percent | 0.00% | 5.50% | 0.50% |
Stock compensation, percent | 1.00% | 0.00% | 0.00% |
Nondeductible acquisition accounting adjustment, percent | 0.00% | (430.50%) | 1.50% |
Change in statutory tax rate, percent | (23.90%) | 0.00% | (2.10%) |
Other, percent | 0.00% | (23.90%) | (0.60%) |
Effective Income Tax Rate | 12.10% | (416.80%) | 34.50% |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current tax (benefit) expense | $ (6,719) | $ (2,586) | $ 7,790 |
Deferred tax expense (benefit) | 1,376 | 452 | (174) |
Provision for income taxes for continuing operations | $ (5,343) | $ (2,134) | $ 7,616 |
Income Taxes Deferred Tax Asse
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Gross deferred tax assets: | ||
Losses carried forward | $ 13,313 | $ 14,535 |
Claims liabilities and unearned premium reserves | 6,171 | 8,546 |
Tax credits | 1,172 | 662 |
Commissions | 623 | 1,269 |
Stock Compensation | 602 | 1,157 |
Other | 1,094 | 1,027 |
Total gross deferred tax assets | 22,975 | 27,196 |
Gross deferred tax liabilities: | ||
Deferred policy acquisition costs | 3,107 | 4,628 |
Investments | 213 | 475 |
Fixed assets | 847 | 559 |
Intangible assets | 715 | 1,328 |
Other | 1,108 | 1,708 |
Total gross deferred tax liabilities | 5,990 | 8,698 |
Net deferred tax assets | $ 16,985 | $ 18,498 |
Income Taxes Schedule of Tax Ca
Income Taxes Schedule of Tax Carryforwards (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | $ 63,394 |
Carryforward Expiring in 2021 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 5,007 |
Carryforward Expiring in 2022 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 4,317 |
Carryforward Expiring in 2026 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 7,825 |
Carryforward Expiring in 2027 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 5,131 |
Carryforward Expiring in 2028 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 1,949 |
Carryforward Expiring in 2029 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 1,949 |
Carryforward Expiring in 2030 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 1,949 |
Carryforward Expiring in 2031 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 4,166 |
Carryforward Expiring in 2032 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 9,236 |
Carryforward Expiring in 2035 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 1 |
Carryforward Expiring in 2037 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | $ 21,864 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | May 22, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||||
Sale leaseback, deferred gain | $ 213 | |||
Sale leaseback, lease term | 5 years | |||
Sale leaseback, gain recognized in period | $ 17 | $ 43 | $ 43 | |
Rent expense, headquarter building | 740 | $ 743 | $ 704 | |
Unfunded commitments | 6,992 | |||
Building Renovation and Furnishings | ||||
Property, Plant and Equipment [Line Items] | ||||
Contractual Obligation | $ 1,200 |
Commitments and Contingencies F
Commitments and Contingencies Future Minimum Rentals for Operating Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 1,053 |
2,019 | 1,066 |
2,020 | 1,056 |
2,021 | 937 |
2,022 | 157 |
2023 & Beyond | 0 |
Total Operating Leases, Future Minimum Payments Due | $ 4,269 |
Property and equipment (Details
Property and equipment (Details) ft² in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)ft² | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | $ 30,919,000 | $ 21,059,000 | |
Accumulated depreciation | (6,480,000) | (9,289,000) | |
Total property and equipment, net | 24,439,000 | 11,770,000 | |
Depreciation and amortization of property and equipment | $ 1,372,000 | 1,000,000 | $ 966,000 |
Occupied Area of Corporate Headquarters Building | ft² | 70 | ||
Rental income | $ 415,000 | 69,000 | |
Net realized gains (losses) | 872,000 | 1,230,000 | 455,000 |
Building 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 | 7,425,000 | 7,425,000 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 1,840,000 | 1,840,000 | |
Net realized gains (losses) | $ (20,000) | ||
Building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 7,900,000 | 139,000 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 140,000 | 527,000 | |
Internal use software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 9,567,000 | 8,078,000 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 1,465,000 | 2,464,000 | |
Furniture and other office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 2,582,000 | 586,000 | |
Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization of property and equipment | 171,000 | 0 | |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Net realized gains (losses) | $ (12,000) | ||
Property and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Net realized gains (losses) | $ 0 |
Reinsurance Ceded (Details)
Reinsurance Ceded (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | ||||||||||||
Direct premiums written | $ 261,276 | $ 221,723 | $ 208,570 | |||||||||
Assumed premiums written | 14,685 | 3,372 | 716 | |||||||||
Ceded premiums written | (44,825) | (45,028) | (39,609) | |||||||||
Net premiums written | 231,136 | 180,067 | 169,677 | |||||||||
Direct premiums earned | 251,293 | 217,053 | 182,376 | |||||||||
Assumed premiums earned | 9,796 | 3,074 | 634 | |||||||||
Ceded premiums earned | (45,318) | (49,069) | (30,946) | |||||||||
Net premiums earned | $ 57,431 | $ 55,865 | $ 54,049 | $ 48,426 | $ 44,252 | $ 43,251 | $ 41,802 | $ 41,753 | 215,771 | 171,058 | 152,064 | |
Ceded claims and claims adjustment expenses | 46,643 | 32,496 | 19,113 | |||||||||
Ceding commissions | 11,304 | 12,065 | 7,798 | |||||||||
Reinsurance recoverables on amounts unpaid | 53,402 | 35,370 | 53,402 | 35,370 | 29,399 | $ 18,421 | ||||||
Prepaid reinsurance premiums | 12,878 | 13,372 | 12,878 | 13,372 | 17,412 | |||||||
Reinsurance recoverables on paid claims and claims adjustment expenses | $ 7,982 | $ 7,786 | $ 7,982 | $ 7,786 | $ 3,277 |
Unpaid Claims (Details)
Unpaid Claims (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Unpaid claims and claims adjustment expenses, beginning of period | $ 139,004 | $ 127,011 | $ 102,430 |
Less: reinsurance recoverable, beginning of period | 35,370 | 29,399 | 18,421 |
Net unpaid claims and claims adjustment expenses, beginning of period | 103,634 | 97,612 | 84,009 |
Net reserves acquired | 0 | 0 | 19,396 |
Change in retroactive reinsurance ceded | 1,361 | 107 | 2,037 |
Incurred related to: | |||
Incurred related to, current year | 128,476 | 102,133 | 89,828 |
Incurred related to, prior years | 75,397 | 32,613 | 166 |
Total incurred current and prior years | 203,873 | 134,746 | 89,994 |
Paid related to: | |||
Paid related to, current year | 50,626 | 39,652 | 32,402 |
Paid related to, prior years | 99,996 | 89,179 | 65,422 |
Total paid related to current and prior years | 150,622 | 128,831 | 97,824 |
Net unpaid claims and claims adjustment expenses, end of period | 158,246 | 103,634 | 97,612 |
Add: reinsurance recoverable, end of period | 53,402 | 35,370 | 29,399 |
Unpaid claims and claims adjustment expenses, end of period | $ 211,648 | 139,004 | 127,011 |
Anchor Holdings Group, Inc. et. al. | |||
Paid related to: | |||
Pre-acquisition Prior Year Claims and Claim Adjustment Expenses | $ 7,900 | (230) | |
MICHIGAN | |||
Paid related to: | |||
Michigan exposure as a percentage of total vehicles in force | 1.40% | ||
Unpaid claims development, percent of development | 62.50% | ||
Property and Casualty, Commercial Insurance Product Line | Subsidiaries excluding Global Liberty | |||
Incurred related to: | |||
Incurred related to, prior years | $ 23,200 | (475) | |
Non-core Lines of Business | |||
Incurred related to: | |||
Incurred related to, prior years | $ 1,500 | $ 870 |
Claim Liabilities Claims Develo
Claim Liabilities Claims Development (Details) $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) |
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | $ 152,032 | |||||||||
Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 647,178 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 500,071 | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented | 200 | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 147,307 | |||||||||
Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 177,232 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 173,206 | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented | 699 | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 4,725 | |||||||||
Short-duration Insurance Contracts, Accident Year 2008 | Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 28,789 | $ 28,496 | $ 28,005 | $ 27,474 | $ 28,015 | $ 27,922 | $ 29,543 | $ 29,225 | $ 29,434 | $ 29,391 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 31 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 15,764 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 28,601 | 28,136 | 27,039 | 25,060 | 23,282 | 20,234 | 16,010 | 7,256 | (6,438) | 6,201 |
Short-duration Insurance Contracts, Accident Year 2008 | Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 36,233 | 36,260 | 36,254 | 36,222 | 36,576 | 36,580 | 36,489 | 36,796 | 38,502 | 34,673 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 4 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 47,047 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 36,224 | 36,224 | 36,222 | 36,149 | 36,112 | 35,442 | 33,915 | 30,657 | 23,263 | $ 21,304 |
Short-duration Insurance Contracts, Accident Year 2009 | Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 43,902 | 43,728 | 42,987 | 42,326 | 42,909 | 43,604 | 43,889 | 40,309 | 37,394 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 61 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 13,238 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 43,707 | 43,287 | 42,030 | 39,664 | 36,385 | 31,784 | 24,468 | 10,711 | (3,218) | |
Short-duration Insurance Contracts, Accident Year 2009 | Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 37,070 | 37,061 | 36,736 | 36,202 | 36,343 | 35,453 | 34,626 | 34,764 | 35,688 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 54 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 27,847 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 36,714 | 36,499 | 36,164 | 35,785 | 34,375 | 33,186 | 30,343 | 25,422 | $ 11,296 | |
Short-duration Insurance Contracts, Accident Year 2010 | Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 39,246 | 38,841 | 38,002 | 37,205 | 37,026 | 35,711 | 34,677 | 35,877 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 122 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 8,575 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 38,930 | 38,187 | 37,051 | 34,831 | 31,300 | 26,654 | 20,483 | 10,097 | ||
Short-duration Insurance Contracts, Accident Year 2010 | Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 24,478 | 24,477 | 24,456 | 24,392 | 24,922 | 24,714 | 27,729 | 26,884 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 4 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 14,330 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 24,452 | 24,414 | 24,368 | 24,225 | 23,812 | 22,596 | 20,420 | $ 14,182 | ||
Short-duration Insurance Contracts, Accident Year 2011 | Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 36,472 | 36,080 | 35,136 | 34,720 | 34,887 | 38,822 | 31,044 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 149 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 7,833 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 36,058 | 35,324 | 33,217 | 29,660 | 24,978 | 18,980 | 8,725 | |||
Short-duration Insurance Contracts, Accident Year 2011 | Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 22,414 | 22,941 | 22,122 | 21,782 | 22,310 | 22,176 | 20,315 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 22 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 10,002 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 22,326 | 22,235 | 21,600 | 20,939 | 19,696 | 17,419 | $ 11,517 | |||
Short-duration Insurance Contracts, Accident Year 2012 | Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 46,755 | 44,627 | 40,429 | 38,972 | 37,839 | 35,948 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 804 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 9,376 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 44,835 | 41,587 | 35,563 | 26,995 | 18,230 | 8,385 | ||||
Short-duration Insurance Contracts, Accident Year 2012 | Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 14,109 | 13,934 | 13,854 | 13,634 | 12,723 | 13,054 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 308 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 3,615 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 13,317 | 13,343 | 12,782 | 11,554 | 9,789 | $ 6,446 | ||||
Short-duration Insurance Contracts, Accident Year 2013 | Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 73,749 | 64,687 | 53,656 | 48,636 | 48,449 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 3,446 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 11,725 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 68,612 | 59,973 | 43,117 | 27,198 | 10,358 | |||||
Short-duration Insurance Contracts, Accident Year 2013 | Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 4,711 | 4,687 | 4,556 | 4,754 | 5,897 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 90 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 2,149 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 4,641 | 4,612 | 4,603 | 4,602 | $ 4,195 | |||||
Short-duration Insurance Contracts, Accident Year 2014 | Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 92,245 | 69,555 | 53,005 | 61,145 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 8,432 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 14,659 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 81,141 | 60,486 | 38,257 | 15,404 | ||||||
Short-duration Insurance Contracts, Accident Year 2014 | Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 7,580 | 6,978 | 6,849 | 6,645 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 571 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 2,945 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 6,820 | 6,728 | 6,677 | $ 6,154 | ||||||
Short-duration Insurance Contracts, Accident Year 2015 | Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 96,521 | 67,184 | 69,060 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 14,255 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 19,021 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 76,398 | 49,556 | 18,597 | |||||||
Short-duration Insurance Contracts, Accident Year 2015 | Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 9,591 | 8,616 | 8,320 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,148 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 3,968 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 8,291 | 8,154 | $ 7,886 | |||||||
Short-duration Insurance Contracts, Accident Year 2016 | Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 87,516 | 80,824 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 20,274 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 19,373 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 53,812 | 21,850 | ||||||||
Short-duration Insurance Contracts, Accident Year 2016 | Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 9,960 | 9,357 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 428 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 4,686 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 9,802 | $ 9,413 | ||||||||
Short-duration Insurance Contracts, Accident Year 2017 | Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 101,983 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 46,580 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 18,516 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 27,977 | |||||||||
Short-duration Insurance Contracts, Accident Year 2017 | Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 11,086 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 775 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | 5,013 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 10,619 |
Claim Liabilities Reconciliatio
Claim Liabilities Reconciliation of Claims Development to Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid claims and allocated claims adjustment expenses, net of reinsurance | $ 152,032 | |||
Reinsurance recoverable on unpaid claims and claims adjustment expenses: | 53,402 | $ 35,370 | $ 29,399 | $ 18,421 |
Unallocated claims adjustment expenses | 6,214 | |||
Claims liabilities | 211,648 | $ 139,004 | $ 127,011 | $ 102,430 |
Commercial automobile liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid claims and allocated claims adjustment expenses, net of reinsurance | 147,307 | |||
Reinsurance recoverable on unpaid claims and claims adjustment expenses: | 51,335 | |||
Other short-duration lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid claims and allocated claims adjustment expenses, net of reinsurance | 4,725 | |||
Reinsurance recoverable on unpaid claims and claims adjustment expenses: | $ 2,067 |
Claim Liabilities Schedule of H
Claim Liabilities Schedule of Historical Claims Duration (Details) | Dec. 31, 2017 |
Commercial automobile liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 18.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 20.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 25.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 19.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 11.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 7.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 4.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 3.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 2.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 1.60% |
Other short-duration lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 68.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 15.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 8.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 5.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 2.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 1.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 0.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 0.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0.00% |
Share Based Compensation Schedu
Share Based Compensation Schedule of Activity Related Share-Based Compensation (Details) | 12 Months Ended | |||
Dec. 31, 2017$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options, exercised in period (in shares) | (133,338) | (133,338) | ||
Options, outstanding (in shares), end of period | 429,390 | 429,390 | ||
Prior to December 31, 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options, outstanding (in shares), beginning of period | 187,728 | 187,728 | 187,728 | 187,728 |
Options, granted in period (in shares) | 0 | 0 | 0 | 0 |
Options, exercised in period (in shares) | (133,338) | (133,338) | 0 | 0 |
Options, outstanding (in shares), end of period | 54,390 | 54,390 | 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 Canadian or US dollars per share) | $ / shares | $ 6.22 | $ 6.22 | ||
Options, grants in period, weighted average exercise price (in Canadian or US dollars per share) | $ / shares | 0 | 0 | ||
Options, exercised in period, weighted average exercise price (in Canadian or US dollars per share) | $ / shares | 6.31 | 0 | ||
Options, outstanding, weighted average exercise price, end of period (in Canadian or US dollars per share) | $ / shares | $ 6 | $ 6.22 | ||
After December 31, 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options, 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 |
Options, 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 Canadian or US dollars per share) | $ / shares | $ 17.01 | $ 17.01 | ||
Options, grants in period, weighted average exercise price (in Canadian or US dollars per share) | $ / shares | 0 | 0 | ||
Options, exercised in period, weighted average exercise price (in Canadian or US dollars per share) | $ / shares | 0 | 0 | ||
Options, outstanding, weighted average exercise price, end of period (in Canadian or US dollars per share) | $ / shares | $ 17.01 | $ 17.01 |
Share Based Compensation Sche84
Share Based Compensation Schedule of Outstanding Options (Details) | Dec. 31, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, outstanding (in shares) | 429,390 |
Options, exercisable (in shares) | 229,390 |
January 18, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, outstanding (in shares) | 54,390 |
Options, exercisable (in shares) | 54,390 |
March 6, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, outstanding (in shares) | 175,000 |
Options, exercisable (in shares) | 175,000 |
March 12, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, outstanding (in shares) | 200,000 |
Options, exercisable (in shares) | 0 |
Share Based Compensation Supple
Share Based Compensation Supplementary Disclosures Related to Stock Options (Details) | Mar. 12, 2015shares | Feb. 28, 2014shares | Dec. 31, 2013USD ($) | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Jun. 17, 2013$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options, exercisable (in shares) | 229,390 | ||||||
Grants, weighted average remaining life | 6 years 3 months 4 days | ||||||
Options, outstanding, intrinsic value | $ | $ 2,200,000 | ||||||
Share-based compensation expense | $ | $ 1,200,000 | $ 1,600,000 | $ 1,800,000 | ||||
Unearned share-based compensation expense, remaining amortization period | 26 months | ||||||
March 12, 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options, exercisable (in shares) | 0 | ||||||
Restricted Stock Grants | March 12, 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted share awards, nonvested, fair value | $ | $ 1,900,000 | ||||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unearned share-based compensation expense | $ | 660,000 | ||||||
Stock Options | March 12, 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options, nonvested, fair value | $ | $ 1,500,000 | ||||||
Restricted stock and restricted stock units (RSUs) Grants | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted shares granted during period (in shares) | 0 | 0 | |||||
Restricted shares vested during period (in shares) | 77,040 | 37,035 | |||||
Unearned share-based compensation expense | $ | $ 1,400,000 | ||||||
Officer | March 12, 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award Vesting Rights, Percentage | 20.00% | ||||||
Award Vesting Period | 5 years | ||||||
Officer | Restricted Stock Grants | March 12, 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted shares granted during period (in shares) | 200,000 | ||||||
Restricted shares vested during period (in shares) | 40,000 | 0 | |||||
Officer | Stock Options | March 12, 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options, granted in period (in shares) | 200,000 | ||||||
Options vested in period (in shares) | 40,000 | 0 | |||||
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 | Director | Restricted Stock Grants | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Equity Incentive Plan Ratio Matching Grant of Restricted Stock for Common Stock | 3 | ||||||
Matching Shares Granted in Period (in shares) | 148,152 | ||||||
Award Vesting Rights, Percentage | 20.00% | ||||||
Equity Incentive Plan | Director | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Matching Shares Granted in Period (in shares) | 37,038 | ||||||
Equity Incentive Plan | Ordinary Voting Common Shares | Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Equity Incentive Plan Threshold by Direct or Indirect Purchase of Stock | $ | $ 100,000 |
Share Based Compensation Sche86
Share Based Compensation Schedule of Restricted Shares and Restricted Share Units (Details) - Restricted stock and restricted stock units (RSUs) Grants - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 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 (in shares) | 311,120 | 348,155 |
Restricted shares granted during period (in shares) | 0 | 0 |
Restricted shares vested during period (in shares) | (77,040) | (37,035) |
Restricted shares nonvested at period end (in 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 | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 441 | $ 424 | $ 300 |
Other Employee Benefit Plans Em
Other Employee Benefit Plans Employee Stock Purchase Plan (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
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 | $ 212 | $ 199 | $ 151 |
Share Capital and Mezzanine E89
Share Capital and Mezzanine Equity Schedule of Stock by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||
Common shares, shares authorized (in shares) | 300,000,001 | |
Common stock, shares, outstanding (in shares) | 12,164,041 | 12,023,295 |
Common stock, value, outstanding | $ 36 | $ 36 |
Ordinary Voting Common Shares | ||
Class of Stock [Line Items] | ||
Common shares, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common stock, shares, outstanding (in shares) | 12,164,041 | 11,895,104 |
Common stock, value, outstanding | $ 36 | $ 36 |
Restricted Voting Common Shares | ||
Class of Stock [Line Items] | ||
Common shares, shares authorized (in shares) | 33,333,334 | 33,333,334 |
Common stock, shares, outstanding (in shares) | 0 | 128,191 |
Common stock, value, outstanding | $ 0 | $ 0 |
Share Capital and Mezzanine E90
Share Capital and Mezzanine Equity Stock Activity and Mezzanine Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 21, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted voting common stock outstanding (in shares) | 12,164,041 | 12,023,295 | |||||
Voting common shares issued | 133,338 | ||||||
Number of shares approved for repurchase | 650,000 | ||||||
Shares repurchased (in shares) | 0 | ||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||
Preferred stock, dividend rate (in USD per share) | $ 0.045 | ||||||
Preferred stock, dividend rate, percentage | 4.50% | ||||||
Preferred stock, liquidation preference per share (USD per share) | $ 1 | ||||||
Preferred dividends paid | $ 0 | $ 409 | $ 0 | ||||
Former Parent of Gateway | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Preferred dividends paid | $ 409 | ||||||
Former Parent of Anchor | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Preferred stock, amount of preferred dividends in arrears | 333 | $ 333 | |||||
Anchor Holdings Group, Inc. et. al. | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Preferred stock shares issued (in shares) | 4,000,000 | ||||||
Preferred stock, shares retired or canceled (in shares) | 4,000,000 | ||||||
Reserve development protection | $ 4,000 | ||||||
Gateway Insurance Company | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Preferred stock shares issued (in shares) | 940,500 | ||||||
Preferred stock, shares retired or canceled (in shares) | 2,538,560 | 401,940 | |||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Nonvested restricted stock units (RSUs) (in shares) | 14,816 | 22,224 | |||||
Ordinary voting common shares issued, restricted stock and RSU vesting (in shares) | 7,408 | 7,407 | |||||
Restricted Voting Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common Stock, percentage of aggregate votes eligible to be voted by restricted voting common shareholders, maximum | 30.00% | ||||||
Restricted voting common stock outstanding (in shares) | 0 | 128,191 | |||||
Conversion of Restricted Voting Common Shares to Ordinary Voting Common Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Conversion of stock (in shares) | 128,191 |
Deferred Policy Acquisition C91
Deferred Policy Acquisition Costs Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of period | $ 13,222 | $ 10,235 | $ 8,166 |
Acquisition costs deferred | 29,460 | 21,790 | 20,661 |
Amortization charged to income | (27,885) | (18,803) | (18,592) |
Balance, end of period | $ 14,797 | $ 13,222 | $ 10,235 |
Related Party Transactions (Det
Related Party Transactions (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Director or Director Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Percent of invested assets considered related party transactions | 8.40% | 8.40% |
Selected Quarterly Financial 93
Selected Quarterly Financial Data (Unaudited) Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Gross premiums written | $ 54,213 | $ 65,898 | $ 57,354 | $ 98,496 | $ 51,984 | $ 60,733 | $ 48,353 | $ 64,025 | $ 275,961 | $ 225,095 | $ 209,286 |
Net premiums earned | 57,431 | 55,865 | 54,049 | 48,426 | 44,252 | 43,251 | 41,802 | 41,753 | 215,771 | 171,058 | 152,064 |
Net (loss) income | (54,297) | 5,125 | 5,510 | 4,852 | (13,561) | 6,496 | 4,900 | 4,811 | (38,810) | 2,646 | 14,430 |
Net (loss) income attributable to common shareholders | $ (54,297) | $ 5,125 | $ 5,510 | $ 4,852 | $ (13,608) | $ 6,423 | $ 4,822 | $ 4,728 | $ (38,810) | $ 2,365 | $ 14,154 |
(Loss) earnings per common share basic | $ (4.48) | $ 0.43 | $ 0.46 | $ 0.40 | $ (1.13) | $ 0.53 | $ 0.40 | $ 0.39 | $ (3.22) | $ 0.20 | $ 1.18 |
(Loss) earnings per common share diluted | $ (4.48) | $ 0.42 | $ 0.45 | $ 0.40 | $ (1.13) | $ 0.51 | $ 0.38 | $ 0.38 | $ (3.22) | $ 0.19 | $ 1.13 |
Notes Payable Notes Payable (De
Notes Payable Notes Payable (Details) - USD ($) | Apr. 26, 2017 | May 07, 2016 | Apr. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 09, 2015 |
Loan Agreement | American Insurance Acquisition, Inc. | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 35,000,000 | ||||||
Interest expense, including non-utilization fees | $ 1,800,000 | $ 1,000,000 | $ 694,000 | ||||
Loan Agreement | Draw Amount | American Insurance Acquisition, Inc. | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, term | 5 years | ||||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | ||||||
Non-utilization fee, percentage | 0.50% | ||||||
Repayments of amounts borrowed in period | $ 15,500,000 | ||||||
Loan Agreement | Draw Amount | American Insurance Acquisition, Inc. | London Interbank Offered Rate (LIBOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 4.50% | ||||||
Loan Agreement | Revolver | American Insurance Acquisition, Inc. | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | ||||||
Letter of credit, maximum borrowing capacity | $ 2,000,000 | ||||||
Repayments of amounts borrowed in period | $ 3,900,000 | ||||||
Loan Agreement | Revolver | American Insurance Acquisition, Inc. | London Interbank Offered Rate (LIBOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
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% | ||||||
Amount of funds accessed in period | $ 23,900,000 |
Notes Payable Schedule of Debt
Notes Payable Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 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 | (969) | (213) |
Notes payable, net | 24,031 | 19,187 |
Loan Agreement | American Insurance Acquisition, Inc. | Revolver | ||
Line of Credit Facility [Line Items] | ||
Notes payable, outstanding gross of unamortized issuance costs | 0 | 3,900 |
Loan Agreement | American Insurance Acquisition, Inc. | 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 Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory Accounting Practices [Line Items] | ||
Combined statutory capital and surplus balance | $ 87,800 | $ 113,900 |
American Country Insurance Company, Inc | ||
Statutory Accounting Practices [Line Items] | ||
Net loss computed under statutory-basis accounting | 9,100 | 1,300 |
American Service Insurance Company, Inc | ||
Statutory Accounting Practices [Line Items] | ||
Net loss computed under statutory-basis accounting | 15,200 | 1,200 |
Gateway Insurance Company | ||
Statutory Accounting Practices [Line Items] | ||
Net loss computed under statutory-basis accounting | 5,900 | 1,100 |
Global Liberty Insurance Company of New York | ||
Statutory Accounting Practices [Line Items] | ||
Net loss computed under statutory-basis accounting | 5,100 | $ 49 |
ILLINOIS | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus required | 1,500 | |
MISSOURI | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus required | 2,400 | |
NEW YORK | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus required | $ 3,500 |
Change in Accounting Principl97
Change in Accounting Principle and Error Corrections New Accounting Pronouncements or Change in Accounting Principle (Details) $ in Thousands | Dec. 31, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | $ 0 |
Retained Deficit | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | (7) |
Retained Deficit | New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2018-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | (7) |
Accumulated Other Comprehensive Income | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | 7 |
Accumulated Other Comprehensive Income | New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2018-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | $ 7 |
Change in Accounting Principl98
Change in Accounting Principle and Error Corrections Change in Accounting Principle and Error Corrections (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | $ 90,645 | $ 127,342 | $ 122,681 | [1] | $ 107,399 | [1] |
Scenario, Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | 127,342 | 129,622 | 109,399 | |||
Restatement Adjustment | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | $ 0 | $ (6,941) | $ (2,000) | |||
[1] | r - Prior to the year ended December 31, 2017, the Company presented preferred shares issued as contingent consideration within the permanent equity section of the Consolidated Statements of Financial Position. In accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 480 - Distinguishing Liabilities from Equity, contingent consideration issued as preferred shares wherein the number of shares to be issued is variable should be classified outside of permanent equity and reflected as mezzanine equity on the Consolidated Statements of Financial Position.For the year ended December 31, 2017, the Company has restated the Consolidated Statements of Shareholders’ Equity to remove the preferred shares and related activity as previously stated for the periods as of January 1, 2015 and for the years ended December 31, 2015 and 2016. Although this impacted total equity for 2015, it had no impact on total equity as of December 31, 2016 due to the redemption and clawback of preferred shares previously issued. In addition, this change did not impact the Consolidated Statements of Financial Position, Consolidated Statements of Income (Loss) and Comprehensive Income (Loss), earnings per common share or the Consolidated Statements of Cash Flows. The Company has evaluated the effect of the incorrect presentation in the prior period, both qualitatively and quantitatively, and concluded that it did not have a material impact on, nor did it require amendment of, any previously filed annual or quarterly consolidated financial statements. See Note 20, ‘Change in Accounting Principle and Error Corrections’ for additional information regarding the preferred shares restatement. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant Condensed Statement of Comprehensive Income, Parent Company (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Other underwriting expense (income) | $ 32,140 | $ 28,399 | $ 23,269 | ||||||||
Interest expense | 1,840 | 1,026 | 694 | ||||||||
(Loss) income from operations before income taxes | (44,153) | 512 | 22,046 | ||||||||
Income tax benefit | (5,343) | (2,134) | 7,616 | ||||||||
Net (loss) income | $ (54,297) | $ 5,125 | $ 5,510 | $ 4,852 | $ (13,561) | $ 6,496 | $ 4,900 | $ 4,811 | (38,810) | 2,646 | 14,430 |
Changes in net unrealized investment gains (losses) | 437 | 855 | (1,912) | ||||||||
Reclassification to net (loss) income | (49) | 394 | 203 | ||||||||
Effect of income taxes | (136) | (437) | 597 | ||||||||
Other comprehensive income (loss) | 252 | 812 | (1,112) | ||||||||
Total comprehensive (loss) income | (38,558) | 3,458 | 13,318 | ||||||||
Parent Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net investment (expense) income | (4) | 0 | 7 | ||||||||
Other underwriting expense (income) | 1,436 | (4,550) | 2,566 | ||||||||
Interest expense | 1,266 | 0 | 0 | ||||||||
(Loss) income from operations before income taxes | (2,706) | 4,550 | (2,559) | ||||||||
Income tax benefit | (115) | (559) | (577) | ||||||||
(Loss) income before equity in net income of subsidiaries | (2,591) | 5,109 | (1,982) | ||||||||
Equity in net (loss) income of subsidiaries | (36,219) | (2,463) | 16,412 | ||||||||
Net (loss) income | (38,810) | 2,646 | 14,430 | ||||||||
Changes in net unrealized investment gains (losses) | 437 | 855 | (1,912) | ||||||||
Reclassification to net (loss) income | (49) | 394 | 203 | ||||||||
Effect of income taxes | (136) | (437) | 597 | ||||||||
Other comprehensive income (loss) | 252 | 812 | (1,112) | ||||||||
Total comprehensive (loss) income | $ (38,558) | $ 3,458 | $ 13,318 |
Schedule II - Condensed Fina100
Schedule II - Condensed Financial Information of Registrant Condensed Balance Sheet, Parent Company (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Assets | ||||||
Cash and cash equivalents | $ 45,615 | $ 29,888 | $ 22,354 | $ 36,586 | ||
Deferred tax asset, net | 16,985 | 18,498 | ||||
Total Assets | 482,503 | 423,577 | ||||
Liabilities | ||||||
Notes payable, net | 24,031 | 19,187 | ||||
Other liabilities and accrued expenses | 19,725 | 16,504 | ||||
Total Liabilities | 391,858 | 296,235 | ||||
Shareholders’ Equity | ||||||
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued and outstanding: December 31, 2017 - 12,164,041 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: December 31, 2017 - 0 and December 31, 2016 - 128,191 | 0 | 0 | ||||
Additional paid-in capital | 201,105 | 199,244 | ||||
Retained deficit | (110,535) | (71,718) | ||||
Accumulated other comprehensive income (loss), net of tax | 39 | (220) | ||||
Total Shareholders' Equity | 90,645 | 127,342 | 122,681 | [1] | 107,399 | [1] |
Total Liabilities and Shareholders' Equity | 482,503 | 423,577 | ||||
Parent Company | ||||||
Assets | ||||||
Cash and cash equivalents | 4,233 | 271 | $ 162 | $ 23,428 | ||
Deferred tax asset, net | 4,116 | 3,404 | ||||
Investment in subsidiaries | 109,897 | 126,564 | ||||
Total Assets | 118,246 | 130,239 | ||||
Liabilities | ||||||
Notes payable, net | 24,031 | 0 | ||||
Other liabilities and accrued expenses | 3,570 | 2,897 | ||||
Total Liabilities | 27,601 | 2,897 | ||||
Shareholders’ Equity | ||||||
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued and outstanding: December 31, 2017 - 12,164,041 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: December 31, 2017 - 0 and December 31, 2016 - 128,191 | 0 | 0 | ||||
Additional paid-in capital | 201,105 | 199,244 | ||||
Retained deficit | (110,535) | (71,718) | ||||
Accumulated other comprehensive income (loss), net of tax | 39 | (220) | ||||
Total Shareholders' Equity | 90,645 | 127,342 | ||||
Total Liabilities and Shareholders' Equity | $ 118,246 | $ 130,239 | ||||
[1] | r - Prior to the year ended December 31, 2017, the Company presented preferred shares issued as contingent consideration within the permanent equity section of the Consolidated Statements of Financial Position. In accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 480 - Distinguishing Liabilities from Equity, contingent consideration issued as preferred shares wherein the number of shares to be issued is variable should be classified outside of permanent equity and reflected as mezzanine equity on the Consolidated Statements of Financial Position.For the year ended December 31, 2017, the Company has restated the Consolidated Statements of Shareholders’ Equity to remove the preferred shares and related activity as previously stated for the periods as of January 1, 2015 and for the years ended December 31, 2015 and 2016. Although this impacted total equity for 2015, it had no impact on total equity as of December 31, 2016 due to the redemption and clawback of preferred shares previously issued. In addition, this change did not impact the Consolidated Statements of Financial Position, Consolidated Statements of Income (Loss) and Comprehensive Income (Loss), earnings per common share or the Consolidated Statements of Cash Flows. The Company has evaluated the effect of the incorrect presentation in the prior period, both qualitatively and quantitatively, and concluded that it did not have a material impact on, nor did it require amendment of, any previously filed annual or quarterly consolidated financial statements. See Note 20, ‘Change in Accounting Principle and Error Corrections’ for additional information regarding the preferred shares restatement. |
Schedule II - Condensed Fina101
Schedule II - Condensed Financial Information of Registrant Condensed Balance Sheet, Parent Company - Additional (Details) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common shares, shares authorized (in shares) | 300,000,001 | |
Common stock, shares, outstanding (in shares) | 12,164,041 | 12,023,295 |
Ordinary Voting Common Shares | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common shares, par value (USD per share) | $ 0.003 | $ 0.003 |
Common shares, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common shares, shares issued (in shares) | 12,164,041 | 11,895,104 |
Common stock, shares, outstanding (in shares) | 12,164,041 | 11,895,104 |
Ordinary Voting Common Shares | Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common shares, par value (USD per share) | $ 0.003 | $ 0.003 |
Common shares, shares authorized (in shares) | 266,666,667 | 266,666,667 |
Common shares, shares issued (in shares) | 12,164,041 | 11,895,104 |
Common stock, shares, outstanding (in shares) | 12,164,041 | 11,895,104 |
Restricted Voting Common Shares | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common shares, par value (USD per share) | $ 0.003 | $ 0.003 |
Common shares, shares authorized (in shares) | 33,333,334 | 33,333,334 |
Common shares, shares issued (in shares) | 0 | 128,191 |
Common stock, shares, outstanding (in shares) | 0 | 128,191 |
Restricted Voting Common Shares | Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common shares, par value (USD per share) | $ 0.003 | $ 0.003 |
Common shares, shares authorized (in shares) | 33,333,334 | 33,333,334 |
Common shares, shares issued (in shares) | 0 | 128,191 |
Common stock, shares, outstanding (in shares) | 0 | 128,191 |
Schedule II - Condensed Fina102
Schedule II - Condensed Financial Information of Registrant Condensed Statement of Cash Flows, Parent Company (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||||||||||
Net (loss) income | $ (54,297) | $ 5,125 | $ 5,510 | $ 4,852 | $ (13,561) | $ 6,496 | $ 4,900 | $ 4,811 | $ (38,810) | $ 2,646 | $ 14,430 |
Adjustments to reconcile net (loss) income to net cash flows provided by operating activities: | |||||||||||
Share-based compensation expense | 1,176 | 1,612 | 1,819 | ||||||||
Deferred income taxes | 1,376 | 452 | (174) | ||||||||
Amortization of financing costs | 365 | 67 | 56 | ||||||||
Expenses (recovered) incurred pursuant to stock purchase agreements | 0 | (6,623) | 941 | ||||||||
Net changes in operating assets and liabilities: | |||||||||||
Other assets | (7,847) | (6,210) | 8,956 | ||||||||
Other liabilities and accrued expenses | 3,238 | (1,911) | 1,376 | ||||||||
Net cash flows provided by operating activities | 26,472 | 170 | 8,814 | ||||||||
Investing activities: | |||||||||||
Net cash flows (used in) provided by investing activities | (15,909) | 8,412 | (40,354) | ||||||||
Financing activities: | |||||||||||
Preferred share buyback | 0 | (2,539) | 0 | ||||||||
Capital contributions | 30 | 0 | 0 | ||||||||
Preferred dividends paid | 0 | (409) | 0 | ||||||||
Options exercised | 655 | 0 | 145 | ||||||||
Net cash flows provided by (used in) financing activities | 5,164 | (1,048) | 17,308 | ||||||||
Net change in cash and cash equivalents | 15,727 | 7,534 | (14,232) | ||||||||
Cash and cash equivalents, beginning of period | 29,888 | 22,354 | 29,888 | 22,354 | 36,586 | ||||||
Cash and cash equivalents, end of period | 45,615 | 29,888 | 45,615 | 29,888 | 22,354 | ||||||
Supplemental disclosure of cash information: | |||||||||||
Cash paid for interest | 1,338 | 885 | 567 | ||||||||
Cash paid for income taxes | 744 | 7,015 | 8,636 | ||||||||
Anchor Holdings Group, Inc. et. al. | |||||||||||
Supplemental disclosure of noncash investing and financing activities: | |||||||||||
Preferred Shares Issued | 0 | 0 | 4,000 | ||||||||
Preferred Shares Canceled | 0 | (4,000) | 0 | ||||||||
Gateway Insurance Company | |||||||||||
Supplemental disclosure of noncash investing and financing activities: | |||||||||||
Preferred Shares Issued | 0 | 0 | 941 | ||||||||
Preferred Shares Canceled | 0 | (2,297) | 0 | ||||||||
Parent Company | |||||||||||
Operating Activities | |||||||||||
Net (loss) income | (38,810) | 2,646 | 14,430 | ||||||||
Adjustments to reconcile net (loss) income to net cash flows provided by operating activities: | |||||||||||
Equity in net loss (income) of subsidiaries | 36,219 | 2,463 | (16,412) | ||||||||
Share-based compensation expense | 1,176 | 1,612 | 1,819 | ||||||||
Deferred income taxes | (712) | (417) | (251) | ||||||||
Amortization of financing costs | 152 | 0 | 0 | ||||||||
Expenses (recovered) incurred pursuant to stock purchase agreements | 0 | (6,623) | 941 | ||||||||
Net changes in operating assets and liabilities: | |||||||||||
Other assets | 0 | 479 | (476) | ||||||||
Other liabilities and accrued expenses | 673 | 2,897 | (34) | ||||||||
Net cash flows provided by operating activities | (1,302) | 3,057 | 17 | ||||||||
Investing activities: | |||||||||||
Capital contributions made to subsidiaries | (19,300) | 0 | (23,428) | ||||||||
Net cash flows (used in) provided by investing activities | (19,300) | 0 | (23,428) | ||||||||
Financing activities: | |||||||||||
Preferred share buyback | 0 | (2,539) | 0 | ||||||||
Capital contributions | 30 | 0 | 0 | ||||||||
Proceeds from notes payable, net of issuance costs | 23,879 | 0 | 0 | ||||||||
Preferred dividends paid | 0 | (409) | 0 | ||||||||
Options exercised | 655 | 0 | 145 | ||||||||
Net cash flows provided by (used in) financing activities | 24,564 | (2,948) | 145 | ||||||||
Net change in cash and cash equivalents | 3,962 | 109 | (23,266) | ||||||||
Cash and cash equivalents, beginning of period | $ 271 | $ 162 | 271 | 162 | 23,428 | ||||||
Cash and cash equivalents, end of period | $ 4,233 | $ 271 | 4,233 | 271 | 162 | ||||||
Supplemental disclosure of cash information: | |||||||||||
Cash paid for interest | 828 | 0 | 0 | ||||||||
Cash paid for income taxes | (192) | (3,464) | 85 | ||||||||
Parent Company | Anchor Holdings Group, Inc. et. al. | |||||||||||
Supplemental disclosure of noncash investing and financing activities: | |||||||||||
Preferred Shares Issued | 0 | 0 | 4,000 | ||||||||
Preferred Shares Canceled | 0 | (4,000) | 0 | ||||||||
Parent Company | Gateway Insurance Company | |||||||||||
Supplemental disclosure of noncash investing and financing activities: | |||||||||||
Preferred Shares Issued | 0 | 0 | 941 | ||||||||
Preferred Shares Canceled | $ 0 | $ (2,297) | $ 0 |
Schedule II - Condensed Fina103
Schedule II - Condensed Financial Information of Registrant Notes to Condensed Financial Information (Details) - USD ($) | Apr. 26, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Proceeds from notes payable, net of issuance costs | $ 23,879,000 | $ 0 | $ 0 | |
Senior unsecured notes | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Debt instrument, face amount | $ 25,000,000 | |||
Debt instrument, term | 5 years | |||
Debt instrument, interest rate, stated percentage | 6.625% | |||
Proceeds from notes payable, net of issuance costs | $ 23,900,000 | |||
Senior unsecured notes | Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Debt instrument, face amount | $ 25,000,000 | |||
Debt instrument, term | 5 years | |||
Debt instrument, interest rate, stated percentage | 6.625% | |||
Proceeds from notes payable, net of issuance costs | $ 23,900,000 |
Schedule IV - Reinsurance Reins
Schedule IV - Reinsurance Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |||||||||||
Premiums earned, gross amount | $ 251,293 | $ 217,053 | $ 182,376 | ||||||||
Premiums earned, ceded to other companies | (45,318) | (49,069) | (30,946) | ||||||||
Premiums earned, assumed from other companies | 9,796 | 3,074 | 634 | ||||||||
Net premiums earned | $ 57,431 | $ 55,865 | $ 54,049 | $ 48,426 | $ 44,252 | $ 43,251 | $ 41,802 | $ 41,753 | $ 215,771 | $ 171,058 | $ 152,064 |
Premiums earned, percent of amount assumed to net | 4.50% | 1.80% | 0.40% |
Schedule V - Valuation and q105
Schedule V - Valuation and qualifying accounts Valuation and Qualifying Accounts Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for uncollectible receivables | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of the year | $ 2,366 | $ 846 | $ 560 |
Charged to Expenses | 2,365 | 2,397 | 566 |
Other Additions | 0 | 12 | 8 |
Deductions | (1,313) | (889) | (288) |
Balance at the end of the year | 3,418 | 2,366 | 846 |
Valuation allowance for deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of the year | 0 | 0 | 0 |
Charged to Expenses | 0 | 0 | 0 |
Other Additions | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at the end of the year | $ 0 | $ 0 | $ 0 |
Schedule VI - Supplemental i106
Schedule VI - Supplemental information concerning property-casualty insurance operations Supplemental information concerning property-casualy insurance operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | ||||||||||||
Deferred policy acquisition costs | $ 14,797 | $ 13,222 | $ 14,797 | $ 13,222 | $ 10,235 | $ 8,166 | ||||||
Claims liabilities | 211,648 | 139,004 | 211,648 | 139,004 | 127,011 | $ 102,430 | ||||||
Unearned premium reserves | 128,043 | 113,171 | 128,043 | 113,171 | 108,202 | |||||||
Net premiums earned | 57,431 | $ 55,865 | $ 54,049 | $ 48,426 | 44,252 | $ 43,251 | $ 41,802 | $ 41,753 | 215,771 | 171,058 | 152,064 | |
Net investment income | 4,897 | 4,824 | 3,976 | |||||||||
Claims and claims adjustment expense incurred, current year | 128,476 | 102,133 | 89,828 | |||||||||
Claims and claims adjustment expense incurred, prior year | 75,397 | 32,613 | 166 | |||||||||
Amortization of deferred policy acquisition costs | 27,885 | 18,803 | 18,592 | |||||||||
Paid claims and claims adjustment expenses | 150,622 | 128,831 | 97,824 | |||||||||
Gross premiums written | $ 54,213 | $ 65,898 | $ 57,354 | $ 98,496 | $ 51,984 | $ 60,733 | $ 48,353 | $ 64,025 | $ 275,961 | $ 225,095 | $ 209,286 |