Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 05, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'HERITAGE INSURANCE HOLDINGS, INC. | ' |
Entity Central Index Key | '0001598665 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 29,794,960 |
Consolidated_Condensed_Balance
Consolidated Condensed Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Fixed maturity securities, available for sale, at fair value (amortized cost of $132,132 and $105,955 in 2014 and 2013, respectively) | $133,417 | $104,668 |
Equity securities, available for sale, at fair value (cost of $15,174 and $25,446 in 2014 and 2013, respectively) | 17,538 | 25,446 |
Mortgage loan, held to maturity, at amortized cost | 6,021 | 6,063 |
Total investments | 156,976 | 136,177 |
Cash and cash equivalents | 182,116 | 65,059 |
Accrued investment income | 1,331 | 971 |
Premiums receivable, net | 43,432 | 10,347 |
Prepaid reinsurance premiums | 87,264 | 31,252 |
Reinsurance premiums receivable | 0 | 5,337 |
Income taxes receivable | 10,255 | 5,073 |
Deferred tax asset | 0 | 4,436 |
Deferred policy acquisition costs, net | 25,392 | 9,765 |
Property and equipment, net | 13,768 | 10,935 |
Other assets | 5,297 | 2,626 |
Total Assets | 525,831 | 281,978 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Unpaid losses and loss adjustment expenses | 34,533 | 19,344 |
Unearned premiums | 159,430 | 116,243 |
Reinsurance payable | 81,373 | 29,591 |
Income taxes payable | 2,348 | 2,805 |
Deferred tax liability | 3,326 | 0 |
Accrued compensation | 3,144 | 505 |
Advance premiums | 7,905 | 3,829 |
Other liabilities | 12,165 | 8,756 |
Total Liabilities | 304,224 | 181,073 |
Commitments and contingencies (Note 12) | 0 | 0 |
Redeemable shares (Note 15) | 0 | 20,921 |
Stockholders' Equity | ' | ' |
Common stock, $0.0001 par value, 50,000,000 shares authorized, 29,794,960 and 14,007,150 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 3 | 1 |
Additional paid-in capital | 183,984 | 62,849 |
Accumulated other comprehensive income (loss) | 2,242 | -790 |
Retained earnings | 35,378 | 17,924 |
Total Stockholders' Equity | 221,607 | 79,984 |
Total Liabilities and Stockholders' Equity | $525,831 | $281,978 |
Consolidated_Condensed_Balance1
Consolidated Condensed Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Fixed maturities available for sale, at amortized cost | $132,132 | $105,955 |
Equity securities, costs | $15,174 | $25,446 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 29,794,960 | 14,007,150 |
Common stock, shares outstanding | 29,794,960 | 14,007,150 |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
REVENUE: | ' | ' | ' | ' |
Gross premiums written | $99,269 | $81,049 | $168,172 | $97,398 |
Increase in gross unearned premiums | -35,144 | -53,009 | -43,187 | -49,033 |
Gross premiums earned | 64,125 | 28,040 | 124,985 | 48,365 |
Ceded premiums | -19,830 | -6,416 | -38,454 | -6,774 |
Net premiums earned | 44,295 | 21,624 | 86,531 | 41,591 |
Retroactive reinsurance | 0 | 26,072 | 0 | 26,072 |
Net investment income | 719 | 124 | 1,337 | 335 |
Net realized gains (losses) | 24 | -46 | -18 | -48 |
Other revenue | 1,501 | 827 | 2,567 | 993 |
Total revenue | 46,539 | 48,601 | 90,417 | 68,943 |
EXPENSES: | ' | ' | ' | ' |
Losses and loss adjustment expenses | 19,244 | 7,870 | 39,831 | 13,148 |
Policy acquisition costs | 6,384 | 865 | 10,857 | 982 |
General and administrative expenses | 5,801 | 5,579 | 12,798 | 9,567 |
Interest expense | 0 | 6 | 0 | 11 |
Total expenses | 31,429 | 14,320 | 63,486 | 23,708 |
Income before income taxes | 15,110 | 34,281 | 26,931 | 45,235 |
Provision for income taxes | 5,544 | 13,263 | 9,477 | 17,162 |
Net income | 9,566 | 21,018 | 17,454 | 28,073 |
OTHER COMPREHENSIVE INCOME: | ' | ' | ' | ' |
Change in net unrealized gains (losses) on investments | 2,908 | -1,811 | 4,918 | -1,817 |
Reclassification adjustment for net realized investment losses | -24 | 46 | 18 | 48 |
Income tax expense related to items of other comprehensive income | -1,112 | 681 | -1,904 | 682 |
Total comprehensive income | $11,338 | $19,934 | $20,486 | $26,986 |
Weighted average shares outstanding | ' | ' | ' | ' |
Basic | 22,119,754 | 15,203,100 | 19,256,172 | 12,983,525 |
Diluted | 24,333,476 | 15,203,100 | 21,684,230 | 12,983,525 |
Earnings per share | ' | ' | ' | ' |
Basic | $0.43 | $1.38 | $0.91 | $2.16 |
Diluted | $0.39 | $1.38 | $0.80 | $2.16 |
Consolidated_Condensed_Stateme1
Consolidated Condensed Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
OPERATING ACTIVITIES | ' | ' |
Net income | $17,454 | $28,073 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Stock-based compensation | 0 | 575 |
Amortization of bond discount | 924 | 327 |
Depreciation and amortization | 272 | 27 |
Net realized losses | 18 | 48 |
Deferred income taxes | 5,858 | -788 |
Changes in operating assets and liabilities: | ' | ' |
Accrued investment income | -360 | -390 |
Premiums receivable, net | -33,085 | -5,161 |
Prepaid reinsurance premiums | -56,012 | -68,391 |
Reinsurance premiums receivable | 5,337 | -46,355 |
Income taxes receivable | -5,182 | 0 |
Deferred policy acquisition costs, net | -15,627 | -4,122 |
Other assets | -2,671 | -26,644 |
Unpaid losses and loss adjustment expenses | 15,189 | 8,100 |
Unearned premiums | 43,187 | 49,033 |
Reinsurance payable | 51,782 | 52,442 |
Income taxes payable | -457 | 8,608 |
Accrued compensation | 2,639 | 4,718 |
Advance premiums | 4,076 | 2,870 |
Other liabilities | 2,352 | 3,544 |
Net cash provided by operating activities | 35,694 | 6,514 |
INVESTING ACTIVITIES | ' | ' |
Proceeds from sales and maturities of investments available for sale | 24,747 | 2,615 |
Purchases of investments available for sale | -41,552 | -56,772 |
Cost of property and equipment acquired | -3,105 | -9,831 |
Net cash used in investing activities | -19,910 | -63,988 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of equity and redeemable shares | 88 | 33,300 |
Proceeds from issuance of equity from initial public offering and private placement, net of discount fee and direct costs of issuance | 78,670 | 0 |
Proceeds from issuance of exercise of warrants | 22,515 | 0 |
Net cash provided by financing activities | 101,273 | 33,300 |
Increase (decrease) in cash and cash equivalents | 117,057 | -24,174 |
Cash and cash equivalents at beginning of period | 65,059 | 63,872 |
Cash and cash equivalents at end of period | 182,116 | 39,698 |
Supplemental Cash Flows Information: | ' | ' |
Interest paid | 0 | 48 |
Income taxes paid | $9,258 | $7,278 |
Consolidated_Condensed_Stateme2
Consolidated Condensed Statement of Stockholders' Equity (Unaudited) (USD $) | Total | Issued march 31, 2014 | Ipo And Private Placement [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | Issued march 31, 2014 | Ipo And Private Placement [Member] | USD ($) | Issued march 31, 2014 | Ipo And Private Placement [Member] | USD ($) | USD ($) |
USD ($) | USD ($) | USD ($) | |||||||||
Beginning Balance at Dec. 31, 2012 | $28,119 | ' | ' | $1 | ' | ' | $33,584 | ' | ' | ($5,466) | ' |
Beginning Balance, shares at Dec. 31, 2012 | ' | ' | ' | 8,310,450 | ' | ' | ' | ' | ' | ' | ' |
Equity reclassified to temporary | -4,150 | ' | ' | ' | ' | ' | -4,150 | ' | ' | ' | ' |
Equity reclassified to temporary, Shares | ' | ' | ' | -1,058,250 | ' | ' | ' | ' | ' | ' | ' |
Issuance of equity | 31,655 | ' | ' | ' | ' | ' | 31,655 | ' | ' | ' | ' |
Issuance of equity, Shares | ' | ' | ' | 6,403,050 | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options | 150 | ' | ' | ' | ' | ' | 150 | ' | ' | ' | ' |
Exercise of stock options, Shares | ' | ' | ' | 38,250 | ' | ' | ' | ' | ' | ' | ' |
Net unrealized change in investments, net of tax | -1,087 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,087 |
Change in fair value of redeemable shares | -1,555 | ' | ' | ' | ' | ' | ' | ' | ' | -1,555 | ' |
Net income | 28,073 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 28,072 | ' | ' | ' | ' | ' | ' | ' | ' | 28,072 | ' |
Ending balance at Jun. 30, 2013 | 81,204 | ' | ' | 1 | ' | ' | 61,239 | ' | ' | 21,051 | -1,087 |
Ending balance, Shares at Jun. 30, 2013 | ' | ' | ' | 13,693,500 | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance at Dec. 31, 2013 | 79,984 | ' | ' | 1 | ' | ' | 62,849 | ' | ' | 17,924 | -790 |
Beginning Balance, shares at Dec. 31, 2013 | ' | ' | ' | 14,007,150 | ' | ' | ' | ' | ' | ' | ' |
Equity reclassified to temporary | 20,921 | ' | ' | ' | ' | ' | 20,921 | ' | ' | ' | ' |
Equity reclassified to temporary, Shares | ' | ' | ' | 2,338,350 | ' | ' | ' | ' | ' | ' | ' |
Issuance of equity | ' | 88 | 69,470 | ' | ' | 1 | ' | 88 | 69,469 | ' | ' |
Member tax distribution | -1,057 | ' | ' | ' | ' | ' | -1,057 | ' | ' | ' | ' |
Issuance of equity, Shares | ' | ' | ' | ' | 17,850 | 6,909,091 | ' | ' | ' | ' | ' |
Issuance of common stock to underwriters for over allotment, net of discount fee and direct costs of issuance of $700 | 9,200 | ' | ' | ' | ' | ' | 9,200 | ' | ' | ' | ' |
Issuance of common stock to underwriters for over allotment, net of discount fee and direct costs of issuance, Shares | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' |
Exercise of warrants | 22,515 | ' | ' | 1 | ' | ' | 22,514 | ' | ' | ' | ' |
Net unrealized change in investments, net of tax | 3,032 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,032 |
Exercise of warrants,Shares | ' | ' | ' | 5,622,519 | ' | ' | ' | ' | ' | ' | ' |
Net income | 17,454 | ' | ' | ' | ' | ' | ' | ' | ' | 17,454 | ' |
Ending balance at Jun. 30, 2014 | $221,607 | ' | ' | $3 | ' | ' | $183,984 | ' | ' | $35,378 | $2,242 |
Ending balance, Shares at Jun. 30, 2014 | ' | ' | ' | 29,794,960 | ' | ' | ' | ' | ' | ' | ' |
Consolidated_Condensed_Stateme3
Consolidated Condensed Statement of Stockholders' Equity (Unaudited) (Parenthetical) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Ipo And Private Placement [Member] | ' |
Discount fee and direct costs of issuance | $6,530 |
Underwriter [Member] | ' |
Discount fee and direct costs of issuance | $700 |
ORGANIZATION_CONSOLIDATION_AND
ORGANIZATION, CONSOLIDATION AND PRESENTATION | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
ORGANIZATION, CONSOLIDATION AND PRESENTATION | ' |
NOTE 1. ORGANIZATION, CONSOLIDATION AND PRESENTATION | |
Organization | |
Heritage Insurance Holdings, Inc. (the “Company”) was initially formed as a Florida limited liability company in 2012. On January 1, 2014, the Company formed a Delaware limited liability company, also named Heritage Insurance Holdings, LLC and merged with it in order to domicile the Company in Delaware. Effective May 22, 2014, Heritage Insurance Holdings, LLC converted into a Delaware corporation named Heritage Insurance Holdings, Inc. | |
The Company’s primary product is personal residential insurance, which the Company currently offers in Florida only under authorization from the Florida Office of Insurance Regulation (“FLOIR”). | |
On May 22, 2014, the Company’s registration statement on Form S-1 was declared effective, pursuant to which it sold 6,900,000 shares of common stock to the public at a price of $11.00 per share, including 900,000 shares sold pursuant to the underwriters’ over-allotment option (the “IPO”). Concurrent with the IPO, the Company completed a private placement with Ananke, an affiliate of Nephila Capital Ltd, to purchase $10.0 million of the Company’s common stock at a price per share equal to the public offering price. The Company’s total net proceeds from the IPO and the Private Placement were $78.6 million, after deducting underwriting discounts and other expenses. | |
On June 13, 2014, Heritage Property & Casualty Insurance Company (“Heritage P&C”), entered into an Insurance Policy Acquisition and Transition Agreement (the “Agreement”) with the Florida Insurance Guaranty Association (“FIGA”) and the Florida Department of Financial Services (“DFS”), the Receiver of Sunshine State Insurance Company (“SSIC”). Pursuant to the Agreement, Heritage P&C has the right to offer a new policy of insurance, effective June 27, 2014 to all (subject to limited exceptions) Florida SSIC policyholders having in-force policies (“Transition Policies”), without the need for SSIC policyholders to file a new application with Heritage P&C or pay premium that has already been paid to SSIC (“Transition Coverage”). As of June 27, 2014, SSIC had approximately 33,000 policies in force, representing approximately $58.9 million of in force premium and unearned premium of approximately $29.3 million. The Transition Coverage will terminate at the end of the original SSIC policy period. Upon termination of each Transition Policy, Heritage P&C will renew such policies at the lesser of SSIC’s and Heritage P&C’s rates on either SSIC’s or Heritage P&C’s forms, respectively. The SSIC policies represented approximately 19% of the Company’s total policies in force at June 30, 2014. Heritage P&C was assigned the entirety of the unearned premium. As consideration, Heritage P&C paid $10.0 million to the DFS, which will be amortized as acquisition costs in relation to the earning of the approximate $29.3 million of unearned premium. The $100 per policy FIGA statutory deductible and unearned commissions that will be paid to FIGA, as part of the transaction, will be deducted from the $10.0 million payment. | |
The Company conducts its operations under one business segment. | |
Consolidation and Presentation | |
The Company prepares its financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”). GAAP differs from statutory accounting principles prescribed or permitted for insurance entities by regulatory authorities. While preparing its financial statements, the Company makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as reported amounts of revenues and expenses during the reporting period. Accordingly, actual results will differ from those estimates. Reported amounts that require the Company to make extensive use of estimates include its reserves for unpaid losses and loss adjustment expenses, deferred policy acquisition costs and investments. Except for the captions on its Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Income and Comprehensive Income, the Company generally uses the term loss expense(s) to collectively refer to both losses and loss adjustment expenses. | |
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the information set forth therein have been included. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and footnotes for the year ended December 31, 2013 as filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”), on May 27, 2014. Results for the six month period ended June 30, 2014 are not necessarily an indication of the results that may be expected for the full fiscal year ending December 31, 2014. | |
The Company qualifies as an “emerging growth company” as defined in Section 2(a)(19) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As a result, the Company is eligible to take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies. The Company intends to continue to take advantage of some, but not all, of the exemptions available to emerging growth companies until such time that it is no longer an emerging growth company. The Company has, however, irrevocably elected not to take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES | |
Our significant accounting policies, other than those below, are described in Note 2 in our audited consolidated financial statements as referred to above. | |
Offering costs | |
Offering costs incurred in connection with the IPO, which included underwriters’ fees, legal and accounting fees, printing and other fees were deducted from the gross proceeds of the IPO. The proceeds from the issuance of shares net of offering costs is included in additional paid in capital in the consolidated statements of stockholders’ equity. The Company incurred in aggregate $7.2 million in offering costs related to the IPO. | |
Income Taxes | |
On May 22, 2014, the Company converted from a limited liability company to a corporation. As a limited liability company, the Company was treated as a partnership for tax purposes, and accordingly was not subject to entity-level federal or state income taxation. The Company’s income tax provision generally consisted of income taxes payable by its separate subsidiaries that are taxed as corporations. As such, the Company’s effective tax rate as a limited liability company has historically been driven primarily by the taxable income recognized with respect to gross premiums written. As a corporation, the Company is subject to typical corporate U.S. federal and state income tax rates on a consolidated basis which it expects to result in a statutory tax rate of approximately 38.575% under current tax law. | |
Accounting Pronouncements | |
The Company describes below recent pronouncements that have had or may have a significant effect on its financial statements or on its disclosures. The Company does not discuss recent pronouncements that a) are not anticipated to have an impact on, or b) are unrelated to its financial condition, results of operations, or related disclosures. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”) which supersedes current revenue recognition guidance, including most industry-specific guidance. ASU 2014-09 requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures regarding the nature, amount, timing and uncertainty of revenue that is recognized. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016. Early adoption is not permitted. The Company is evaluating the impact of the new guidance on its consolidated financial statements | |
Subsequent Events | |
The Company follows the provisions of ASC Topic 855-10, “Subsequent Events,” relating to subsequent events. This guidance establishes principles and requirements for subsequent events. This guidance defines the period after the balance sheet date during which events or transactions that may occur would be required to be disclosed in the company’s financial statements. The Company has evaluated subsequent events up to the date of issuance of this report. (see Note 18) |
INVESTMENTS
INVESTMENTS | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
INVESTMENTS | ' | ||||||||||||||||||||||||
NOTE 3. INVESTMENTS | |||||||||||||||||||||||||
The following table details the difference between cost or adjusted/amortized cost and estimated fair value, by major investment category, at June 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Cost or Adjusted / | Gross Unrealized | Gross Unrealized | Fair Value | ||||||||||||||||||||||
Amortized Cost | Gains | Losses | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
U.S. government and agency securities | $ | 1,214 | $ | 7 | $ | 5 | $ | 1,216 | |||||||||||||||||
States, municipalities and political subdivisions | 15,961 | 253 | 22 | 16,192 | |||||||||||||||||||||
Special revenue | 55,759 | 630 | 99 | 56,290 | |||||||||||||||||||||
Industrial and miscellaneous | 56,603 | 592 | 93 | 57,102 | |||||||||||||||||||||
Redeemable preferred stocks | 2,595 | 57 | 35 | 2,617 | |||||||||||||||||||||
Total fixed maturities | 132,132 | 1,539 | 254 | 133,417 | |||||||||||||||||||||
Nonredeemable preferred stocks | 7,278 | 199 | 56 | 7,421 | |||||||||||||||||||||
Equity securities | 7,896 | 2,226 | 5 | 10,117 | |||||||||||||||||||||
Total equity securities | 15,174 | 2,425 | 61 | 17,538 | |||||||||||||||||||||
Mortgage loan participation | 6,021 | — | — | 6,021 | |||||||||||||||||||||
Total investments | $ | 153,327 | $ | 3,964 | $ | 315 | $ | 156,976 | |||||||||||||||||
Cost or Adjusted / | Gross Unrealized | Gross Unrealized | Fair Value | ||||||||||||||||||||||
Amortized Cost | Gains | Losses | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
U.S. government and agency securities | $ | 1,486 | $ | — | $ | 44 | $ | 1,442 | |||||||||||||||||
States, municipalities and political subdivisions | 14,255 | 42 | 136 | 14,161 | |||||||||||||||||||||
Special revenue | 41,114 | 89 | 608 | 40,595 | |||||||||||||||||||||
Industrial and miscellaneous | 46,726 | 69 | 480 | 46,315 | |||||||||||||||||||||
Redeemable preferred stocks | 2,374 | 4 | 223 | 2,155 | |||||||||||||||||||||
Total fixed maturities | 105,955 | 204 | 1,491 | 104,668 | |||||||||||||||||||||
Nonredeemable preferred stocks | 5,283 | 6 | 331 | 4,958 | |||||||||||||||||||||
Equity securities | 20,163 | 370 | 45 | 20,488 | |||||||||||||||||||||
Total equity securities | 25,446 | 376 | 376 | 25,446 | |||||||||||||||||||||
Mortgage loan participation | 6,063 | — | — | 6,063 | |||||||||||||||||||||
Total investments | $ | 137,464 | $ | 580 | $ | 1,867 | $ | 136,177 | |||||||||||||||||
The Company calculates the gain or loss realized on the sale of investments by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. The Company determines the cost or adjusted/ amortized cost of the security sold using the specific-identification method. The following tables detail the Company’s realized gains (losses) by major investment category for the six and three months ended June 30, 2014 and 2013, respectively: | |||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gains (Losses) | Fair Value at Sale | Gains (Losses) | Fair Value at Sale | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Fixed maturities | $ | 104 | $ | 4,384 | $ | 3 | $ | 229 | |||||||||||||||||
Equity securities | 14 | 15,015 | — | — | |||||||||||||||||||||
Total realized gains | 118 | 19,399 | 3 | 229 | |||||||||||||||||||||
Fixed maturities | (88 | ) | 2,660 | (49 | ) | 1,887 | |||||||||||||||||||
Equity securities | (48 | ) | 1,683 | (2 | ) | 456 | |||||||||||||||||||
Total realized losses | (136 | ) | 4,343 | (51 | ) | 2,343 | |||||||||||||||||||
Net realized losses | $ | (18 | ) | $ | 23,742 | $ | (48 | ) | $ | 2,572 | |||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gains (Losses) | Fair Value at Sale | Gains (Losses) | Fair Value at Sale | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Fixed maturities | $ | 118 | $ | 3,793 | $ | 2 | $ | 154 | |||||||||||||||||
Equity securities | — | — | — | — | |||||||||||||||||||||
Total realized gains | 118 | 3,793 | 2 | 154 | |||||||||||||||||||||
Fixed maturities | (78 | ) | 2,577 | (46 | ) | 1,724 | |||||||||||||||||||
Equity securities | (16 | ) | 1,007 | (2 | ) | 427 | |||||||||||||||||||
Total realized losses | (94 | ) | 3,584 | (48 | ) | 2,151 | |||||||||||||||||||
Net realized gain (losses) | $ | 24 | $ | 7,377 | $ | (46 | ) | $ | 2,305 | ||||||||||||||||
The table below summarizes the Company’s fixed maturities at June 30, 2014 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations. | |||||||||||||||||||||||||
Cost or Amortized Cost | Percent of Total | Fair Value | Percent of Total | ||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Due in one year or less | $ | 7,244 | 5.48 | % | $ | 7,271 | 5.45 | % | |||||||||||||||||
Due after one year through five years | 80,750 | 61.11 | % | 81,301 | 60.94 | % | |||||||||||||||||||
Due after five years through ten years | 27,627 | 20.91 | % | 28,115 | 21.07 | % | |||||||||||||||||||
Due after ten years | 16,511 | 12.5 | % | 16,730 | 12.54 | % | |||||||||||||||||||
Total | $ | 132,132 | 100 | % | $ | 133,417 | 100 | % | |||||||||||||||||
The following table summarizes the Company’s net investment income by major investment category for the three and six month periods ended June 30, 2014 and 2013, respectively: | |||||||||||||||||||||||||
For the Three Months Ended, | For the Six Months Ended, | ||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Fixed maturities | $ | 633 | $ | 207 | $ | 1,152 | $ | 366 | |||||||||||||||||
Equity securities | 253 | 115 | 439 | 169 | |||||||||||||||||||||
Cash, cash equivalents and short-term investments | 32 | 14 | 45 | 21 | |||||||||||||||||||||
Other investments | 78 | — | 163 | 4 | |||||||||||||||||||||
Net investment income | 996 | 336 | 1,799 | 560 | |||||||||||||||||||||
Investment expenses | 277 | 212 | 462 | 225 | |||||||||||||||||||||
Net investment income, less investment expenses | $ | 719 | $ | 124 | $ | 1,337 | $ | 335 | |||||||||||||||||
During the Company’s quarterly evaluations of its securities for impairment, the Company determined that none of its investments in debt and equity securities that reflected an unrealized loss position were other-than-temporarily impaired. The issuers of the Company’s debt securities continue to make interest payments on a timely basis and have not suffered any credit rating reductions. The Company does not intend to sell nor is it likely that it would be required to sell the debt securities before the Company recovers its amortized cost basis. All the issuers of the equity securities it owns had near-term prospects that indicated the Company could recover its cost basis, and the Company also has the ability and the intent to hold these securities until the value equals or exceeds its cost. | |||||||||||||||||||||||||
The following table presents an aging of our unrealized investment losses by investment class as of June 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | ||||||||||||||||||||||||
Number of | Gross Unrealized | Fair Value | Number of | Gross Unrealized | Fair Value | ||||||||||||||||||||
Securities | Losses | Securities | Losses | ||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
U.S. government and agency securities | 1 | $ | — | $ | 250 | 2 | $ | 5 | $ | 204 | |||||||||||||||
States, municipalities and political subdivisions | 1 | 2 | 174 | 6 | 21 | 1,926 | |||||||||||||||||||
Industrial and miscellaneous | 12 | 17 | 5,528 | 19 | 76 | 5,646 | |||||||||||||||||||
Special revenue | 6 | 9 | 2,451 | 26 | 89 | 7,144 | |||||||||||||||||||
Redeemable preferred stocks | 10 | 2 | 562 | 14 | 33 | 569 | |||||||||||||||||||
Total fixed maturities | 30 | $ | 30 | $ | 8,965 | 67 | $ | 224 | $ | 15,489 | |||||||||||||||
Nonredeemable preferred stocks | 1 | 8 | 1,160 | 1 | 48 | 1,134 | |||||||||||||||||||
Equity securities | 1 | 5 | 183 | — | 0 | 0 | |||||||||||||||||||
Total equity securities | 2 | 13 | 1,343 | 1 | 48 | 1,134 | |||||||||||||||||||
Total | 32 | $ | 43 | $ | 10,308 | 68 | $ | 272 | $ | 16,623 | |||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
U.S. government and agency securities | 6 | $ | 44 | $ | 1,335 | — | $ | — | $ | — | |||||||||||||||
States, municipalities and political subdivisions | 17 | 116 | 8,294 | 2 | 20 | 341 | |||||||||||||||||||
Industrial and miscellaneous | 89 | 413 | 30,962 | 6 | 66 | 888 | |||||||||||||||||||
Special revenue | 59 | 582 | 27,256 | 3 | 27 | 502 | |||||||||||||||||||
Redeemable preferred stocks | 27 | 223 | 1,844 | — | — | — | |||||||||||||||||||
Total fixed maturities | 198 | 1,378 | 69,691 | 11 | 113 | 1,731 | |||||||||||||||||||
Nonredeemable preferred stocks | 58 | 331 | 4,349 | — | — | — | |||||||||||||||||||
Equity securities | 4 | 45 | 689 | — | — | — | |||||||||||||||||||
Total equity securities | 62 | 376 | 5,038 | — | — | — | |||||||||||||||||||
Total | 260 | $ | 1,754 | $ | 74,729 | 11 | $ | 113 | $ | 1,731 | |||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | ||||||||||||||||
NOTE 4. FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||
The following table shows the fair value of the Company’s financial instruments and where in the fair value hierarchy the fair value measurements are included as of the dates indicated below: | |||||||||||||||||
June 30, 2014 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(in thousands) | |||||||||||||||||
Fixed maturity investments | |||||||||||||||||
U.S. Government and Government agencies | $ | 1,216 | $ | — | $ | 1,216 | $ | — | |||||||||
States, municipalities and political subdivisions | 16,192 | — | 16,192 | — | |||||||||||||
Special Revenue | 56,290 | — | 56,290 | — | |||||||||||||
Industrial and miscellaneous | 57,102 | — | 57,102 | — | |||||||||||||
Redeemable preferred stocks | 2,617 | 2,617 | — | — | |||||||||||||
Total fixed maturity investments | $ | 133,417 | $ | 2,617 | $ | 130,800 | $ | — | |||||||||
Equity securities | $ | 10,117 | $ | 10,117 | $ | — | $ | — | |||||||||
Non-redeemable preferred stocks | 7,421 | 7,421 | — | — | |||||||||||||
Total equity securities | $ | 17,538 | $ | 17,538 | $ | — | $ | — | |||||||||
Total investments | $ | 150,955 | $ | 20,155 | $ | 130,800 | $ | — | |||||||||
December 31, 2013 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(in thousands) | |||||||||||||||||
Fixed maturity investments | |||||||||||||||||
U.S. Government and Government agencies | $ | 1,442 | $ | — | $ | 1,442 | $ | — | |||||||||
States, municipalities and political subdivisions | 14,161 | — | 14,161 | — | |||||||||||||
Special Revenue | 40,595 | — | 40,595 | — | |||||||||||||
Industrial and miscellaneous | 46,315 | — | 46,315 | — | |||||||||||||
Redeemable preferred stocks | 2,155 | 2,155 | — | — | |||||||||||||
Total fixed maturity investments | $ | 104,668 | $ | 2,155 | $ | 102,513 | $ | — | |||||||||
Equity securities | $ | 20,488 | $ | 20,488 | $ | — | $ | — | |||||||||
Non-redeemable preferred stocks | 4,958 | 4,958 | — | — | |||||||||||||
Total equity securities | $ | 25,446 | $ | 25,446 | $ | — | $ | — | |||||||||
Total investments | $ | 130,114 | $ | 27,601 | $ | 102,513 | $ | — | |||||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
NOTE 5. PROPERTY AND EQUIPMENT | |||||||||
Property and equipment, net consists of the following at June 30, 2014 and December 31, 2013: | |||||||||
June 30, 2014 | December 31, 2013 | ||||||||
(In thousands) | |||||||||
Land | $ | 2,582 | $ | 2,582 | |||||
Building | 8,336 | 7,090 | |||||||
Computer hardware and software | 953 | 364 | |||||||
Office furniture and equipment | 268 | 176 | |||||||
Tenant and leasehold improvements | 1,835 | 873 | |||||||
Vehicle fleet | 216 | — | |||||||
Total, at cost | 14,190 | 11,085 | |||||||
Less: accumulated depreciation and amortization | 422 | 150 | |||||||
Property and equipment, net | $ | 13,768 | $ | 10,935 | |||||
Depreciation and amortization expense for property and equipment was $104,000 and $272,000 for the three and six-month periods ended June 30, 2014, respectively. The Company’s real estate consists of 13 acres of land and two buildings with a gross area of 148,000 square feet. The Company relocated to these facilities during March 2014. These facilities and the related existing tenant lease agreements were acquired in April 2013 for a total purchase price of $9.8 million paid in cash. | |||||||||
The Company currently leases space to non-affiliates and its subsidiary Heritage P&C, and occupies space in one of the buildings. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||||||
NOTE 6. EARNINGS PER SHARE | |||||||||||||||||
Basic earnings per weighted average common share (“EPS”) is calculated by dividing net income by the weighted average number of basic common shares outstanding during the period. Diluted earnings per share amounts are based on the weighted average number of common shares including outstanding warrants and the net effect of potentially dilutive common shares outstanding. | |||||||||||||||||
The following table sets forth the computation of basic and diluted EPS for the periods indicated. | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic earnings per share: | |||||||||||||||||
Net income attributable to common stockholders (000’s) | $ | 9,566 | $ | 21,018 | $ | 17,454 | $ | 28,073 | |||||||||
Weighted average shares outstanding | 22,119,754 | 15,203,100 | 19,256,172 | 12,983,525 | |||||||||||||
Basic earnings per share: | $ | 0.43 | $ | 1.38 | $ | 0.91 | $ | 2.16 | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Diluted earnings per share: | |||||||||||||||||
Net income attributable to common stockholders (000’s) | $ | 9,566 | $ | 21,018 | $ | 17,454 | $ | 28,073 | |||||||||
Weighted average shares outstanding | 22,119,754 | 15,203,100 | 19,256,172 | 12,983,525 | |||||||||||||
Weighted average dilutive shares | 2,213,722 | — | 2,428,058 | — | |||||||||||||
Total weighted average dilutive shares | 24,333,476 | 15,203,100 | 21,684,230 | 12,983,525 | |||||||||||||
Diluted earnings per share: | $ | 0.39 | $ | 1.38 | $ | 0.8 | $ | 2.16 | |||||||||
DEFERRED_POLICY_ACQUISITION_CO
DEFERRED POLICY ACQUISITION COSTS | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
DEFERRED POLICY ACQUISITION COSTS | ' | ||||||||||||||||
NOTE 7. DEFERRED POLICY ACQUISITION COSTS | |||||||||||||||||
The Company defers certain costs in connection with written policies, called Deferred Policy Acquisition Costs (“DPAC”), net of corresponding amounts of ceded reinsurance commissions, called Deferred Reinsurance Ceding Commissions (“DRCC”). Net DPAC is amortized over the effective period of the related insurance policies. | |||||||||||||||||
The Company anticipates that its deferred policy acquisition costs will be fully recoverable in the near term. The table below depicts the activity with regard to deferred policy acquisition costs during the three and six-month periods ended June 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Beginning Balance | $ | 12,226 | $ | 1,326 | $ | 9,765 | $ | 32 | |||||||||
Policy acquisition costs deferred | 19,550 | 3,693 | 26,484 | 5,103 | |||||||||||||
Amortization | (6,384 | ) | (865 | ) | (10,857 | ) | (982 | ) | |||||||||
Ending Balance | $ | 25,392 | $ | 4,154 | $ | 25,392 | $ | 4,154 | |||||||||
The deferred policy acquisition costs at June 30, 2014 include the unamortized portion of $10.0 million of deferred costs paid during June 2014 in connection with the Company’s assumption of policies from SSIC. |
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
NOTE 8. INCOME TAXES | |
During the six months ended June 30, 2014, the Company recorded $9.5 million of income tax expense which resulted in an estimated annual effective tax rate of 35.2%. The effective tax rate was primarily impacted due to income earned while the Company was a limited liability company in the amount of $2.7 million, which was not subject to entity level taxation. | |
The Company’s deferred income tax asset of $4.4 million at December 31, 2013 decreased to $3.3 million deferred tax liability at June 30, 2014 primarily due to the increase in deferred acquisition costs resulting from the assumption of SSIC policies in June 2014. |
REINSURANCE
REINSURANCE | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
REINSURANCE | ' | ||||||||||||||||
NOTE 9. REINSURANCE | |||||||||||||||||
The Company’s reinsurance program is designed, utilizing its risk management methodology, to address its exposure to catastrophes. The Company’s program provides reinsurance protection for catastrophes including hurricanes, tropical storms, and tornadoes. These reinsurance agreements are part of the Company’s catastrophe management strategy, which is intended to provide its stockholders an acceptable return on the risks assumed in its property business, and to reduce variability of earnings, while providing protection to the Company’s policyholders. | |||||||||||||||||
Effective December 4, 2012, concurrent with the effective date of the Company’s initial assumption transaction with Citizens Property Insurance Corporation (“Citizens”), the Company secured catastrophe excess of loss reinsurance providing $9.5 million of protection in excess of its $2.0 million primary retention through May 31, 2013. Loss payments under this contract reduce the limits of coverage afforded by the amounts paid, but the limit of coverage would be reinstated from the time of the occurrence of the loss. The Company would pay an additional premium calculated at pro rata of 100% of the reinsurer’s premium for the term of this contract, being pro rata only as to the fraction of the reinsurer’s limit of liability and reinstated simultaneously with the reinsurer’s loss payment. Under no circumstances would the reinsurer’s liability exceed $9.5 million for any one loss occurrence, and $19.0 million for all loss occurrences during the contract term. | |||||||||||||||||
During the second quarter of 2013, the Company placed its reinsurance program for the period from June 1, 2013 through May 31, 2014. The Company’s reinsurance program, which was segmented into layers of coverage, protected it for excess property catastrophe losses and loss adjustment expenses. The Company’s previous year’s reinsurance program incorporated the mandatory coverage required by law to be placed with the Florida Hurricane Catastrophe Fund, a state-mandated catastrophe reinsurance fund (“FHCF”). The Company also purchased private reinsurance below, alongside and above the FHCF layer, as well as aggregate reinsurance coverage. The following describes the various layers of the Company’s 2013 reinsurance program. | |||||||||||||||||
• | The Company’s Retention. For the first catastrophic event, the Company may have a primary retention of the first $9.0 million of losses and loss adjustment expenses, of which the Company’s reinsurance subsidiary, Osprey Re Ltd (“Osprey”), is responsible for $3.0 million. For a second and third catastrophic event, Heritage P&C’s primary retention decreased to $3.0 million per event. To the extent that there was reinsurance coverage remaining, Heritage P&C has no primary retention for events beyond the third catastrophic event. Osprey had no primary retention beyond the first catastrophic event. | ||||||||||||||||
• | Layers Below FHCF. Immediately above the Company’s retention, the Company purchased $94.0 million of reinsurance from third party reinsurers and Osprey. Through Osprey, the Company retained an aggregate participation in this coverage of $3.5 million, comprised of a 3% participation of $31.0 million of losses and loss adjustment expenses in excess of $9.0 million, or $0.9 million, and a 4% participation of $63.0 million of losses and loss adjustment expenses in excess of $40.0 million, or $2.5 million. Through the payment of a reinstatement premium, the Company was able to reinstate the full amount of this reinsurance one time. To the extent that $94.0 million or a portion thereof was exhausted in a first catastrophic event, the Company purchased reinstatement premium protection insurance to pay the required premium necessary for the reinstatement of this coverage. | ||||||||||||||||
• | FHCF Layer. The Company’s FHCF coverage included an estimated maximum provisional limit of 90% of $270.0 million, or $243.0 million, in excess of the Company’s retention and private reinsurance of $103.0 million. The limit and retention of the FHCF coverage is subject to upward or downward adjustment based on, among other things, submitted exposures to FHCF by all participants. The Company purchased coverage alongside and above the FHCF layer from third party reinsurers. The layer alongside was in the amount of $27.0 million and the layer immediately above was in the amount of $28.5 million. To the extent the FHCF coverage was adjusted, this private reinsurance would adjust to fill in any gaps in coverage up to the reinsurers’ aggregate limits for this layer. Through the payment of a reinstatement premium, the Company was able to reinstate the full amount of this private reinsurance one time. To the extent that all or a portion of either of these private layers was exhausted in a first catastrophic event, the Company purchased reinstatement premium protection insurance to pay the required premium necessary for the reinstatement of this coverage. The FHCF coverage could not be reinstated once exhausted, but it did provide coverage for multiple events. | ||||||||||||||||
• | Aggregate Coverage. In addition to the layers described above, the Company also purchased $170.0 million of aggregate reinsurance coverage for losses and loss adjustment expenses in excess of $401.5 million for a first catastrophic event. To the extent that this coverage was not fully exhausted in the first catastrophic event, it provided coverage commencing at its reduced retention levels for second and subsequent events and where underlying coverage has been previously exhausted. There is no reinstatement of the aggregate reinsurance coverage once exhausted, but it did provide coverage for multiple events. | ||||||||||||||||
For a first catastrophic event, the Company’s 2013 reinsurance program provided coverage for $571.5 million of losses and loss adjustment expenses, including its retention, and the Company was responsible for all losses and loss adjustment expenses in excess of such amount. For subsequent catastrophic events, the Company’s total available coverage depended on the magnitude of the first event, as the Company may had coverage remaining from layers that were not previously fully exhausted. The Company also purchased reinstatement premium protection insurance to provide an additional $149.5 million of coverage. The Company aggregate reinsurance layer also provides coverage for second and subsequent events to the extent not exhausted in prior events. | |||||||||||||||||
During April 2014, Heritage P&C entered into two catastrophe reinsurance agreements with Citrus Re Ltd., a newly-formed Bermuda special purpose insurer. The agreements provide for three years of coverage from catastrophe losses caused by certain named storms, including hurricanes, beginning on June 1, 2014. The limit of coverage of $200 million is fully collateralized by a reinsurance trust account for the benefit of Heritage P&C. Heritage P&C pays a periodic premium to Citrus Re Ltd. during this three-year risk period. Citrus Re Ltd. issued $200 million of principal-at-risk variable notes due April 2017 to fund the reinsurance trust account and its obligations to Heritage P&C under the reinsurance agreements. The maturity date of the notes may be extended up to two additional years to satisfy claims for catastrophic events occurring during the three-year term of the reinsurance agreements. The Company has determined that, while Citrus Re Ltd. is a variable interest entity, the Company does not have any variable interests in Citrus Re Ltd. Accordingly, consolidation of or disclosures associated with Citrus Re Ltd. are not applicable. | |||||||||||||||||
During the second quarter of 2014, the Company placed its reinsurance program for the period from June 1, 2014 through May 31, 2015. The Company’s reinsurance program, which is segmented into layers of coverage, protects it for excess property catastrophe losses and loss adjustment expenses. The Company’s current reinsurance program incorporates the mandatory coverage required by law to be placed with FHCF. We also purchase private reinsurance below, alongside and above the FHCF layer, as well as aggregate reinsurance coverage. The following describes the various layers of our 2014 reinsurance program. | |||||||||||||||||
• | The Company’s Retention. For the first catastrophic event, the Company may have a primary retention of the first $15.0 million of losses and loss adjustment expenses, of which Osprey is responsible for $6.0 million. For a second event, Heritage P&C’s primary retention decreases to $2.0 million and Osprey is responsible for $4.0 million. To the extent that there is reinsurance coverage remaining, Heritage P&C has a $2.0 million primary retention for events beyond the third catastrophic event. Osprey has no primary retention beyond the second catastrophic event. | ||||||||||||||||
• | Layers Below FHCF. Immediately above the Company’s retention, the Company has purchased $185.0 million of reinsurance from third party reinsurers. Through the payment of a reinstatement premium, we are able to reinstate the full amount of this reinsurance one time. To the extent that $185.0 million or a portion thereof is exhausted in a first catastrophic event, the Company has purchased reinstatement premium protection insurance to pay the required premium necessary for the reinstatement of this coverage. | ||||||||||||||||
• | FHCF Layer. Our FHCF coverage includes an estimated maximum provisional limit of 90% of $484.0 million, or $435.0 million, in excess of our retention and private reinsurance of $166.0 million. The limit and retention of the FHCF coverage is subject to upward or downward adjustment based on, among other things, submitted exposures to FHCF by all participants. We have purchased coverage alongside from third party reinsurers. The layer alongside is in the amount of $49.0 million. To the extent the FHCF coverage is adjusted, this private reinsurance will adjust to fill in any gaps in coverage up to the reinsurers’ aggregate limits for this layer. The FHCF coverage cannot be reinstated once exhausted, but it does provide coverage for multiple events. | ||||||||||||||||
• | CAT Bond Layer. Immediately above the FHCF layer is the coverage provided by the reinsurance agreements entered into with Citrus Re Ltd., as described above in this footnote. The first contract with Citrus Re Ltd. provides $150.0 million of coverage and the second contract provides an additional $50.0 million of coverage. Osprey provides $25.0 million of coverage alongside the second contract. | ||||||||||||||||
• | Aggregate Coverage. In addition to the layers described above, the Company has also purchased $105.0 million of aggregate reinsurance coverage for losses and loss adjustment expenses in excess of $885.0 million for a first catastrophic event. To the extent that this coverage is not fully exhausted in the first catastrophic event, it provides coverage commencing at its reduced retention levels for second and subsequent events and where underlying coverage has been previously exhausted. There is no reinstatement of the aggregate reinsurance coverage once exhausted, but it does provide coverage for multiple events. Osprey Re Ltd. provides $20.0 million of protection in the layer above $940.0 million. | ||||||||||||||||
For a first catastrophic event, the Company’s reinsurance program provides coverage for $990.0 million of losses and loss adjustment expenses, including its retention, and the Company is responsible for all losses and loss adjustment expenses in excess of such amount. For subsequent catastrophic events, the Company’s total available coverage depends on the magnitude of the first event, as the Company may have coverage remaining from layers that were not previously fully exhausted. The Company has also purchased reinstatement premium protection insurance to provide an additional $185.0 million of coverage. The Company aggregate reinsurance layer also provides coverage for second and subsequent events to the extent not exhausted in prior events. | |||||||||||||||||
Assumption Transactions and Assumed Premiums Written | |||||||||||||||||
On June 27, 2014, the Company assumed approximately $58.9 million (representing 33,000 policies in force) of annualized premiums from SSIC. The SSIC policies account for approximately 19% of the Company’s total policies in force as of June 30, 2014. Prior to June 27, 2014, substantially all of the Company’s policies have been obtained in connection with assumption transactions with Citizens, pursuant to which the Company recorded the assumed premiums written in the amount of the unearned premiums transferred to the Company. In connection with each assumption transaction, the Company assumes the responsibility of the primary writer of the risk through the expiration of the term of the policy. | |||||||||||||||||
The following table depicts written premiums, earned premiums and losses, showing the effects that the Company’s assumption transactions have on these components of the Company’s Unaudited Condensed Consolidated Statements of Income: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Premium written: | |||||||||||||||||
Direct | $ | 71,072 | $ | 28,187 | $ | 123,172 | $ | 39,765 | |||||||||
Assumed | 28,197 | 52,862 | 45,000 | 57,633 | |||||||||||||
Ceded | (94,452 | ) | (75,163 | ) | (94,466 | ) | (75,165 | ) | |||||||||
Net premium written | $ | 4,817 | $ | 5,886 | $ | 73,706 | $ | 22,233 | |||||||||
Change in unearned premiums: | |||||||||||||||||
Direct | $ | (26,025 | ) | $ | (21,839 | ) | $ | (43,982 | ) | $ | (32,525 | ) | |||||
Assumed | (9,119 | ) | (31,170 | ) | 795 | (16,508 | ) | ||||||||||
Ceded | 74,622 | 68,747 | 56,012 | 68,391 | |||||||||||||
Net decrease (increase) | $ | 39,478 | $ | 15,738 | $ | 12,825 | $ | 19,358 | |||||||||
Premiums earned: | |||||||||||||||||
Direct | $ | 45,047 | $ | 6,348 | $ | 79,190 | $ | 7,240 | |||||||||
Assumed | 19,078 | 21,692 | 45,795 | 41,125 | |||||||||||||
Ceded | (19,830 | ) | (6,416 | ) | (38,454 | ) | (6,774 | ) | |||||||||
Net premiums earned | $ | 44,295 | $ | 21,624 | $ | 86,531 | $ | 41,591 | |||||||||
Losses and LAE incurred: | |||||||||||||||||
Direct | $ | 14,463 | $ | 1,653 | $ | 24,713 | $ | 1,802 | |||||||||
Assumed | 4,781 | 6,217 | 15,118 | 11,346 | |||||||||||||
Ceded | — | — | — | — | |||||||||||||
Net losses and LAE incurred | $ | 19,244 | $ | 7,870 | $ | 39,831 | $ | 13,148 | |||||||||
The following table highlights the effects that the Company’s assumption transactions have on unpaid losses and loss adjustment expenses and unearned premiums: | |||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Unpaid losses and loss adjustment expenses: | |||||||||||||||||
Direct | $ | 21,030 | $ | 10,037 | |||||||||||||
Assumed | 13,503 | 9,307 | |||||||||||||||
Gross unpaid losses and LAE | 34,533 | 19,344 | |||||||||||||||
Ceded | — | — | |||||||||||||||
Net unpaid losses and LAE | $ | 34,533 | $ | 19,344 | |||||||||||||
Unearned premiums: | |||||||||||||||||
Direct | $ | 118,982 | $ | 75,000 | |||||||||||||
Assumed | 40,448 | 41,243 | |||||||||||||||
Gross unearned premiums | 159,430 | 116,243 | |||||||||||||||
Ceded | (87,264 | ) | (31,252 | ) | |||||||||||||
Net unearned premiums | $ | 72,166 | $ | 84,991 | |||||||||||||
There were no amounts recoverable under the Company’s reinsurance agreements for the three month and six months June 30, 2014 and June 30, 2013. Prepaid reinsurance premiums related to 16 reinsurers at June 30, 2014 and December 31, 2013. | |||||||||||||||||
There was no amounts receivable with respect to reinsurers at June 30, 2014 and December 31, 2013. Thus, there were no concentrations of credit risk associated with reinsurance receivables as of June 30, 2014 and December 31, 2013. The percentages of assumed premiums earned to net premiums earned for the six-month periods ended June 30, 2014 and 2013 were 53% and 99%, respectively. |
RESERVE_FOR_UNPAID_LOSSES
RESERVE FOR UNPAID LOSSES | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
RESERVE FOR UNPAID LOSSES | ' | ||||||||||||||||
NOTE 10. RESERVE FOR UNPAID LOSSES | |||||||||||||||||
The Company determines the reserve for unpaid losses on an individual-case basis for all incidents reported. The liability also includes amounts for which are commonly referred to as incurred but not reported, or “IBNR”, claims as of the balance sheet date. | |||||||||||||||||
The table below summarizes the activity related to the Company’s reserve for unpaid losses for the three and six month periods ended June 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Balance, beginning of period | $ | 28,456 | $ | 4,973 | $ | 19,344 | $ | 1,393 | |||||||||
Less: reinsurance recoverable on unpaid losses | — | — | — | — | |||||||||||||
Net balance, beginning of period | 28,456 | 4,973 | 19,344 | 1,393 | |||||||||||||
Incurred related to: | |||||||||||||||||
Current year | 19,027 | 8,255 | 39,582 | 13,553 | |||||||||||||
Prior years | 217 | (385 | ) | 249 | (405 | ) | |||||||||||
Total incurred | 19,244 | 7,870 | 39,831 | 13,148 | |||||||||||||
Paid related to: | |||||||||||||||||
Current year | 11,085 | 2,547 | 16,326 | 4,538 | |||||||||||||
Prior years | 2,082 | 803 | 8,316 | 510 | |||||||||||||
Total paid | 13,167 | 3,350 | 24,642 | 5,048 | |||||||||||||
Net balance, end of period | 34,533 | 9,493 | 34,533 | 9,493 | |||||||||||||
Plus: reinsurance recoverable on unpaid losses | — | — | — | — | |||||||||||||
Balance, end of period | $ | 34,533 | $ | 9,493 | $ | 34,533 | $ | 9,493 | |||||||||
The significant increase in the Company’s reserves for unpaid losses in 2014 from 2013 is primarily due to the increase in policy base as a result of the assumption of Citizens policies in 2013. | |||||||||||||||||
The Company writes insurance in the state of Florida, which could be exposed to hurricanes or other natural catastrophes. Although the occurrence of a major catastrophe could have a significant effect on its monthly or quarterly results, such an event is unlikely to be so material as to disrupt its overall normal operations. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter. | |||||||||||||||||
The Company believes that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date. | |||||||||||||||||
The Company’s losses incurred related to the prior year reflect a reserve deficiency of $217,000 and $249,000 for the three and six months ended June 30, 2014 and a redundancy of $385,000 and $405,000 for the three and six months ended June 30, 2013, respectively. The nominal deficiency and redundancy we experienced in 2014 and 2013, respectively, resulted from changes to the Company’s estimate of ultimate losses on claims incurred in prior years not attributable to any specific trend or claims handling dynamic. |
STATUTORY_ACCOUNTING_AND_REGUL
STATUTORY ACCOUNTING AND REGULATIONS | 6 Months Ended |
Jun. 30, 2014 | |
Regulated Operations [Abstract] | ' |
STATUTORY ACCOUNTING AND REGULATIONS | ' |
NOTE 11. STATUTORY ACCOUNTING AND REGULATIONS | |
The insurance industry is heavily-regulated. State laws and regulations, as well as national regulatory agency requirements, govern the operations of all insurers such as our insurance subsidiary. The various laws and regulations require that insurers maintain minimum amounts of statutory surplus and risk-based capital, they restrict insurers’ ability to pay dividends, they specify allowable investment types and investment mixes, and they subject insurers to assessments. | |
The Company’s insurance subsidiary must file with the insurance regulatory authorities an “Annual Statement” which reports, among other items, net income (loss) and surplus as regards policyholders, which is called stockholder’s equity under GAAP. For the six-month periods ended June 30, 2014 and 2013, our insurance subsidiary recorded statutory net income of $2.0 million and $25.1 million, respectively. The Company’s insurance subsidiary is domiciled in Florida, and the laws of that state require that its insurance subsidiary maintain capital and surplus equal to the greater of $15.0 million or 10% of its liabilities. The Company’s statutory capital surplus was $121.3 million and $63.1 million at June 30, 2014 and December 31, 2013, respectively. State law also requires our insurance subsidiary to adhere to prescribed premium-to-capital surplus ratios, with which the Company is in compliance. |
COMMITMENT_AND_CONTINGENCIES
COMMITMENT AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
COMMITMENT AND CONTINGENCIES | ' |
NOTE 12. COMMITMENT AND CONTINGENCIES | |
The Company is involved in claims-related legal actions arising in the ordinary course of business. The Company accrues amounts resulting from claims-related legal actions in unpaid losses and loss adjustment expenses during the period that it determines an unfavorable outcome becomes probable and it can estimate the amounts. Management makes revisions to its estimates based on its analysis of subsequent information that the Company receives regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) judicial decisions and legal developments in the awarding of damages and (iv) trends in general economic conditions, including the effects of inflation. When determinable, the Company discloses the range of possible losses in excess of those accrued and for reasonably possible losses. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Related Party Transactions [Abstract] | ' | |||
RELATED PARTY TRANSACTIONS | ' | |||
NOTE 13. RELATED PARTY TRANSACTIONS | ||||
The Company has been party to various related party transactions involving certain of its officers, directors and stockholders. The Company has entered into these arrangements without obligation to continue its effect in the future and the associated expense was immaterial to its results of operations or financial position as of June 30, 2014 and December 31, 2013. | ||||
• | The Company leased the space that it had occupied through March 2014 at 700 Central Avenue, Ste. 500 St. Petersburg, Florida from a real estate management company controlled by a stockholder. The Company leased the space without obligation to continue doing so in the future. For the six-month periods ended June 30, 2014 and 2013 the Company incurred rent expense of approximately $101,000 and $243,000 respectively. The Company relocated to one of the buildings located on its Clearwater property in March 2014. | |||
• | The Company has entered into an agreement with a real estate management company controlled by one of its directors to manage its Clearwater office space. Management services are provided at a fixed fee, plus ordinary and necessary out of pocket expenses. Fees for additional services, such as the oversight of construction activity, are provided for on an as needed basis. | |||
• | The Company has entered into an agreement for the construction of a parking facility for its Clearwater property with a relative of one of its directors. Since commencement of the construction in 2014, the Company has made payments of approximately $1.6 million for engineering and architectural services, and expects to pay an aggregate of approximately $2.4 million in connection with this construction project. | |||
• | The Company’s insurance subsidiary received water mitigation services from SVM Restoration Services, Inc. (“SVM”), a Florida corporation providing water loss mitigation services in Florida. SVM was controlled by an executive officer and stockholder through February 28, 2014. During the six-month periods ended June 30, 2014 and 2013, the Company incurred approximately $438,000 and $529,000, respectively, payable to SVM. On March 1, 2014, we acquired the assets of SVM for $2.5 million, which have been allocated $150,000 to property and equipment and $2.35 million to goodwill included in other assets. The allocation of purchase price as of March 31, 2014 is preliminary pending our evaluation of the underlying asset values. The acquired assets will be deployed by our subsidiary, Contractors’ Alliance Network, LLC, in the delivery of a broadened spectrum of services. Pro forma disclosures have been omitted as this acquisition is not material to our consolidated financial statements. |
EMPLOYEE_BENEFIT_PLAN
EMPLOYEE BENEFIT PLAN | 6 Months Ended |
Jun. 30, 2014 | |
Compensation And Retirement Disclosure [Abstract] | ' |
EMPLOYEE BENEFIT PLAN | ' |
NOTE 14. EMPLOYEE BENEFIT PLAN | |
The Company provides a 401(k) plan for substantially all of its employees. The Company contributes 3% of employees’ salary, up to the maximum allowable contribution, regardless of the employees’ level of participation in the plan. For the six-month periods ended June 30, 2014 and 2013, the Company’s contributions to the plan on behalf of the participating employees were $87,000, and $31,000, respectively. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
EQUITY | ' |
NOTE 15. EQUITY | |
The total amount of authorized capital stock consists of 50,000,000 shares of common stock and 5,000,000 shares of preferred stock. As of June 30, 2014, the Company had 29,794,960 shares of common stock and 30,600 warrants outstanding reflecting total paid in capital of $184.0 million as of such date. | |
Common Stock | |
Holders of common stock are entitled to one vote for each share held on all matters subject to a vote of stockholders, subject to the rights of holders of any outstanding preferred stock. Accordingly, holders of a majority of the shares of common stock entitled to vote in any election of directors may elect all of the directors standing for election, subject to the rights of holders of any outstanding preferred stock. Holders of common stock will be entitled to receive ratably any dividends that the board of directors may declare out of funds legally available therefor, subject to any preferential dividend rights of outstanding preferred stock. Upon the Company’s liquidation, dissolution or winding up, the holders of common stock will be entitled to receive ratably its net assets available after the payment of all debts and other liabilities and subject to the prior rights of holders of any outstanding preferred stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights. There are no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of the Company’s capital stock are fully paid and nonassessable. | |
Equity Issuances | |
As more fully disclosed in our previously referred to financial statements for the year ended December 31, 2013, there were, as of December 31, 2013, 14,007,150 shares of common stock outstanding and 2,338,350 redeemable shares outstanding, representing $62,849 of additional paid-in capital and $20,921 of redeemable shares. The following discloses the changes in our stockholders’ equity during 2014. | |
First Quarter 2014 | |
In the first quarter 2014, the Company raised an additional $88,000 of capital through the issuance of 17,850 investment units, comprised of 17,850 shares of common stock and 17,850 warrants to purchase shares of common stock at an exercise price of $5.88 per share. | |
Second Quarter 2014 | |
Prior to the IPO, certain of the Company’s stockholders held warrants to purchase an aggregate of 7,716,300 shares of the Company at an exercise price of $5.88 per share. On May 22, 2014, warrants to purchase an aggregate of 7,685,700 shares were exercised (the “Warrant Exercise”), including warrants to purchase an aggregate of 3,858,150 shares exercised on a cashless basis. Pursuant to the cashless exercise provisions of the warrants, each warrant holder paid the exercise price by surrendering to the Company an amount of shares having a value equal to the aggregate exercise price of the warrants being exercised. The terms of the warrants provided that the value ascribed to each share surrendered to the Company as payment for the exercise price was equal to the initial public offering price per share of common stock. As a result, an aggregate of 5,622,519 shares were issued in connection with the Warrant Exercise. The Company received $22.5 million in proceeds from the cash exercise of 3,827,550 warrants. | |
All remaining 30,600 warrants can be exercised at an exercise price equal to $5.88 per share on or before March 31, 2018. At issuance, equity warrants are recorded at their relative fair values, using the relative fair value method, in the stockholders’ equity section of the condensed consolidated balance sheets. The Company’s equity warrants can only be settled through the issuance of shares and are not subject to anti-dilution provisions. The aggregate intrinsic value of warrants was approximately $0.3 million at June 30, 2014. | |
Public Offering and Concurrent Private Placement | |
On May 29, 2014, the Company sold as part of the IPO 6,900,000 shares of common stock at $11.00 per share of common stock, including 900,000 shares sold pursuant to the underwriters’ over-allotment option for gross cash proceeds in aggregate of $75.9 million. The Company incurred an underwriter discount fee of $5.3 million or $0.77 per share of common stock, netting proceeds (before expenses) of $70.6 million or $10.23 per share of common stock. | |
Ananke, an affiliate of Nephila Capital Ltd, purchased $10.0 million of the Company’s common stock (909,090 shares) in a concurrent private placement at a price per share equal to the public offering price. Poseidon Re Ltd., another affiliate of Nephila Capital Ltd, is currently a participating reinsurer in the Company’s reinsurance program. The sale of such shares was not registered under the Securities Act and was conducted in accordance with Section 4(a)(2) of the Securities Act. | |
In addition, in connection with the Concurrent Private Placement, a reinsurer affiliated with or designated by Nephila Capital Ltd was provided with a right of first refusal to participate in the Company’s future reinsurance programs, subject to certain exceptions. The right of first refusal terminates on May 31, 2019, subject to certain conditions. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
STOCK-BASED COMPENSATION | ' |
NOTE 16. STOCK-BASED COMPENSATION | |
The Company has adopted the Heritage Insurance Holdings, Inc., Omnibus Incentive Plan (the “Plan”) effective on May 22, 2014. The Plan has authorized 2,981,737 shares of common stock reserved for issuance under the Plan for future grants. | |
At June 30, 2014 and 2013, there were 2,981,737 and 0 shares available for grant under the Plan, respectively. | |
The Company recognizes compensation expense under ASC 718 for its stock-based payments based on the fair value of the awards. The Company grants stock options at exercise prices equal to the fair market value of the Company’s stock on the dates the options are granted. The options have a maximum term of ten years from the date of grant and vest primarily in equal annual installments over a range of one to five year periods following the date of grant for employee options. If a participant’s employment relationship ends, the participant’s vested awards will remain exercisable for the shorter of a period of 30 days or the period ending on the latest date on which such award could have been exercisable. The fair value of each option grant is separately estimated for each grant date. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the award and each vesting date. The Company estimates the fair value of all stock option awards as of the date of the grant by applying the Black-Scholes-Merton multiple-option pricing valuation model. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. | |
Stock Options | |
During the six months ended June 30, 2014 and 2013, the Company did not grant any stock options. | |
Stock-based compensation costs for restricted stock grants is measured based on the closing fair market value of our common stock on the date of grant. The Company recognizes stock-based compensation costs over the award’s requisite service period on a straight-line basis for the time-based restricted stock grants. We granted no restricted stock awards during the six-month periods ended June 30, 2014 and 2013, respectively. |
STOCK_SPLIT
STOCK SPLIT | 6 Months Ended |
Jun. 30, 2014 | |
Text Block [Abstract] | ' |
STOCK SPLIT | ' |
NOTE 17. STOCK SPLIT | |
In connection with the IPO in May 2014, the Company’s Board of Directors approved a 2,550 for 1 stock split of the Company’s Shares. The Stock split became effective on May 7, 2014. All share and per share amounts in the Unaudited Condensed Consolidated Financial Statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this stock split and for changes allocated with conversion from a limited liability company to a corporation. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 18. SUBSEQUENT EVENTS | |
We evaluated all subsequent events and transactions up to the date of issuance of this report for potential recognition or disclosure in our financial statements. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Offering costs | ' |
Offering costs | |
Offering costs incurred in connection with the IPO, which included underwriters’ fees, legal and accounting fees, printing and other fees were deducted from the gross proceeds of the IPO. The proceeds from the issuance of shares net of offering costs is included in additional paid in capital in the consolidated statements of stockholders’ equity. The Company incurred in aggregate $7.2 million in offering costs related to the IPO. | |
Income Taxes | ' |
Income Taxes | |
On May 22, 2014, the Company converted from a limited liability company to a corporation. As a limited liability company, the Company was treated as a partnership for tax purposes, and accordingly was not subject to entity-level federal or state income taxation. The Company’s income tax provision generally consisted of income taxes payable by its separate subsidiaries that are taxed as corporations. As such, the Company’s effective tax rate as a limited liability company has historically been driven primarily by the taxable income recognized with respect to gross premiums written. As a corporation, the Company is subject to typical corporate U.S. federal and state income tax rates on a consolidated basis which it expects to result in a statutory tax rate of approximately 38.575% under current tax law. | |
Accounting Pronouncements | ' |
Accounting Pronouncements | |
The Company describes below recent pronouncements that have had or may have a significant effect on its financial statements or on its disclosures. The Company does not discuss recent pronouncements that a) are not anticipated to have an impact on, or b) are unrelated to its financial condition, results of operations, or related disclosures. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”) which supersedes current revenue recognition guidance, including most industry-specific guidance. ASU 2014-09 requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures regarding the nature, amount, timing and uncertainty of revenue that is recognized. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016. Early adoption is not permitted. The Company is evaluating the impact of the new guidance on its consolidated financial statements | |
Subsequent Events | ' |
Subsequent Events | |
The Company follows the provisions of ASC Topic 855-10, “Subsequent Events,” relating to subsequent events. This guidance establishes principles and requirements for subsequent events. This guidance defines the period after the balance sheet date during which events or transactions that may occur would be required to be disclosed in the company’s financial statements. The Company has evaluated subsequent events up to the date of issuance of this report. (see Note 18) |
INVESTMENTS_Tables
INVESTMENTS (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Amortized Cost and Fair Value of Investment Securities | ' | ||||||||||||||||||||||||
The following table details the difference between cost or adjusted/amortized cost and estimated fair value, by major investment category, at June 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Cost or Adjusted / | Gross Unrealized | Gross Unrealized | Fair Value | ||||||||||||||||||||||
Amortized Cost | Gains | Losses | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
U.S. government and agency securities | $ | 1,214 | $ | 7 | $ | 5 | $ | 1,216 | |||||||||||||||||
States, municipalities and political subdivisions | 15,961 | 253 | 22 | 16,192 | |||||||||||||||||||||
Special revenue | 55,759 | 630 | 99 | 56,290 | |||||||||||||||||||||
Industrial and miscellaneous | 56,603 | 592 | 93 | 57,102 | |||||||||||||||||||||
Redeemable preferred stocks | 2,595 | 57 | 35 | 2,617 | |||||||||||||||||||||
Total fixed maturities | 132,132 | 1,539 | 254 | 133,417 | |||||||||||||||||||||
Nonredeemable preferred stocks | 7,278 | 199 | 56 | 7,421 | |||||||||||||||||||||
Equity securities | 7,896 | 2,226 | 5 | 10,117 | |||||||||||||||||||||
Total equity securities | 15,174 | 2,425 | 61 | 17,538 | |||||||||||||||||||||
Mortgage loan participation | 6,021 | — | — | 6,021 | |||||||||||||||||||||
Total investments | $ | 153,327 | $ | 3,964 | $ | 315 | $ | 156,976 | |||||||||||||||||
Cost or Adjusted / | Gross Unrealized | Gross Unrealized | Fair Value | ||||||||||||||||||||||
Amortized Cost | Gains | Losses | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
U.S. government and agency securities | $ | 1,486 | $ | — | $ | 44 | $ | 1,442 | |||||||||||||||||
States, municipalities and political subdivisions | 14,255 | 42 | 136 | 14,161 | |||||||||||||||||||||
Special revenue | 41,114 | 89 | 608 | 40,595 | |||||||||||||||||||||
Industrial and miscellaneous | 46,726 | 69 | 480 | 46,315 | |||||||||||||||||||||
Redeemable preferred stocks | 2,374 | 4 | 223 | 2,155 | |||||||||||||||||||||
Total fixed maturities | 105,955 | 204 | 1,491 | 104,668 | |||||||||||||||||||||
Nonredeemable preferred stocks | 5,283 | 6 | 331 | 4,958 | |||||||||||||||||||||
Equity securities | 20,163 | 370 | 45 | 20,488 | |||||||||||||||||||||
Total equity securities | 25,446 | 376 | 376 | 25,446 | |||||||||||||||||||||
Mortgage loan participation | 6,063 | — | — | 6,063 | |||||||||||||||||||||
Total investments | $ | 137,464 | $ | 580 | $ | 1,867 | $ | 136,177 | |||||||||||||||||
Summary of Net Investment Income | ' | ||||||||||||||||||||||||
The following tables detail the Company’s realized gains (losses) by major investment category for the six and three months ended June 30, 2014 and 2013, respectively: | |||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gains (Losses) | Fair Value at Sale | Gains (Losses) | Fair Value at Sale | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Fixed maturities | $ | 104 | $ | 4,384 | $ | 3 | $ | 229 | |||||||||||||||||
Equity securities | 14 | 15,015 | — | — | |||||||||||||||||||||
Total realized gains | 118 | 19,399 | 3 | 229 | |||||||||||||||||||||
Fixed maturities | (88 | ) | 2,660 | (49 | ) | 1,887 | |||||||||||||||||||
Equity securities | (48 | ) | 1,683 | (2 | ) | 456 | |||||||||||||||||||
Total realized losses | (136 | ) | 4,343 | (51 | ) | 2,343 | |||||||||||||||||||
Net realized losses | $ | (18 | ) | $ | 23,742 | $ | (48 | ) | $ | 2,572 | |||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gains (Losses) | Fair Value at Sale | Gains (Losses) | Fair Value at Sale | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Fixed maturities | $ | 118 | $ | 3,793 | $ | 2 | $ | 154 | |||||||||||||||||
Equity securities | — | — | — | — | |||||||||||||||||||||
Total realized gains | 118 | 3,793 | 2 | 154 | |||||||||||||||||||||
Fixed maturities | (78 | ) | 2,577 | (46 | ) | 1,724 | |||||||||||||||||||
Equity securities | (16 | ) | 1,007 | (2 | ) | 427 | |||||||||||||||||||
Total realized losses | (94 | ) | 3,584 | (48 | ) | 2,151 | |||||||||||||||||||
Net realized gain (losses) | $ | 24 | $ | 7,377 | $ | (46 | ) | $ | 2,305 | ||||||||||||||||
Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity | ' | ||||||||||||||||||||||||
The table below summarizes the Company’s fixed maturities at June 30, 2014 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations. | |||||||||||||||||||||||||
Cost or Amortized Cost | Percent of Total | Fair Value | Percent of Total | ||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Due in one year or less | $ | 7,244 | 5.48 | % | $ | 7,271 | 5.45 | % | |||||||||||||||||
Due after one year through five years | 80,750 | 61.11 | % | 81,301 | 60.94 | % | |||||||||||||||||||
Due after five years through ten years | 27,627 | 20.91 | % | 28,115 | 21.07 | % | |||||||||||||||||||
Due after ten years | 16,511 | 12.5 | % | 16,730 | 12.54 | % | |||||||||||||||||||
Total | $ | 132,132 | 100 | % | $ | 133,417 | 100 | % | |||||||||||||||||
Schedule of Realized Gains (Losses) by Major Investment Category | ' | ||||||||||||||||||||||||
The following table summarizes the Company’s net investment income by major investment category for the three and six month periods ended June 30, 2014 and 2013, respectively: | |||||||||||||||||||||||||
For the Three Months Ended, | For the Six Months Ended, | ||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Fixed maturities | $ | 633 | $ | 207 | $ | 1,152 | $ | 366 | |||||||||||||||||
Equity securities | 253 | 115 | 439 | 169 | |||||||||||||||||||||
Cash, cash equivalents and short-term investments | 32 | 14 | 45 | 21 | |||||||||||||||||||||
Other investments | 78 | — | 163 | 4 | |||||||||||||||||||||
Net investment income | 996 | 336 | 1,799 | 560 | |||||||||||||||||||||
Investment expenses | 277 | 212 | 462 | 225 | |||||||||||||||||||||
Net investment income, less investment expenses | $ | 719 | $ | 124 | $ | 1,337 | $ | 335 | |||||||||||||||||
Aging of Gross Unrealized Investment Losses | ' | ||||||||||||||||||||||||
The following table presents an aging of our unrealized investment losses by investment class as of June 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | ||||||||||||||||||||||||
Number of | Gross Unrealized | Fair Value | Number of | Gross Unrealized | Fair Value | ||||||||||||||||||||
Securities | Losses | Securities | Losses | ||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
U.S. government and agency securities | 1 | $ | — | $ | 250 | 2 | $ | 5 | $ | 204 | |||||||||||||||
States, municipalities and political subdivisions | 1 | 2 | 174 | 6 | 21 | 1,926 | |||||||||||||||||||
Industrial and miscellaneous | 12 | 17 | 5,528 | 19 | 76 | 5,646 | |||||||||||||||||||
Special revenue | 6 | 9 | 2,451 | 26 | 89 | 7,144 | |||||||||||||||||||
Redeemable preferred stocks | 10 | 2 | 562 | 14 | 33 | 569 | |||||||||||||||||||
Total fixed maturities | 30 | $ | 30 | $ | 8,965 | 67 | $ | 224 | $ | 15,489 | |||||||||||||||
Nonredeemable preferred stocks | 1 | 8 | 1,160 | 1 | 48 | 1,134 | |||||||||||||||||||
Equity securities | 1 | 5 | 183 | — | 0 | 0 | |||||||||||||||||||
Total equity securities | 2 | 13 | 1,343 | 1 | 48 | 1,134 | |||||||||||||||||||
Total | 32 | $ | 43 | $ | 10,308 | 68 | $ | 272 | $ | 16,623 | |||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
U.S. government and agency securities | 6 | $ | 44 | $ | 1,335 | — | $ | — | $ | — | |||||||||||||||
States, municipalities and political subdivisions | 17 | 116 | 8,294 | 2 | 20 | 341 | |||||||||||||||||||
Industrial and miscellaneous | 89 | 413 | 30,962 | 6 | 66 | 888 | |||||||||||||||||||
Special revenue | 59 | 582 | 27,256 | 3 | 27 | 502 | |||||||||||||||||||
Redeemable preferred stocks | 27 | 223 | 1,844 | — | — | — | |||||||||||||||||||
Total fixed maturities | 198 | 1,378 | 69,691 | 11 | 113 | 1,731 | |||||||||||||||||||
Nonredeemable preferred stocks | 58 | 331 | 4,349 | — | — | — | |||||||||||||||||||
Equity securities | 4 | 45 | 689 | — | — | — | |||||||||||||||||||
Total equity securities | 62 | 376 | 5,038 | — | — | — | |||||||||||||||||||
Total | 260 | $ | 1,754 | $ | 74,729 | 11 | $ | 113 | $ | 1,731 | |||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value of Financial Instruments | ' | ||||||||||||||||
The following table shows the fair value of the Company’s financial instruments and where in the fair value hierarchy the fair value measurements are included as of the dates indicated below: | |||||||||||||||||
June 30, 2014 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(in thousands) | |||||||||||||||||
Fixed maturity investments | |||||||||||||||||
U.S. Government and Government agencies | $ | 1,216 | $ | — | $ | 1,216 | $ | — | |||||||||
States, municipalities and political subdivisions | 16,192 | — | 16,192 | — | |||||||||||||
Special Revenue | 56,290 | — | 56,290 | — | |||||||||||||
Industrial and miscellaneous | 57,102 | — | 57,102 | — | |||||||||||||
Redeemable preferred stocks | 2,617 | 2,617 | — | — | |||||||||||||
Total fixed maturity investments | $ | 133,417 | $ | 2,617 | $ | 130,800 | $ | — | |||||||||
Equity securities | $ | 10,117 | $ | 10,117 | $ | — | $ | — | |||||||||
Non-redeemable preferred stocks | 7,421 | 7,421 | — | — | |||||||||||||
Total equity securities | $ | 17,538 | $ | 17,538 | $ | — | $ | — | |||||||||
Total investments | $ | 150,955 | $ | 20,155 | $ | 130,800 | $ | — | |||||||||
December 31, 2013 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(in thousands) | |||||||||||||||||
Fixed maturity investments | |||||||||||||||||
U.S. Government and Government agencies | $ | 1,442 | $ | — | $ | 1,442 | $ | — | |||||||||
States, municipalities and political subdivisions | 14,161 | — | 14,161 | — | |||||||||||||
Special Revenue | 40,595 | — | 40,595 | — | |||||||||||||
Industrial and miscellaneous | 46,315 | — | 46,315 | — | |||||||||||||
Redeemable preferred stocks | 2,155 | 2,155 | — | — | |||||||||||||
Total fixed maturity investments | $ | 104,668 | $ | 2,155 | $ | 102,513 | $ | — | |||||||||
Equity securities | $ | 20,488 | $ | 20,488 | $ | — | $ | — | |||||||||
Non-redeemable preferred stocks | 4,958 | 4,958 | — | — | |||||||||||||
Total equity securities | $ | 25,446 | $ | 25,446 | $ | — | $ | — | |||||||||
Total investments | $ | 130,114 | $ | 27,601 | $ | 102,513 | $ | — | |||||||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment, Net | ' | ||||||||
Property and equipment, net consists of the following at June 30, 2014 and December 31, 2013: | |||||||||
June 30, 2014 | December 31, 2013 | ||||||||
(In thousands) | |||||||||
Land | $ | 2,582 | $ | 2,582 | |||||
Building | 8,336 | 7,090 | |||||||
Computer hardware and software | 953 | 364 | |||||||
Office furniture and equipment | 268 | 176 | |||||||
Tenant and leasehold improvements | 1,835 | 873 | |||||||
Vehicle fleet | 216 | — | |||||||
Total, at cost | 14,190 | 11,085 | |||||||
Less: accumulated depreciation and amortization | 422 | 150 | |||||||
Property and equipment, net | $ | 13,768 | $ | 10,935 | |||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Computation of Basic and Diluted EPS | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted EPS for the periods indicated. | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic earnings per share: | |||||||||||||||||
Net income attributable to common stockholders (000’s) | $ | 9,566 | $ | 21,018 | $ | 17,454 | $ | 28,073 | |||||||||
Weighted average shares outstanding | 22,119,754 | 15,203,100 | 19,256,172 | 12,983,525 | |||||||||||||
Basic earnings per share: | $ | 0.43 | $ | 1.38 | $ | 0.91 | $ | 2.16 | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Diluted earnings per share: | |||||||||||||||||
Net income attributable to common stockholders (000’s) | $ | 9,566 | $ | 21,018 | $ | 17,454 | $ | 28,073 | |||||||||
Weighted average shares outstanding | 22,119,754 | 15,203,100 | 19,256,172 | 12,983,525 | |||||||||||||
Weighted average dilutive shares | 2,213,722 | — | 2,428,058 | — | |||||||||||||
Total weighted average dilutive shares | 24,333,476 | 15,203,100 | 21,684,230 | 12,983,525 | |||||||||||||
Diluted earnings per share: | $ | 0.39 | $ | 1.38 | $ | 0.8 | $ | 2.16 | |||||||||
DEFERRED_POLICY_ACQUISITION_CO1
DEFERRED POLICY ACQUISITION COSTS (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
Summary of Activity in Deferred Policy Acquisition Costs | ' | ||||||||||||||||
The table below depicts the activity with regard to deferred policy acquisition costs during the three and six-month periods ended June 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Beginning Balance | $ | 12,226 | $ | 1,326 | $ | 9,765 | $ | 32 | |||||||||
Policy acquisition costs deferred | 19,550 | 3,693 | 26,484 | 5,103 | |||||||||||||
Amortization | (6,384 | ) | (865 | ) | (10,857 | ) | (982 | ) | |||||||||
Ending Balance | $ | 25,392 | $ | 4,154 | $ | 25,392 | $ | 4,154 | |||||||||
REINSURANCE_Tables
REINSURANCE (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
Schedule of Reinsurance Transactions on Components of Unaudited Consolidated Statements of Income | ' | ||||||||||||||||
The following table depicts written premiums, earned premiums and losses, showing the effects that the Company’s assumption transactions have on these components of the Company’s Unaudited Condensed Consolidated Statements of Income: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Premium written: | |||||||||||||||||
Direct | $ | 71,072 | $ | 28,187 | $ | 123,172 | $ | 39,765 | |||||||||
Assumed | 28,197 | 52,862 | 45,000 | 57,633 | |||||||||||||
Ceded | (94,452 | ) | (75,163 | ) | (94,466 | ) | (75,165 | ) | |||||||||
Net premium written | $ | 4,817 | $ | 5,886 | $ | 73,706 | $ | 22,233 | |||||||||
Change in unearned premiums: | |||||||||||||||||
Direct | $ | (26,025 | ) | $ | (21,839 | ) | $ | (43,982 | ) | $ | (32,525 | ) | |||||
Assumed | (9,119 | ) | (31,170 | ) | 795 | (16,508 | ) | ||||||||||
Ceded | 74,622 | 68,747 | 56,012 | 68,391 | |||||||||||||
Net decrease (increase) | $ | 39,478 | $ | 15,738 | $ | 12,825 | $ | 19,358 | |||||||||
Premiums earned: | |||||||||||||||||
Direct | $ | 45,047 | $ | 6,348 | $ | 79,190 | $ | 7,240 | |||||||||
Assumed | 19,078 | 21,692 | 45,795 | 41,125 | |||||||||||||
Ceded | (19,830 | ) | (6,416 | ) | (38,454 | ) | (6,774 | ) | |||||||||
Net premiums earned | $ | 44,295 | $ | 21,624 | $ | 86,531 | $ | 41,591 | |||||||||
Losses and LAE incurred: | |||||||||||||||||
Direct | $ | 14,463 | $ | 1,653 | $ | 24,713 | $ | 1,802 | |||||||||
Assumed | 4,781 | 6,217 | 15,118 | 11,346 | |||||||||||||
Ceded | — | — | — | — | |||||||||||||
Net losses and LAE incurred | $ | 19,244 | $ | 7,870 | $ | 39,831 | $ | 13,148 | |||||||||
Effects of Reinsurance Transactions on Unpaid Losses and Loss Adjustment Expenses and Unearned Premiums | ' | ||||||||||||||||
The following table highlights the effects that the Company’s assumption transactions have on unpaid losses and loss adjustment expenses and unearned premiums: | |||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Unpaid losses and loss adjustment expenses: | |||||||||||||||||
Direct | $ | 21,030 | $ | 10,037 | |||||||||||||
Assumed | 13,503 | 9,307 | |||||||||||||||
Gross unpaid losses and LAE | 34,533 | 19,344 | |||||||||||||||
Ceded | — | — | |||||||||||||||
Net unpaid losses and LAE | $ | 34,533 | $ | 19,344 | |||||||||||||
Unearned premiums: | |||||||||||||||||
Direct | $ | 118,982 | $ | 75,000 | |||||||||||||
Assumed | 40,448 | 41,243 | |||||||||||||||
Gross unearned premiums | 159,430 | 116,243 | |||||||||||||||
Ceded | (87,264 | ) | (31,252 | ) | |||||||||||||
Net unearned premiums | $ | 72,166 | $ | 84,991 | |||||||||||||
RESERVE_FOR_UNPAID_LOSSES_Tabl
RESERVE FOR UNPAID LOSSES (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
Summary of Reserve for Unpaid Losses | ' | ||||||||||||||||
The table below summarizes the activity related to the Company’s reserve for unpaid losses for the three and six month periods ended June 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Balance, beginning of period | $ | 28,456 | $ | 4,973 | $ | 19,344 | $ | 1,393 | |||||||||
Less: reinsurance recoverable on unpaid losses | — | — | — | — | |||||||||||||
Net balance, beginning of period | 28,456 | 4,973 | 19,344 | 1,393 | |||||||||||||
Incurred related to: | |||||||||||||||||
Current year | 19,027 | 8,255 | 39,582 | 13,553 | |||||||||||||
Prior years | 217 | (385 | ) | 249 | (405 | ) | |||||||||||
Total incurred | 19,244 | 7,870 | 39,831 | 13,148 | |||||||||||||
Paid related to: | |||||||||||||||||
Current year | 11,085 | 2,547 | 16,326 | 4,538 | |||||||||||||
Prior years | 2,082 | 803 | 8,316 | 510 | |||||||||||||
Total paid | 13,167 | 3,350 | 24,642 | 5,048 | |||||||||||||
Net balance, end of period | 34,533 | 9,493 | 34,533 | 9,493 | |||||||||||||
Plus: reinsurance recoverable on unpaid losses | — | — | — | — | |||||||||||||
Balance, end of period | $ | 34,533 | $ | 9,493 | $ | 34,533 | $ | 9,493 | |||||||||
Recovered_Sheet1
Organization , Consolidation and Presentation - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 27, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 29-May-14 | 22-May-14 | Jun. 30, 2014 | 22-May-14 | 22-May-14 | 29-May-14 | 22-May-14 |
Sunshine State Insurance Company [Member] | Sunshine State Insurance Company [Member] | Heritage P&C [Member] | Florida Insurance Guaranty Association[Member] | IPO [Member] | IPO [Member] | Private Placement [Member] | Private Placement [Member] | Ipo And Private Placement [Member] | Underwriter [Member] | Underwriter [Member] | |||
Policies | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 29,794,960 | 14,007,150 | ' | ' | ' | ' | 6,900,000 | 6,900,000 | 909,090 | ' | ' | 900,000 | 900,000 |
Common stock, price per share | ' | ' | ' | ' | ' | ' | $11 | $11 | ' | ' | ' | ' | ' |
Common stock, shares value | $3,000 | $1,000 | ' | ' | ' | ' | ' | ' | $10,000,000 | $10,000,000 | ' | ' | ' |
Proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 78,600,000 | ' | ' |
Number of Policies in force assumed | ' | ' | 33,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Policies in force assumed | ' | ' | 58,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unearned premium | 159,430,000 | 116,243,000 | ' | 29,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of policies | ' | ' | ' | 19.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred policy acquisition costs | $25,392,000 | $9,765,000 | ' | ' | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory deductible | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet2
Significant Accounting Policies - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Regulatory Assets [Abstract] | ' |
Offering cost incurred | $7.20 |
Statutory tax rate | 38.58% |
Investment_Schedule_of_Amortiz
Investment - Schedule of Amortized Cost and Fair Value of Investment Securities (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Adjusted / Amortized Cost | $153,327 | $137,464 |
Gross Unrealized Gains | 3,964 | 580 |
Gross Unrealized Losses | 315 | 1,867 |
Fair Value | 156,976 | 136,177 |
Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Adjusted / Amortized Cost | 132,132 | 105,955 |
Gross Unrealized Gains | 1,539 | 204 |
Gross Unrealized Losses | 254 | 1,491 |
Fair Value | 133,417 | 104,668 |
Fixed Maturities [Member] | Industrial and miscellaneous [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Adjusted / Amortized Cost | 56,603 | 46,726 |
Gross Unrealized Gains | 592 | 69 |
Gross Unrealized Losses | 93 | 480 |
Fair Value | 57,102 | 46,315 |
Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Adjusted / Amortized Cost | 15,174 | 25,446 |
Gross Unrealized Gains | 2,425 | 376 |
Gross Unrealized Losses | 61 | 376 |
Fair Value | 17,538 | 25,446 |
U.S. government and agency securities [Member] | Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Adjusted / Amortized Cost | 1,214 | 1,486 |
Gross Unrealized Gains | 7 | ' |
Gross Unrealized Losses | 5 | 44 |
Fair Value | 1,216 | 1,442 |
States, municipalities and political subdivisions [Member] | Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Adjusted / Amortized Cost | 15,961 | 14,255 |
Gross Unrealized Gains | 253 | 42 |
Gross Unrealized Losses | 22 | 136 |
Fair Value | 16,192 | 14,161 |
Special revenue [Member] | Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Adjusted / Amortized Cost | 55,759 | 41,114 |
Gross Unrealized Gains | 630 | 89 |
Gross Unrealized Losses | 99 | 608 |
Fair Value | 56,290 | 40,595 |
Redeemable preferred stocks [Member] | Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Adjusted / Amortized Cost | 2,595 | 2,374 |
Gross Unrealized Gains | 57 | 4 |
Gross Unrealized Losses | 35 | 223 |
Fair Value | 2,617 | 2,155 |
Nonredeemable preferred stocks [Member] | Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Adjusted / Amortized Cost | 7,278 | 5,283 |
Gross Unrealized Gains | 199 | 6 |
Gross Unrealized Losses | 56 | 331 |
Fair Value | 7,421 | 4,958 |
Equity Investment [Member] | Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Adjusted / Amortized Cost | 7,896 | 20,163 |
Gross Unrealized Gains | 2,226 | 370 |
Gross Unrealized Losses | 5 | 45 |
Fair Value | 10,117 | 20,488 |
Mortgage Loan Participation [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Adjusted / Amortized Cost | 6,021 | 6,063 |
Fair Value | $6,021 | $6,063 |
Investment_Schedule_of_Realize
Investment - Schedule of Realized Gains (Losses) by Major Investment Category (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total realized gains | $118 | $2 | $118 | $3 |
Total realized losses | -94 | -48 | -136 | -51 |
Net realized gains (losses) | 24 | -46 | -18 | -48 |
Total realized gains, Fair Value at Sale | 3,793 | 154 | 19,399 | 229 |
Total realized losses, Fair Value at Sale | 3,584 | 2,151 | 4,343 | 2,343 |
Net realized losses, Fair Value at Sale | 7,377 | 2,305 | 23,742 | 2,572 |
Fixed Maturities [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total realized gains | 118 | 2 | 104 | 3 |
Total realized losses | -78 | -46 | -88 | -49 |
Total realized gains, Fair Value at Sale | 3,793 | 154 | 4,384 | 229 |
Total realized losses, Fair Value at Sale | 2,577 | 1,724 | 2,660 | 1,887 |
Equity Securities [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total realized gains | ' | ' | 14 | ' |
Total realized losses | -16 | -2 | -48 | -2 |
Total realized gains, Fair Value at Sale | ' | ' | 15,015 | ' |
Total realized losses, Fair Value at Sale | $1,007 | $427 | $1,683 | $456 |
Investment_Schedule_of_Amortiz1
Investment - Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Amortized Cost And Fair Value Debt Securities [Abstract] | ' | ' |
Due in one year or less, Cost or Amortized Cost | $7,244 | ' |
Due after one year through five years, Cost or Amortized Cost | 80,750 | ' |
Due after five years through ten years, Cost or Amortized Cost | 27,627 | ' |
Due after ten years, Cost or Amortized Cost | 16,511 | ' |
Total, Cost or Amortized Cost | 132,132 | ' |
Due in one year or less, Percentage of Total | 5.48% | ' |
Due after one year through five years, Percentage of Total | 61.11% | ' |
Due after five years through ten years, Percentage of Total | 20.91% | ' |
Due after ten years, Percentage of Total | 12.50% | ' |
Total, Percentage | 100.00% | ' |
Due in one year or less, Fair Value | 7,271 | ' |
Due after one year through five years, Fair Value | 81,301 | ' |
Due after five years through ten years, Fair Value | 28,115 | ' |
Due after ten years, Fair Value | 16,730 | ' |
Total, Fair Value | $133,417 | $104,668 |
Due in one year or less, Percentage of Total | 5.45% | ' |
Due after one year through five years, Percentage of Total | 60.94% | ' |
Due after five years through ten years, Percentage of Total | 21.07% | ' |
Due after ten years, Percentage of Total | 12.54% | ' |
Total, Percentage | 100.00% | ' |
Investment_Summary_of_Net_Inve
Investment - Summary of Net Investment Income (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Net investment income | $996 | $336 | $1,799 | $560 |
Investment expenses | 277 | 212 | 462 | 225 |
Net investment income, less investment expenses | 719 | 124 | 1,337 | 335 |
Fixed Maturities [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Net investment income | 633 | 207 | 1,152 | 366 |
Equity Securities [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Net investment income | 253 | 115 | 439 | 169 |
Cash and Cash Equivalents and Short-Term Investments [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Net investment income | 32 | 14 | 45 | 21 |
Other Investments [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Net investment income | $78 | ' | $163 | $4 |
Investment_Aging_of_Gross_Unre
Investment - Aging of Gross Unrealized Investment Losses (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Security | Security |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | ' | ' |
Number of Securities, Less Than Twelve Months | 32 | 260 |
Gross Unrealized Losses, Less Than Twelve Months | $43 | $1,754 |
Fair Value, Less Than Twelve Months | 10,308 | 74,729 |
Number of Securities, Twelve Months or Greater | 68 | 11 |
Gross Unrealized Losses, Twelve Months or Greater | 272 | 113 |
Fair Value, Twelve Months or Greater | 16,623 | 1,731 |
Fixed Maturities [Member] | ' | ' |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | ' | ' |
Number of Securities, Less Than Twelve Months | 30 | 198 |
Gross Unrealized Losses, Less Than Twelve Months | 30 | 1,378 |
Fair Value, Less Than Twelve Months | 8,965 | 69,691 |
Number of Securities, Twelve Months or Greater | 67 | 11 |
Gross Unrealized Losses, Twelve Months or Greater | 224 | 113 |
Fair Value, Twelve Months or Greater | 15,489 | 1,731 |
Equity Securities [Member] | ' | ' |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | ' | ' |
Number of Securities, Less Than Twelve Months | 2 | 62 |
Gross Unrealized Losses, Less Than Twelve Months | 13 | 376 |
Fair Value, Less Than Twelve Months | 1,343 | 5,038 |
Number of Securities, Twelve Months or Greater | 1 | ' |
Gross Unrealized Losses, Twelve Months or Greater | 48 | ' |
Fair Value, Twelve Months or Greater | 1,134 | ' |
Industrial and miscellaneous [Member] | Fixed Maturities [Member] | ' | ' |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | ' | ' |
Number of Securities, Less Than Twelve Months | 12 | 89 |
Gross Unrealized Losses, Less Than Twelve Months | 17 | 413 |
Fair Value, Less Than Twelve Months | 5,528 | 30,962 |
Number of Securities, Twelve Months or Greater | 19 | 6 |
Gross Unrealized Losses, Twelve Months or Greater | 76 | 66 |
Fair Value, Twelve Months or Greater | 5,646 | 888 |
U.S. government and agency securities [Member] | Fixed Maturities [Member] | ' | ' |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | ' | ' |
Number of Securities, Less Than Twelve Months | 1 | 6 |
Gross Unrealized Losses, Less Than Twelve Months | ' | 44 |
Fair Value, Less Than Twelve Months | 250 | 1,335 |
Number of Securities, Twelve Months or Greater | 2 | ' |
Gross Unrealized Losses, Twelve Months or Greater | 5 | ' |
Fair Value, Twelve Months or Greater | 204 | ' |
States, municipalities and political subdivisions [Member] | Fixed Maturities [Member] | ' | ' |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | ' | ' |
Number of Securities, Less Than Twelve Months | 1 | 17 |
Gross Unrealized Losses, Less Than Twelve Months | 2 | 116 |
Fair Value, Less Than Twelve Months | 174 | 8,294 |
Number of Securities, Twelve Months or Greater | 6 | 2 |
Gross Unrealized Losses, Twelve Months or Greater | 21 | 20 |
Fair Value, Twelve Months or Greater | 1,926 | 341 |
Special revenue [Member] | Fixed Maturities [Member] | ' | ' |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | ' | ' |
Number of Securities, Less Than Twelve Months | 6 | 59 |
Gross Unrealized Losses, Less Than Twelve Months | 9 | 582 |
Fair Value, Less Than Twelve Months | 2,451 | 27,256 |
Number of Securities, Twelve Months or Greater | 26 | 3 |
Gross Unrealized Losses, Twelve Months or Greater | 89 | 27 |
Fair Value, Twelve Months or Greater | 7,144 | 502 |
Redeemable preferred stocks [Member] | Fixed Maturities [Member] | ' | ' |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | ' | ' |
Number of Securities, Less Than Twelve Months | 10 | 27 |
Gross Unrealized Losses, Less Than Twelve Months | 2 | 223 |
Fair Value, Less Than Twelve Months | 562 | 1,844 |
Number of Securities, Twelve Months or Greater | 14 | ' |
Gross Unrealized Losses, Twelve Months or Greater | 33 | ' |
Fair Value, Twelve Months or Greater | 569 | ' |
Nonredeemable preferred stocks [Member] | Equity Securities [Member] | ' | ' |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | ' | ' |
Number of Securities, Less Than Twelve Months | 1 | 58 |
Gross Unrealized Losses, Less Than Twelve Months | 8 | 331 |
Fair Value, Less Than Twelve Months | 1,160 | 4,349 |
Number of Securities, Twelve Months or Greater | 1 | ' |
Gross Unrealized Losses, Twelve Months or Greater | 48 | ' |
Fair Value, Twelve Months or Greater | 1,134 | ' |
Equity Investment [Member] | Equity Securities [Member] | ' | ' |
Schedule Of Fair Value And Gross Unrealized Losses [Line Items] | ' | ' |
Number of Securities, Less Than Twelve Months | 1 | 4 |
Gross Unrealized Losses, Less Than Twelve Months | 5 | 45 |
Fair Value, Less Than Twelve Months | 183 | 689 |
Gross Unrealized Losses, Twelve Months or Greater | 0 | ' |
Fair Value, Twelve Months or Greater | $0 | ' |
Recovered_Sheet3
Fair Value Of Financial Instruments - Schedule of Fair Value of Financial Instruments (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | $150,955 | $130,114 |
Fixed Maturities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 133,417 | 104,668 |
Fixed Maturities [Member] | Industrial and miscellaneous [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 57,102 | 46,315 |
Fixed Maturities [Member] | U.S. government and agency securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 1,216 | 1,442 |
Fixed Maturities [Member] | States, municipalities and political subdivisions [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 16,192 | 14,161 |
Fixed Maturities [Member] | Special revenue [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 56,290 | 40,595 |
Fixed Maturities [Member] | Redeemable preferred stocks [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 2,617 | 2,155 |
Equity Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 17,538 | 25,446 |
Equity Securities [Member] | Equity Investment [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 10,117 | 20,488 |
Equity Securities [Member] | Nonredeemable preferred stocks [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 7,421 | 4,958 |
Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 20,155 | 27,601 |
Level 1 [Member] | Fixed Maturities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 2,617 | 2,155 |
Level 1 [Member] | Fixed Maturities [Member] | Redeemable preferred stocks [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 2,617 | 2,155 |
Level 1 [Member] | Equity Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 17,538 | 25,446 |
Level 1 [Member] | Equity Securities [Member] | Equity Investment [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 10,117 | 20,488 |
Level 1 [Member] | Equity Securities [Member] | Nonredeemable preferred stocks [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 7,421 | 4,958 |
Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 130,800 | 102,513 |
Level 2 [Member] | Fixed Maturities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 130,800 | 102,513 |
Level 2 [Member] | Fixed Maturities [Member] | Industrial and miscellaneous [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 57,102 | 46,315 |
Level 2 [Member] | Fixed Maturities [Member] | U.S. government and agency securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 1,216 | 1,442 |
Level 2 [Member] | Fixed Maturities [Member] | States, municipalities and political subdivisions [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | 16,192 | 14,161 |
Level 2 [Member] | Fixed Maturities [Member] | Special revenue [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total investments | $56,290 | $40,595 |
Property_and_Equipment_Net_Sch
Property and Equipment, Net - Schedule of Property and Equipment (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total, at cost | $14,190 | $11,085 |
Less: accumulated depreciation and amortization | 422 | 150 |
Property and equipment, net | 13,768 | 10,935 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total, at cost | 2,582 | 2,582 |
Building [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total, at cost | 8,336 | 7,090 |
Computer hardware and software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total, at cost | 953 | 364 |
Office furniture and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total, at cost | 268 | 176 |
Tenant and leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total, at cost | 1,835 | 873 |
Vehicle fleet [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total, at cost | $216 | ' |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
sqft | ||||
acre | ||||
Buildings | ||||
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' | ' | ' |
Depreciation and amortization expense | ' | ' | $104,000 | $272,000 |
Number of Land Purchased | 13 | ' | ' | ' |
Number of Buildings | 2 | ' | ' | ' |
Gross Area of Acquired Property | 148,000 | ' | ' | ' |
Aggregate Purchase Price | ' | $9,800,000 | ' | ' |
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of Computation of Basic and Diluted EPS (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Basic earnings (loss) per share | ' | ' | ' | ' |
Net income attributable to common shareholders (000's) | $9,566 | $21,018 | $17,454 | $28,073 |
Weighted average shares outstanding | 22,119,754 | 15,203,100 | 19,256,172 | 12,983,525 |
Basic earnings (loss) per share | $0.43 | $1.38 | $0.91 | $2.16 |
Diluted earnings (loss) per share | ' | ' | ' | ' |
Net income attributable to common shareholders (000's) | $9,566 | $21,018 | $17,454 | $28,073 |
Weighted average shares outstanding | 22,119,754 | 15,203,100 | 19,256,172 | 12,983,525 |
Weighted average dilutive shares | 2,213,722 | ' | 2,428,058 | ' |
Total Weighted Average Dilutive Shares | 24,333,476 | 15,203,100 | 21,684,230 | 12,983,525 |
Diluted earnings (loss) per share | $0.39 | $1.38 | $0.80 | $2.16 |
Recovered_Sheet4
Deferred Policy Acquisition Costs, Net - Summary of Activity in Deferred Policy Acquisition Costs (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Insurance [Abstract] | ' | ' | ' | ' |
Beginning Balance | $12,226 | $1,326 | $9,765 | $32 |
Policy acquisition costs deferred | 19,550 | 3,693 | 26,484 | 5,103 |
Amortization | -6,384 | -865 | -10,857 | -982 |
Ending Balance | $25,392 | $4,154 | $25,392 | $4,154 |
Recovered_Sheet5
Deferred Policy Acquisition Costs - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' |
Deferred policy acquisition costs, net | $10 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Income tax expense | $5,544,000 | $13,263,000 | $9,477,000 | $17,162,000 | ' |
Annual effective tax rate | ' | ' | 35.20% | ' | ' |
Tax rate impact on income | ' | ' | 2,700,000 | ' | ' |
Deferred tax asset | 0 | ' | 0 | ' | 4,436,000 |
Deferred tax liability | $3,326,000 | ' | $3,326,000 | ' | $0 |
Reinsurance_Additional_informa
Reinsurance - Additional information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | |||||||||||||||||||||
Apr. 24, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Apr. 17, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 17, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 27, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | |
Insurers | Insurers | Insurers | 4% Participation [Member] | Catastrophe [Member] | Catastrophe [Member] | Catastrophe [Member] | Catastrophe [Member] | Layers Below FHCF [Member] | Layers Below FHCF [Member] | Layers Below FHCF [Member] | FHCF Layer [Member] | FHCF Layer [Member] | CAT Bond Layer [Member] | Osprey Re Ltd [Member] | Osprey Re Ltd [Member] | Osprey Re Ltd [Member] | Osprey Re Ltd [Member] | Heritage P&C [Member] | Heritage P&C [Member] | Citrus Re [Member] | Sunshine State Insurance Company [Member] | Sunshine State Insurance Company [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | ||||
Notes Due April 2017 [Member] | 3% Participation [Member] | Catastrophe [Member] | CAT Bond Layer [Member] | CAT Bond Layer [Member] | CAT Bond Layer [Member] | Policies | FHCF Layer [Member] | FHCF Layer [Member] | |||||||||||||||||||||||
Catastrophe [Member] | |||||||||||||||||||||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Catastrophe excess of loss reinsurance | ' | ' | ' | $9,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $166,000,000 | $103,000,000 | $940,000,000 | ' | ' | ' | ' | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Primary retention | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | 2,000,000 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional premium for excess retention percentage | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reinsurer's liability per loss occurrence | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,500,000 | ' | ' | ' | ' |
Reinsurer's liability for all loss occurrences | ' | 81,373,000 | ' | 81,373,000 | ' | 29,591,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,000,000 | ' | ' | ' | ' |
Primary retention of losses and loss adjustment expenses | ' | 15,000,000 | 9,000,000 | 15,000,000 | 9,000,000 | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | 6,000,000 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of reinsurance from third party | ' | 19,830,000 | 6,416,000 | 38,454,000 | 6,774,000 | ' | ' | ' | ' | 170,000,000 | ' | 185,000,000 | 94,000,000 | ' | ' | ' | 105,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage comprising aggregate participation | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate participation, losses and loss adjustment expenses | ' | 217,000 | ' | 249,000 | ' | ' | 63,000,000 | ' | ' | 401,500,000 | ' | ' | ' | 31,000,000 | ' | ' | 885,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess of losses and loss adjustment expenses | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of maximum provisional limit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated maximum provisional limit, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 435,000,000 | 243,000,000 | ' |
Estimated provisional limit percentage calculation base amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 484,000,000 | 270,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased coverage price | ' | ' | ' | 49,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,500,000 | ' | ' | 27,000,000 |
Losses and loss adjustment expenses including retention | ' | ' | ' | ' | ' | ' | ' | ' | 990,000,000 | 571,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased reinstatement premium | ' | ' | ' | ' | ' | ' | ' | ' | 185,000,000 | 149,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement of coverage | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateralized by a reinsurance trust | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reinsurance agreement | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Coverage of first catastrophe reinsurance agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' |
Additional coverage of second catastrophe reinsurance agreement | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' |
Coverage of reinsurance agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Policies in force assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,000 | ' | ' | ' | ' | ' | ' |
Policies in force assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,900,000 | ' | ' | ' | ' | ' | ' |
Policies in force assumed, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.00% | ' | ' | ' | ' | ' |
Amounts recoverable under reinsurance agreements | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reinsurers related to prepaid premiums | ' | 16 | ' | 16 | ' | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts receivables to reinsurers | ' | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentrations of credit risk | ' | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentages of assumed premiums earned | ' | ' | ' | 53.00% | 99.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Coverage of second catastrophe reinsurance agreement | $50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reinsurance_Schedule_of_Reinsu
Reinsurance - Schedule of Reinsurance Transactions on Components of Unaudited Consolidated Statements of Income (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Premium written: | ' | ' | ' | ' |
Direct | $71,072 | $28,187 | $123,172 | $39,765 |
Assumed | 28,197 | 52,862 | 45,000 | 57,633 |
Ceded | -94,452 | -75,163 | -94,466 | -75,165 |
Net premium written | 4,817 | 5,886 | 73,706 | 22,233 |
Change in unearned premiums: | ' | ' | ' | ' |
Direct | -26,025 | -21,839 | -43,982 | -32,525 |
Assumed | -9,119 | -31,170 | 795 | -16,508 |
Ceded | 74,622 | 68,747 | 56,012 | 68,391 |
Net decrease (increase) | 39,478 | 15,738 | 12,825 | 19,358 |
Premiums earned: | ' | ' | ' | ' |
Direct | 45,047 | 6,348 | 79,190 | 7,240 |
Assumed | 19,078 | 21,692 | 45,795 | 41,125 |
Ceded | -19,830 | -6,416 | -38,454 | -6,774 |
Net premiums earned | 44,295 | 21,624 | 86,531 | 41,591 |
Losses and LAE incurred: | ' | ' | ' | ' |
Direct | 14,463 | 1,653 | 24,713 | 1,802 |
Assumed | 4,781 | 6,217 | 15,118 | 11,346 |
Ceded | ' | ' | ' | ' |
Net losses and LAE incurred | $19,244 | $7,870 | $39,831 | $13,148 |
Reinsurance_Effects_of_Reinsur
Reinsurance - Effects of Reinsurance Transactions on Unpaid Losses and Loss Adjustment Expenses and Unearned Premiums (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Unpaid losses and loss adjustment expenses: | ' | ' |
Direct | $21,030 | $10,037 |
Assumed | 13,503 | 9,307 |
Gross unpaid losses and LAE | 34,533 | 19,344 |
Ceded | ' | ' |
Net unpaid losses and LAE | 34,533 | 19,344 |
Unearned premiums: | ' | ' |
Direct | 118,982 | 75,000 |
Assumed | 40,448 | 41,243 |
Gross unearned premiums | 159,430 | 116,243 |
Ceded | -87,264 | -31,252 |
Net unearned premiums | $72,166 | $84,991 |
Reserve_for_Unpaid_Costs_Summa
Reserve for Unpaid Costs - Summary of Reserve for Unpaid Losses (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | Unpaid Losses [Member] | Unpaid Losses [Member] | Unpaid Losses [Member] | Unpaid Losses [Member] | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustment of Opening Balance [Line Items] | ' | ' | ' | ' | ' | ' |
Balance, beginning of period | $34,533 | $19,344 | $28,456 | $4,973 | $19,344 | $1,393 |
Less: reinsurance recoverable on unpaid losses | 0 | 5,337 | ' | ' | ' | ' |
Net balance, beginning of period | ' | ' | 28,456 | 4,973 | 19,344 | 1,393 |
Incurred related to: | ' | ' | ' | ' | ' | ' |
Current year | ' | ' | 19,027 | 8,255 | 39,582 | 13,553 |
Prior years | ' | ' | 217 | -385 | 249 | -405 |
Total incurred | ' | ' | 19,244 | 7,870 | 39,831 | 13,148 |
Paid related to: | ' | ' | ' | ' | ' | ' |
Current year | ' | ' | 11,085 | 2,547 | 16,326 | 4,538 |
Prior years | ' | ' | 2,082 | 803 | 8,316 | 510 |
Total paid | ' | ' | 13,167 | 3,350 | 24,642 | 5,048 |
Net balance, end of period | ' | ' | 34,533 | 9,493 | 34,533 | 9,493 |
Plus: reinsurance recoverable on unpaid losses | 0 | 5,337 | ' | ' | ' | ' |
Balance, end of period | $34,533 | $19,344 | $34,533 | $9,493 | $34,533 | $9,493 |
Reserve_for_Unpaid_Costs_Addit
Reserve for Unpaid Costs - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Insurance [Abstract] | ' | ' | ' | ' |
Increase (decrease) in losses incurred | $217,000 | ' | $249,000 | ' |
Increase (decrease) in losses incurred on redundancy | ' | $385,000 | ' | $405,000 |
Recovered_Sheet6
Statutory Accounting and Regulations - Additional Information (Detail) (USD $) | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Insurance [Abstract] | ' | ' | ' |
Statutory net income of insurance subsidiary | $2 | $25.10 | ' |
Statutory accounting practices, capital and surplus requirements of insurance subsidiary | 'Greater of $15.0 million or 10% of its liabilities | ' | ' |
Statutory capital and surplus requirements, percentage | 10.00% | ' | ' |
Minimum required amount of capital and surplus maintained by the insurance subsidiary | 15 | ' | ' |
Statutory capital and surplus requirements, amount | $121.30 | ' | $63.10 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Mar. 01, 2014 | |
Related Party Transaction [Line Items] | ' | ' | ' |
Rent expenses | $101,000 | $243,000 | ' |
Payments for engineering and architectural services | 1,600,000 | ' | ' |
Payments for construction expenses | 2,400,000 | ' | ' |
SVM Restoration Services, Inc. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Payable to related parties | 438,000 | 529,000 | ' |
Acquired assets from related party | ' | ' | 2,500,000 |
Acquired assets from related party, property and equipment | ' | ' | 150,000 |
Acquired assets from related party, goodwill | ' | ' | $2,350,000 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ' |
Percentage of contribution on employee salary | 3.00% | ' |
Contribution for participating employees | $87,000 | $31,000 |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||||||
29-May-14 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | 29-May-14 | 21-May-14 | Dec. 31, 2013 | Jun. 30, 2014 | 29-May-14 | 22-May-14 | 29-May-14 | 22-May-14 | Jun. 30, 2014 | 22-May-14 | 22-May-14 | 22-May-14 | |
cash Exercise | IPO [Member] | IPO [Member] | Underwriter [Member] | Underwriter [Member] | Private Placement [Member] | Private Placement [Member] | Warrants Exercised [Member] | Warrants Exercised [Member] | |||||||||
Warrants Not Settleable in Cash [Member] | |||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | 50,000,000 | ' | 50,000,000 | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | 5,000,000 | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | ' | 29,794,960 | ' | 29,794,960 | ' | ' | ' | 14,007,150 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Outstanding | ' | 30,600 | ' | 30,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional paid-in capital | ' | $183,984,000 | ' | $183,984,000 | ' | ' | ' | $62,849,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock voting rights | ' | ' | ' | 'One vote | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redeemable shares outstanding | ' | ' | ' | ' | ' | ' | ' | 2,338,350 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redeemable shares | ' | 0 | ' | 0 | ' | ' | ' | 20,921,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period | ' | ' | 88,000 | ' | 31,655,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period (in shares) | ' | ' | 17,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants to purchase shares of common stock | ' | ' | 17,850 | ' | ' | ' | 7,716,300 | ' | ' | ' | ' | ' | ' | ' | ' | 7,685,700 | 3,858,150 |
Warrant exercisable price per share | ' | 5.88 | 5.88 | 5.88 | ' | ' | 5.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | 29,794,960 | ' | 29,794,960 | ' | ' | ' | 14,007,150 | ' | 6,900,000 | 6,900,000 | 900,000 | 900,000 | 909,090 | ' | ' | ' |
Common stock, price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11 | $11 | ' | ' | ' | ' | ' | ' |
Cash proceeds from public offering, gross | ' | ' | ' | ' | ' | 75,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underwriter discount fee | 5,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underwriter discount fee, per share | ' | ' | ' | ' | ' | $0.77 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Netting proceeds (before expenses) | ' | ' | ' | ' | ' | 70,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Netting proceeds (before expenses), per share | $10.23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares value | ' | 3,000 | ' | 3,000 | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | 10,000,000 | 10,000,000 | ' | ' |
Warrant exercise shares issued | ' | 5,622,519 | ' | ' | ' | ' | ' | ' | 3,827,550 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from warrant exercisable | ' | 22,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of warrants | ' | $300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 22-May-14 | Jun. 30, 2013 | |
Maximum [Member] | Minimum [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | Omnibus Incentive Plan [Member] | |||
Stock Based Compensation [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Common stock reserved for issuance | ' | ' | ' | ' | ' | 2,981,737 | ' |
Shares available for grant | ' | ' | ' | ' | 2,981,737 | ' | 0 |
Maximum tenure of stock option from the date of grant | '10 years | ' | ' | ' | ' | ' | ' |
Stock options, Vesting period | ' | ' | '5 years | '1 year | ' | ' | ' |
Exercisable period of vested awards | '30 days | ' | ' | ' | ' | ' | ' |
Number of stock options granted | 0 | 0 | ' | ' | ' | ' | ' |
Restricted Stock awards, Granted | 0 | 0 | ' | ' | ' | ' | ' |
Stock_Split_Additional_Informa
Stock Split - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Stockholders equity stock split | 2,550 |