Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 08, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Line Items] | |||
Entity Registrant Name | Atlas Financial Holdings, Inc. | ||
Entity Central Index Key | 0001539894 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K/A | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 152,967,930 | ||
Ordinary Voting Common Shares | |||
Document and Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 11,942,812 | ||
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, 2018 | Dec. 31, 2017 |
Investments | ||
Fixed income securities, available for sale, at fair value (amortized cost $133,213 and $158,411) | $ 129,991 | $ 157,984 |
Equity Securities, FV-NI | 5,929 | |
Equity securities, at fair value (cost $5,650 and $7,969) | 8,446 | |
Short-term Investments | 4,745 | 0 |
Other investments | 25,043 | 31,438 |
Total investments | 165,708 | 197,868 |
Cash and cash equivalents | 34,902 | 45,615 |
Accrued investment income | 749 | 1,248 |
Premiums receivable (net of allowance of $5,115 and $3,418) | 88,596 | 79,664 |
Reinsurance recoverables on amounts paid | 12,388 | 7,982 |
Reinsurance recoverables on amounts unpaid | 68,771 | 53,402 |
Prepaid reinsurance premiums | 36,898 | 12,878 |
Deferred policy acquisition costs | 7,309 | 14,797 |
Deferred tax asset, net | 0 | 16,985 |
Goodwill, net | 0 | 2,726 |
Intangible assets, net | 3,755 | 4,145 |
Property and equipment, net | 31,363 | 24,439 |
Other assets | 19,899 | 20,754 |
Total assets | 470,338 | 482,503 |
Liabilities | ||
Claims liabilities | 273,496 | 211,648 |
Unearned premium reserves | 134,040 | 128,043 |
Due to reinsurers | 15,849 | 8,411 |
Notes payable, net | 24,255 | 24,031 |
Other liabilities and accrued expenses | 16,999 | 19,725 |
Total liabilities | 464,639 | 391,858 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued: December 31, 2018 - 12,192,475 and December 31, 2017 - 12,164,041; shares outstanding: December 31, 2018 - 11,936,970 and December 31, 2017 - 12,164,041 | 36 | 36 |
Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: December 31, 2018 and December 31, 2017 - 0 | 0 | 0 |
Additional paid-in capital | 202,298 | 201,105 |
Treasury Stock, Value | 3,000 | 0 |
Retained deficit | (190,503) | (110,535) |
Accumulated other comprehensive (loss) income, net of tax | (3,132) | 39 |
Total shareholders' equity | 5,699 | 90,645 |
Total liabilities and shareholders' equity | $ 470,338 | $ 482,503 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred shares, shares authorized | 100,000,000 | 100,000,000 |
Fixed income securities at fair value, amortized cost | $ 133,213 | $ 158,411 |
Equity Securities, FV-NI, Cost | 5,650 | |
Equity securities, at fair value, cost | 7,969 | |
Premium receivable, allowance | $ 5,115 | $ 3,418 |
Shareholders’ equity | ||
Common shares, shares authorized (in shares) | 300,000,001 | |
Common shares, shares issued (in shares) | 12,192,475 | 12,164,041 |
Common stock, shares, outstanding (in shares) | 11,936,970 | 12,164,041 |
Preferred shares, par value | $ 0.001 | $ 0.001 |
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) | 12,192,475 | 12,164,041 |
Common stock, shares, outstanding (in shares) | 11,936,970 | 12,164,041 |
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 | 0 |
Common stock, shares, outstanding (in shares) | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net premiums earned | $ 218,218,000 | $ 215,771,000 | $ 171,058,000 |
Net investment income | 2,647,000 | 4,897,000 | 4,824,000 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | (198,000) | 0 | 0 |
Net realized gains | 573,000 | 872,000 | 1,230,000 |
Other income | 526,000 | 435,000 | 467,000 |
Total revenue | 221,766,000 | 221,975,000 | 177,579,000 |
Net claims incurred | 220,662,000 | 203,873,000 | 134,746,000 |
Acquisition costs | 26,115,000 | 27,885,000 | 18,803,000 |
Other underwriting expenses | 34,725,000 | 32,140,000 | 28,399,000 |
Amortization of intangible assets | 390,000 | 390,000 | 390,000 |
Goodwill, Impairment Loss | 2,726,000 | 0 | 0 |
Interest expense | 1,869,000 | 1,840,000 | 1,026,000 |
Expenses recovered pursuant to stock purchase agreements | (520,000) | 0 | (6,297,000) |
Total expenses | 285,967,000 | 266,128,000 | 177,067,000 |
(Loss) income from operations before income taxes | (64,201,000) | (44,153,000) | 512,000 |
Income tax expense (benefit) | 15,811,000 | (5,343,000) | (2,134,000) |
Net (loss) income | (80,012,000) | (38,810,000) | 2,646,000 |
Less: Preferred share dividends | 0 | 0 | 281,000 |
Net (loss) income attributable to common shareholders | $ (80,012,000) | $ (38,810,000) | $ 2,365,000 |
Basic weighted average common shares outstanding (in shares) | 11,992,808 | 12,064,880 | 12,045,519 |
(Loss) earnings per common share basic (in dollars per share) | $ (6.67) | $ (3.22) | $ 0.20 |
Diluted weighted average common shares outstanding (in shares) | 11,992,808 | 12,064,880 | 12,222,883 |
(Loss) earnings per common share diluted (in dollars per share) | $ (6.67) | $ (3.22) | $ 0.19 |
Consolidated Statements of Comprehensive (Loss) Income | |||
Net (loss) income | $ (80,012,000) | $ (38,810,000) | $ 2,646,000 |
Other comprehensive (loss) income: | |||
Changes in net unrealized investment (losses) gains | (3,078,000) | 437,000 | 855,000 |
Reclassification to net income (loss) | 284,000 | (49,000) | 394,000 |
Effect of income taxes | 0 | (136,000) | (437,000) |
Other comprehensive (loss) income | (2,794,000) | 252,000 | 812,000 |
Total comprehensive (loss) income | $ (82,806,000) | $ (38,558,000) | $ 3,458,000 |
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 | Treasury Stock [Member] | Treasury Stock | Retained Deficit |
Balance at beginning of period at Dec. 31, 2015 | $ 122,681 | $ 36 | $ 0 | $ 198,041 | $ 0 | $ (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 | |||||
Other | 1,612 | 1,612 | |||||
Balance at end of period at Dec. 31, 2016 | 127,342 | 36 | 0 | 199,244 | 0 | (71,718) | (220) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of new accounting principle in period of adoption | 0 | (7) | 7 | ||||
Net (loss) income | (38,810) | (38,810) | |||||
Other comprehensive income (loss) | 252 | 252 | |||||
Other comprehensive income | 655 | 655 | |||||
Other | 1,176 | 1,176 | |||||
Other | 30 | 30 | |||||
Balance at end of period at Dec. 31, 2017 | 90,645 | 36 | 0 | 201,105 | 0 | (110,535) | 39 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of new accounting principle in period of adoption | 0 | 377 | (377) | ||||
Net (loss) income | (80,012) | (80,012) | |||||
Stock Repurchased During Period, Value | (3,000) | (3,000) | |||||
Dividends, Preferred Stock | (333) | (333) | |||||
Other comprehensive income (loss) | (2,794) | (2,794) | |||||
Other | 1,201 | 1,201 | |||||
Other | (8) | (8) | |||||
Balance at end of period at Dec. 31, 2018 | $ 5,699 | $ 36 | $ 0 | $ 202,298 | $ (3,000) | $ (190,503) | $ (3,132) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | |||
Net (loss) income | $ (80,012) | $ (38,810) | $ 2,646 |
Adjustments to reconcile net (loss) income to net cash flows (used in) provided by operating activities: | |||
Depreciation and amortization | 2,911 | 1,372 | 1,000 |
Share-based compensation expense | 1,201 | 1,176 | 1,612 |
Amortization of deferred gain on sale of headquarters building | 0 | (17) | (43) |
Amortization of intangible assets and goodwill impairment | 3,116 | 390 | 390 |
Deferred income taxes | 16,985 | 1,376 | 452 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 198 | 0 | 0 |
Net realized gains | (573) | (872) | (1,230) |
Loss (gain) in equity of investees | 188 | (810) | (1,271) |
Amortization of bond premiums and discounts | 648 | 961 | 1,217 |
Amortization of financing costs | 224 | 365 | 67 |
Expenses recovered pursuant to stock purchase agreements | 0 | 0 | (6,623) |
Net changes in operating assets and liabilities: | |||
Accrued investment income | 500 | (20) | (192) |
Premiums receivable, net | (8,932) | (2,278) | 5,143 |
Due from reinsurers and prepaid reinsurance premiums | (43,795) | (17,735) | (6,440) |
Deferred policy acquisition costs | 7,488 | (1,575) | (2,987) |
Other assets | 854 | (7,847) | (6,210) |
Claims liabilities | 61,848 | 72,644 | 11,993 |
Unearned premium reserves | 5,997 | 14,872 | 4,969 |
Due to reinsurers | 7,438 | 42 | (2,412) |
Other liabilities and accrued expenses | (2,726) | 3,238 | (1,911) |
Net cash flows (used in) provided by operating activities | (26,442) | 26,472 | 170 |
Purchases of: | |||
Fixed income securities | (42,873) | (48,529) | (58,061) |
Equity securities | (2,350) | (7,900) | (2,000) |
Payments to Acquire Short-term Investments | (4,873) | 0 | 0 |
Other investments | (1,161) | (3,615) | (11,404) |
Property, equipment and other | (9,832) | (14,055) | (10,181) |
Proceeds from sale and maturity of: | |||
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale | 67,114 | 46,853 | 86,013 |
Equity securities | 5,458 | 6,161 | 615 |
Proceeds from Sale of Short-term Investments | 128 | 0 | 0 |
Other investments | 7,459 | 5,174 | 3,430 |
Property, equipment and other | 0 | 2 | 0 |
Net cash flows provided by (used in) investing activities | 19,070 | (15,909) | 8,412 |
Financing activities: | |||
Payments for Repurchase of Common Stock | (3,000) | 0 | 0 |
Preferred share buyback | 0 | 0 | (2,539) |
Capital contributions | 0 | 30 | 0 |
Proceeds from notes payable, net of issuance costs | 0 | 23,879 | 2,000 |
Repayment of notes payable | 0 | (19,400) | (100) |
Preferred dividends paid | (333) | 0 | (409) |
Options exercised | 0 | 655 | 0 |
Proceeds from (Payments for) Other Financing Activities | (8) | 0 | 0 |
Net cash flows (used in) provided by financing activities | (3,341) | 5,164 | (1,048) |
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | |||
Net change in cash and cash equivalents | (10,713) | 15,727 | 7,534 |
Cash and cash equivalents, beginning of period | 45,615 | 29,888 | 22,354 |
Cash and cash equivalents, end of period | 34,902 | 45,615 | 29,888 |
($ in ‘000s) | |||
Cash paid for income taxes | (1,724) | 744 | 7,015 |
Cash paid for interest | 1,656 | 1,338 | 885 |
Anchor Holdings Group, Inc. et. al. | |||
Supplemental disclosure of noncash investing and financing activities: | |||
Preferred Shares Canceled | 0 | 0 | 4,000 |
Gateway Insurance Company | |||
Supplemental disclosure of noncash investing and financing activities: | |||
Preferred Shares Canceled | $ 0 | $ 0 | $ 2,297 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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 (“U.S.”), 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, including certain transportation network companies (“TNC”) drivers/operators, 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 Global Liberty Insurance Company of New York (“Global Liberty”); and other non-insurance company subsidiaries: Anchor Group Management Inc. (“AGMI”), Plainview Premium Finance Company, Inc. (“Plainview Delaware”), UBI Holdings Inc. (“UBI Holdings”) and UBI Holdings’ wholly-owned subsidiaries, optOn Digital IP Inc. (“OOIP”) and optOn Insurance Agency Inc. (“optOn” and together with OOIP and UBI Holdings, “UBI”). The Insurance Subsidiaries distribute their insurance products through AGMI, which has contracted a network of retail independent agents. Together, the Insurance Subsidiaries are licensed to write property and casualty (“P&C”) insurance in 49 states and the District of Columbia in the U.S. Atlas’ core products are actively distributed in 42 of those states plus the District of Columbia. The Insurance Subsidiaries and the Company’s other non-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. All significant intercompany accounts and transactions have been eliminated. Seasonality The 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. Our New York “excess taxi program” has an annual renewal date in the third quarter. Net underwriting income is driven mainly by the timing and nature of claims, which can vary widely. 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 (loss) income and comprehensive (loss) income from the effective date of acquisition and up to the effective date of disposal, as appropriate. All significant intercompany transactions and balances are eliminated in consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by Atlas. The following are Atlas’ subsidiaries, all of which are 100% owned, either directly or indirectly, together with the jurisdiction of incorporation, that are included in consolidated financial statements: • American Country Insurance Company (Illinois) • American Insurance Acquisition Inc. (Delaware) • American Service Insurance Company, Inc. (Illinois) • Anchor Group Management Inc. (New York) • Anchor Holdings Group, Inc. (New York) • Gateway Insurance Company (Missouri) • Global Liberty Insurance Company of New York (New York) • Plainview Premium Finance Company, Inc. (Delaware), merged into American Insurance Acquisition during 2018 • UBI Holdings Inc. (Delaware) • optOn Digital IP Inc. (Delaware) • optOn Insurance Agency Inc. (Delaware) 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. Investment Income and Realized Gains (Losses) 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. Short-Term Investments Short-term investments consist of investments with original maturities between three months and one year and are reported at cost, which approximates fair value. Investments Investments in fixed income 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 (loss) income in shareholders’ equity. In the normal course of investing activities, the Company enters into relationships with variable interest entities (“VIE”), as an investor in limited partnerships or limited liability company. The Company is not the primary beneficiary of these VIEs, and therefore does not consolidate them. The Company determines whether it is the primary beneficiary of a VIE based on a qualitative assessment of the relative power and benefits of the Company and the other participants in the VIE. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values and any unfunded commitments. 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 Securities and Exchange Commission (“SEC”) registered investment adviser 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 adviser 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 and 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, 2018 , 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 adviser 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 adviser 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 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 acquisitions costs (“DPAC”) 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 DPAC. Atlas’ DPAC 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 2018 , 2017 or 2016 . Income Taxes Income tax expense (benefit) includes all taxes based on taxable (loss) income of Atlas and its subsidiaries, and is recognized in the statements of (loss) income and comprehensive (loss) 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 (loss) 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 (“DTAs” and “DTLs”) 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’ DTA, 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 DTAs. 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. 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. 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 . Property and Equipment Buildings, office equipment and internal use software are stated at historical cost less depreciation and amortization. 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. Internal use software includes costs associated with the Company’s policy and claims system including costs to develop those systems. Costs incurred during the preliminary project stage are expensed as incurred; costs incurred for activities during the application development stage are capitalized; and costs incurred during the post-implementation/operation stage are expensed as incurred. Upon reaching the post-implementation/operation stage of the development of internal use software, the capitalized costs are amortized over the estimated useful life of the asset. Depreciation on buildings and building improvements are provided on a straight-line basis over the estimated useful life of 33 years for buildings and 10 years for building improvements. Depreciation and amortization on equipment and internal use software 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. Repairs and maintenance are recognized as an expense during the period incurred. 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 reported prior to the close of the accounting period, estimates for unreported claims based on industry data and actuarial estimates, plus related estimated claim adjustment expenses based on the experience of the Company. Unpaid claim 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. The amount of uncertainty in the estimates is significantly affected by such factors as the amount of claims experience relative to the development period, knowledge of the actual facts and circumstances and the amount of insurance risk retained. The actuarial methods for making estimates for unpaid claims and for establishing the ultimate liability are periodically reviewed, and any adjustments are reflected in current operations. 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. Compensation expense is estimated based on the fair value of the award at the grant date and is recognized in net income over the requisite service period with a corresponding increase to additional paid in capital. The share-based compensation expense associated with awards that have graded vesting features and vest based on service conditions is calculated on a straight-line basis over the requisite service period for the entire award. Compensation expense recognized in connection with performance awards is based on the achievement of the specified performance and service conditions. During the recognition period compensation expense is accrued based on the performance condition that is probable of achievement. The final measure of compensation expense recognized over the requisite service period reflects the final performance outcome. Operating Segments Atlas operates in one business segment, the P&C 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, 2018 | |
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, 2019 have been adopted by the Company. Recently Adopted Stock Compensation 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 adopted the update in the first quarter of 2018 using the prescribed prospective approach. The adoption of this ASU did not have an impact on the consolidated financial statements. Income Taxes 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 transactions 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 adopted the update in the first quarter of 2018 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 did 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. Statement of Cash Flows 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 adopted the update in the first quarter of 2018 using the prescribed retrospective approach by restating all prior periods presented. Atlas’ presentation of its consolidated statements of cash flows did not change as a result of this ASU. Atlas elected the cumulative earnings approach for distributions from equity method investees upon adoption, which was consistent under prior GAAP treatment. Financial Instruments - Recognition and Measurement 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 adopted the update in the first quarter of 2018. The adoption of this ASU resulted 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 accumulated other comprehensive income. The investment section of the consolidated statements of financial position has been modified from year end to reflect that equity securities are no longer classified as available-for-sale. Changes in the fair value of equity securities are recorded as income (loss) in the consolidated statements of income and comprehensive income and as an adjustment to net income in the consolidated statements of cash flows. Revenue Recognition 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 adopted the update in the first quarter of 2018 with no impact on the consolidated financial statements. While these updates to Topic 606 are expected to have a significant impact on many companies, Atlas’ revenue is derived from transactions that do not fall within the scope of Topic 606, namely insurance contracts, investment income, and lease income. Not Yet Adopted Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update eliminate, add and modify certain disclosure requirements for fair value measurements. 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 Level 3 fair value measurements, 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 until adoption for any changes. Leases In March 2019, December 2018, July 2018 and February 2016, the FASB issued ASU 2019-01 Leases (Topic 842) Codification Improvements, ASU 2018-20 Leases (Topic 842) Narrow-Scope Improvements for Lessors, ASU 2018-11 Leases (Topic 842): Targeted Improvements and ASU 2018-10 Codification Improvements to Topic 842, Leases and ASU 2016-02, Leases (Topic 842), respectively. The provisions of these updates impact the classification criteria, disclosure requirements, and other specific transactions in lease accounting. The update requires either the use of a modified retrospective approach, which requires leases to be measured at the beginning of the earliest period presented, or the transition method, which requires entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. 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 transition method with no change to comparative periods. See ‘Part II, Item 8, Note 8, Commitments and Contingencies’ in the Notes to Consolidated Financial Statements for further discussion of the future lease commitments. The adoption of this update will result in the recognition of both a right-of-use asset and lease liability equal to the present value of the lease payments on the date of adoption, which will be less than 1% of total assets and total liabilities. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. There is no expected impact to any of Atlas’ current financial covenants as a result of the increase to reported liabilities. Premium Amortization on Purchased Callable Debt Securities 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 guidance shortens the amortization period to the earliest call date for certain purchased callable debt securities held at a premium that have explicit, noncontingent call features and are callable at a fixed price and preset 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. The adoption of this ASU is not expected to have an impact on the Company’s consolidated financial statements because Atlas’ callable debt securities, that are held at a premium, are amortized to the earliest call date, which is consistent with current accounting treatment. Financial Instruments - Credit Losses 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. Atlas does not currently have any investments with credit losses recorded or other significant credit allowance, therefore the provisions of this update are not expected to have a material impact on the consolidated financial statements upon adoption. The Company plans on adopting the update on the required effective date. All other recently issued pronouncements with effective dates after December 31, 2018 are not expected to have a material impact on the consolidated financial statements. |
New Accounting Pronouncements, Policy [Policy Text Block] | 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, 2019 have been adopted by the Company. Recently Adopted Stock Compensation 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 adopted the update in the first quarter of 2018 using the prescribed prospective approach. The adoption of this ASU did not have an impact on the consolidated financial statements. Income Taxes 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 transactions 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 adopted the update in the first quarter of 2018 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 did 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. Statement of Cash Flows 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 adopted the update in the first quarter of 2018 using the prescribed retrospective approach by restating all prior periods presented. Atlas’ presentation of its consolidated statements of cash flows did not change as a result of this ASU. Atlas elected the cumulative earnings approach for distributions from equity method investees upon adoption, which was consistent under prior GAAP treatment. Financial Instruments - Recognition and Measurement 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 adopted the update in the first quarter of 2018. The adoption of this ASU resulted 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 accumulated other comprehensive income. The investment section of the consolidated statements of financial position has been modified from year end to reflect that equity securities are no longer classified as available-for-sale. Changes in the fair value of equity securities are recorded as income (loss) in the consolidated statements of income and comprehensive income and as an adjustment to net income in the consolidated statements of cash flows. Revenue Recognition 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 adopted the update in the first quarter of 2018 with no impact on the consolidated financial statements. While these updates to Topic 606 are expected to have a significant impact on many companies, Atlas’ revenue is derived from transactions that do not fall within the scope of Topic 606, namely insurance contracts, investment income, and lease income. Not Yet Adopted Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update eliminate, add and modify certain disclosure requirements for fair value measurements. 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 Level 3 fair value measurements, 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 until adoption for any changes. Leases In March 2019, December 2018, July 2018 and February 2016, the FASB issued ASU 2019-01 Leases (Topic 842) Codification Improvements, ASU 2018-20 Leases (Topic 842) Narrow-Scope Improvements for Lessors, ASU 2018-11 Leases (Topic 842): Targeted Improvements and ASU 2018-10 Codification Improvements to Topic 842, Leases and ASU 2016-02, Leases (Topic 842), respectively. The provisions of these updates impact the classification criteria, disclosure requirements, and other specific transactions in lease accounting. The update requires either the use of a modified retrospective approach, which requires leases to be measured at the beginning of the earliest period presented, or the transition method, which requires entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. 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 transition method with no change to comparative periods. See ‘Part II, Item 8, Note 8, Commitments and Contingencies’ in the Notes to Consolidated Financial Statements for further discussion of the future lease commitments. The adoption of this update will result in the recognition of both a right-of-use asset and lease liability equal to the present value of the lease payments on the date of adoption, which will be less than 1% of total assets and total liabilities. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. There is no expected impact to any of Atlas’ current financial covenants as a result of the increase to reported liabilities. Premium Amortization on Purchased Callable Debt Securities 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 guidance shortens the amortization period to the earliest call date for certain purchased callable debt securities held at a premium that have explicit, noncontingent call features and are callable at a fixed price and preset 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. The adoption of this ASU is not expected to have an impact on the Company’s consolidated financial statements because Atlas’ callable debt securities, that are held at a premium, are amortized to the earliest call date, which is consistent with current accounting treatment. Financial Instruments - Credit Losses 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. Atlas does not currently have any investments with credit losses recorded or other significant credit allowance, therefore the provisions of this update are not expected to have a material impact on the consolidated financial statements upon adoption. The Company plans on adopting the update on the required effective date. All other recently issued pronouncements with effective dates after December 31, 2018 are not expected to have a material impact on the consolidated financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and indefinite-lived intangible assets are tested for impairment annually or when a triggering even occurs. During the fourth quarter of 2018, the Company performed an assessment of the recoverability of goodwill related to Anchor Group Holdings, Inc. as of December 31, 2018. Based on the assessment, the Company reduced the carrying value of goodwill to $0 , which resulted in a goodwill impairment loss of $2.7 million for 2018. There were no goodwill impairment losses during 2017 and 2016. Atlas concluded that there was no indefinite-lived intangible asset impairment in 2018 , 2017 or 2016 . Changes in the Carrying Amount of Goodwill ($ in ‘000s) 2018 2017 Balance as of January 1, Goodwill $ 2,726 $ 2,726 Accumulated impairment losses — — 2,726 2,726 Additions — — Impairment losses (2,726 ) — Balance as of December 31, Goodwill 2,726 2,726 Accumulated impairment losses (2,726 ) — $ — $ 2,726 Intangible Assets by Major Asset Class ($ in ‘000s) Economic Useful Life Gross Carrying Amount Accumulated Amortization Net As of December 31, 2018 Trade name and trademark 15 years $ 1,800 $ 459 $ 1,341 Customer relationship 10 years 2,700 1,026 1,674 State insurance licenses Indefinite 740 — 740 $ 5,240 $ 1,485 $ 3,755 As of December 31, 2017 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 Atlas recognized amortization expense of $390,000 in each of the twelve months ended December 31, 2018 , 2017 and 2016 . Estimated future amortization expense for definite-lived intangible assets is $390,000 for each of the next five years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share Computations of Basic and Diluted Earnings per Common Share ($ in ‘000s, except share and per share amounts) Year ended December 31, 2018 2017 2016 Basic (Loss) income from operations before income taxes $ (64,201 ) $ (44,153 ) $ 512 Income tax expense (benefit) 15,811 (5,343 ) (2,134 ) Net (loss) income $ (80,012 ) $ (38,810 ) $ 2,646 Less: Preferred share dividends — — 281 Net (loss) income attributable to common shareholders $ (80,012 ) $ (38,810 ) $ 2,365 Basic weighted average common shares outstanding 11,992,808 12,064,880 12,045,519 (Loss) earnings per common share basic $ (6.67 ) $ (3.22 ) $ 0.20 Diluted Basic weighted average common shares outstanding 11,992,808 12,064,880 12,045,519 Dilutive potential ordinary shares: Dilutive stock options outstanding — — 177,364 Diluted weighted average common shares outstanding 11,992,808 12,064,880 12,222,883 (Loss) earnings per common share diluted $ (6.67 ) $ (3.22 ) $ 0.19 Common shares are defined as ordinary voting common shares, restricted voting common shares and participative restricted stock units (“RSUs”). Earnings per common share diluted is computed by dividing net income by the weighted average number of common shares outstanding for each period plus the incremental number of shares added as a result of converting dilutive potential ordinary voting common shares, calculated using the treasury stock method (or, in the case of the convertible preferred shares, using the “if-converted” method). Atlas’ dilutive potential ordinary voting common shares consist of outstanding stock options to purchase ordinary voting common shares and, for the 2016 computation, preferred shares potentially convertible to ordinary voting common shares at the option of the 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). See ‘Part II, Item 8, Note 14, Share Capital and Mezzanine Equity,’ in the Notes 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. In 2018 and 2017, all exercisable stock options were deemed to be anti-dilutive. The potentially dilutive impact for all exercisable stock options excluded from the calculation due to anti-dilution is 16,372 and 71,475 common shares for 2018 and 2017, respectively. In 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 2016. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments | Investments Atlas adopted ASU 2016-01 as of January 1, 2018, which requires equity investments, except those accounted for under the equity method, to be measured at fair value and changes in fair value to be recognized in net income. Prior periods have not been restated for the current presentation, per the guidance in the ASU. See ‘Part II, Item 8, Note 2, New Accounting Standards,’ in the Notes to Consolidated Financial Statements for a summary of the changes. Cost or Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments ($ in ‘000s) Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 Fixed income securities: U.S. Treasury and other U.S. government obligations $ 20,522 $ 30 $ (356 ) $ 20,196 States, municipalities and political subdivisions 8,970 19 (146 ) 8,843 Corporate Banking/financial services 13,482 9 (367 ) 13,124 Consumer goods 10,108 1 (319 ) 9,790 Capital goods 3,711 36 (200 ) 3,547 Energy 7,191 — (379 ) 6,812 Telecommunications/utilities 8,647 1 (325 ) 8,323 Health care 832 — (77 ) 755 Total corporate 43,971 47 (1,667 ) 42,351 Mortgage-backed Agency 25,778 6 (656 ) 25,128 Commercial 20,091 105 (574 ) 19,622 Total mortgage-backed 45,869 111 (1,230 ) 44,750 Other asset-backed 13,881 13 (43 ) 13,851 Total fixed income securities $ 133,213 $ 220 $ (3,442 ) $ 129,991 December 31, 2017 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 Agency 30,920 57 (364 ) 30,613 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 Total $ 166,380 $ 1,430 $ (1,380 ) $ 166,430 Amortized Cost and Fair Value of Fixed Income Securities by Contractual Maturity ($ in ‘000s) Amortized Cost Fair Value As of December 31, 2018 Due in less than one year $ 5,573 $ 5,546 Due in one through five years 29,000 28,324 Due after five through ten years 33,790 32,724 Due after ten years 5,100 4,796 Total contractual maturity 73,463 71,390 Total mortgage and asset-backed 59,750 58,601 Total $ 133,213 $ 129,991 As certain securities and debentures have the right to call or prepay obligations, the actual settlement dates may differ from contractual maturity. 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 the 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 (loss) income . If Atlas determines that it is probable it will be unable to collect all amounts and Atlas has no intent to sell the debt security, a credit loss is recognized in net investment gains (losses) on investments in the consolidated statements of (loss) income to the extent that the present value of expected cash flows is less than the amortized cost basis; any difference between fair value and the new amortized cost basis (net of the credit loss) is reflected in other comprehensive (loss) income , 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. There were no other-than-temporary impairments recorded in 2018 , 2017 or 2016 as a result of the OTTI analysis performed by management. Aging of Unrealized Losses in Fixed Income Securities and Equities ($ in ‘000s) Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2018 Fixed income securities: U.S. Treasury and other U.S. government obligations $ 507 $ — $ 15,857 $ (356 ) $ 16,364 $ (356 ) States, municipalities and political subdivisions 1,687 (27 ) 4,875 (119 ) 6,562 (146 ) Corporate Banking/financial services 8,376 (235 ) 3,861 (132 ) 12,237 (367 ) Consumer goods 5,442 (176 ) 4,132 (143 ) 9,574 (319 ) Capital goods 1,727 (135 ) 1,430 (65 ) 3,157 (200 ) Energy 4,516 (295 ) 2,296 (84 ) 6,812 (379 ) Telecommunications/utilities 3,806 (99 ) 4,259 (226 ) 8,065 (325 ) Health care 127 (2 ) 628 (75 ) 755 (77 ) Total corporate 23,994 (942 ) 16,606 (725 ) 40,600 (1,667 ) Mortgage-backed Agency 5,035 (72 ) 19,210 (584 ) 24,245 (656 ) Commercial 5,256 (149 ) 11,062 (425 ) 16,318 (574 ) Total mortgage-backed 10,291 (221 ) 30,272 (1,009 ) 40,563 (1,230 ) Other asset-backed 9,568 (22 ) 1,748 (21 ) 11,316 (43 ) Total fixed income securities $ 46,047 $ (1,212 ) $ 69,358 $ (2,230 ) $ 115,405 $ (3,442 ) December 31, 2017 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 Agency 13,203 (136 ) 9,786 (228 ) 22,989 (364 ) 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 ) Total $ 73,851 $ (544 ) $ 34,253 $ (836 ) $ 108,104 $ (1,380 ) As of December 31, 2018 , we held 391 individual fixed income securities that were in an unrealized loss position, of which 246 individual fixed income securities were in a continuous loss position for longer than 12 months. 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. We did not recognize the unrealized losses in earnings on these fixed income securities in 2018 or 2017 , 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. Components of Net Investment Income ($ in ‘000s) Year ended December 31, 2018 2017 2016 Total investment income Interest income $ 4,115 $ 3,834 $ 3,747 (Loss) income from other investments (470 ) 1,911 1,942 Investment expenses (998 ) (848 ) (865 ) Net investment income $ 2,647 $ 4,897 $ 4,824 Aggregate Proceeds and Gross Realized Investment Gains and Losses ($ in ‘000s) Year ended December 31, 2018 2017 2016 Fixed income securities 1 : Proceeds from sales and calls $ 49,247 $ 24,274 $ 59,161 Gross realized investment gains 343 300 1,296 Gross realized investment losses (652 ) (55 ) (131 ) Equities: Proceeds from sales 5,458 6,161 662 Gross realized investment gains 814 635 65 Gross realized investment losses (25 ) (2 ) — Other investments: Proceeds from sales 93 (6 ) — Gross realized investment gains 93 — — Gross realized investment losses — (6 ) — Total: Proceeds from sales and calls $ 54,798 $ 30,429 $ 59,823 Gross realized investment gains 1,250 935 1,361 Gross realized investment losses (677 ) (63 ) (131 ) 1 The proceeds from sales and calls, gross realized investment gains and gross realized investment losses on fixed income securities in 2016 were restated to include both voluntary and involuntary calls. Components of Net Realized Gains (Losses) ($ in ‘000s) Year ended December 31, 2018 2017 2016 Fixed income securities $ (309 ) $ 245 $ 1,165 Equities 789 633 65 Other investments 93 (6 ) — Net realized gains $ 573 $ 872 $ 1,230 Other Investments Atlas’ other investments are comprised of collateral loans and various limited partnerships that invest in income-producing real estate, equities or insurance linked securities. Atlas accounts for these limited partnership investments using the equity method of accounting. The carrying values of the equity method limited partnerships were $24.0 million and $25.3 million as of December 31, 2018 and 2017 , respectively. The carrying value of these investments is Atlas’ share of the net book value for each limited partnership. The carrying values of the collateral loans were $1.0 million and $6.2 million as of December 31, 2018 and 2017 , respectively. Equity Method Investments by Type ($ in ‘000s) As of December 31, 2018 2018 2017 Unfunded Commitments Carrying Value Real estate $ 2,887 $ 11,085 $ 10,660 Insurance linked securities — 6,694 9,073 Activist hedge funds — 3,911 4,367 Venture capital 3,070 2,015 853 Other joint venture — 325 325 Total equity method investments $ 5,957 $ 24,030 $ 25,278 Due to the timing of financial information of the Company’s equity method investments, certain investments are recorded on a financial reporting lag of one to three months. 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, 2018 and 2017 , the Company had no valuation allowances established for equity method limited partnerships and loans. Short-Term Investments Atlas’ short-term investments are comprised of fixed income securities. As of December 31, 2018 , short-term investments totaled $4.7 million . Atlas had no short-term investments as of December 31, 2017 . Collateral Pledged As of December 31, 2018 and 2017 , bonds, cash and cash equivalents with a fair value of $14.9 million and $15.0 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, 2018 and 2017 , the amounts of such pledged securities were $31.3 million and $12.2 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, 2018 | |
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 U.S. treasury and other U.S. government obligations 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. Equities Comprised of publicly-traded common stocks. 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. Investments at Fair Value ($ in ‘000s) Level 1 Level 2 Level 3 Total As of December 31, 2018 Fixed income securities: U.S. Treasury and other U.S. government obligations $ 20,196 $ — $ — $ 20,196 States, municipalities and political subdivisions — 8,843 — 8,843 Corporate Banking/financial services — 13,124 — 13,124 Consumer goods — 9,790 — 9,790 Capital goods — 3,547 — 3,547 Energy — 6,812 — 6,812 Telecommunications/utilities — 8,323 — 8,323 Health care — 755 — 755 Total corporate — 42,351 — 42,351 Mortgage-backed Agency — 25,128 — 25,128 Commercial — 19,622 — 19,622 Total mortgage-backed — 44,750 — 44,750 Other asset-backed — 13,851 — 13,851 Total fixed income securities $ 20,196 $ 109,795 $ — $ 129,991 Equities 5,929 — — 5,929 Total $ 26,125 $ 109,795 $ — $ 135,920 As of December 31, 2017 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 Agency — 30,613 — 30,613 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 Total $ 29,632 $ 136,798 $ — $ 166,430 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, 2018 . 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, 2018 and 2017 . There were no transfers in or out of Level 2 or Level 3 during 2018 and 2017 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
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 P&C 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 P&C 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%. In 2017, the Company recognized income tax expense of $10.5 million related to reduction in the net deferred tax asset as a result of this re-measurement. Atlas’ effective tax rate was (24.6)% , 12.1% and (416.8)% in 2018 , 2017 and 2016 , respectively. Reconciliation of U.S. Statutory Marginal Income Tax Rate to the Effective Tax Rate ($ in ‘000s) Year ended December 31, 2018 2017 2016 Amount % Amount % Amount % Provision for taxes at U.S. statutory marginal income tax rate $ (13,482 ) 21.0 % $ (15,453 ) 35.0 % $ 179 35.0 % Provision for deferred tax assets deemed unrealizable (valuation allowance) 28,830 (44.9 ) — — — — Nondeductible expenses 62 (0.1 ) 51 (0.1 ) 24 4.7 Tax-exempt income (12 ) — (23 ) 0.1 (39 ) (7.6 ) State tax (net of federal benefit) (2 ) — (2 ) — 28 5.5 Stock compensation (42 ) 0.1 (458 ) 1.0 — — Nondeductible goodwill 572 (0.9 ) — — — — Nondeductible acquisition accounting adjustment (109 ) 0.2 — — (2,204 ) (430.5 ) Change in statutory tax rate — — 10,542 (23.9 ) — — Other (6 ) — — — (122 ) (23.9 ) Provision for income taxes for continuing operations $ 15,811 (24.6 )% $ (5,343 ) 12.1 % $ (2,134 ) (416.8 )% Components of Income Tax Expense (Benefit) ($ in ‘000s) Year ended December 31, 2018 2017 2016 Current tax benefit $ (1,174 ) $ (6,719 ) $ (2,586 ) Deferred tax (benefit) expense (11,845 ) 1,376 452 Change in deferred tax valuation allowance 28,830 — — Total $ 15,811 $ (5,343 ) $ (2,134 ) Upon the transaction forming Atlas on December 31, 2010, a yearly limitation as required by U.S. Internal Revenue Code of 1986 (as amended, “IRC”) Section 382 that applies to changes in ownership on the future utilization of Atlas’ net operating loss carryforwards was calculated. The Insurance Subsidiaries’ prior parent retained those tax assets previously attributed to the Insurance Subsidiaries, which could not be utilized by Atlas as a result of this limitation. As a result, Atlas’ ability to recognize future tax benefits associated with a portion of its deferred tax assets generated during prior years has been permanently limited to the amount determined under IRC Section 382. The result is a maximum expected net deferred tax asset that Atlas has available after the merger, which is believed more-likely-than-not to be utilized in the future, after consideration of the valuation allowance. On July 22, 2013, due to shareholder activity, a “triggering event” as determined under IRC Section 382 occurred. As a result, under IRC Section 382, the use of the Company’s net operating loss and other carryforwards 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 (“NOLs”) of approximately $25.3 million as of December 31, 2018 . Components of Deferred Income Tax Assets and Liabilities ($ in ‘000s) December 31, 2018 2017 Gross deferred tax assets: Losses carried forward $ 25,326 $ 13,313 Claims liabilities and unearned premium reserves 5,949 6,171 Bad debts 1,009 — Tax credits — 1,172 Commissions — 623 Stock compensation 760 602 Other 418 1,094 Valuation allowance (29,416 ) — Total gross deferred tax assets 4,046 22,975 Gross deferred tax liabilities: Deferred policy acquisition costs 1,535 3,107 Investments 189 213 Fixed assets 1,371 847 Intangible assets 633 715 Other 318 1,108 Total gross deferred tax liabilities 4,046 5,990 Net deferred tax assets $ — $ 16,985 Net Operating Loss Carryforward as of December 31, 2018 by Expiry Date ($ 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 27,313 2018 2038 47,653 2018 Indefinite 4,106 Total $ 120,602 NOLs and other carryforwards generated in 2017 and 2018 are not limited by IRC Section 382. 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. When considering the extent of the valuation allowance on Atlas’ DTA, 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 DTAs. Based on Atlas’ cumulative loss in recent years, Atlas has established a valuation allowance of $29.4 million for its gross future deferred tax assets as of December 31, 2018 . The Company had no valuation allowance as of December 31, 2017 . 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 in 2018 , 2017 or 2016 . Tax years 2015 and years thereafter are subject to examination by the Internal Revenue Service (“IRS”). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On May 22, 2012, Atlas closed the sale and leaseback of its 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 in 2017. There was no offset to rent expense recognized in 2018 . Atlas recognized $17,000 and $43,000 as an offset to rent expense in 2017 and 2016 , respectively. There was no rental expense recognized on the former headquarters building in 2018 . Total rental expense recognized on the former headquarters building was $740,000 and $743,000 in 2017 and 2016 , respectively. Future Minimum Rentals 1 ($ in ‘000s) Year 2019 2020 2021 2022 2023 2024 & Beyond Total Amount $ 1,137 $ 1,088 $ 954 $ 174 $ 16 $ — $ 3,369 1 Related principally to office space, required under operating leases, having initial or remaining non-cancelable lease terms in excess of one year. 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, 2018 , the unfunded commitments are $6.0 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 premiums written”), 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, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and Equipment Held 1 ($ in ‘000s) As of December 31, 2018 2017 Buildings $ 7,425 $ 7,425 Land 1,840 1,840 Building improvements 9,006 7,900 Leasehold improvements 190 140 Internal use software 17,575 9,567 Computer equipment 1,821 1,465 Furniture and other office equipment 2,897 2,582 Total $ 40,754 $ 30,919 Accumulated depreciation (9,391 ) (6,480 ) Total property and equipment, net $ 31,363 $ 24,439 1 Excluding assets held for sale. Depreciation expense and amortization was $2.9 million , $1.4 million and $1.0 million in 2018 , 2017 and 2016 , respectively. During 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 in the building. An unrelated tenant occupies the remaining office space in the building. The Company made improvements to its corporate headquarters building of $1.1 million , $7.8 million and $139,000 in 2018, 2017 and 2016 , respectively. Rental income related to this lease agreement was $433,000 , $415,000 and $69,000 in 2018 , 2017 and 2016 , respectively. Depreciation expense related to the building and its improvements was $1.1 million and $171,000 in 2018 and 2017 , respectively. There was no depreciation expense related to the building and its improvements recorded in 2016 . For the years ended December 31, 2018 , 2017 , and 2016 the Company capitalized $7.9 million , $2.9 million , and $449,000 , respectively, of costs incurred, consisting primarily of external consultants and internal labor costs incurred during the application development stage of the internal-use software. Substantially all of the costs incurred during the period were part of the application development stage. For the years ended December 31, 2018 , 2017 , and 2016 , there was $705,000 , $563,000 , and $576,000 , respectively, of amortization expense recorded for projects in the post-implementation/operation stage. Net realized gains on the disposal and sales of equipment were $2,000 in 2018 , and net realized losses on the disposal and sales of equipment were $12,000 in 2017 . There were no realized gains or losses on the disposal of property or equipment in 2016 . |
Reinsurance Ceded
Reinsurance Ceded | 12 Months Ended |
Dec. 31, 2018 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | |
Reinsurance Ceded | Reinsurance Ceded As is customary in the insurance industry, Atlas reinsures portions of certain insurance policies it writes, thereby providing a greater diversification of risk and minimizing exposure on larger risks. Atlas remains contingently at risk with respect to any reinsurance ceded and would incur an additional loss if an assuming company were unable to meet its obligation under the reinsurance treaty. Atlas monitors the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Letters of credit are maintained for any unauthorized reinsurer to cover ceded unearned premium reserves, ceded claims and claims adjustment expense reserve balances and ceded paid claims. These policies mitigate the risk of credit quality or dispute from becoming a danger to financial strength. To date, the Company has not experienced any material difficulties in collecting reinsurance recoverables. Premiums Written, Premiums Earned and Amounts Related to Reinsurance ($ in ‘000s) Year ended December 31, 2018 2017 2016 Direct premiums written $ 253,068 $ 261,276 $ 221,723 Assumed premiums written 33,546 14,685 3,372 Ceded premiums written (86,419 ) (44,825 ) (45,028 ) Net premiums written $ 200,195 $ 231,136 $ 180,067 Direct premiums earned $ 257,646 $ 251,293 $ 217,053 Assumed premiums earned 22,972 9,796 3,074 Ceded premiums earned (62,400 ) (45,318 ) (49,069 ) Net premiums earned $ 218,218 $ 215,771 $ 171,058 Ceded claims and claims adjustment expenses 53,201 46,643 32,496 Ceding commissions 14,518 11,304 12,065 Reinsurance recoverables on unpaid claims and claims adjustment expenses 68,771 53,402 35,370 Prepaid reinsurance premiums 36,898 12,878 13,372 Reinsurance recoverables on paid claims and claims adjustment expenses 12,388 7,982 7,786 |
Claim Liabilities
Claim Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Loss Reserves [Abstract] | |
Claims Liabilities | Claims Liabilities Unpaid Claims and Claims Adjustment Expenses Changes in the Provision for Unpaid Claims and Claims Adjustment Expenses, Net of Reinsurance Recoverables ($ in ‘000s) Year ended December 31, 2018 2017 2016 Unpaid claims and claims adjustment expenses, beginning of period $ 211,648 $ 139,004 $ 127,011 Less: reinsurance recoverable 53,402 35,370 29,399 Net unpaid claims and claims adjustment expenses, beginning of period 158,246 103,634 97,612 Change in retroactive reinsurance ceded — 1,361 107 Incurred related to: Current year 137,916 128,476 102,133 Prior years 82,746 75,397 32,613 220,662 203,873 134,746 Paid related to: Current year 52,637 50,626 39,652 Prior years 121,546 99,996 89,179 174,183 150,622 128,831 Net unpaid claims and claims adjustment expenses, end of period 204,725 158,246 103,634 Add: reinsurance recoverable 68,771 53,402 35,370 Unpaid claims and claims adjustment expenses, end of period $ 273,496 $ 211,648 $ 139,004 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 $82.7 million in unfavorable prior accident year development in 2018 as reflected as incurred related to prior years in the table above. The unfavorable development is primarily from our core lines with $66.4 million of the development related to claims from accident years 2015 through 2017. Year-end 2018 reserve estimates for the Insurance Subsidiaries were strengthened to the high point of the actuarial range established by the outside independent actuaries for each entity based on December 31, 2018 data, claim settlement activities, and other factors evaluated subsequent to the receipt of the 2018 actuarial opinions. While the Company believes that the changes made to its claim process will result in better outcomes than would have otherwise been the case, uncertainty regarding the ultimate outcome exists, and it cannot be assumed that reserve estimates will be adequate. Primarily as a result of regulatory concerns regarding reserve levels, the ASI Pool Companies were placed into rehabilitation in 2019. See ‘Item 1, 2019 Developments’ and “Item 1A, Risk Factors - Risks Related to 2019 Developments - Regulatory Developments” for certain developments with respect to the Company and the Insurance Subsidiaries subsequent to December 31, 2018. Incremental claim outcomes and other factors could result in future adjustments to reserves and reserve estimates. Atlas experienced $75.4 million in unfavorable prior accident year development in 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 in 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 in 2016. Michigan commercial automobile claims accounted for approximately 62.5% of this development. Pre-acquisition Global Liberty claims reserve development was $7.9 million in 2016. The remaining unfavorable prior year development of $1.5 million in 2016 is attributable to assigned risk pools and run-off of non-core business. 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, 2018 , 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, 2009 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) Year ended December 31, As of December 31, 2018 Accident Year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 2017 2018 Incurred but Not Reported Liabilities, Net of Reinsurance Cumulative Number of Reported Claims 2009 $ 37,394 $ 40,309 $ 43,889 $ 43,604 $ 42,909 $ 42,326 $ 42,987 $ 43,728 $ 43,902 $ 44,542 $ 70 13,243 2010 35,877 34,677 35,711 37,026 37,205 38,002 38,841 39,246 39,488 129 8,577 2011 31,044 38,822 34,887 34,720 35,136 36,080 36,472 36,986 251 7,835 2012 35,948 37,839 38,972 40,429 44,627 46,755 47,780 807 9,391 2013 48,449 48,636 53,656 64,687 73,749 78,701 1,928 11,764 2014 61,145 53,005 69,555 92,245 100,546 6,344 14,738 2015 69,060 67,184 96,521 122,995 17,837 19,275 2016 80,824 87,516 104,504 13,926 20,063 2017 101,983 120,510 31,118 22,660 2018 111,288 55,380 19,570 Total Total $ 807,340 Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s) Year ended December 31, Accident Year 2009 unaudited 1 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 2017 2018 2009 $ (3,218 ) $ 10,711 $ 24,468 $ 31,784 $ 36,385 $ 39,664 $ 42,030 $ 43,287 $ 43,707 $ 44,415 2010 10,097 20,483 26,654 31,300 34,831 37,051 38,187 38,930 39,262 2011 8,725 18,980 24,978 29,660 33,217 35,324 36,058 36,660 2012 8,385 18,230 26,995 35,563 41,587 44,835 46,702 2013 10,358 27,198 43,117 59,973 68,612 75,491 2014 15,404 38,257 60,486 81,141 92,593 2015 18,597 49,556 76,398 101,323 2016 21,850 53,812 81,330 2017 27,977 66,055 2018 29,404 Total $ 613,235 All outstanding liabilities before 2009, net of reinsurance 318 Liabilities for claims and allocated claims adjustment expenses, net of reinsurance $ 194,423 1 Year 2009 negative amounts results 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) Year ended December 31, As of December 31, 2018 Accident Year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 2017 2018 Incurred but Not Reported Liabilities, Net of Reinsurance Cumulative Number of Reported Claims 2009 $ 35,688 $ 34,764 $ 34,626 $ 35,453 $ 36,343 $ 36,202 $ 36,736 $ 37,061 $ 37,070 $ 37,423 $ 3 27,847 2010 26,884 27,729 24,714 24,922 24,392 24,456 24,477 24,478 24,526 29 14,331 2011 20,315 22,176 22,310 21,782 22,122 22,941 22,414 22,408 20 10,002 2012 13,054 12,723 13,634 13,854 13,934 14,109 13,674 32 3,616 2013 5,897 4,754 4,556 4,687 4,711 4,655 20 2,149 2014 6,645 6,849 6,978 7,580 7,909 889 2,945 2015 8,320 8,616 9,591 9,036 454 3,979 2016 9,357 9,960 9,983 305 4,708 2017 11,086 12,302 408 5,323 2018 12,190 746 4,885 Total Total $ 154,106 Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s) For the Years Ended December 31, Accident Year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 2017 2018 2009 $ 11,296 $ 25,422 $ 30,343 $ 33,186 $ 34,375 $ 35,785 $ 36,164 $ 36,499 $ 36,714 $ 37,119 2010 14,182 20,420 22,596 23,812 24,225 24,368 24,414 24,452 24,492 2011 11,517 17,419 19,696 20,939 21,600 22,235 22,326 22,331 2012 6,446 9,789 11,554 12,782 13,343 13,317 13,621 2013 4,195 4,602 4,603 4,612 4,641 4,627 2014 6,154 6,677 6,728 6,820 6,833 2015 7,886 8,154 8,291 8,474 2016 9,413 9,802 9,859 2017 10,619 12,238 2018 11,548 Total $ 151,142 All outstanding liabilities before 2009, net of reinsurance 595 Liabilities for claims and allocated claims adjustment expenses, net of reinsurance $ 3,559 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 following table reconciles 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, 2018 . Reconciliation of Unpaid Claims and Claims Adjustment Expenses ($ in ‘000s) As of December 31, 2018 Net outstanding liabilities: Commercial automobile liability $ 194,423 Other short-duration lines 3,559 Unpaid claims and allocated claims adjustment expenses, net of reinsurance 197,982 Reinsurance recoverable on unpaid claims and claims adjustment expenses: Commercial automobile liability 67,744 Other short-duration lines 1,027 Total reinsurance recoverable on unpaid claims and claims adjustment expenses 68,771 Unallocated claims adjustment expenses 6,743 Unpaid claims and claims adjustment expenses, gross of reinsurance $ 273,496 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, 2018 (amounts are unaudited). Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year ended December 31, 2018 Years 1 2 3 4 5 6 7 8 9 10 Commercial automobile liability 17.4 % 26.4 % 21.4 % 17.3 % 10.6 % 6.8 % 3.5 % 2.1 % 0.9 % 1.6 % Other short-duration lines 71.7 % 16.6 % 6.0 % 4.3 % 2.1 % 1.3 % 1.0 % 0.4 % 0.4 % 1.1 % |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
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 (“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 (“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 stock, 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 (prices in Canadian dollars designated with “C$” and U.S. dollars designated with “US$”) Year ended December 31, 2018 2017 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price C$ Denominated: Outstanding, beginning of period 54,390 C$6.00 187,728 C$6.22 Granted — — — — Exercised (27,195 ) C$6.00 (133,338 ) C$6.31 Outstanding, end of period 27,195 C$6.00 54,390 C$6.00 US$ Denominated: 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 Options Outstanding As of December 31, 2018 Grant Date Expiration Date Number Outstanding Number Exercisable January 18, 2011 January 18, 2021 27,195 27,195 March 6, 2014 March 6, 2024 175,000 — March 12, 2015 March 12, 2025 200,000 — Total 402,195 27,195 There are 27,195 stock options that are exercisable as of December 31, 2018 . The stock option grants outstanding have a weighted average remaining life of 5.48 years and have an intrinsic value of $100,000 as of December 31, 2018 . 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 ‘Part II, Item 8, Note 13, Other Employee Benefit Plans’ in the Notes to Consolidated Financial Statements) 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 6 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 (“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 (“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 share at close of market on June 17, 2013 (“Closing Price”), which was $8.10 per share. The restricted stock grants for ordinary voting common shares will vest 20% on each anniversary of the Grant Date, subject to the terms of the Guidelines. The matching grant will be subject to all of the terms and conditions of the Equity Incentive Plan and applicable grant agreements. The matching grant award was discontinued during 2018 with no additional grants under the program since those discussed above. On December 31, 2018, the Company awarded restricted stock unit grants for ordinary voting common shares of the Company to its external directors pursuant to a director equity award agreement dated December 31, 2018. The awards, which were approved by the Company’s Board of Directors in March 2018, were valued at $40,000 per external director (“Aggregate Award”) and were made under the Company’s Equity Incentive Plan. The number of restricted stock units awarded was determined by dividing (A) the Aggregate Award by (B) the closing price of one share of Company ordinary voting common share at the close of market on April 4, 2018, which was $10.50 per share. For new directors, the Aggregate Award is proportionate to the director’s start date and priced as of that same day. During 2018, the Company awarded 17,524 RSU grants having an aggregate grant date fair value of $179,000 . The RSUs will vest 33.3% on January 1 of each year for the next three years. 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 five equal annual installments of 20% , provided that an installment shall not vest unless an annual performance target based on specific book value growth rates linked to return on equity goals is met. In the event the performance target is not met in any year, the 20% installment for such year shall not vest, but such non-vested installment shall carry forward and can become vested in future years (up to the fifth year from the date of grant), subject to achievement in a future year of the applicable performance target for such year. In 2018, no shares of either the restricted stock grants for ordinary voting common shares or the options to acquire ordinary voting common shares vested, due to not meeting annual performance targets. In 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. 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 Restricted Stock Grants for Ordinary Voting Common Shares and Restricted Share Unit Activity Year ended December 31, 2018 2017 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 234,080 $ 16.15 311,120 $ 15.92 Granted 17,524 10.22 — — Vested (44,448 ) 12.20 (77,040 ) 15.21 Non-vested, end of period 207,156 $ 16.50 234,080 $ 16.15 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 (loss) income and comprehensive (loss) income . Atlas recognized share-based compensation expense of $1.2 million in each of the years ended December 31, 2018 and 2017 and $1.6 million in 2016 . As of December 31, 2018 , there was $644,000 of unrecognized total compensation expense related to all restricted stock and restricted stock units grants for ordinary voting common shares. The expense will be amortized over a weighted average period of 1.2 years. |
Other Employee Benefit Plans
Other Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
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 $543,000 , $441,000 and $424,000 in 2018 , 2017 and 2016 , respectively. Employee Stock Purchase Plan The Atlas Employee Stock Purchase Plan (“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. In 2018 , 2017 and 2016 , Atlas’ costs incurred related to the matching portion of the ESPP were $239,000 , $212,000 and $199,000 , respectively. Share purchases pursuant to this plan are made in the open market. |
Share Capital and Mezzanine Equ
Share Capital and Mezzanine Equity | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital and Mezzanine Equity [Abstract] | |
Share Capital and Mezzanine Equity | Share Capital and Mezzanine Equity Share Capital Share Capital Activity As of December 31, 2018 2017 Shares Authorized Shares Issued Shares Outstanding Amount ($ in ‘000s) Shares Issued Shares Outstanding Amount ($ in ‘000s) Ordinary voting common shares 266,666,667 12,192,475 11,936,970 $ 36 12,164,041 12,164,041 $ 36 Restricted voting common shares 33,333,334 — — — — — — Total common shares 300,000,001 12,192,475 11,936,970 $ 36 12,164,041 12,164,041 $ 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, 2018 . There were 24,932 and 14,816 non-vested RSUs as of December 31, 2018 and 2017 , 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 2018 , the Company issued 7,408 ordinary voting common shares as a result of the vesting of RSUs and 27,195 ordinary voting common shares, then immediately canceled 6,169 shares, as a result of a cashless exercise of options. During 2017, the Company issued 7,408 ordinary voting common shares as a result of the vesting of RSUs and 133,338 ordinary voting common shares as a result of the exercise of options. 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 could 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 Share Repurchase Program was not extended. The Company’s decisions around the timing, volume, and nature of share repurchases, and the ultimate amount of shares repurchased, was dependent on market conditions, applicable securities laws and other factors. The Share Repurchase Program and the Board’s authorization of the program could have been modified, suspended or discontinued at any time. During 2018, 255,505 shares were repurchased under the Share Repurchase Program. No shares were repurchased under the Share Repurchase Program during 2017. Atlas did not declare or pay any dividends to its common shareholders during 2018 or 2017 . Mezzanine Equity 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, 2018 and 2017 , there were no outstanding preferred shares. The preferred shares redeemed and canceled during 2016 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 (loss) income and comprehensive (loss) 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. During 2018, Atlas paid $333,000 in dividends earned on the preferred shares to the former owner of Anchor, the cumulative amount to which they were entitled through December 31, 2017, leaving no accrued or unpaid dividends. The paid claims development on Global Liberty’s pre-acquisition claims reserves was in excess of $4.0 million , and as a result, pursuant to the terms of the Anchor stock purchase agreement, dividends will no longer accrue to the former owner of Anchor. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs DPAC represent those costs that are incremental and directly related to the successful acquisition of new or renewal written premium. Such DPAC generally includes agent commissions, premium taxes and a portion of employee compensation and benefits directly related to time spent performing specific acquisition or renewal activities. The method followed in determining the DPAC limits the deferral to its realizable value by giving consideration to estimated future claims and expenses to be incurred as premiums are earned. Changes in estimates, if any, are recorded in the accounting period in which they are determined. Anticipated investment income is included in determining the realizable value of the DPAC. Atlas’ DPAC are reported net of deferred ceding commissions. Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, typically 12 months. Components of Deferred Policy Acquisition Costs ($ in ‘000s) Year ended December 31, 2018 2017 2016 Balance, beginning of period $ 14,797 $ 13,222 $ 10,235 Acquisition costs deferred 18,627 29,460 21,790 Amortization charged to operations (26,115 ) (27,885 ) (18,803 ) Balance, end of period $ 7,309 $ 14,797 $ 13,222 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions See ‘Item 13, Certain Relationships and Related Transactions, and Director Independence ” for disclosure regarding the Company’s related party transactions. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (unaudited) ($ in ‘000s, except per share data) Q4 Q3 Q2 Q1 2018 Gross premiums written $ 57,749 $ 75,917 $ 57,359 $ 95,589 Net premiums earned 52,506 54,461 55,359 55,892 Net (loss) income attributable to common shareholders (96,722 ) 5,605 5,576 5,529 (Loss) earnings per common share basic $ (8.06 ) $ 0.47 $ 0.47 $ 0.46 (Loss) earnings per common share diluted $ (8.06 ) $ 0.47 $ 0.47 $ 0.45 2017 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 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 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2018 | |
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). 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 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 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. The Loan Agreement was terminated in April 2017. Atlas used a portion of the net proceeds of the senior unsecured notes offering, together with cash on hand, for the repayment of all outstanding balances under the Draw Amount and Revolver, $15.5 million and $3.9 million , respectively. Interest expense on notes payable was $1.9 million , $1.8 million and $1.0 million in 2018 , 2017 and 2016 , respectively. Notes Payable Outstanding ($ in ‘000s) As of December 31, 2018 2017 6.625% Senior Unsecured Notes due April 26, 2022 $ 25,000 $ 25,000 Unamortized issuance costs (745 ) (969 ) Total notes payable $ 24,255 $ 24,031 |
Statutory Information
Statutory Information | 12 Months Ended |
Dec. 31, 2018 | |
Statutory Information [Abstract] | |
Statutory Information | Statutory Information Atlas’ Insurance Subsidiaries are required to report their financial condition and results of operations in accordance with statutory accounting principles prescribed or permitted by state insurance laws and regulations and the National Association of Insurance Commissioners (“NAIC”). State insurance laws and regulations also prescribe the form and content of statutory financial statements, require the performance of periodic financial examinations of insurers, establish standards for the types and amounts of investments insurers may hold and require minimum capital and surplus levels. The Insurance Subsidiaries must each maintain a minimum statutory capital and surplus of $1.5 million , $2.4 million and $3.5 million under the provisions of the Illinois Insurance Code, the Missouri Insurance Code and the New York Insurance Code, respectively. As of December 31, 2018, 2017 and 2016, each of our Insurance Subsidiaries individually exceed the minimum required statutory capital and surplus requirements. See “Risk Factors - Risks Related to 2019 Developments - Regulatory Developments” for certain developments with respect to the Insurance Subsidiaries subsequent to December 31, 2018. Statutory Net Loss and Surplus of Atlas’ Insurance Subsidiaries ($ in ‘000s) Year Ended December 31, 2018 2017 2016 Statutory net loss $ 49,648 $ 35,199 $ 3,585 Combined statutory capital and surplus $ 14,377 $ 87,813 $ 113,943 Additional requirements include risk-based capital (“RBC”) rules, thresholds intended to enable state insurance regulators to assess the level of risk inherent in an insurance company’s business and consider items such as asset risk, credit risk, underwriting risk and other business risks relevant to its operations. The NAIC RBC formula generates the regulatory minimum amount of capital that a company is required to maintain to avoid regulatory action. There are four levels of action that a company can trigger under the formula: company action, regulatory action, authorized control and mandatory control levels. Each RBC level requires some particular action on the part of the regulator, the company, or both. For example, an insurer that breaches the Company Action Level must produce a plan to restore its RBC levels. As of December 31, 2018 , the total adjusted capital of three of our Insurance Subsidiaries exceeded the minimum levels required under RBC requirements, with one subsidiary breaching the Company Action Level. We are working with the appropriate regulators to restore its RBC levels. We do not expect that this restoration will impede our ability to execute on strategic plans. See “Risk Factors - Risks Related to 2019 Developments - Regulatory Developments” for certain developments with respect to the Insurance Subsidiaries subsequent to December 31, 2018. 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, loans or advances 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. 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 months. Atlas' Insurance Subsidiaries did not declare or pay any dividends to Atlas during 2018 or 2017 . |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Throughout 2019, the Company has been exploring strategic alternatives, including, but not limited to, further strengthening its processes, reviewing its capital allocation and opportunities, a potential sale of the Company or certain assets, and balance sheet strengthening options with the goal of facilitating shareholder value generation. Atlas concluded that the utilization of its wholly owned MGA operation to work with strategic external insurance and reinsurance partners will enable the Company to leverage its focus, experience and infrastructure to create value for stakeholders. A definitive agreement was executed effective June 10, 2019 between Atlas and American Financial Group, Inc. (NYSE: AFG), under which Atlas will act as an underwriting manager for AFG’s National Interstate (“NATL”) subsidiary and transition new and renewal paratransit business to NATL paper for this book of business. The Company is working on additional arrangements with the objective of establishing MGA relationships in connection with the Company’s other lines of business as well. The Company agreed that should it choose to sell its MGA operations, 49% of the proceeds from any future sale of AGMI would be provided to the ASI Pool Companies to facilitate the rehabilitation process. There can be no assurance that any portion of the proceeds allocated to the ASI Pool Companies would be available for distribution to the Company. During 2019, the Illinois Department of Insurance (the “Department”) placed all three of the ASI Pool Companies (after Gateway was redomesticated in Illinois) into rehabilitation with the Director of the Department as the statutory rehabilitator. While in rehabilitation, the operations of such insurance subsidiaries will be overseen by the statutory rehabilitator although Atlas continues to maintain its legal ownership of the stock of the ASI Pool Companies. Management’s overriding strategic plan continues to include a transition of business from these insurance companies to alternative markets within a reasonable period of time utilizing the existing platform of the MGA to work with strategic external insurance and reinsurance partners. Effective August 15, 2019, no new business was written by the ASI Pool Companies, and only New York area new business was written by Global Liberty, which is focusing its resources on New York area business to leverage the subsidiary’s heritage in this large and specific market. The ASI Pool Companies and Global Liberty continued to write renewal business that met their underwriting standards during 2019. Non-renewals related to ASI Pool Companies’ insurance policies began towards the end of 2019. On January 22, 2020, the Company announced a non-binding letter of intent with Buckle, a technology-driven financial services company, to purchase the stock of Atlas’ indirect subsidiary Gateway Insurance Company (“Gateway”) and its corporate charter and forty-seven (47) state insurance licenses as well as state statutory deposits, subject to regulatory and other necessary approvals, for $4.7 million plus the value of all purchased deposits, such amount to be paid to the Rehabilitator for the benefit of the rehabilitation estate of Gateway, with a tentative closing date in March of 2020. The Company anticipates that Buckle will engage the MGA and certain other subsidiaries of the Company to provide services to Buckle and that Buckle will lease space at the Company’s headquarters and its Melville, NY office. The transaction will be subject to court approval and a bid process established by the Rehabilitator and approved by the court, and there can be no assurance that the transaction will be consummated on the terms described herein or at all. |
Schedule II - Condensed Financ
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | Schedule II – Condensed Financial Information of Registrant Statements of (Loss) Income and Comprehensive (Loss) Income ($ in ‘000s) Year ended December 31, 2018 2017 2016 Net investment expense $ (21 ) $ (4 ) $ — Other underwriting (expense) income (2,926 ) (1,436 ) 4,550 Interest expense (1,871 ) (1,266 ) — (Loss) income from operations before income taxes (4,818 ) (2,706 ) 4,550 Income tax expense (benefit) 4,141 (115 ) (559 ) (Loss) income before equity in net income of subsidiaries $ (8,959 ) $ (2,591 ) $ 5,109 Equity in net loss of subsidiaries (71,053 ) (36,219 ) (2,463 ) Net (loss) income $ (80,012 ) $ (38,810 ) $ 2,646 Other comprehensive (loss) income: Changes in net unrealized investment (losses) gains (3,078 ) 437 855 Reclassification to net income (loss) 284 (49 ) 394 Effect of income taxes — (136 ) (437 ) Other comprehensive (loss) income (2,794 ) 252 812 Total comprehensive (loss) income $ (82,806 ) $ (38,558 ) $ 3,458 Statements of Financial Position ($ in ‘000s, except share and per share data) December 31, 2018 2017 Assets Cash and cash equivalents $ 371 $ 4,233 Deferred tax asset, net — 4,116 Investment in subsidiaries 36,049 109,897 Total Assets $ 36,420 $ 118,246 Liabilities Notes payable, net $ 24,255 $ 24,031 Other liabilities and accrued expenses 6,466 3,570 Total Liabilities $ 30,721 $ 27,601 Shareholders’ Equity Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued: December 31, 2018 - 12,192,475 and December 31, 2017 12,164,041; shares outstanding: December 31, 2018 - 11,936,970 and December 31, 2017 - 12,164,041 $ 36 $ 36 Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: December 31, 2018 and December 31, 2017 - 0 — — Additional paid in capital 202,298 201,105 Treasury stock, at cost: December 31, 2018 - 255,505 and December 31, 2017 - 0 shares of ordinary voting common shares (3,000 ) — Retained deficit (190,503 ) (110,535 ) Accumulated other comprehensive (loss) income, net of tax (3,132 ) 39 Total Shareholders’ Equity $ 5,699 $ 90,645 Total Liabilities and Shareholders’ Equity $ 36,420 $ 118,246 See accompanying Notes to Condensed Financial Information of Registrant. Schedule II (Continued) – Condensed Financial Information of Registrant Statements of Cash Flows ($ in ‘000s) Year ended December 31, 2018 2017 2016 Operating activities: Net (loss) income $ (80,012 ) $ (38,810 ) $ 2,646 Adjustments to reconcile net (loss) income to net cash flows (used in) provided by operating activities: Equity in net loss of subsidiaries 71,053 36,219 2,463 Share-based compensation expense 1,201 1,176 1,612 Deferred income taxes 4,116 (712 ) (417 ) Amortization of financing costs 224 152 — Expenses recovered pursuant to stock purchase agreements — — (6,623 ) Net changes in operating assets and liabilities: Other assets — — 479 Other liabilities and accrued expenses 2,897 673 2,897 Net cash flows (used in) provided by operating activities (521 ) (1,302 ) 3,057 Investing activities: Capital contributions made to subsidiaries — (19,300 ) — Net cash flows used in investing activities — (19,300 ) — Financing activities: Preferred share buyback — — (2,539 ) Capital contribution (8 ) 30 — Repurchase of common shares (3,000 ) — — Proceeds from notes payable, net of issuance costs — 23,879 — Preferred dividends paid (333 ) — (409 ) Options exercised — 655 — Net cash flows (used in) provided by financing activities (3,341 ) 24,564 (2,948 ) Net change in cash and cash equivalents (3,862 ) 3,962 109 Cash and cash equivalents, beginning of year 4,233 271 162 Cash and cash equivalents, end of year $ 371 $ 4,233 $ 271 Supplemental disclosure of cash paid (recovered) for: Interest $ 1,656 $ 828 $ — Income taxes (1,806 ) (192 ) (3,464 ) Supplemental disclosure of noncash investing and financing activities: 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 (Continued) – Condensed Financial Information of Registrant 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 ‘Part II, Item 8.’ On April 26, 2017, Atlas issued $25 million of five -year 6.625% senior unsecured notes and received net proceeds of approximately $23.9 million after deducting underwriting discounts and commissions and other estimated offering expenses, as described in ‘Part II, Item 8, Note 18, Notes Payable.’ Atlas has no other long-term debt obligations. Atlas has not received cash dividends from its subsidiaries since its inception on December 31, 2010. |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance | Schedule IV – Reinsurance ($ in ‘000s) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount % of Amount Assumed to Net Premiums Earned December 31, 2018 $ 257,646 $ (62,400 ) $ 22,972 $ 218,218 10.5 % December 31, 2017 $ 251,293 $ (45,318 ) $ 9,796 $ 215,771 4.5 % December 31, 2016 $ 217,053 $ (49,069 ) $ 3,074 $ 171,058 1.8 % |
Schedule V - Valuation and qual
Schedule V - Valuation and qualifying accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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, 2018 Allowance for uncollectible receivables $ 3,418 $ 2,344 $ — $ (647 ) $ 5,115 Valuation allowance for deferred tax assets — 28,830 — — 28,830 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 — — — — — |
Schedule VI - Supplemental info
Schedule VI - Supplemental information concerning property-casualty insurance operations | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-18, Supplemental Information, 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, 2018 2017 2016 Deferred policy acquisition costs $ 7,309 $ 14,797 $ 13,222 Claims liabilities 273,496 211,648 139,004 Unearned premium reserves 134,040 128,043 113,171 Net premiums earned 218,218 215,771 171,058 Net investment income 2,647 4,897 4,824 Claims and claims adjustment expenses incurred Current year 137,916 128,476 102,133 Prior year 82,746 75,397 32,613 Amortization of deferred policy acquisition costs 26,115 27,885 18,803 Paid claims and claims adjustment expenses 174,183 150,622 128,831 Gross premiums written 286,614 275,961 225,095 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 (loss) income and comprehensive (loss) income from the effective date of acquisition and up to the effective date of disposal, as appropriate. All significant intercompany transactions and balances are eliminated in consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by Atlas. The following are Atlas’ subsidiaries, all of which are 100% owned, either directly or indirectly, together with the jurisdiction of incorporation, that are included in consolidated financial statements: • American Country Insurance Company (Illinois) • American Insurance Acquisition Inc. (Delaware) • American Service Insurance Company, Inc. (Illinois) • Anchor Group Management Inc. (New York) • Anchor Holdings Group, Inc. (New York) • Gateway Insurance Company (Missouri) • Global Liberty Insurance Company of New York (New York) • Plainview Premium Finance Company, Inc. (Delaware), merged into American Insurance Acquisition during 2018 • UBI Holdings Inc. (Delaware) • optOn Digital IP Inc. (Delaware) • optOn Insurance Agency Inc. (Delaware) |
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. Investment Income and Realized Gains (Losses) 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. Short-Term Investments Short-term investments consist of investments with original maturities between three months and one year and are reported at cost, which approximates fair value. Investments Investments in fixed income 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 (loss) income in shareholders’ equity. In the normal course of investing activities, the Company enters into relationships with variable interest entities (“VIE”), as an investor in limited partnerships or limited liability company. The Company is not the primary beneficiary of these VIEs, and therefore does not consolidate them. The Company determines whether it is the primary beneficiary of a VIE based on a qualitative assessment of the relative power and benefits of the Company and the other participants in the VIE. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values and any unfunded commitments. |
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 Securities and Exchange Commission (“SEC”) registered investment adviser 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 adviser 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 and 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, 2018 , 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 adviser 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 adviser 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 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 acquisitions costs (“DPAC”) 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 DPAC. Atlas’ DPAC 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 2018 , 2017 or 2016 . |
Income Taxes | Income Taxes Income tax expense (benefit) includes all taxes based on taxable (loss) income of Atlas and its subsidiaries, and is recognized in the statements of (loss) income and comprehensive (loss) 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 (loss) 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 (“DTAs” and “DTLs”) 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’ DTA, 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 DTAs. 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. |
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. 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 . |
Property and equipment | Property and Equipment Buildings, office equipment and internal use software are stated at historical cost less depreciation and amortization. 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. Internal use software includes costs associated with the Company’s policy and claims system including costs to develop those systems. Costs incurred during the preliminary project stage are expensed as incurred; costs incurred for activities during the application development stage are capitalized; and costs incurred during the post-implementation/operation stage are expensed as incurred. Upon reaching the post-implementation/operation stage of the development of internal use software, the capitalized costs are amortized over the estimated useful life of the asset. Depreciation on buildings and building improvements are provided on a straight-line basis over the estimated useful life of 33 years for buildings and 10 years for building improvements. Depreciation and amortization on equipment and internal use software 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 reported prior to the close of the accounting period, estimates for unreported claims based on industry data and actuarial estimates, plus related estimated claim adjustment expenses based on the experience of the Company. Unpaid claim 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. The amount of uncertainty in the estimates is significantly affected by such factors as the amount of claims experience relative to the development period, knowledge of the actual facts and circumstances and the amount of insurance risk retained. The actuarial methods for making estimates for unpaid claims and for establishing the ultimate liability are periodically reviewed, and any adjustments are reflected in current operations. |
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. Compensation expense is estimated based on the fair value of the award at the grant date and is recognized in net income over the requisite service period with a corresponding increase to additional paid in capital. The share-based compensation expense associated with awards that have graded vesting features and vest based on service conditions is calculated on a straight-line basis over the requisite service period for the entire award. Compensation expense recognized in connection with performance awards is based on the achievement of the specified performance and service conditions. During the recognition period compensation expense is accrued based on the performance condition that is probable of achievement. The final measure of compensation expense recognized over the requisite service period reflects the final performance outcome. |
Operating segments | Operating Segments Atlas operates in one business segment, the P&C 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets Intangible Assets by Major Asset Class (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Atlas concluded that there was no indefinite-lived intangible asset impairment in 2018 , 2017 or 2016 . Changes in the Carrying Amount of Goodwill ($ in ‘000s) 2018 2017 Balance as of January 1, Goodwill $ 2,726 $ 2,726 Accumulated impairment losses — — 2,726 2,726 Additions — — Impairment losses (2,726 ) — Balance as of December 31, Goodwill 2,726 2,726 Accumulated impairment losses (2,726 ) — $ — $ 2,726 |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | Intangible Assets by Major Asset Class ($ in ‘000s) Economic Useful Life Gross Carrying Amount Accumulated Amortization Net As of December 31, 2018 Trade name and trademark 15 years $ 1,800 $ 459 $ 1,341 Customer relationship 10 years 2,700 1,026 1,674 State insurance licenses Indefinite 740 — 740 $ 5,240 $ 1,485 $ 3,755 As of December 31, 2017 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 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible Assets by Major Asset Class ($ in ‘000s) Economic Useful Life Gross Carrying Amount Accumulated Amortization Net As of December 31, 2018 Trade name and trademark 15 years $ 1,800 $ 459 $ 1,341 Customer relationship 10 years 2,700 1,026 1,674 State insurance licenses Indefinite 740 — 740 $ 5,240 $ 1,485 $ 3,755 As of December 31, 2017 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 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Shares, Basic and Diluted | Computations of Basic and Diluted Earnings per Common Share ($ in ‘000s, except share and per share amounts) Year ended December 31, 2018 2017 2016 Basic (Loss) income from operations before income taxes $ (64,201 ) $ (44,153 ) $ 512 Income tax expense (benefit) 15,811 (5,343 ) (2,134 ) Net (loss) income $ (80,012 ) $ (38,810 ) $ 2,646 Less: Preferred share dividends — — 281 Net (loss) income attributable to common shareholders $ (80,012 ) $ (38,810 ) $ 2,365 Basic weighted average common shares outstanding 11,992,808 12,064,880 12,045,519 (Loss) earnings per common share basic $ (6.67 ) $ (3.22 ) $ 0.20 Diluted Basic weighted average common shares outstanding 11,992,808 12,064,880 12,045,519 Dilutive potential ordinary shares: Dilutive stock options outstanding — — 177,364 Diluted weighted average common shares outstanding 11,992,808 12,064,880 12,222,883 (Loss) earnings per common share diluted $ (6.67 ) $ (3.22 ) $ 0.19 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Schedule of Available-for-sale Securities | Cost or Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments ($ in ‘000s) Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 Fixed income securities: U.S. Treasury and other U.S. government obligations $ 20,522 $ 30 $ (356 ) $ 20,196 States, municipalities and political subdivisions 8,970 19 (146 ) 8,843 Corporate Banking/financial services 13,482 9 (367 ) 13,124 Consumer goods 10,108 1 (319 ) 9,790 Capital goods 3,711 36 (200 ) 3,547 Energy 7,191 — (379 ) 6,812 Telecommunications/utilities 8,647 1 (325 ) 8,323 Health care 832 — (77 ) 755 Total corporate 43,971 47 (1,667 ) 42,351 Mortgage-backed Agency 25,778 6 (656 ) 25,128 Commercial 20,091 105 (574 ) 19,622 Total mortgage-backed 45,869 111 (1,230 ) 44,750 Other asset-backed 13,881 13 (43 ) 13,851 Total fixed income securities $ 133,213 $ 220 $ (3,442 ) $ 129,991 December 31, 2017 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 Agency 30,920 57 (364 ) 30,613 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 Total $ 166,380 $ 1,430 $ (1,380 ) $ 166,430 Amortized Cost and Fair Value of Fixed Income Securities by Contractual Maturity ($ in ‘000s) Amortized Cost Fair Value As of December 31, 2018 Due in less than one year $ 5,573 $ 5,546 Due in one through five years 29,000 28,324 Due after five through ten years 33,790 32,724 Due after ten years 5,100 4,796 Total contractual maturity 73,463 71,390 Total mortgage and asset-backed 59,750 58,601 Total $ 133,213 $ 129,991 |
Summary of Carrying Amounts of Fixed Income Securities, by Contractual Maturity | Amortized Cost and Fair Value of Fixed Income Securities by Contractual Maturity ($ in ‘000s) Amortized Cost Fair Value As of December 31, 2018 Due in less than one year $ 5,573 $ 5,546 Due in one through five years 29,000 28,324 Due after five through ten years 33,790 32,724 Due after ten years 5,100 4,796 Total contractual maturity 73,463 71,390 Total mortgage and asset-backed 59,750 58,601 Total $ 133,213 $ 129,991 |
Schedule of Unrealized Loss on Investments | Aging of Unrealized Losses in Fixed Income Securities and Equities ($ in ‘000s) Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2018 Fixed income securities: U.S. Treasury and other U.S. government obligations $ 507 $ — $ 15,857 $ (356 ) $ 16,364 $ (356 ) States, municipalities and political subdivisions 1,687 (27 ) 4,875 (119 ) 6,562 (146 ) Corporate Banking/financial services 8,376 (235 ) 3,861 (132 ) 12,237 (367 ) Consumer goods 5,442 (176 ) 4,132 (143 ) 9,574 (319 ) Capital goods 1,727 (135 ) 1,430 (65 ) 3,157 (200 ) Energy 4,516 (295 ) 2,296 (84 ) 6,812 (379 ) Telecommunications/utilities 3,806 (99 ) 4,259 (226 ) 8,065 (325 ) Health care 127 (2 ) 628 (75 ) 755 (77 ) Total corporate 23,994 (942 ) 16,606 (725 ) 40,600 (1,667 ) Mortgage-backed Agency 5,035 (72 ) 19,210 (584 ) 24,245 (656 ) Commercial 5,256 (149 ) 11,062 (425 ) 16,318 (574 ) Total mortgage-backed 10,291 (221 ) 30,272 (1,009 ) 40,563 (1,230 ) Other asset-backed 9,568 (22 ) 1,748 (21 ) 11,316 (43 ) Total fixed income securities $ 46,047 $ (1,212 ) $ 69,358 $ (2,230 ) $ 115,405 $ (3,442 ) December 31, 2017 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 Agency 13,203 (136 ) 9,786 (228 ) 22,989 (364 ) 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 ) Total $ 73,851 $ (544 ) $ 34,253 $ (836 ) $ 108,104 $ (1,380 ) |
Summary of the Components of Net Investment Income | Components of Net Investment Income ($ in ‘000s) Year ended December 31, 2018 2017 2016 Total investment income Interest income $ 4,115 $ 3,834 $ 3,747 (Loss) income from other investments (470 ) 1,911 1,942 Investment expenses (998 ) (848 ) (865 ) Net investment income $ 2,647 $ 4,897 $ 4,824 |
Schedule of Realized Gain (Loss) | Aggregate Proceeds and Gross Realized Investment Gains and Losses ($ in ‘000s) Year ended December 31, 2018 2017 2016 Fixed income securities 1 : Proceeds from sales and calls $ 49,247 $ 24,274 $ 59,161 Gross realized investment gains 343 300 1,296 Gross realized investment losses (652 ) (55 ) (131 ) Equities: Proceeds from sales 5,458 6,161 662 Gross realized investment gains 814 635 65 Gross realized investment losses (25 ) (2 ) — Other investments: Proceeds from sales 93 (6 ) — Gross realized investment gains 93 — — Gross realized investment losses — (6 ) — Total: Proceeds from sales and calls $ 54,798 $ 30,429 $ 59,823 Gross realized investment gains 1,250 935 1,361 Gross realized investment losses (677 ) (63 ) (131 ) 1 The proceeds from sales and calls, gross realized investment gains and gross realized investment losses on fixed income securities in 2016 were restated to include both voluntary and involuntary calls. |
Summary of the Components of Net Investment Realized Gains | Components of Net Realized Gains (Losses) ($ in ‘000s) Year ended December 31, 2018 2017 2016 Fixed income securities $ (309 ) $ 245 $ 1,165 Equities 789 633 65 Other investments 93 (6 ) — Net realized gains $ 573 $ 872 $ 1,230 |
Equity Method Investments | Equity Method Investments by Type ($ in ‘000s) As of December 31, 2018 2018 2017 Unfunded Commitments Carrying Value Real estate $ 2,887 $ 11,085 $ 10,660 Insurance linked securities — 6,694 9,073 Activist hedge funds — 3,911 4,367 Venture capital 3,070 2,015 853 Other joint venture — 325 325 Total equity method investments $ 5,957 $ 24,030 $ 25,278 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial and Credit Risk Management [Abstract] | |
Summary of Investments at Fair Value | Investments at Fair Value ($ in ‘000s) Level 1 Level 2 Level 3 Total As of December 31, 2018 Fixed income securities: U.S. Treasury and other U.S. government obligations $ 20,196 $ — $ — $ 20,196 States, municipalities and political subdivisions — 8,843 — 8,843 Corporate Banking/financial services — 13,124 — 13,124 Consumer goods — 9,790 — 9,790 Capital goods — 3,547 — 3,547 Energy — 6,812 — 6,812 Telecommunications/utilities — 8,323 — 8,323 Health care — 755 — 755 Total corporate — 42,351 — 42,351 Mortgage-backed Agency — 25,128 — 25,128 Commercial — 19,622 — 19,622 Total mortgage-backed — 44,750 — 44,750 Other asset-backed — 13,851 — 13,851 Total fixed income securities $ 20,196 $ 109,795 $ — $ 129,991 Equities 5,929 — — 5,929 Total $ 26,125 $ 109,795 $ — $ 135,920 As of December 31, 2017 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 Agency — 30,613 — 30,613 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 Total $ 29,632 $ 136,798 $ — $ 166,430 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Atlas’ effective tax rate was (24.6)% , 12.1% and (416.8)% in 2018 , 2017 and 2016 , respectively. Reconciliation of U.S. Statutory Marginal Income Tax Rate to the Effective Tax Rate ($ in ‘000s) Year ended December 31, 2018 2017 2016 Amount % Amount % Amount % Provision for taxes at U.S. statutory marginal income tax rate $ (13,482 ) 21.0 % $ (15,453 ) 35.0 % $ 179 35.0 % Provision for deferred tax assets deemed unrealizable (valuation allowance) 28,830 (44.9 ) — — — — Nondeductible expenses 62 (0.1 ) 51 (0.1 ) 24 4.7 Tax-exempt income (12 ) — (23 ) 0.1 (39 ) (7.6 ) State tax (net of federal benefit) (2 ) — (2 ) — 28 5.5 Stock compensation (42 ) 0.1 (458 ) 1.0 — — Nondeductible goodwill 572 (0.9 ) — — — — Nondeductible acquisition accounting adjustment (109 ) 0.2 — — (2,204 ) (430.5 ) Change in statutory tax rate — — 10,542 (23.9 ) — — Other (6 ) — — — (122 ) (23.9 ) Provision for income taxes for continuing operations $ 15,811 (24.6 )% $ (5,343 ) 12.1 % $ (2,134 ) (416.8 )% |
Schedule of Components of Income Tax Expense (Benefit) | Components of Income Tax Expense (Benefit) ($ in ‘000s) Year ended December 31, 2018 2017 2016 Current tax benefit $ (1,174 ) $ (6,719 ) $ (2,586 ) Deferred tax (benefit) expense (11,845 ) 1,376 452 Change in deferred tax valuation allowance 28,830 — — Total $ 15,811 $ (5,343 ) $ (2,134 ) |
Schedule of Deferred Tax Assets and Liabilities | Components of Deferred Income Tax Assets and Liabilities ($ in ‘000s) December 31, 2018 2017 Gross deferred tax assets: Losses carried forward $ 25,326 $ 13,313 Claims liabilities and unearned premium reserves 5,949 6,171 Bad debts 1,009 — Tax credits — 1,172 Commissions — 623 Stock compensation 760 602 Other 418 1,094 Valuation allowance (29,416 ) — Total gross deferred tax assets 4,046 22,975 Gross deferred tax liabilities: Deferred policy acquisition costs 1,535 3,107 Investments 189 213 Fixed assets 1,371 847 Intangible assets 633 715 Other 318 1,108 Total gross deferred tax liabilities 4,046 5,990 Net deferred tax assets $ — $ 16,985 |
Summary of Operating Loss Carryforwards | Net Operating Loss Carryforward as of December 31, 2018 by Expiry Date ($ 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 27,313 2018 2038 47,653 2018 Indefinite 4,106 Total $ 120,602 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future Minimum Rentals 1 ($ in ‘000s) Year 2019 2020 2021 2022 2023 2024 & Beyond Total Amount $ 1,137 $ 1,088 $ 954 $ 174 $ 16 $ — $ 3,369 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and Equipment Held 1 ($ in ‘000s) As of December 31, 2018 2017 Buildings $ 7,425 $ 7,425 Land 1,840 1,840 Building improvements 9,006 7,900 Leasehold improvements 190 140 Internal use software 17,575 9,567 Computer equipment 1,821 1,465 Furniture and other office equipment 2,897 2,582 Total $ 40,754 $ 30,919 Accumulated depreciation (9,391 ) (6,480 ) Total property and equipment, net $ 31,363 $ 24,439 |
Reinsurance Ceded (Tables)
Reinsurance Ceded (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | |
Schedule of Effects of Reinsurance | Premiums Written, Premiums Earned and Amounts Related to Reinsurance ($ in ‘000s) Year ended December 31, 2018 2017 2016 Direct premiums written $ 253,068 $ 261,276 $ 221,723 Assumed premiums written 33,546 14,685 3,372 Ceded premiums written (86,419 ) (44,825 ) (45,028 ) Net premiums written $ 200,195 $ 231,136 $ 180,067 Direct premiums earned $ 257,646 $ 251,293 $ 217,053 Assumed premiums earned 22,972 9,796 3,074 Ceded premiums earned (62,400 ) (45,318 ) (49,069 ) Net premiums earned $ 218,218 $ 215,771 $ 171,058 Ceded claims and claims adjustment expenses 53,201 46,643 32,496 Ceding commissions 14,518 11,304 12,065 Reinsurance recoverables on unpaid claims and claims adjustment expenses 68,771 53,402 35,370 Prepaid reinsurance premiums 36,898 12,878 13,372 Reinsurance recoverables on paid claims and claims adjustment expenses 12,388 7,982 7,786 |
Claim Liabilities (Tables)
Claim Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | Changes in the Provision for Unpaid Claims and Claims Adjustment Expenses, Net of Reinsurance Recoverables ($ in ‘000s) Year ended December 31, 2018 2017 2016 Unpaid claims and claims adjustment expenses, beginning of period $ 211,648 $ 139,004 $ 127,011 Less: reinsurance recoverable 53,402 35,370 29,399 Net unpaid claims and claims adjustment expenses, beginning of period 158,246 103,634 97,612 Change in retroactive reinsurance ceded — 1,361 107 Incurred related to: Current year 137,916 128,476 102,133 Prior years 82,746 75,397 32,613 220,662 203,873 134,746 Paid related to: Current year 52,637 50,626 39,652 Prior years 121,546 99,996 89,179 174,183 150,622 128,831 Net unpaid claims and claims adjustment expenses, end of period 204,725 158,246 103,634 Add: reinsurance recoverable 68,771 53,402 35,370 Unpaid claims and claims adjustment expenses, end of period $ 273,496 $ 211,648 $ 139,004 |
Short-duration Insurance Contracts, Claims Development | Commercial Automobile Liability Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s, except cumulative number of reported claims) Year ended December 31, As of December 31, 2018 Accident Year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 2017 2018 Incurred but Not Reported Liabilities, Net of Reinsurance Cumulative Number of Reported Claims 2009 $ 37,394 $ 40,309 $ 43,889 $ 43,604 $ 42,909 $ 42,326 $ 42,987 $ 43,728 $ 43,902 $ 44,542 $ 70 13,243 2010 35,877 34,677 35,711 37,026 37,205 38,002 38,841 39,246 39,488 129 8,577 2011 31,044 38,822 34,887 34,720 35,136 36,080 36,472 36,986 251 7,835 2012 35,948 37,839 38,972 40,429 44,627 46,755 47,780 807 9,391 2013 48,449 48,636 53,656 64,687 73,749 78,701 1,928 11,764 2014 61,145 53,005 69,555 92,245 100,546 6,344 14,738 2015 69,060 67,184 96,521 122,995 17,837 19,275 2016 80,824 87,516 104,504 13,926 20,063 2017 101,983 120,510 31,118 22,660 2018 111,288 55,380 19,570 Total Total $ 807,340 Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s) Year ended December 31, Accident Year 2009 unaudited 1 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 2017 2018 2009 $ (3,218 ) $ 10,711 $ 24,468 $ 31,784 $ 36,385 $ 39,664 $ 42,030 $ 43,287 $ 43,707 $ 44,415 2010 10,097 20,483 26,654 31,300 34,831 37,051 38,187 38,930 39,262 2011 8,725 18,980 24,978 29,660 33,217 35,324 36,058 36,660 2012 8,385 18,230 26,995 35,563 41,587 44,835 46,702 2013 10,358 27,198 43,117 59,973 68,612 75,491 2014 15,404 38,257 60,486 81,141 92,593 2015 18,597 49,556 76,398 101,323 2016 21,850 53,812 81,330 2017 27,977 66,055 2018 29,404 Total $ 613,235 All outstanding liabilities before 2009, net of reinsurance 318 Liabilities for claims and allocated claims adjustment expenses, net of reinsurance $ 194,423 1 Year 2009 negative amounts results 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) Year ended December 31, As of December 31, 2018 Accident Year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 2017 2018 Incurred but Not Reported Liabilities, Net of Reinsurance Cumulative Number of Reported Claims 2009 $ 35,688 $ 34,764 $ 34,626 $ 35,453 $ 36,343 $ 36,202 $ 36,736 $ 37,061 $ 37,070 $ 37,423 $ 3 27,847 2010 26,884 27,729 24,714 24,922 24,392 24,456 24,477 24,478 24,526 29 14,331 2011 20,315 22,176 22,310 21,782 22,122 22,941 22,414 22,408 20 10,002 2012 13,054 12,723 13,634 13,854 13,934 14,109 13,674 32 3,616 2013 5,897 4,754 4,556 4,687 4,711 4,655 20 2,149 2014 6,645 6,849 6,978 7,580 7,909 889 2,945 2015 8,320 8,616 9,591 9,036 454 3,979 2016 9,357 9,960 9,983 305 4,708 2017 11,086 12,302 408 5,323 2018 12,190 746 4,885 Total Total $ 154,106 Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in ‘000s) For the Years Ended December 31, Accident Year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 2017 2018 2009 $ 11,296 $ 25,422 $ 30,343 $ 33,186 $ 34,375 $ 35,785 $ 36,164 $ 36,499 $ 36,714 $ 37,119 2010 14,182 20,420 22,596 23,812 24,225 24,368 24,414 24,452 24,492 2011 11,517 17,419 19,696 20,939 21,600 22,235 22,326 22,331 2012 6,446 9,789 11,554 12,782 13,343 13,317 13,621 2013 4,195 4,602 4,603 4,612 4,641 4,627 2014 6,154 6,677 6,728 6,820 6,833 2015 7,886 8,154 8,291 8,474 2016 9,413 9,802 9,859 2017 10,619 12,238 2018 11,548 Total $ 151,142 All outstanding liabilities before 2009, net of reinsurance 595 Liabilities for claims and allocated claims adjustment expenses, net of reinsurance $ 3,559 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | Reconciliation of Unpaid Claims and Claims Adjustment Expenses ($ in ‘000s) As of December 31, 2018 Net outstanding liabilities: Commercial automobile liability $ 194,423 Other short-duration lines 3,559 Unpaid claims and allocated claims adjustment expenses, net of reinsurance 197,982 Reinsurance recoverable on unpaid claims and claims adjustment expenses: Commercial automobile liability 67,744 Other short-duration lines 1,027 Total reinsurance recoverable on unpaid claims and claims adjustment expenses 68,771 Unallocated claims adjustment expenses 6,743 Unpaid claims and claims adjustment expenses, gross of reinsurance $ 273,496 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year ended December 31, 2018 Years 1 2 3 4 5 6 7 8 9 10 Commercial automobile liability 17.4 % 26.4 % 21.4 % 17.3 % 10.6 % 6.8 % 3.5 % 2.1 % 0.9 % 1.6 % Other short-duration lines 71.7 % 16.6 % 6.0 % 4.3 % 2.1 % 1.3 % 1.0 % 0.4 % 0.4 % 1.1 % |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Activity | Stock Option Activity (prices in Canadian dollars designated with “C$” and U.S. dollars designated with “US$”) Year ended December 31, 2018 2017 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price C$ Denominated: Outstanding, beginning of period 54,390 C$6.00 187,728 C$6.22 Granted — — — — Exercised (27,195 ) C$6.00 (133,338 ) C$6.31 Outstanding, end of period 27,195 C$6.00 54,390 C$6.00 US$ Denominated: 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 | Options Outstanding As of December 31, 2018 Grant Date Expiration Date Number Outstanding Number Exercisable January 18, 2011 January 18, 2021 27,195 27,195 March 6, 2014 March 6, 2024 175,000 — March 12, 2015 March 12, 2025 200,000 — Total 402,195 27,195 |
Schedule of Restricted Stock and Restricted Stock Units Activity | Restricted Stock Grants for Ordinary Voting Common Shares and Restricted Share Unit Activity Year ended December 31, 2018 2017 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 234,080 $ 16.15 311,120 $ 15.92 Granted 17,524 10.22 — — Vested (44,448 ) 12.20 (77,040 ) 15.21 Non-vested, end of period 207,156 $ 16.50 234,080 $ 16.15 |
Share Capital and Mezzanine E_2
Share Capital and Mezzanine Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital and Mezzanine Equity [Abstract] | |
Schedule of Stock by Class | Share Capital Activity As of December 31, 2018 2017 Shares Authorized Shares Issued Shares Outstanding Amount ($ in ‘000s) Shares Issued Shares Outstanding Amount ($ in ‘000s) Ordinary voting common shares 266,666,667 12,192,475 11,936,970 $ 36 12,164,041 12,164,041 $ 36 Restricted voting common shares 33,333,334 — — — — — — Total common shares 300,000,001 12,192,475 11,936,970 $ 36 12,164,041 12,164,041 $ 36 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred Policy Acquisition Costs Roll Forward | Components of Deferred Policy Acquisition Costs ($ in ‘000s) Year ended December 31, 2018 2017 2016 Balance, beginning of period $ 14,797 $ 13,222 $ 10,235 Acquisition costs deferred 18,627 29,460 21,790 Amortization charged to operations (26,115 ) (27,885 ) (18,803 ) Balance, end of period $ 7,309 $ 14,797 $ 13,222 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data (Unaudited) | ($ in ‘000s, except per share data) Q4 Q3 Q2 Q1 2018 Gross premiums written $ 57,749 $ 75,917 $ 57,359 $ 95,589 Net premiums earned 52,506 54,461 55,359 55,892 Net (loss) income attributable to common shareholders (96,722 ) 5,605 5,576 5,529 (Loss) earnings per common share basic $ (8.06 ) $ 0.47 $ 0.47 $ 0.46 (Loss) earnings per common share diluted $ (8.06 ) $ 0.47 $ 0.47 $ 0.45 2017 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 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 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | Notes Payable Outstanding ($ in ‘000s) As of December 31, 2018 2017 6.625% Senior Unsecured Notes due April 26, 2022 $ 25,000 $ 25,000 Unamortized issuance costs (745 ) (969 ) Total notes payable $ 24,255 $ 24,031 |
Statutory Information (Tables)
Statutory Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statutory Information [Abstract] | |
Statutory Accounting Practices | Statutory Net Loss and Surplus of Atlas’ Insurance Subsidiaries ($ in ‘000s) Year Ended December 31, 2018 2017 2016 Statutory net loss $ 49,648 $ 35,199 $ 3,585 Combined statutory capital and surplus $ 14,377 $ 87,813 $ 113,943 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation Operations (Details) | Dec. 31, 2018state |
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 Basi_4
Nature of Operations and Basis of Presentation Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible asset impairment | $ 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 Basi_5
Nature of Operations and Basis of Presentation Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |
Document Fiscal Year Focus | 2018 |
Document Period End Date | Dec. 31, 2018 |
Building and Building Improvements | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 33 years |
Building improvements | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 10 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 Basi_6
Nature of Operations and Basis of Presentation Operating Segments (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Accounting Policies [Abstract] | |
Number of operating segments (segment) | 1 |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | $ 0 | $ 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) | 377 | (7) | ||
Treasury Stock | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption, increase (decrease) | $ (377) | $ 7 | ||
Treasury Stock | 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 | Treasury Stock | 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) | $ 377 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 390 | $ 390 | $ 390 |
Finite-lived intangible assets, Accumulated Amortization | 1,485 | 1,095 | |
Intangible assets, Gross | 5,240 | 5,240 | |
Intangible assets, net | 3,755 | 4,145 | |
Estimated future amortization expense, 2019 | 390 | ||
Estimated future amortization expense, 2020 | 390 | ||
Estimated future amortization expense, 2021 | 390 | ||
Estimated future amortization expense, 2022 | 390 | ||
Estimated future amortization expense, 2023 | 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 | 459 | 337 | |
Finite-lived intangible assets, Net | $ 1,341 | $ 1,463 | |
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 | 1,026 | 758 | |
Finite-lived intangible assets, Net | $ 1,674 | $ 1,942 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||
Goodwill, Gross | $ 2,726,000 | $ 2,726,000 | $ 2,726,000 |
Goodwill [Roll Forward] | |||
Goodwill, net | 0 | 2,726,000 | 2,726,000 |
Additions | 0 | 0 | |
Impairment Loss | (2,726,000) | 0 | 0 |
Goodwill, Impaired, Accumulated Impairment Loss | $ (2,726,000) | $ 0 | $ 0 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
(Loss) income from operations before income tax expense | $ (64,201) | $ (44,153) | $ 512 | ||||||||
Income tax expense (benefit) | 15,811 | (5,343) | (2,134) | ||||||||
Net (loss) income | (80,012) | (38,810) | 2,646 | ||||||||
Less: Preferred share dividends | 0 | 0 | 281 | ||||||||
Net (loss) income attributable to common shareholders | $ (96,722) | $ 5,605 | $ 5,576 | $ 5,529 | $ (54,297) | $ 5,125 | $ 5,510 | $ 4,852 | $ (80,012) | $ (38,810) | $ 2,365 |
Basic: | |||||||||||
Weighted average common shares outstanding (includes RSUs) (in shares) | 11,992,808 | 12,064,880 | 12,045,519 | ||||||||
(Loss) earnings per common share basic (in dollars per share) | $ (8.06) | $ 0.47 | $ 0.47 | $ 0.46 | $ (4.48) | $ 0.43 | $ 0.46 | $ 0.40 | $ (6.67) | $ (3.22) | $ 0.20 |
Diluted: | |||||||||||
Dilutive stock options outstanding (in shares) | 0 | 0 | 177,364 | ||||||||
Dilutive weighted average common shares outstanding (includes RSUs) (in shares) | 11,992,808 | 12,064,880 | 12,222,883 | ||||||||
(Loss) earnings per common share diluted (in dollars per share) | $ (8.06) | $ 0.47 | $ 0.47 | $ 0.45 | $ (4.48) | $ 0.42 | $ 0.45 | $ 0.40 | $ (6.67) | $ (3.22) | $ 0.19 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | |
Employee Stock Option [Member] | |||||
Potential Dilutive Securities from Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 16,372 | 71,475 | |||
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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||
Document Period End Date | Dec. 31, 2018 | |
Debt Securities, Available-for-sale, Amortized Cost | $ 133,213 | $ 158,411 |
Fixed Income Securities | 129,991 | 157,984 |
Available-for-sale Equity Securities, Cost Basis | 7,969 | |
Equities | 8,446 | |
Cost or Amortized Cost | 166,380 | |
Gross Unrealized Gains | 1,430 | |
Gross Unrealized Losses | (1,380) | |
Fair Value, Available-for-sale Securities | 166,430 | |
Fixed income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 133,213 | 158,411 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 220 | 927 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (3,442) | (1,354) |
Fixed Income Securities | 129,991 | 157,984 |
U.S. Treasury and other U.S. government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 20,522 | 21,488 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 30 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (356) | (302) |
Fixed Income Securities | 20,196 | 21,186 |
U.S. States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 8,970 | 13,265 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 19 | 78 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (146) | (100) |
Fixed Income Securities | 8,843 | 13,243 |
Total Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 43,971 | 58,493 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 47 | 631 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1,667) | (282) |
Fixed Income Securities | 42,351 | 58,842 |
Banking/financial services | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 13,482 | 21,246 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 9 | 189 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (367) | (53) |
Fixed Income Securities | 13,124 | 21,382 |
Consumer goods | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 10,108 | 9,674 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1 | 70 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (319) | (65) |
Fixed Income Securities | 9,790 | 9,679 |
Capital goods | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 3,711 | 7,822 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 36 | 181 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (200) | (11) |
Fixed Income Securities | 3,547 | 7,992 |
Energy | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 7,191 | 7,460 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 81 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (379) | (26) |
Fixed Income Securities | 6,812 | 7,515 |
Telecommunications/utilities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 8,647 | 11,179 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1 | 109 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (325) | (73) |
Fixed Income Securities | 8,323 | 11,215 |
Health care | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 832 | 1,112 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 1 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (77) | (54) |
Fixed Income Securities | 755 | 1,059 |
Total Mortgage Backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 45,869 | 53,609 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 111 | 210 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1,230) | (619) |
Fixed Income Securities | 44,750 | 53,200 |
Mortgage backed - agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 25,778 | 30,920 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 6 | 57 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (656) | (364) |
Fixed Income Securities | 25,128 | 30,613 |
Mortgage backed - commercial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 20,091 | 22,689 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 105 | 153 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (574) | (255) |
Fixed Income Securities | 19,622 | 22,587 |
Other asset backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 13,881 | 11,556 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 13 | 8 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (43) | (51) |
Fixed Income Securities | $ 13,851 | 11,513 |
Equities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Equity Securities, Cost Basis | 7,969 | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 503 | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | (26) | |
Equities | $ 8,446 |
Investments Investments Classif
Investments Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments [Abstract] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost | $ 5,573 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost | 29,000 | |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost | 33,790 | |
Available-for-sale Securities, Debt Maturities, after Year Ten, Amortized Cost | 5,100 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost | 73,463 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost | 59,750 | |
Debt Securities, Available-for-sale, Amortized Cost | 133,213 | $ 158,411 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 5,546 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 28,324 | |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 32,724 | |
Available-for-sale Securities, Debt Maturities, after Year Ten, Fair Value | 4,796 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value | 71,390 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 58,601 | |
Debt Securities, Available-for-sale | $ 129,991 | $ 157,984 |
Investments (Details)
Investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments [Abstract] | |||
Other than temporary impairment losses, investments | $ 0 | $ 0 | $ 0 |
Investments Unrealized Losses (
Investments Unrealized Losses (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security | |
Debt Securities, Available-for-sale [Line Items] | ||
Document Period End Date | Dec. 31, 2018 | |
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 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 46,047 | 72,844 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1,212) | (518) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 69,358 | 34,253 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2,230) | (836) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 115,405 | 107,097 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (3,442) | $ (1,354) |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 391 | 346 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 246 | 103 |
U.S. Treasury and other U.S. government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 507 | $ 11,179 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (110) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 15,857 | 10,007 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (356) | (192) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 16,364 | 21,186 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (356) | (302) |
U.S. States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,687 | 5,355 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (27) | (36) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,875 | 2,818 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (119) | (64) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,562 | 8,173 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (146) | (100) |
Total Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 23,994 | 22,930 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (942) | (139) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 16,606 | 4,002 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (725) | (143) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 40,600 | 26,932 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,667) | (282) |
Banking/financial services | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 8,376 | 6,021 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (235) | (26) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 3,861 | 1,931 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (132) | (27) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 12,237 | 7,952 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (367) | (53) |
Consumer goods | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 5,442 | 5,835 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (176) | (47) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,132 | 710 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (143) | (18) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 9,574 | 6,545 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (319) | (65) |
Capital goods | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,727 | 2,611 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (135) | (10) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,430 | 101 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (65) | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,157 | 2,712 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (200) | (11) |
Energy | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 4,516 | 3,368 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (295) | (26) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 2,296 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (84) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,812 | 3,368 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (379) | (26) |
Telecommunications/utilities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,806 | 4,488 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (99) | (23) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,259 | 938 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (226) | (50) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 8,065 | 5,426 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (325) | (73) |
Health care | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 127 | 607 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2) | (7) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 628 | 322 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (75) | (47) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 755 | 929 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (77) | (54) |
Total Mortgage Backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 10,291 | 23,563 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (221) | (189) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 30,272 | 16,339 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,009) | (430) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 40,563 | 39,902 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,230) | (619) |
Mortgage backed - agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 5,035 | 13,203 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (72) | (136) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 19,210 | 9,786 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (584) | (228) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 24,245 | 22,989 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (656) | (364) |
Mortgage backed - commercial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 5,256 | 10,360 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (149) | (53) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 11,062 | 6,553 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (425) | (202) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 16,318 | 16,913 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (574) | (255) |
Other asset backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 9,568 | 9,817 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (22) | (44) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,748 | 1,087 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (21) | (7) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 11,316 | 10,904 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (43) | (51) |
Equities | ||
Debt Securities, Available-for-sale [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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments [Abstract] | |||
Document Fiscal Year Focus | 2018 | ||
Investment income, interest income | $ 4,115 | $ 3,834 | $ 3,747 |
Investment income, income from other investments | (470) | 1,911 | 1,942 |
Investment expenses | (998) | (848) | (865) |
Net investment income | $ 2,647 | $ 4,897 | $ 4,824 |
Investments Schedule of Gross R
Investments Schedule of Gross Realized Gains (Losses) on Sales (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Securities, Available-for-sale [Line Items] | |||
Document Fiscal Year Focus | 2018 | ||
Fixed income securities | $ (54,798,000) | $ (30,429,000) | $ (59,823,000) |
Available-for-sale Securities, Gross Realized Investment Gains | 1,250,000 | 935,000 | 1,361,000 |
Available-for-sale Securities, Gross Realized Investment Losses | (677,000) | (63,000) | (131,000) |
Fixed income securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | (49,247,000) | (24,274,000) | (59,161,000) |
Available-for-sale Securities, Gross Realized Investment Gains | 343,000 | 300,000 | 1,296,000 |
Available-for-sale Securities, Gross Realized Investment Losses | (652,000) | (55,000) | (131,000) |
Equities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | (5,458,000) | (6,161,000) | (662,000) |
Available-for-sale Securities, Gross Realized Investment Gains | 814,000 | 635,000 | 65,000 |
Available-for-sale Securities, Gross Realized Investment Losses | (25,000) | (2,000) | 0 |
Other Investments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fixed income securities | (93,000) | (6,000) | 0 |
Available-for-sale Securities, Gross Realized Investment Gains | 93,000 | 0 | 0 |
Available-for-sale Securities, Gross Realized Investment Losses | $ 0 | $ (6,000) | $ 0 |
Investments Schedule of Inves_2
Investments Schedule of Investment Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gain (Loss) on Securities [Line Items] | |||
Document Fiscal Year Focus | 2018 | ||
Net realized gains (losses) | $ 573 | $ 872 | $ 1,230 |
Other | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized gains (losses) | 93 | (6) | 0 |
Fixed income securities | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized gains (losses) | (309) | 245 | 1,165 |
Equities | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized gains (losses) | $ 789 | $ 633 | $ 65 |
Investments Other Investments (
Investments Other Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Other investments | $ 25,043 | $ 31,438 | |
Equity Method Limited Partnerships | 24,030 | 25,278 | |
Unfunded commitments | 5,957 | ||
Net realized gains (losses) | 573 | 872 | $ 1,230 |
Financing Receivable, Recorded Investment, Current | 1,000 | 6,200 | |
Real Estate Funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Limited Partnerships | 11,085 | 10,660 | |
Unfunded commitments | 2,887 | ||
Insurance Linked Securities Funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Limited Partnerships | 6,694 | 9,073 | |
Unfunded commitments | 0 | ||
Activist Hedge Funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Limited Partnerships | 3,911 | 4,367 | |
Unfunded commitments | 0 | ||
Venture Capital Funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Limited Partnerships | 2,015 | 853 | |
Unfunded commitments | 3,070 | ||
Other Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Limited Partnerships | 325 | $ 325 | |
Unfunded commitments | $ 0 |
Investments Collateral (Details
Investments Collateral (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments [Abstract] | ||
Financing Receivable, Recorded Investment, Current | $ 1 | $ 6.2 |
Bonds and term deposits, fair value | 14.9 | 15 |
Security Owned and Pledged as Collateral, Fair Value | $ 31.3 | $ 12.2 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments Fair Value of Assets Measured on Recurring and Nonrecurring Basis (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | $ 129,991,000 | $ 157,984,000 |
Equities | 8,446,000 | |
Fair value, available-for-sale securities | 166,430,000 | |
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 |
Equity Securities, FV-NI | 5,929,000 | |
Investments, Fair Value Disclosure | 135,920,000 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 20,196,000 | 21,186,000 |
Equities | 8,446,000 | |
Fair value, available-for-sale securities | 29,632,000 | |
Equity Securities, FV-NI | 5,929,000 | |
Investments, Fair Value Disclosure | 26,125,000 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 109,795,000 | 136,798,000 |
Equities | 0 | |
Fair value, available-for-sale securities | 136,798,000 | |
Equity Securities, FV-NI | 0 | |
Investments, Fair Value Disclosure | 109,795,000 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Income Securities | 0 | 0 |
Equities | 0 | |
Fair value, available-for-sale securities | 0 | |
Equity Securities, FV-NI | 0 | |
Investments, Fair Value Disclosure | 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 | 20,196,000 | 21,186,000 |
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 | 20,196,000 | 21,186,000 |
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 | 8,843,000 | 13,243,000 |
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 | 8,843,000 | 13,243,000 |
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 | 42,351,000 | 58,842,000 |
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 | 42,351,000 | 58,842,000 |
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 | 13,124,000 | 21,382,000 |
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 | 13,124,000 | 21,382,000 |
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 | 9,790,000 | 9,679,000 |
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 | 9,790,000 | 9,679,000 |
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 | 3,547,000 | 7,992,000 |
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 | 3,547,000 | 7,992,000 |
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 | 6,812,000 | 7,515,000 |
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 | 6,812,000 | 7,515,000 |
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 | 8,323,000 | 11,215,000 |
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 | 8,323,000 | 11,215,000 |
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 | 755,000 | 1,059,000 |
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 | 755,000 | 1,059,000 |
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 | 44,750,000 | 53,200,000 |
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 | 44,750,000 | 53,200,000 |
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 | 25,128,000 | 30,613,000 |
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 | 25,128,000 | 30,613,000 |
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 | 19,622,000 | 22,587,000 |
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 | 19,622,000 | 22,587,000 |
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 | 13,851,000 | 11,513,000 |
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 | 13,851,000 | 11,513,000 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax Cuts and Jobs Act, Incomplete Accounting, Provisional Income Tax Expense | $ 10,500 | ||
Effective Income Tax Rate | (24.60%) | 12.10% | (416.80%) |
Losses carried forward | $ 25,326 | $ 13,313 |
Income Taxes Income Tax Rate Re
Income Taxes Income Tax Rate Reconciliation (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |||
Document Fiscal Year Focus | 2018 | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 25,326 | $ 13,313 | |
Provision for taxes at U.S. statutory marginal income tax rate | (13,482) | (15,453) | $ 179 |
Provision for deferred tax assets deemed unrealizable (valuation allowance) | 28,830 | 0 | 0 |
Nondeductible expenses | 62 | 51 | 24 |
Tax-exempt income | (12) | (23) | (39) |
State tax (net of federal benefit) | (2) | (2) | 28 |
Stock compensation | (42) | (458) | 0 |
Nondeductible acquisition accounting adjustment | (109) | 0 | (2,204) |
Change in statutory tax rate | 0 | 10,542 | 0 |
Other | (6) | 0 | (122) |
Provision for income taxes for continuing operations | $ 15,811 | $ (5,343) | $ (2,134) |
Provision for taxes at U.S. statutory marginal income tax rate, percent | 21.00% | 35.00% | 35.00% |
Provision for deferred tax assets deemed unrealizable (valuation allowance), percent | (44.90%) | 0.00% | 0.00% |
Nondeductible expenses, percent | (0.10%) | (0.10%) | 4.70% |
Tax-exempt income, percent | (0.00%) | 0.10% | (7.60%) |
State tax (net of federal benefit), percent | 0.00% | 0.00% | 5.50% |
Stock compensation, percent | 0.10% | 1.00% | 0.00% |
Nondeductible goodwill | $ 572 | $ 0 | $ 0 |
Nondeductible goodwill | (0.009) | 0 | 0 |
Nondeductible acquisition accounting adjustment, percent | 0.20% | 0.00% | (430.50%) |
Change in statutory tax rate, percent | 0.00% | (23.90%) | 0.00% |
Other, percent | 0.00% | 0.00% | (23.90%) |
Effective Income Tax Rate | (24.60%) | 12.10% | (416.80%) |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Document Fiscal Year Focus | 2018 | ||
Current tax benefit | $ (1,174) | $ (6,719) | $ (2,586) |
Deferred tax (benefit) expense | (11,845) | 1,376 | 452 |
Deferred Other Tax Expense (Benefit) | 28,830 | 0 | 0 |
Provision for income taxes for continuing operations | $ 15,811 | $ (5,343) | $ (2,134) |
Income Taxes Deferred Tax Asse
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Gross deferred tax assets: | ||
Losses carried forward | $ 25,326 | $ 13,313 |
Claims liabilities and unearned premium reserves | 5,949 | 6,171 |
Bad debts | 1,009 | 0 |
Tax credits | 0 | 1,172 |
Commissions | 0 | 623 |
Stock compensation | 760 | 602 |
Other | 418 | 1,094 |
Valuation allowance | (29,416) | 0 |
Total gross deferred tax assets | 4,046 | 22,975 |
Gross deferred tax liabilities: | ||
Deferred policy acquisition costs | 1,535 | 3,107 |
Investments | 189 | 213 |
Fixed assets | 1,371 | 847 |
Intangible assets | 633 | 715 |
Other | 318 | 1,108 |
Total gross deferred tax liabilities | 4,046 | 5,990 |
Net deferred tax assets | $ 0 | $ 16,985 |
Income Taxes Schedule of Tax Ca
Income Taxes Schedule of Tax Carryforwards (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | $ 120,602 |
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 | 27,313 |
Carryforward Expiring in 2038 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | 47,653 |
Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Subject to Expiration | $ 4,106 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 22, 2012 | |
Property, Plant and Equipment [Line Items] | ||||
Sale leaseback, deferred gain | $ 213 | |||
Sale leaseback, lease term | 5 years | |||
Sale leaseback, gain recognized in period | $ 0 | $ 17 | $ 43 | |
Rent expense, headquarter building | 0 | $ 740 | $ 743 | |
Unfunded commitments | $ 5,957 |
Commitments and Contingencies F
Commitments and Contingencies Future Minimum Rentals for Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 1,137 |
2020 | 1,088 |
2021 | 954 |
2022 | 174 |
2023 | 16 |
2024 & Beyond | 0 |
Total Operating Leases, Future Minimum Payments Due | $ 3,369 |
Property and Equipment (Details
Property and Equipment (Details) ft² in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)ft² | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | $ 40,754,000 | $ 30,919,000 | |
Accumulated depreciation | (9,391,000) | (6,480,000) | |
Total property and equipment, net | 31,363,000 | 24,439,000 | |
Depreciation and amortization | $ 2,911,000 | 1,372,000 | $ 1,000,000 |
Document Period End Date | Dec. 31, 2018 | ||
Amortization expense | $ 705,000 | 563,000 | 576,000 |
Capitalized additions | $ 7,900,000 | 2,900,000 | 449,000 |
Document Fiscal Year Focus | 2018 | ||
Occupied Area of Corporate Headquarters Building | ft² | 70,000 | ||
Rental income | $ 433,000 | 415,000 | 69,000 |
Net realized gains (losses) | (573,000) | (872,000) | (1,230,000) |
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 | |
Building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 9,006,000 | 7,900,000 | |
Property and land addition | 1,100,000 | 7,800,000 | 100,000 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 190,000 | 140,000 | |
Internal use software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 17,575,000 | 9,567,000 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 1,821,000 | 1,465,000 | |
Furniture and other office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment gross | 2,897,000 | 2,582,000 | |
Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 1,100,000 | 171,000 | 0 |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Net realized gains (losses) | $ (2,000) | $ 12,000 | $ 0 |
Reinsurance Ceded (Details)
Reinsurance Ceded (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Underwriting Policy and Reinsurance Ceded [Abstract] | ||||||||||||
Direct premiums written | $ 253,068 | $ 261,276 | $ 221,723 | |||||||||
Assumed premiums written | 33,546 | 14,685 | 3,372 | |||||||||
Ceded premiums written | (86,419) | (44,825) | (45,028) | |||||||||
Net premiums written | 200,195 | 231,136 | 180,067 | |||||||||
Direct premiums earned | 257,646 | 251,293 | 217,053 | |||||||||
Assumed premiums earned | 22,972 | 9,796 | 3,074 | |||||||||
Ceded premiums earned | (62,400) | (45,318) | (49,069) | |||||||||
Net premiums earned | $ 52,506 | $ 54,461 | $ 55,359 | $ 55,892 | $ 57,431 | $ 55,865 | $ 54,049 | $ 48,426 | 218,218 | 215,771 | 171,058 | |
Ceded claims and claims adjustment expenses | 53,201 | 46,643 | 32,496 | |||||||||
Insurance Commissions and Fees | 14,518 | 11,304 | 12,065 | |||||||||
Reinsurance recoverables on amounts unpaid | 68,771 | 53,402 | 68,771 | 53,402 | 35,370 | $ 29,399 | ||||||
Prepaid reinsurance premiums | 36,898 | 12,878 | 36,898 | 12,878 | 13,372 | |||||||
Reinsurance recoverables on paid claims and claims adjustment expenses | $ 12,388 | $ 7,982 | $ 12,388 | $ 7,982 | $ 7,786 |
Unpaid Claims (Details)
Unpaid Claims (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Unpaid claims and claims adjustment expenses, beginning of period | $ 211,648 | $ 139,004 | $ 127,011 |
Less: reinsurance recoverable, beginning of period | 53,402 | 35,370 | 29,399 |
Net unpaid claims and claims adjustment expenses, beginning of period | 158,246 | 103,634 | 97,612 |
Change in retroactive reinsurance ceded | 0 | 1,361 | 107 |
Incurred related to: | |||
Incurred related to, current year | 137,916 | 128,476 | 102,133 |
Incurred related to, prior years | 82,746 | 75,397 | 32,613 |
Total incurred current and prior years | 220,662 | 203,873 | 134,746 |
Paid related to: | |||
Paid related to, current year | 52,637 | 50,626 | 39,652 |
Paid related to, prior years | 121,546 | 99,996 | 89,179 |
Total paid related to current and prior years | 174,183 | 150,622 | 128,831 |
Net unpaid claims and claims adjustment expenses, end of period | 204,725 | 158,246 | 103,634 |
Add: reinsurance recoverable, end of period | 68,771 | 53,402 | 35,370 |
Unpaid claims and claims adjustment expenses, end of period | 273,496 | $ 211,648 | 139,004 |
Anchor Holdings Group, Inc. et. al. | |||
Paid related to: | |||
Pre-acquisition Prior Year Claims and Claim Adjustment Expenses | $ 7,900 | ||
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 | ||
Non-core Lines of Business | |||
Incurred related to: | |||
Incurred related to, prior years | $ 1,500 | ||
Prior to 2015 [Member] | Property and Casualty, Commercial Insurance Product Line | |||
Incurred related to: | |||
Incurred related to, prior years | $ 66,400 |
Claim Liabilities Claims Develo
Claim Liabilities Claims Development (Details) $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | |
Claims Development [Line Items] | ||||||||||
Prior Year Claims and Claims Adjustment Expense | $ 82,746 | $ 75,397 | $ 32,613 | |||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 197,982 | |||||||||
Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 807,340 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | (613,235) | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented | 318 | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 194,423 | |||||||||
Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 154,106 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | (151,142) | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net, Not Separately Presented | 595 | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 3,559 | |||||||||
Non-core Lines of Business [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Claims and Claims Adjustment Expense | 1,500 | |||||||||
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 | 44,542 | 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 | $ 70 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 13,243 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (44,415) | (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 | 37,423 | 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 | $ 3 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 27,847 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (37,119) | (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 | 39,488 | 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 | $ 129 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 8,577 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (39,262) | (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 | 24,526 | 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 | $ 29 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 14,331 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (24,492) | (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 | 36,986 | 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 | $ 251 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 7,835 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (36,660) | (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 | 22,408 | 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 | $ 20 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 10,002 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (22,331) | (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 | 47,780 | 46,755 | 44,627 | 40,429 | 38,972 | 37,839 | 35,948 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 807 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 9,391 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (46,702) | (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 | 13,674 | 14,109 | 13,934 | 13,854 | 13,634 | 12,723 | 13,054 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 32 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 3,616 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (13,621) | (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 | 78,701 | 73,749 | 64,687 | 53,656 | 48,636 | 48,449 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,928 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 11,764 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (75,491) | (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 | 4,655 | 4,711 | 4,687 | 4,556 | 4,754 | 5,897 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 20 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 2,149 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (4,627) | (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 | 100,546 | 92,245 | 69,555 | 53,005 | 61,145 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 6,344 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 14,738 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (92,593) | (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 | 7,909 | 7,580 | 6,978 | 6,849 | 6,645 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 889 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 2,945 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (6,833) | (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 | 122,995 | 96,521 | 67,184 | 69,060 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 17,837 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 19,275 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (101,323) | (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 | 9,036 | 9,591 | 8,616 | 8,320 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 454 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 3,979 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (8,474) | (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 | 104,504 | 87,516 | 80,824 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 13,926 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 20,063 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (81,330) | (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 | 9,983 | 9,960 | 9,357 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 305 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 4,708 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (9,859) | (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 | 120,510 | 101,983 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 31,118 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 22,660 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (66,055) | (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 | 12,302 | 11,086 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 408 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 5,323 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (12,238) | $ (10,619) | ||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Commercial automobile liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 111,288 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 55,380 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 19,570 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (29,404) | |||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Other short-duration lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 12,190 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 746 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 4,885 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ (11,548) | |||||||||
MICHIGAN | ||||||||||
Claims Development [Line Items] | ||||||||||
Percentage of Total Vehicles In Force | 1.40% | |||||||||
Unpaid claims development, percent of development | 62.50% | |||||||||
Subsidiaries excluding Global Liberty [Member] | Core Lines of Business [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Claims and Claims Adjustment Expense | $ 23,200 | |||||||||
Anchor Holdings Group, Inc. et. al. [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Pre-acquisition Prior Year Claims and Claim Adjustment Expenses | $ 7,900 |
Claim Liabilities Reconciliatio
Claim Liabilities Reconciliation of Claims Development to Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid claims and allocated claims adjustment expenses, net of reinsurance | $ 197,982 | |||
Reinsurance recoverable on unpaid claims and claims adjustment expenses: | 68,771 | $ 53,402 | $ 35,370 | $ 29,399 |
Unallocated claims adjustment expenses | 6,743 | |||
Claims liabilities | 273,496 | $ 211,648 | $ 139,004 | $ 127,011 |
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 | 194,423 | |||
Reinsurance recoverable on unpaid claims and claims adjustment expenses: | 67,744 | |||
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 | 3,559 | |||
Reinsurance recoverable on unpaid claims and claims adjustment expenses: | $ 1,027 |
Claim Liabilities Schedule of H
Claim Liabilities Schedule of Historical Claims Duration (Details) | Dec. 31, 2018 |
Commercial automobile liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 17.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 26.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 21.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 17.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 10.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 6.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 3.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 2.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.90% |
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 | 71.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 16.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 6.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 4.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 2.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 1.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 1.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 0.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 1.10% |
Share-Based Compensation Schedu
Share-Based Compensation Schedule of Activity Related Share-Based Compensation (Details) | Dec. 31, 2018$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018$ / shares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2017$ / sharesshares | Apr. 04, 2018$ / shares | Jun. 17, 2013$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||||
Options, exercised in period (in shares) | (27,195) | (133,338) | (133,338) | |||||
Options, outstanding (in shares), end of period | 402,195 | 402,195 | 402,195 | |||||
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 | 54,390 | 187,728 | 187,728 | |||||
Options, granted in period (in shares) | 0 | 0 | 0 | |||||
Options, exercised in period (in shares) | (27,195) | (133,338) | (133,338) | |||||
Options, outstanding (in shares), end of period | 27,195 | 27,195 | 27,195 | 54,390 | 54,390 | |||
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 | $ 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 | 6.31 | ||||||
Options, outstanding, weighted average exercise price, end of period (in Canadian or US dollars per share) | $ / shares | $ 6 | $ 6 | $ 6 | |||||
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 | |||||
Options, granted in period (in shares) | 0 | 0 | 0 | |||||
Options, exercised in period (in shares) | 0 | 0 | 0 | |||||
Options, outstanding (in shares), end of period | 375,000 | 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 | $ 17.01 | |||||
Equity Incentive Plan [Member] | June 17, 2013 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share Price | $ / shares | $ 8.10 | |||||||
Equity Incentive Plan [Member] | December 31, 2018 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share Price | $ / shares | $ 10.50 | |||||||
Restricted stock and restricted stock units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 17,524 | 0 | 0 | |||||
Director [Member] | December 31, 2018 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.30% | 33.30% | ||||||
Director [Member] | Restricted Stock Units (RSUs) [Member] | Equity Incentive Plan [Member] | December 31, 2018 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued | $ | $ 40,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 17,524 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Option, Aggregate Grant Date Fair Value | $ | $ 179,000 |
Share-Based Compensation Sche_2
Share-Based Compensation Schedule of Outstanding Options (Details) | 12 Months Ended | |||||||
Dec. 31, 2018$ / sharesshares | Dec. 31, 2018$ / shares$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2017$ / shares$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, outstanding (in shares) | 402,195 | 402,195 | 402,195 | |||||
Options, exercisable (in shares) | 27,195 | 27,195 | 27,195 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 27,195 | 27,195 | 133,338 | 133,338 | ||||
Prior to December 31, 2013 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, outstanding (in shares) | 27,195 | 27,195 | 54,390 | 54,390 | 27,195 | 54,390 | 187,728 | 187,728 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 6 | $ 6 | $ 6.22 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | 0 | 0 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 0 | $ 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 27,195 | 27,195 | 133,338 | 133,338 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares | $ 6 | $ 6.31 | ||||||
January 18, 2011 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, outstanding (in shares) | 27,195 | 27,195 | 27,195 | |||||
Options, exercisable (in shares) | 27,195 | 27,195 | 27,195 | |||||
March 6, 2014 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, outstanding (in shares) | 175,000 | 175,000 | 175,000 | |||||
Options, exercisable (in shares) | 0 | 0 | 0 | |||||
March 12, 2015 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, outstanding (in shares) | 200,000 | 200,000 | 200,000 | |||||
Options, exercisable (in shares) | 0 | 0 | 0 | |||||
After December 31, 2013 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, outstanding (in shares) | 375,000 | 375,000 | 375,000 | 375,000 | 375,000 | 375,000 | 375,000 | 375,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 17.01 | $ 17.01 | $ 17.01 | $ 17.01 | $ 17.01 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | 0 | 0 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 0 | $ 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | 0 | 0 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares | $ 0 | $ 0 |
Share-Based Compensation Supple
Share-Based Compensation Supplementary Disclosures Related to Stock Options (Details) | Mar. 12, 2015shares | Feb. 28, 2014shares | Dec. 31, 2013USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | Jun. 17, 2013$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options, exercisable (in shares) | 27,195 | ||||||
Grants, weighted average remaining life | 5 years 5 months 22 days | ||||||
Options, outstanding, intrinsic value | $ | $ 100,000 | ||||||
Share-based compensation expense | $ | $ 1,200,000 | $ 1,200,000 | $ 1,600,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 2 months 15 days | ||||||
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 | 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) | 17,524 | 0 | |||||
Restricted shares vested during period (in shares) | 44,448 | 77,040 | |||||
Unearned share-based compensation expense | $ | $ 644,000 | ||||||
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) | 0 | 40,000 | |||||
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 | ||||||
Equity Incentive Plan | June 17, 2013 [Member] | |||||||
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 Sche_3
Share-Based Compensation Schedule of Restricted Shares and Restricted Share Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 1,200 | $ 1,200 | $ 1,600 |
Restricted stock and restricted stock units (RSUs) Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 644 | ||
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) | 234,080 | 311,120 | |
Restricted shares granted during period (in shares) | 17,524 | 0 | |
Restricted shares vested during period (in shares) | (44,448) | (77,040) | |
Restricted shares nonvested at period end (in shares) | 207,156 | 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) | $ 16.15 | $ 15.92 | |
Weighted average fair value at grant date, restricted shares granted during period (USD per share) | 10.22 | 0 | |
Weighted average fair value at grant date, restricted shares vested during period (USD per share) | 12.20 | 15.21 | |
Weighted average fair value at grant date, restricted shares nonvested at period end (USD per share) | $ 16.50 | $ 16.15 | $ 15.92 |
Restricted Stock Units (RSUs) [Member] | |||
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) | 14,816 | ||
Restricted shares nonvested at period end (in shares) | 24,932 | 14,816 |
Other Employee Benefit Plans De
Other Employee Benefit Plans Defined Contribution Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Employee Benefit Plans [Abstract] | |||
Defined contribution plan, percent of employee contribution matched by employer, up to 2.5% annual earnings | 100.00% | ||
Defined contribution plan, percent of employees annual earnings employer will match 100% | 2.50% | ||
Defined contribution plan, percent of employer match on additional employee contributions, up to 2.5% annual earnings | 50.00% | ||
Defined contribution plan, percent of additional employees annual earnings employer will match 50% | 2.50% | ||
Defined contribution plan, employer matching contribution, maximum percent of employees' gross pay | 3.75% | ||
Defined contribution plan, employee contribution vesting percentage | 100.00% | ||
Defined contribution plan, employers matching contribution, vesting period | 5 years | ||
Defined contribution plan, company contributions | $ 543 | $ 441 | $ 424 |
Other Employee Benefit Plans Em
Other Employee Benefit Plans Employee Stock Purchase Plan (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Other Employee Benefit Plans [Abstract] | |||
Employee stock purchase plan, hours per week threshold to be eligible | 30 hours | ||
Employee stock purchase plan, maximum annual contribution percent of annual earnings per employee | 0.075 | ||
Employee stock purchase plan, percent of employee contribution matched by employer, up to 2.5% annual earnings | 1 | ||
Employee stock purchase plan, percent of employees annual earnings employer will match 100% | 2.50% | ||
Employee stock purchase plan, percent of employer match on additional employee contributions, up to 5% annual earnings | 50.00% | ||
Employee stock purchase plan, percent of additional employees annual earnings employer will match 50% | 5.00% | ||
Employee stock purchase plan, employer matching contribution, maximum percent of employee's gross pay | 5.00% | ||
Employee stock purchase plan, company cost | $ 239 | $ 212 | $ 199 |
Share Capital and Mezzanine E_3
Share Capital and Mezzanine Equity Schedule of Stock by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||
Common shares, shares authorized (in shares) | 300,000,001 | |
Common Stock, Shares, Issued | 12,192,475 | 12,164,041 |
Common stock, shares, outstanding (in shares) | 11,936,970 | 12,164,041 |
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, Issued | 12,192,475 | 12,164,041 |
Common stock, shares, outstanding (in shares) | 11,936,970 | 12,164,041 |
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, Issued | 0 | 0 |
Common stock, shares, outstanding (in shares) | 0 | 0 |
Common stock, value, outstanding | $ 0 | $ 0 |
Share Capital and Mezzanine E_4
Share Capital and Mezzanine Equity Stock Activity and Mezzanine Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 21, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted voting common stock outstanding (in shares) | 11,936,970 | 12,164,041 | |||||
Voting common shares issued | 27,195 | 133,338 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (6,169) | ||||||
Number of shares approved for repurchase | 650,000 | ||||||
Shares repurchased (in shares) | 255,505 | 0 | |||||
Preferred stock shares issued (in shares) | 0 | 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 | $ 1 | |||||
Preferred dividends paid | $ 333 | $ 0 | $ 409 | ||||
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] | |||||||
Dividends, Preferred Stock, Cash | $ 333 | ||||||
Anchor Holdings Group, Inc. et. al. | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
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 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) | 24,932 | 14,816 | |||||
Ordinary voting common shares issued, restricted stock and RSU vesting (in shares) | 7,408 | 7,408 | |||||
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 | 0 | |||||
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 C_3
Deferred Policy Acquisition Costs Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of period | $ 14,797 | $ 13,222 | $ 10,235 |
Acquisition costs deferred | 18,627 | 29,460 | 21,790 |
Amortization charged to operations | (26,115) | (27,885) | (18,803) |
Balance, end of period | $ 7,309 | $ 14,797 | $ 13,222 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Gross premiums written | $ 57,749 | $ 75,917 | $ 57,359 | $ 95,589 | $ 54,213 | $ 65,898 | $ 57,354 | $ 98,496 | $ 286,614 | $ 275,961 | $ 225,095 |
Net premiums earned | 52,506 | 54,461 | 55,359 | 55,892 | 57,431 | 55,865 | 54,049 | 48,426 | 218,218 | 215,771 | 171,058 |
Net (loss) income | (80,012) | (38,810) | 2,646 | ||||||||
Net (loss) income attributable to common shareholders | $ (96,722) | $ 5,605 | $ 5,576 | $ 5,529 | $ (54,297) | $ 5,125 | $ 5,510 | $ 4,852 | $ (80,012) | $ (38,810) | $ 2,365 |
(Loss) earnings per common share basic | $ (8.06) | $ 0.47 | $ 0.47 | $ 0.46 | $ (4.48) | $ 0.43 | $ 0.46 | $ 0.40 | $ (6.67) | $ (3.22) | $ 0.20 |
(Loss) earnings per common share diluted | $ (8.06) | $ 0.47 | $ 0.47 | $ 0.45 | $ (4.48) | $ 0.42 | $ 0.45 | $ 0.40 | $ (6.67) | $ (3.22) | $ 0.19 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Apr. 26, 2017 | May 07, 2016 | Apr. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | 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 | $ 1,900,000 | $ 1,800,000 | $ 1,000,000 | ||||
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, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
Unamortized issuance costs | $ (745) | $ (969) |
Notes payable, net | 24,255 | 24,031 |
Senior unsecured notes | ||
Line of Credit Facility [Line Items] | ||
Notes payable, outstanding gross of unamortized issuance costs | $ 25,000 | $ 25,000 |
Statutory Information (Details)
Statutory Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory Accounting Practices [Line Items] | |||
Net loss computed under statutory-basis accounting | $ 49,648 | $ 35,199 | $ 3,585 |
Combined statutory capital and surplus balance | 14,377 | $ 87,813 | $ 113,943 |
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 |
Statutory Information Statutory
Statutory Information Statutory Net Loss and Surplus of Atlas' Insurance Subsidiaries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Net Income Amount | $ 49,648 | $ 35,199 | $ 3,585 |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 14,377 | $ 87,813 | $ 113,943 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Thousands | Jan. 22, 2020USD ($) | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||
Percent of future sale collected by subsidiary | 0.49 | |
Proceeds from divestiture of interest in consolidated subsidiaries | $ 4,700 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant Condensed Statement of Comprehensive Income, Parent Company (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Document Fiscal Year Focus | 2018 | ||
Other underwriting (expense) income | $ 34,725 | $ 32,140 | $ 28,399 |
Interest expense | 1,869 | 1,840 | 1,026 |
(Loss) income from operations before income taxes | (64,201) | (44,153) | 512 |
Income tax expense (benefit) | 15,811 | (5,343) | (2,134) |
Net (loss) income | (80,012) | (38,810) | 2,646 |
Changes in net unrealized investment (losses) gains | (3,078) | 437 | 855 |
Reclassification to net income (loss) | 284 | (49) | 394 |
Effect of income taxes | 0 | (136) | (437) |
Other comprehensive income (loss) | (2,794) | 252 | 812 |
Total comprehensive (loss) income | (82,806) | (38,558) | 3,458 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net investment expense | (21) | (4) | 0 |
Other underwriting (expense) income | (2,926) | (1,436) | 4,550 |
Interest expense | (1,871) | (1,266) | 0 |
(Loss) income from operations before income taxes | (4,818) | (2,706) | 4,550 |
Income tax expense (benefit) | 4,141 | (115) | (559) |
(Loss) income before equity in net income of subsidiaries | (8,959) | (2,591) | 5,109 |
Equity in net loss of subsidiaries | (71,053) | (36,219) | (2,463) |
Net (loss) income | (80,012) | (38,810) | 2,646 |
Changes in net unrealized investment (losses) gains | (3,078) | 437 | 855 |
Reclassification to net income (loss) | 284 | (49) | 394 |
Effect of income taxes | 0 | (136) | (437) |
Other comprehensive income (loss) | (2,794) | 252 | 812 |
Total comprehensive (loss) income | $ (82,806) | $ (38,558) | $ 3,458 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant Condensed Balance Sheet, Parent Company (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Document Fiscal Year Focus | 2018 | |||
Assets | ||||
Cash and cash equivalents | $ 34,902 | $ 45,615 | $ 29,888 | $ 22,354 |
Deferred tax asset, net | 0 | 16,985 | ||
Other assets | 19,899 | 20,754 | ||
Total assets | 470,338 | 482,503 | ||
Liabilities | ||||
Notes payable, net | 24,255 | 24,031 | ||
Other liabilities and accrued expenses | 16,999 | 19,725 | ||
Total liabilities | 464,639 | 391,858 | ||
Shareholders’ equity | ||||
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued: December 31, 2018 - 12,192,475 and December 31, 2017 - 12,164,041; shares outstanding: December 31, 2018 - 11,936,970 and December 31, 2017 - 12,164,041 | 36 | 36 | ||
Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: December 31, 2018 and December 31, 2017 - 0 | 0 | 0 | ||
Additional paid-in capital | 202,298 | 201,105 | ||
Retained deficit | (190,503) | (110,535) | ||
Accumulated other comprehensive (loss) income, net of tax | (3,132) | 39 | ||
Total shareholders' equity | 5,699 | 90,645 | 127,342 | 122,681 |
Total liabilities and shareholders' equity | 470,338 | 482,503 | ||
Accrued investment income | 749 | 1,248 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 371 | 4,233 | $ 271 | $ 162 |
Deferred tax asset, net | 0 | 4,116 | ||
Investment in subsidiaries | 36,049 | 109,897 | ||
Total assets | 36,420 | 118,246 | ||
Liabilities | ||||
Notes payable, net | 24,255 | 24,031 | ||
Other liabilities and accrued expenses | 6,466 | 3,570 | ||
Total liabilities | 30,721 | 27,601 | ||
Shareholders’ equity | ||||
Ordinary voting common shares, $0.003 par value, 266,666,667 shares authorized, shares issued: December 31, 2018 - 12,192,475 and December 31, 2017 - 12,164,041; shares outstanding: December 31, 2018 - 11,936,970 and December 31, 2017 - 12,164,041 | 36 | 36 | ||
Restricted voting common shares, $0.003 par value, 33,333,334 shares authorized, shares issued and outstanding: December 31, 2018 and December 31, 2017 - 0 | 0 | 0 | ||
Additional paid-in capital | 202,298 | 201,105 | ||
Treasury Stock, Common, Value | (3,000) | 0 | ||
Retained deficit | (190,503) | (110,535) | ||
Accumulated other comprehensive (loss) income, net of tax | (3,132) | 39 | ||
Total shareholders' equity | 5,699 | 90,645 | ||
Total liabilities and shareholders' equity | $ 36,420 | $ 118,246 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant Condensed Balance Sheet, Parent Company - Additional (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common shares, shares authorized (in shares) | 300,000,001 | |
Common shares, shares issued (in shares) | 12,192,475 | 12,164,041 |
Common stock, shares, outstanding (in shares) | 11,936,970 | 12,164,041 |
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) | 12,192,475 | 12,164,041 |
Common stock, shares, outstanding (in shares) | 11,936,970 | 12,164,041 |
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 stock, shares, outstanding (in shares) | 12,192,475 | 12,164,041 |
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 | 0 |
Common stock, shares, outstanding (in shares) | 0 | 0 |
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 stock, shares, outstanding (in shares) | 0 | 0 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant Condensed Statement of Cash Flows, Parent Company (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2018 | ||
Operating Activities | |||
Net (loss) income | $ (80,012) | $ (38,810) | $ 2,646 |
Adjustments to reconcile net (loss) income to net cash flows (used in) provided by operating activities: | |||
Share-based compensation expense | 1,201 | 1,176 | 1,612 |
Deferred income taxes | 16,985 | 1,376 | 452 |
Amortization of financing costs | 224 | 365 | 67 |
Expenses recovered pursuant to stock purchase agreements | 0 | 0 | (6,623) |
Net changes in operating assets and liabilities: | |||
Other assets | 854 | (7,847) | (6,210) |
Other liabilities and accrued expenses | (2,726) | 3,238 | (1,911) |
Net cash flows (used in) provided by operating activities | (26,442) | 26,472 | 170 |
Investing activities: | |||
Net cash flows provided by (used in) investing activities | 19,070 | (15,909) | 8,412 |
Financing activities: | |||
Preferred share buyback | 0 | 0 | (2,539) |
Capital contributions | 0 | 30 | 0 |
Payments for Repurchase of Common Stock | 3,000 | 0 | 0 |
Preferred dividends paid | (333) | 0 | (409) |
Options exercised | 0 | 655 | 0 |
Net cash flows (used in) provided by financing activities | (3,341) | 5,164 | (1,048) |
Net change in cash and cash equivalents | (10,713) | 15,727 | 7,534 |
Cash and cash equivalents, beginning of period | 45,615 | 29,888 | 22,354 |
Cash and cash equivalents, end of period | 34,902 | 45,615 | 29,888 |
($ in ‘000s) | |||
Cash paid for interest | 1,656 | 1,338 | 885 |
Cash paid for income taxes | (1,724) | 744 | 7,015 |
Anchor Holdings Group, Inc. et. al. | |||
Supplemental disclosure of noncash investing and financing activities: | |||
Preferred Shares Canceled | 0 | 0 | 4,000 |
Gateway Insurance Company | |||
Supplemental disclosure of noncash investing and financing activities: | |||
Preferred Shares Canceled | 0 | 0 | 2,297 |
Parent Company | |||
Operating Activities | |||
Net (loss) income | (80,012) | (38,810) | 2,646 |
Adjustments to reconcile net (loss) income to net cash flows (used in) provided by operating activities: | |||
Equity in net loss of subsidiaries | 71,053 | 36,219 | 2,463 |
Share-based compensation expense | 1,201 | 1,176 | 1,612 |
Deferred income taxes | 4,116 | (712) | (417) |
Amortization of financing costs | 224 | 152 | 0 |
Expenses recovered pursuant to stock purchase agreements | 0 | 0 | (6,623) |
Net changes in operating assets and liabilities: | |||
Other assets | 0 | 0 | 479 |
Other liabilities and accrued expenses | 2,897 | 673 | 2,897 |
Net cash flows (used in) provided by operating activities | (521) | (1,302) | 3,057 |
Investing activities: | |||
Capital contributions made to subsidiaries | 0 | (19,300) | 0 |
Net cash flows provided by (used in) investing activities | 0 | (19,300) | 0 |
Financing activities: | |||
Preferred share buyback | 0 | 0 | (2,539) |
Capital contributions | (8) | 30 | 0 |
Payments for Repurchase of Common Stock | 3,000 | 0 | 0 |
Proceeds from notes payable, net of issuance costs | 0 | 23,879 | 0 |
Preferred dividends paid | (333) | 0 | (409) |
Options exercised | 0 | 655 | 0 |
Net cash flows (used in) provided by financing activities | (3,341) | 24,564 | (2,948) |
Net change in cash and cash equivalents | (3,862) | 3,962 | 109 |
Cash and cash equivalents, beginning of period | 4,233 | 271 | 162 |
Cash and cash equivalents, end of period | 371 | 4,233 | 271 |
($ in ‘000s) | |||
Cash paid for interest | 1,656 | 828 | 0 |
Cash paid for income taxes | (1,806) | (192) | (3,464) |
Parent Company | Anchor Holdings Group, Inc. et. al. | |||
Supplemental disclosure of noncash investing and financing activities: | |||
Preferred Shares Canceled | 0 | 0 | 4,000 |
Parent Company | Gateway Insurance Company | |||
Supplemental disclosure of noncash investing and financing activities: | |||
Preferred Shares Canceled | $ 0 | $ 0 | $ 2,297 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant Notes to Condensed Financial Information (Details) - USD ($) | Apr. 26, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Proceeds from notes payable, net of issuance costs | $ 0 | $ 23,879,000 | $ 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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |||||||||||
Premiums earned, gross amount | $ 257,646 | $ 251,293 | $ 217,053 | ||||||||
Premiums earned, ceded to other companies | (62,400) | (45,318) | (49,069) | ||||||||
Premiums earned, assumed from other companies | 22,972 | 9,796 | 3,074 | ||||||||
Net premiums earned | $ 52,506 | $ 54,461 | $ 55,359 | $ 55,892 | $ 57,431 | $ 55,865 | $ 54,049 | $ 48,426 | $ 218,218 | $ 215,771 | $ 171,058 |
Premiums earned, percent of amount assumed to net | 10.50% | 4.50% | 1.80% |
Schedule V - Valuation and qu_2
Schedule V - Valuation and qualifying accounts Valuation and Qualifying Accounts Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for uncollectible receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of the year | $ 3,418 | $ 2,366 | $ 846 |
Charged to Expenses | 2,344 | 2,365 | 2,397 |
Other Additions | 0 | 0 | 12 |
Deductions | (647) | (1,313) | (889) |
Balance at the end of the year | 5,115 | 3,418 | 2,366 |
Valuation allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of the year | 0 | 0 | 0 |
Charged to Expenses | 28,830 | 0 | 0 |
Other Additions | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at the end of the year | $ 28,830 | $ 0 | $ 0 |
Schedule VI - Supplemental in_2
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | ||||||||||||
Deferred policy acquisition costs | $ 7,309 | $ 14,797 | $ 7,309 | $ 14,797 | $ 13,222 | $ 10,235 | ||||||
Claims liabilities | 273,496 | 211,648 | 273,496 | 211,648 | 139,004 | $ 127,011 | ||||||
Unearned premium reserves | 134,040 | 128,043 | 134,040 | 128,043 | 113,171 | |||||||
Net premiums earned | 52,506 | $ 54,461 | $ 55,359 | $ 55,892 | 57,431 | $ 55,865 | $ 54,049 | $ 48,426 | 218,218 | 215,771 | 171,058 | |
Net investment income | 2,647 | 4,897 | 4,824 | |||||||||
Claims and claims adjustment expense incurred, current year | 137,916 | 128,476 | 102,133 | |||||||||
Prior Year Claims and Claims Adjustment Expense | 82,746 | 75,397 | 32,613 | |||||||||
Amortization of deferred policy acquisition costs | 26,115 | 27,885 | 18,803 | |||||||||
Paid claims and claims adjustment expenses | 174,183 | 150,622 | 128,831 | |||||||||
Gross premiums written | $ 57,749 | $ 75,917 | $ 57,359 | $ 95,589 | $ 54,213 | $ 65,898 | $ 57,354 | $ 98,496 | $ 286,614 | $ 275,961 | $ 225,095 |