Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 01, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HRTG | ||
Entity Registrant Name | HERITAGE INSURANCE HOLDINGS, INC. | ||
Entity Central Index Key | 1,598,665 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 30,441,410 | ||
Entity Public Float | $ 593,101,859 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Fixed maturity securities, available for sale, at fair value (amortized cost of $370,967 and $290,951 in 2015 and 2014, respectively) | $ 371,783 | $ 293,085 |
Equity securities, available for sale, at fair value (cost of $32,439 and $30,555 in 2015 and 2014, respectively) | 28,313 | 31,225 |
Mortgage loan, held to maturity, at amortized cost | 6,849 | |
Total investments | 400,096 | 331,159 |
Cash and cash equivalents | 236,277 | 160,481 |
Restricted cash | 13,085 | 4,339 |
Accrued investment income | 3,409 | 2,617 |
Premiums receivable, net | 30,565 | 20,028 |
Prepaid reinsurance premiums | 78,517 | 43,148 |
Deferred income taxes | 7,964 | 6,622 |
Deferred policy acquisition costs, net | 34,800 | 24,370 |
Property and equipment, net | 17,111 | 17,087 |
Other assets | 15,574 | 5,180 |
Total Assets | 837,398 | 615,031 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Unpaid losses and loss adjustment expenses | 83,722 | 51,469 |
Unearned premiums | 302,493 | 241,136 |
Reinsurance payable | 60,210 | 17,113 |
Income taxes payable | 2,092 | 12,808 |
Advance premiums | 12,138 | 5,143 |
Accrued compensation | 2,305 | 442 |
Other liabilities | 17,885 | 31,831 |
Total Liabilities | $ 480,845 | $ 359,942 |
Commitments and contingencies (Note 13) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value, 50,000,000 shares authorized, 30,441,410 and 29,794,960 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | $ 3 | $ 3 |
Additional paid-in capital | 202,628 | 188,342 |
Accumulated other comprehensive (loss) income | (2,033) | 1,723 |
Retained earnings | 155,955 | 65,021 |
Total Stockholders' Equity | 356,553 | 255,089 |
Total Liabilities and Stockholders' Equity | $ 837,398 | $ 615,031 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Fixed maturities available for sale, at amortized cost | $ 370,967 | $ 290,951 |
Equity securities, cost | $ 32,439 | $ 30,555 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 30,441,410 | 29,794,960 |
Common stock, shares outstanding | 30,441,410 | 29,794,960 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUE: | |||
Gross premiums written | $ 586,098 | $ 436,407 | $ 218,537 |
Increase in gross unearned premiums | (61,358) | (124,893) | (78,578) |
Gross premiums earned | 524,740 | 311,514 | 139,959 |
Ceded premiums | (148,472) | (87,902) | (44,800) |
Net premiums earned | 376,268 | 223,612 | 95,159 |
Retroactive reinsurance | 26,046 | ||
Net investment income | 7,421 | 3,849 | 1,049 |
Net realized gains (losses) | 1,508 | 304 | (323) |
Other revenue | 9,595 | 6,055 | 2,901 |
Total revenue | 394,792 | 233,820 | 124,832 |
EXPENSES: | |||
Losses and loss adjustment expenses | 141,191 | 89,560 | 38,501 |
Policy acquisition costs | 57,186 | 36,510 | 6,150 |
General and administrative expenses | 46,125 | 33,498 | 24,720 |
Total expenses | 244,502 | 159,568 | 69,371 |
Income before income taxes | 150,290 | 74,252 | 55,461 |
Provision for income taxes | 57,778 | 27,155 | 21,248 |
Net income | 92,512 | 47,097 | 34,213 |
OTHER COMPREHENSIVE INCOME: | |||
Change in net unrealized (losses) gains on investments | (4,606) | 4,395 | (1,610) |
Reclassification adjustment for net realized investment (losses) gains | (1,508) | (304) | 323 |
Income tax (expense) benefit related to items of other comprehensive income | 2,358 | (1,578) | 497 |
Total comprehensive income | $ 88,756 | $ 49,610 | $ 33,423 |
Weighted average shares outstanding | |||
Basic | 30,056,491 | 24,568,876 | 14,313,150 |
Diluted | 30,326,468 | 25,816,560 | 14,473,800 |
Earnings per share | |||
Basic | $ 3.08 | $ 1.92 | $ 2.39 |
Diluted | $ 3.05 | $ 1.82 | $ 2.36 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Initial Public Offering And Private Placement [Member] | Common Stock [Member] | Common Stock [Member]Initial Public Offering And Private Placement [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Initial Public Offering And Private Placement [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
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 equity | (4,150) | (4,150) | ||||||
Equity reclassified to temporary equity, Shares | (1,058,250) | |||||||
Issuance of 6,691,200 warrants and 313,650 redeemable shares | 31,939 | 31,939 | ||||||
Issuance of warrants and redeemable shares, Shares | 6,459,150 | |||||||
Equity based compensation | 1,273 | 1,273 | ||||||
Equity based compensation, Shares | 247,350 | |||||||
Executive stock grant | 150 | 150 | ||||||
Executive stock grant, Shares | 38,250 | |||||||
Issuance of common stock to underwriters for over allotment, net of discount fee and direct costs of issuance of $700 | 53 | 53 | ||||||
Issuance of common stock to underwriters for over allotment, net of discount fee and direct costs of issuance, Shares | 10,200 | |||||||
Net unrealized change in investments, net of tax | (790) | $ (790) | ||||||
Change in fair value of redeemable shares | (10,823) | (10,823) | ||||||
Net income | 34,213 | 34,213 | ||||||
Ending balance at Dec. 31, 2013 | 79,984 | $ 1 | 62,849 | 17,924 | (790) | |||
Ending balance, Shares at Dec. 31, 2013 | 14,007,150 | |||||||
Temporary equity reclassified to equity | 20,921 | 20,921 | ||||||
Temporary equity reclassified to equity, Shares | 2,338,350 | |||||||
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 | |||||||
Issuance of equity | 88 | $ 69,470 | $ 1 | 88 | $ 69,469 | |||
Issuance of equity, Shares | 17,850 | 6,909,091 | ||||||
Net unrealized change in investments, net of tax | 2,513 | 2,513 | ||||||
Exercise of warrants | 22,515 | $ 1 | 22,514 | |||||
Exercise of warrants, Shares | 5,622,519 | |||||||
Stock based compensation | 3,301 | 3,301 | ||||||
Net income | 47,097 | 47,097 | ||||||
Ending balance at Dec. 31, 2014 | 255,089 | $ 3 | 188,342 | 65,021 | 1,723 | |||
Ending balance, Shares at Dec. 31, 2014 | 29,794,960 | |||||||
Net unrealized change in investments, net of tax | (3,756) | (3,756) | ||||||
Issuance of 79,850 shares of stock in connection with the acquisition of BRC Restoration | 2,000 | 2,000 | ||||||
Issuance of 79,850 shares of stock in connection with the acquisition of BRC Restoration, Shares | 79,850 | |||||||
Exercise of stock options and warrants | 8,900 | 8,900 | ||||||
Exercise of stock options and warrants, Shares | 566,600 | |||||||
Stock based compensation | 2,647 | 2,647 | ||||||
Excess tax benefit on stock-based compensation | 739 | 739 | ||||||
Dividends declared on common stock | (1,578) | (1,578) | ||||||
Net income | 92,512 | 92,512 | ||||||
Ending balance at Dec. 31, 2015 | $ 356,553 | $ 3 | $ 202,628 | $ 155,955 | $ (2,033) | |||
Ending balance, Shares at Dec. 31, 2015 | 30,441,410 |
Consolidated Statements of Cha6
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common Stock [Member] | |||
Issuance of warrants | 6,691,200 | ||
Issuance of redeemable shares | 313,650 | ||
Issuance of 79,850 shares of stock in connection with the acquisition of BRC Restoration, Shares | 79,850 | ||
Restricted Stock [Member] | |||
Issuance of 79,850 shares of stock in connection with the acquisition of BRC Restoration, Shares | 79,850 | ||
Initial Public Offering And Private Placement [Member] | |||
Discount fee and direct costs of issuance | $ 6,530 | ||
Underwriter [Member] | |||
Discount fee and direct costs of issuance | $ 700 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | |||
Net income | $ 92,512,000 | $ 47,097,000 | $ 34,213,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation | 2,647,000 | 3,301,000 | 5,733,000 |
Amortization of bond discount | 6,246,000 | 2,531,000 | 891,000 |
Depreciation and amortization | 1,350,000 | 777,000 | 150,000 |
Bad debt expense | (250,000) | 250,000 | |
Net realized gains/losses | (1,508,000) | (304,000) | 323,000 |
Deferred income taxes | 1,016,000 | (3,764,000) | (893,000) |
Excess tax benefit on stock-based compensation | 739,000 | ||
Changes in operating assets and liabilities: | |||
Accrued investment income | (792,000) | (1,646,000) | (856,000) |
Premiums receivable, net | (10,287,000) | (9,931,000) | (10,227,000) |
Restricted cash | (8,746,000) | (4,339,000) | |
Prepaid reinsurance premiums | (35,369,000) | (11,896,000) | (30,658,000) |
Reinsurance premiums receivable | 5,337,000 | (5,337,000) | |
Income taxes receivable | 5,073,000 | (5,073,000) | |
Deferred policy acquisition costs, net | (10,430,000) | (14,605,000) | (9,733,000) |
Other assets | (2,594,000) | (2,554,000) | (1,810,000) |
Unpaid losses and loss adjustment expenses | 32,253,000 | 32,125,000 | 17,951,000 |
Unearned premiums | 61,358,000 | 124,893,000 | 78,578,000 |
Reinsurance payable | 43,097,000 | (12,478,000) | 20,604,000 |
Income taxes payable | (10,716,000) | 10,003,000 | (1,100,000) |
Accrued compensation | 1,863,000 | (63,000) | 504,000 |
Advance premiums | 6,995,000 | 1,314,000 | 3,824,000 |
Other liabilities | (15,524,000) | 23,075,000 | 7,967,000 |
Net cash provided by operating activities | 153,860,000 | 194,196,000 | 105,051,000 |
INVESTING ACTIVITIES | |||
Proceeds from sales and maturities of investments available for sale | 151,307,000 | 38,738,000 | 7,424,000 |
Purchases of investments available for sale | (237,946,000) | (231,070,000) | (126,971,000) |
Proceeds from sale of investment in mortgage loan | 6,849,000 | (786,000) | (6,063,000) |
Acquisition of a business | (6,000,000) | ||
Cost of property and equipment acquired | (1,174,000) | (6,929,000) | (10,884,000) |
Net cash used in investing activities | (86,964,000) | (200,047,000) | (136,494,000) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of equity and redeemable shares | 88,000 | 33,630,000 | |
Proceeds from issuance of equity from initial public offering, net of discount fee and expense | 78,670,000 | ||
Proceeds from exercise of stock options and warrants | 8,900,000 | 22,515,000 | |
Repayment on note payable to bank | (1,000,000) | ||
Net cash provided by financing activities | 8,900,000 | 101,273,000 | 32,630,000 |
Increase in cash and cash equivalents | 75,796,000 | 95,422,000 | 1,187,000 |
Cash and cash equivalents at beginning of period | 160,481,000 | 65,059,000 | 63,872,000 |
Cash and cash equivalents at end of period | 236,277,000 | 160,481,000 | 65,059,000 |
Supplemental Cash Flows Information: | |||
Interest paid | 16,000 | ||
Income taxes paid, net | 68,824,000 | 13,038,000 | $ 28,314,000 |
Temporary equity reclassified to equity | $ 20,921,000 | ||
Supplemental Disclosure of Non-Cash Investing Activities | |||
Issuance of shares for consideration in the acquisition of a business | $ 2,000,000 |
Basis of Presentation and Natur
Basis of Presentation and Nature of Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Business | Note 1. Basis of Presentation and Nature of Business Business Description Heritage Insurance Holdings, Inc. (the “Company”, “we”, “our”, “us”) 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. As used in these consolidated financial statements, the terms “the Company”, “we”, “our” and “us” also refer to Heritage Insurance Holdings, LLC and its consolidated subsidiaries prior to our conversion to a Delaware corporation. Our insurance subsidiary is Heritage Property & Casualty Insurance Company (“Heritage P&C”). Our other subsidiaries include: Heritage MGA, LLC (“MGA”), the managing general agent that manages substantially all aspects of our insurance subsidiary’s business; Contractors’ Alliance Network, LLC, our vendor network manager, which includes BRC Restoration Specialists, Inc., our restoration service; Skye Lane Properties, LLC, our property management subsidiary; First Access Insurance Group, LLC, our retail agency; Osprey Re Ltd,; our reinsurance subsidiary that provides a portion of the reinsurance protection purchased by our insurance subsidiary; and Heritage Insurance Claims, LLC, an inactive subsidiary reserved for future development. The Company’s primary products are personal and commercial residential insurance, which the Company currently offers only in Florida under authorization from the Florida Office of Insurance Regulation (“FLOIR”). The Company conducts its operations under one business segment. 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 (the “Private Placement”) with Ananke Ltd, an affiliate of Nephila Capital Ltd, to purchase $10 million of the Company’s common stock at a price per share equal to the IPO price. The Company’s total net proceeds from the IPO and the Private Placement were $78.6 million, after deducting underwriting discounts and other costs. Basis of Presentation The consolidated financial statements include the accounts of Heritage Insurance Holdings, Inc. and its wholly-owned subsidiaries. The accompanying consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest (none of which are variable interest entities). All intercompany accounts and transactions have been eliminated in consolidation. 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 for 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. Use of Estimates The preparation of consolidated financial statements in conformity with United States Generally Accepted Accounting Principles (“U.S. GAAP”) requires us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and accompanying notes. We evaluate our estimates on an ongoing basis when updated information related to such estimates becomes available. We base our estimates on historical experience and information available to us at the time these estimates are made. Actual results could differ materially from these estimates. |
Significant Accounting Policies
Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Practices | Note 2. Significant Accounting Policies and Practices Cash and Cash Equivalents The Company’s cash and cash equivalents include demand deposits with financial institutions and short-term, highly-liquid instruments with original maturities of three months or less when purchased. The carrying amounts reported in the consolidated balance sheets for interest bearing deposits approximate their fair value because of the short maturity of these investments. Restricted Cash As of December 31, 2015 and 2014, restricted cash was $13.1 million and $4.3 million, respectively. Heritage P&C holds approximately $13.1 million relating to a reinsurance agreement with an entity that issued catastrophe (“CAT”) bonds, as Heritage P&C is contractually required to deposit two installments of reinsurance premiums into a trust account. Investments The Company classifies all of its investments in fixed maturity securities and equity securities as available-for-sale, and reports them at fair value. The Company’s investment in a mortgage loan was classified as held to maturity and reported at amortized cost. Subsequent to its acquisition of available-for-sale securities, the Company records changes in value through the date of disposition as unrealized holding gains and losses, net of tax effects, and includes them as a component of other comprehensive income. The Company includes realized gains and losses, which it calculates using the specific-identification method for determining the cost of securities sold, in net income. The Company amortizes any premium or discount on fixed maturities over the remaining maturity period of the related securities using the effective interest method, and reports the amortization in net investment income. The Company recognizes dividends and interest income when earned. Quarterly, the Company performs an assessment of its investments to determine if any are “other-than-temporarily” impaired. An investment is impaired when the fair value of the investment declines to an amount less than the cost or amortized cost of that investment. As part of the assessment process, the Company determines whether the impairment is temporary or “other-than-temporary”. The Company bases its assessment on both quantitative criteria and qualitative information, considering a number of factors including, but not limited to: how long the security has been impaired; the amount of the impairment; whether, in the case of equity securities, the Company intends to hold, and have the ability to hold, the security for a period sufficient for us to recover our cost basis, or whether, in the case of debt securities and participations in mortgage loans, the Company intends to sell the investment or it is more likely than not that the Company will have to sell the investment before it recovers the amortized cost or cost; the financial condition and near-term prospects of the issuer; whether the issuer is current on contractually-obligated interest and principal payments; key corporate events pertaining to the issuer and whether the market decline was affected by macroeconomic conditions. If the Company were to determine that an equity security has incurred an “other-than-temporary” impairment, the Company would permanently reduce the cost of the security to fair value and recognize an impairment charge in its consolidated statements of operations and comprehensive income. If a debt security or participation in a commercial mortgage loan was impaired and the Company either intends to sell the investment or it is more likely than not that the Company will have to sell the investment before it is able to recover the amortized cost or cost, then the Company would record the full amount of the impairment in its consolidated statement of operations and other comprehensive income. A large portion of the Company’s investment portfolio consists of fixed maturity securities, which may be adversely affected by changes in interest rates as a result of governmental monetary policies, domestic and international economic and political conditions and other factors beyond its control. A rise in interest rates would decrease the net unrealized holding gains of our investment portfolio, offset by the Company’s ability to earn higher rates of return on funds reinvested. Conversely, a decline in interest rates would increase the net unrealized holding gains of our investment portfolio, offset by lower rates of return on funds reinvested. Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (an exit price). When reporting the fair values of the Company’s financial instruments, the Company prioritizes those fair value measurements into one of three levels based on the nature of the inputs, as follows: • Level 1—Assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company is able to access; • Level 2—Asset and liabilities with values based on quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; or valuation models with inputs that are observable, directly or indirectly for substantially the term of the asset or liability. • Level 3—Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date based on the best information available in the circumstances. The Company estimates the fair value of its investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE, NASDAQ and NYSE MKT. For securities for which quoted prices in active markets are unavailable, the Company uses observable inputs such as quoted prices in inactive markets, quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs. The Company does not have any investments in its portfolio which require the use of unobservable inputs. The Company’s estimate of fair value reflects the interest rate environment that existed as of the close of business on December 31, 2015. Changes in interest rates subsequent to December 31, 2015 may affect the fair value of the Company’s investments. The carrying amounts for the following financial instruments approximate their fair values at December 31, 2015 because of their short-term nature: cash and cash equivalents, restricted cash, accrued investment income, premiums receivable, net, reinsurance payable, and accrued compensation. The Company’s non-financial assets, such as goodwill (reported in other assets), and property, plant and equipment are carried at cost until there are indicators of impairment, and are recorded at fair value only when an impairment charge is recognized. Premiums The Company records assumed premiums written (premiums from policies that the Company assumed from Sunshine State Insurance Company (“SSIC”) and from Citizens Property Insurance Corporation (“Citizens”), net of opt-outs) and direct premiums written (premiums from subsequent renewals of Citizens’ and SSIC policies and voluntary policies written during the period) as revenue, net of ceded amounts, on a daily pro rata basis over the contract period of the related policies that are in force. For any portion of premiums not earned at the end of the reporting period, the Company records an unearned premium liability. As a one-time only transaction on June 27, 2014, the Company assumed approximately $58.9 million of annualized premiums from SSIC. The Company acquired 32,000 policies and as of December 31, 2015 have renewed approximately 24,100. At December 31, 2015, the Company assumed approximately $53.3 million of annualized premium. The SSIC policies account for approximately 7% of the Company’s total policies in force as of December 31, 2015. Premiums receivable represents amounts due from our policyholders for billed premiums and related policy fees. We perform a policy-level evaluation to determine the extent to which the balance of premiums receivable exceeds the balance of unearned premiums. We then age any resulting exposure based on the last date the policy was billed to the policyholder, and we establish an allowance for credit losses for any amounts outstanding for more than 90 days. When we receive payments on amounts previously charged off, we reduce bad debt expense in the period we receive the payment. Balances in premiums receivable and the associated allowance account are removed upon cancellation of the policy due to non-payment. We recorded an allowance of $0 and $250,000 for uncollectible premiums at December 31, 2015 and 2014, respectively. Bad debt expense recovery related to uncollectible premiums was $(250,000), $250,000 and $0 for the years ended December 31, 2015, 2014 and 2013, respectively. When the Company receives premium payments from policyholders prior to the effective date of the related policy, the Company records an advance premiums liability. On the policy effective date, the Company reduces the advance premium liability and records the premiums as described above. Policy Acquisition Costs The Company incurs policy acquisition costs that vary with, and are directly related to, the production of new business. Policy acquisition costs consist of the following four items: (i) commissions paid to outside agents at the time of policy issuance; (ii) policy administration fees paid to a third-party administrator at the time of policy issuance; (iii) premium taxes; and (iv) inspection fees. The Company capitalizes policy acquisition costs to the extent recoverable, then the Company amortizes those costs over the contract period of the related policy. At each reporting date, the Company determines whether it has a premium deficiency. A premium deficiency would result if the sum of the Company’s expected losses, deferred policy acquisition costs, and policy maintenance costs (such as costs to store records and costs incurred to collect premiums and pay commissions) exceeded the Company’s related unearned premiums plus investment income. Should the Company determine that a premium deficiency exists, the Company would write off the unrecoverable portion of deferred policy acquisition cost. Long-Lived Assets—Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: building—40 years; computer hardware and software 3—years; office and furniture equipment—3 to 7 years. Leasehold improvements are amortized over the shorter of the lease term or the asset’s useful life. Expenditures for improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. Business Combination The application of the purchase method of accounting for business combinations requires the use of significant estimates and assumptions in determining the fair value of assets acquired and liabilities assumed in order to properly allocate the purchase price. The estimates of the fair value of the assets acquired and liabilities assumed are based upon assumptions believed to be reasonable using established valuation techniques that consider a number of factors and when appropriate, valuations performed by independent third party appraisers. Asset acquired and liabilities assumed in connection with business combinations are recorded based on their respective fair values at the date of acquisition. The identifiable intangible assets that we have acquired are non-compete agreements, customer relationships and trade names and associated trademarks. Goodwill is calculated as the excess of the cost of the acquired entity over the net fair value of the assets acquired and the liabilities assumed. Non-compete agreements, customer relationships and trade names and associated trademarks are valued based on an excess earnings or income approach based on projected cash flows. Goodwill and Intangible Assets Goodwill is subject to evaluation for impairment using a fair value based test. This evaluation is performed annually, during the fourth quarter or more frequently if facts and circumstances warrant. The Company uses a qualitative approach to test goodwill for impairment by first assessing qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The Company applied this qualitative approach to its insurance operations reporting unit. If required following the qualitative assessment, the first step in the goodwill impairment test involves comparing the fair value of each of its reporting units to the carrying value of those reporting units. If the carrying value of a reporting unit exceeds the fair value of the reporting unit, the Company is required to proceed to the second step. In the second step, the fair value of the reporting unit would be allocated to the assets (including unrecognized intangibles) and liabilities of the reporting unit, with any residual representing the implied fair value of goodwill. An impairment loss would be recognized if, and to the extent that, the carrying value of goodwill exceeded the implied value. The Company reviews amortizable intangible assets for impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. If the Company concludes that impairment exists, the carrying amount is reduced to fair value. Impairment of Long-Lived Assets Including Intangible Assets Subject to Amortization The Company assesses the recoverability of long-lived assets when events or circumstances indicate that the assets might have become impaired. The Company determines whether the assets can be recovered from undiscounted future cash flows and, if not recoverable, the Company recognizes impairment to reduce the carrying value to fair value. Recoverability of long lived assets is dependent upon, among other things, the Company’s ability to maintain profitability, so as to be able to meet its obligations when they become due. No impairment was recognized in any period presented. Unpaid Losses and Loss Adjustment Expenses The Company’s reserves for unpaid losses and loss adjustment expenses represent the estimated ultimate cost of settling all reported claims plus all claims we incurred related to insured events that have occurred as of the reporting date, but that policyholders have not yet reported to the Company (incurred but not reported, or “IBNR”). The Company estimates its reserves for unpaid losses and loss adjustment expenses using individual case-based estimates for reported claims and actuarial estimates for IBNR losses. The Company continually reviews and adjusts its estimated losses as necessary based on industry development trends, the Company’s evolving claims experience and new information obtained. If the Company’s unpaid losses and loss adjustment expenses are considered to be deficient or redundant, the Company increases or decreases the liability in the period in which it identifies the difference and reflects the change in its current period results of operations. Though the Company’s estimate of the ultimate cost of settling all reported and unreported claims may change at any point in the future, a reasonable possibility exists that its estimate may vary significantly in the near term from the estimated amounts included in the Company’s consolidated financial statements. The Company reports its reserves for unpaid losses and loss adjustment expenses gross of the amounts related to unpaid losses recoverable from reinsurers and reports losses net of amounts ceded to reinsurers. The Company does not discount its loss reserves for financial statement purposes. Other Revenue Other revenue represents rental income due under non-cancelable leases for space at the Company’s commercial property in Clearwater, Florida that we acquired in April 2013, and all policy and pay-plan fees. Florida law allows insurers to charge policyholders a $25 policy fee on each policy written; these fees are not subject to refund, and the Company recognizes the income immediately when collected. The Company also charges pay-plan fees to policyholders that pay its premiums in more than one installment and record the fees as income when collected. In addition, the Company records revenue earned from its restoration subsidiary for non-insurance construction as services performed. Reinsurance The Company follows industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or “ceding”, all or a portion of the risk exposure on policies the Company writes to another insurer, known as a reinsurer. To the extent that the Company’s reinsurers are unable to meet the obligations they assume under the Company’s reinsurance agreements, the Company remains liable for the entire insured loss. The Company’s reinsurance agreements are short-term, prospective contracts. The Company records an asset, prepaid reinsurance premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of new reinsurance agreements. The Company amortizes its prepaid reinsurance premiums over the 12-month contract period. In the event that the Company incurs losses recoverable under its reinsurance program, the Company records amounts recoverable from its reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of the Company’s liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to the estimate of unpaid losses. Though an estimate of amounts recoverable from reinsurers on unpaid losses may change at any point in the future because of its relation to the Company’s reserves for unpaid losses, a reasonable possibility exists that an estimated recovery may change significantly from initial estimates. The Company estimates uncollectible amounts receivable from reinsurers based on an assessment of factors including the creditworthiness of the reinsurers and the adequacy of collateral obtained, where applicable. The Company recorded no uncollectible amounts under its reinsurance program or bad debt expense related to reinsurance for the years ended December 31, 2015, 2014 and 2013. Assessments Guaranty fund and other insurance-related assessments imposed upon the Company are recorded as policy acquisition costs in the period the regulatory agency imposes the assessment. To recover Florida Insurance Guaranty Association (“FIGA”) assessments, the Company in turn calculates and begins collecting a policy surcharge that will allow it to collect the entire assessment over a 12-month period, based on an estimate of the number of policies the Company expects to write. The Company then submits an information only filing, pursuant to Florida Statute 631.57(3)(h), to the insurance regulatory authority requesting formal approval of the policy FIGA surcharge. The process may be repeated in successive 12-month periods until the Company collects the entire assessment. The Company records the recoveries as revenue in the period that it collects the cash. While current regulations allow the Company to recover from policyholders the amount of assessments imposed upon the Company, the Company’s payment of the assessments and recoveries may not offset each other in the same year. There were no such assessments during the periods presented. The Company collects other assessments imposed upon policyholders as a policy surcharge and records the amounts collected as a liability until the Company remits the amounts to the regulatory agency that imposed the assessment. Accrued Bonus Compensation Our Board of Directors determined in 2013 that a bonus pool was appropriate based on an 8.5% of earnings before interest, taxes, depreciation and amortization. For the year ended December 31, 2015 the Board of Directors approved approximately $14.1 million in bonuses to be paid to officers and employees and for the years ended December 31, 2014 and 2013, the Board of Directors approved approximately $7.2 million and an aggregate of $11.5 million paid in cash and equity, respectively. 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 was historically driven primarily by the taxable income recognized by its taxable subsidiaries. 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 combined federal and state statutory tax rate of approximately 38.575% under current tax law. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which it expects to recover or settle those temporary differences. Should a change in tax rates occur, the Company recognizes the effect on deferred tax assets and liabilities in operations in the period that includes the enactment date. Realization of the Company’s deferred income tax assets depends upon our generation of sufficient future taxable income. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. The Company records any income tax penalties and income-tax-related interest as income tax expense in the period incurred. The Company did not incur any material tax penalties or income-tax-related interest for the years ended December 31, 2015, 2014, and 2013, respectively. Advertising Costs The Company expenses all advertising costs when it incurs those costs. For the years ended December 31, 2015, 2014 and 2013, the Company incurred advertising costs of $27,000, $14,200, and $393,000, respectively. Stock-Based Compensation The Company measures stock-based compensation at the grant date based on the fair value of the award and recognizes stock-based compensation expense over the requisite vesting period. Determining the fair value of stock option awards requires judgment, including estimating stock price volatility, forfeiture rates and expected option life. Restricted stock awards are valued based on the fair value of the stock on the grant date and the related compensation expense is recognized over the vesting period. Earnings Per Share The Company reports both basic earnings per share and diluted earnings per share. To calculate basic earnings per share, the Company divides net income attributable to common shareholders by the weighted-average number of shares outstanding during the period, including vested and unvested restricted shares. The Company calculates diluted earnings per share by dividing net income attributable to common shareholders by the weighted-average number of shares, and the effect of share equivalents, and vested and unvested restricted shares outstanding during the period using the treasury stock method to calculate common stock equivalents. Concentrations of Risk The Company’s current operations subject us to the following concentrations of risk: • Revenue—The Company writes residential property and liability policies exclusively • Geographic—The Company writes 100% of its premium in Florida • Group concentration of credit risk—all of the Company’s reinsurers engage in similar activities and have similar economic characteristics that could cause their ability to repay us to be similarly affected by changes in economic or other conditions • Credit risk—The Company chooses to deposit all its cash at four financial institutions The Company mitigates its geographic and group concentrations of risk by entering into reinsurance contracts with highly rated, financially-stable reinsurers, and by securing irrevocable letters of credit from reinsurers when necessary. With regard to cash, the Company had $243.7 million and $154.4 million in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits at December 31, 2015 and December 31, 2014, respectively. Deposits held in non- interest-bearing transaction accounts are combined with interest-bearing accounts and are insured up to $250,000. 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 Topic 2014-09, Revenue from Contracts with Customers In June 2014, the FASB issued ASU Topic 2014-12, Compensation - Stock Compensation, In September 2015, the FASB issued ASU Topic 2015-16, Business Combinations In January 2016, the FASB issued ASU Topic 2016-1, Financial Statements - Overall No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our consolidated financial statements or disclosures. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 and December 31, 2014: Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (In thousands) December 31, 2015 U.S. government and agency securities $ 25,474 $ 16 $ 387 $ 25,103 States, municipalities and political subdivisions 184,145 2,107 137 186,115 Special revenue 42,593 19 204 42,408 Industrial and miscellaneous 115,313 294 932 114,675 Redeemable preferred stocks 3,442 61 21 3,482 Total fixed maturities 370,967 2,497 1,681 371,783 Nonredeemable preferred stocks 12,443 338 43 12,738 Equity securities 19,996 398 4,819 15,575 Total equity securities 32,439 736 4,862 28,313 Total investments $ 403,406 $ 3,233 $ 6,543 $ 400,096 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) December 31, 2014 U.S. government and agency securities $ 7,002 $ 22 $ 16 $ 7,008 States, municipalities and political subdivisions 41,578 560 18 42,120 Special revenue 133,269 1,349 237 134,381 Industrial and miscellaneous 105,591 668 254 106,005 Redeemable preferred stocks 3,511 84 24 3,571 Total fixed maturities 290,951 2,683 549 293,085 Nonredeemable preferred stocks 11,494 237 53 11,678 Equity securities 19,061 1,525 1,039 19,547 Total equity securities 30,555 1,762 1,092 31,225 Mortgage loan participation 6,849 — — 6,849 Total investments $ 328,355 $ 4,445 $ 1,641 $ 331,159 Special revenue instruments include U.S. government associated mortgage backed securities. 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 as of December 31, 2015 and 2014, respectively: 2015 2014 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Year Ended December 31, Fixed maturities $ 1,318 $ 78,161 $ 429 $ 8,632 Equity securities 448 24,100 — — Total realized gains 1,766 102,261 429 8,632 Fixed maturities (133 ) 13,343 (114 ) 4,164 Equity securities (125 ) 1,616 (11 ) 19,680 Total realized losses (258 ) 14,959 (125 ) 23,844 Net realized gains $ 1,508 $ 117,220 $ 304 $ 32,476 The table below summarizes the Company’s fixed maturities at December 31, 2015 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. December 31, 2015 Cost or Amortized Cost Percent of Total Fair Value Percent of Total (In thousands) (In thousands) Due in one year or less $ 34,162 9 % $ 34,165 9 % Due after one year through five years 146,616 40 % 146,211 40 % Due after five years through ten years 79,380 21 % 79,887 21 % Due after ten years 110,809 30 % 111,520 30 % Total $ 370,967 100 % $ 371,783 100 % December 31, 2014 Cost or Amortized Cost Percent of Total Fair Value Percent of Total (In thousands) (In thousands) Due in one year or less $ 13,709 5 % $ 13,712 5 % Due after one year through five years 171,091 59 % 171,382 59 % Due after five years through ten years 61,114 21 % 62,091 21 % Due after ten years 45,037 15 % 45,900 15 % Total $ 290,951 100 % $ 293,085 100 % The following table summarizes the Company’s net investment income by major investment category for the years ended December 31, 2015 and 2014, and 2013 respectively: For the Year Ended December 31, 2015 2014 2013 (In thousands) Fixed maturities $ 6,960 $ 3,100 $ 914 Equity securities 1,811 1,159 456 Cash, cash equivalents and short-term investments 258 181 83 Other investments 259 243 93 Net investment income 9,289 4,683 1,546 Investment expenses 1,868 834 497 Net investment income, less investment expenses $ 7,421 $ 3,849 $ 1,049 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 debt securities in which the Company invests 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 the Company’s unrealized investment losses by investment class as of December 31, 2015 and December 31, 2014: Less Than Twelve Months Twelve Months or More Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value (In thousands) December 31, 2015 U.S. government and agency securities 19 $ 385 $ 19,849 2 $ 3 $ 397 States, municipalities and political subdivisions 14 50 10,979 1 3 164 Industrial and miscellaneous 141 870 73,312 5 61 1,318 Special revenue 134 279 60,203 10 9 1,646 Redeemable preferred stocks 9 21 950 — — — Total fixed maturities 317 1,605 165,293 18 76 3,525 Nonredeemable preferred stocks 19 29 1,560 5 14 250 Equity securities 48 2,975 8,416 20 1,844 2,680 Total equity securities 67 $ 3,004 $ 9,976 25 $ 1,858 $ 2,930 Total 384 $ 4,609 $ 175,269 43 $ 1,934 $ 6,455 Less Than Twelve Months Twelve Months or More Number Gross Losses Fair Number Gross Losses Fair (In thousands) December 31, 2014 U.S. government and agency securities 11 $ 15 $ 2,451 1 $ 1 $ 109 States, municipalities and political subdivisions 14 15 7,661 1 3 177 Industrial and miscellaneous 98 204 51,156 10 50 1,975 Special revenue 71 213 36,643 6 23 1,592 Redeemable preferred stocks 18 9 854 8 15 355 Total fixed maturities 212 457 98,765 26 92 4,208 Nonredeemable preferred stocks 1 31 2,552 1 22 490 Equity securities 1 1,039 9,792 — — — Total equity securities 2 $ 1,070 $ 12,344 1 $ 22 $ 490 Total 214 $ 1,527 $ 111,109 27 $ 114 $ 4,698 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4. Earnings Per Share The following table sets forth the computation of basic and diluted EPS for the periods indicated. For the Year Ended December 31, 2015 2014 2013 Basic earnings per share: Net income attributable to common stockholders (000's) $ 92,512 $ 47,097 $ 34,213 Weighted average shares outstanding 30,056,491 24,568,876 14,313,150 Basic earnings per share: $ 3.08 $ 1.92 $ 2.39 Diluted earnings per share: Net income attributable to common stockholders (000's) $ 92,512 $ 47,097 $ 34,213 Weighted average shares outstanding 30,056,491 24,568,876 14,313,150 Weighted average dilutive shares 269,977 1,247,684 160,650 Total weighted average dilutive shares 30,326,468 25,816,560 14,473,800 Diluted earnings per share: $ 3.05 $ 1.82 $ 2.36 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 5. Fair Value Financial Instruments For the Company’s investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, the Company obtains the fair values from its third-party valuation service and we evaluate the relevant inputs, assumptions, methodologies and conclusions associated with such valuations. The valuation service calculates prices for the Company’s investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, then adds final spreads to the U.S. Treasury curve as of quarter end. The inputs the valuation service uses in their calculations are not quoted prices in active markets, but are observable inputs, and therefore represent Level 2 inputs. The following table presents information about the Company’s assets measured at fair value on a recurring basis. The Company assesses the levels for the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognitions of transfers between levels of the fair value hierarchy. For the years ended December 31, 2015 and 2014, there were no transfers in or out of Level 1, 2, and 3. December 31, 2015 Total Level 1 Level 2 Level 3 (in thousands) Assets: Certificate of deposits (1) $ 3,300 $ 3,300 $ — $ — Fixed maturities investments: U.S. government and agency securities $ 25,103 $ 22,361 $ 2,742 $ — States, municipalities and political subdivisions 186,115 — 186,115 — Special revenue 42,408 — 42,408 — Industrial and miscellaneous 114,675 — 114,675 — Redeemable preferred stocks 3,482 3,482 — — Total fixed maturities investments $ 375,083 $ 29,143 $ 345,940 $ — Nonredeemable preferred stocks 12,738 12,738 — — Equity securities 15,575 15,575 — — Total equity securities $ 28,313 $ 28,313 $ — $ — Total investments $ 403,396 $ 57,456 $ 345,940 $ — December 31, 2014 Total Level 1 Level 2 Level 3 (in thousands) Fixed maturities investments: U.S. government and agency securities $ 7,008 $ 3,211 $ 3,797 $ — States, municipalities and political subdivisions 42,120 — 42,120 — Special revenue 134,381 — 134,381 — Industrial and miscellaneous 106,005 — 106,005 — Redeemable preferred stocks 3,571 3,571 — — Total fixed maturities investments $ 293,085 $ 6,782 $ 286,303 $ — Nonredeemable preferred stocks 11,678 11,678 — — Equity securities 19,547 19,547 — — Total equity securities $ 31,225 $ 31,225 $ — $ — Total investments $ 324,310 $ 38,007 $ 286,303 $ — (1) Includes commercial paper with a maturity of three months or less at the time of purchase of $3.3 million classified in cash and cash equivalents. We believe the carrying amounts of our cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities approximate their fair values at December 31, 2015 and December 31, 2014, due to the immediate or short term maturity of these instruments. Non-recurring fair value measurements Assets and liabilities that are measured at fair value on a non-recurring basis include intangible assets and goodwill which are recognized at fair value during the period in which an acquisition is completed, from updated estimates and assumptions during the measurement period, or when they are considered to be impaired. These non-recurring fair value measurements, primarily for intangible assets acquired, were based on Level 3 unobservable inputs. During 2015 these non-recurring fair values inputs consisted of customer relations, non-compete, brand name and goodwill. In the event of an impairment, we determine the fair value of the goodwill and intangible assets using a combination of a discounted cash flow approach and market approaches, which contain significant unobservable inputs and therefore is considered a Level 3 fair value measurement. The unobservable inputs in the analysis generally include future cash flow projections and a discount rate. There were no non-recurring fair value adjustments to intangible assets and goodwill during 2015, 2014 and 2013 except for certain fair value measurements to reassign goodwill to the initial fair value estimates of the assets acquired assumed at the acquisition date from updated estimates and assumptions completed during the measurement period. The measurement period may be up to one year from the acquisition date. We record any measurement period adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 6. Property and Equipment Property and equipment, net consists of the following at December 31, 2015 and 2014 (in thousands): December 31, 2015 December 31, 2014 (In thousands) Land $ 2,582 $ 2,582 Building 9,599 9,599 Computer hardware and software 2,502 2,155 Office furniture and equipment 634 445 Tenant and leasehold improvements 3,300 2,812 Vehicle fleet 693 421 Total, at cost 19,310 18,014 Less: accumulated depreciation and amortization 2,199 927 Property and equipment, net $ 17,111 $ 17,087 Depreciation expense for the years ended December 31, 2015, 2014 and 2013 was $1.3 million, $0.8 million, $0.2 million, respectively. The Company’s real estate consists of 13 acres of land, two buildings with a gross area of 148,000 square feet and a parking garage. 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 occupies space in one of the buildings. Expected annual rental income due under non-cancellable operating leases for our real estate properties is as follows (in thousands): Year Amount January 1 to December 31, 2016 2,483 January 1 to December 31, 2017 2,529 January 1 to December 31, 2018 2,394 January 1 to December 31, 2019 2,396 January 1 to December 31, 2020 2,497 Thereafter 6,723 |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition | Note 7. Acquisition On July 31, 2015, the Company acquired BRC Restoration Specialists, Inc., a Florida based provider of restoration services and emergency and recovery assistance for a purchase price in aggregate of $8 million in cash and common stock. The Company issued 79,850 shares of its common stock to BRC at a fair value of $2.0 million as part of the purchase price and paid in cash $6.0 million. For the purchase price allocation the Company utilized a third party to calculate the valuation. The excess of the cost of the BRC acquisition over the net of amounts assigned to the fair value of the assets acquired is recorded as goodwill. Based on the fair valuation, the purchase price is allocated as follows: Purchase Price Allocation (in thousands): BRC Restoration Specialists, Inc. Preliminary value assigned Property, plant and equipment $ 122 Intangibles 2,200 Goodwill 5,678 Total purchase price $ 8,000 As of December 31, 2015, the Company recorded goodwill and intangibles in other assets. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | Note 8. 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 DPAC costs will be fully recoverable in the near term. The table below depicts the activity with regard to DPAC for the years ended December 31, 2015 and 2014: For the Year Ended December 2015 2014 (In thousands) Beginning Balance $ 24,370 $ 9,765 Policy acquisition costs deferred 67,616 51,115 Amortization (57,186 ) (36,510 ) Ending Balance $ 34,800 $ 24,370 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Reinsurance | Note 9. Reinsurance The Company’s reinsurance program is designed, utilizing the Company’s 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. 2013 – 2014 Reinsurance Program 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 June 1, 2013 to May 31, 2014 reinsurance program. • The Company’s Retention. • Layers Below FHCF • FHCF Layer. • Aggregate Coverage. 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. 2014 – 2015 Reinsurance Program 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. 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 June 1, 2014 to May 31, 2015 reinsurance program. • The Company’s Retention • Layers Below FHCF • FHCF Layer • CAT Bond Layer • Aggregate Coverage For a first catastrophic event, the Company’s reinsurance program provides coverage for $990 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 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 purchased reinstatement premium protection insurance to provide an additional $185 million of coverage. The Company aggregate reinsurance layer also provides coverage for second and subsequent events to the extent not exhausted in prior events. 2015 – 2016 Reinsurance Program During the second quarter of 2015, the Company placed its reinsurance program for the period from June 1, 2015 through May 31, 2016. 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 2015-2016 reinsurance program incorporates the mandatory coverage required by law to be placed with FHCF. For the 2015 hurricane season, the Company selected 75% participation in the 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 June 1, 2015 to May 31, 2016 reinsurance program. • The Company’s Retention . For the first catastrophic event, the Company has a primary retention of the first $35 million of losses and loss adjustment expenses, of Osprey is responsible for $20 million. For a second event, Heritage P&C’s primary retention decreases to $5 million and Osprey is responsible for $10 million. To the extent that there is reinsurance coverage remaining, Heritage P&C has a $5 million primary retention for events beyond the second 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 $440 million of reinsurance from third party reinsurers. Through the payment of a reinstatement premium, the Company is able to reinstate the full amount of this reinsurance one time. To the extent that $440 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. A portion of this coverage wraps around the FHCF and provides coverage alongside and above the FHCF. • FHCF Layer • CAT Bond Layer alongside the FHCF • CAT Bond Layer above the FHCF • Aggregate Coverage For a first catastrophic event, our reinsurance program provides coverage for $1.8 billion of losses and loss adjustment expenses, including our retention, and we are responsible for all losses and loss adjustment expenses in excess of such amount. For subsequent catastrophic events, our total available coverage depends on the magnitude of the first event, as we may have coverage remaining from layers that were not previously fully exhausted. We have also purchased reinstatement premium protection insurance to provide an additional $440.0 million of coverage. Our aggregate reinsurance layer also provides coverage for second and subsequent events to the extent not exhausted in prior events. In total, we have purchased $2.3 billion of potential reinsurance coverage, including our retention, for multiple catastrophic events. Our ability to access this coverage, however, will be subject to the severity and frequency of such events. As of August 31, 2015, the peak of the hurricane season, our total insured value was $76.9 billion, and we may experience significant losses and loss adjustment expenses in excess of our retention. The chart below provides a graphic illustration of the structure and operations of our 2015-2016 catastrophe reinsurance program. Property Per Risk Coverage The Company also purchased property per risk coverage for losses and loss adjustment expenses in excess of $1 million per claim. The limit recovered for an individual loss is $9 million and total limit for all losses is $27 million. There are two reinstatements available with additional premium due based on the amount of the layer exhausted. In addition, the Company purchased facultative reinsurance in excess of $10 million for any commercial properties it insured that the total insured value exceeded $10 million. Assumption Transactions and Assumed Premiums Written 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 consolidated statements of income and comprehensive income: For the Year Ended December 31, 2015 2014 2013 (In thousands) Premium written: Direct $ 487,583 $ 283,295 $ 120,893 Assumed 98,515 153,112 97,644 Ceded (183,841 ) (99,798 ) (75,459 ) Net premium written $ 402,257 $ 336,609 $ 143,078 Change in unearned premiums: Direct $ (103,138 ) $ (80,617 ) $ (74,797 ) Assumed 41,780 (44,276 ) (3,781 ) Ceded 35,369 11,896 30,659 Net decrease (increase) $ (25,989 ) $ (112,997 ) $ (47,919 ) Premiums earned: Direct $ 384,445 $ 202,678 $ 46,096 Assumed 140,295 108,836 93,863 Ceded (148,472 ) (87,902 ) (44,800 ) Net premiums earned $ 376,268 $ 223,612 $ 95,159 Losses and LAE incurred: Direct $ 107,552 $ 64,686 $ 14,674 Assumed 33,639 24,874 23,827 Ceded — — — Net losses and LAE incurred $ 141,191 $ 89,560 $ 38,501 The following table highlights the effects that the Company’s assumption transactions have on unpaid losses and loss adjustment expenses and unearned premiums: For the Year Ended December 31, 2015 2014 2013 (In thousands) Unpaid losses and loss adjustment expenses: Direct $ 60,223 $ 34,420 $ 10,037 Assumed 23,499 17,049 9,307 Gross unpaid losses and LAE 83,722 51,469 19,344 Ceded — — — Net unpaid losses and LAE $ 83,722 $ 51,469 $ 19,344 Unearned premiums: Direct $ 258,754 $ 155,617 $ 75,000 Assumed 43,739 85,519 41,243 Gross unearned premiums 302,493 241,136 116,243 Ceded (78,517 ) (43,148 ) (31,252 ) Net unearned premiums $ 223,976 $ 197,988 $ 84,991 There were no amounts receivable with respect to reinsurers at December 31, 2015, 2014 or 2013. Thus, there were no concentrations of credit risk associated with reinsurance receivables as of December 31, 2015, 2014 and 2013. The percentages of assumed premiums earned to net premiums earned for the periods ended December 31, 2015, 2014 and 2013 were 37.3%, 48.7% and 98.6%, respectively. |
Reserve For Unpaid Losses
Reserve For Unpaid Losses | 12 Months Ended |
Dec. 31, 2015 | |
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 Year Ended December 31, 2015 2014 2013 Balance, beginning of period $ 51,469 $ 19,344 $ 1,393 Less: reinsurance recoverable on paid losses — — — Net balance, beginning of period 51,469 19,344 1,393 Incurred related to: Current year 146,484 89,783 38,968 Prior years (5,293 ) (223 ) (467 ) Total incurred 141,191 89,560 38,501 Paid related to: Current year 81,673 45,618 20,010 Prior years 27,265 11,817 540 Total paid 108,938 57,435 20,550 Net balance, end of period 83,722 51,469 19,344 Plus: reinsurance recoverable on unpaid losses — — — Balance, end of period $ 83,722 $ 51,469 $ 19,344 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 during the year ended December 31, 2015 reflect a prior year redundancy of $5.3 million associated with management’s best estimate of the actuarial loss and LAE reserves with consideration given to a longer history of Company specific experience. Additionally, during the year ended December 31, 2015, the Company experienced favorable development of losses and LAE reserves for its personal and commercial lines. The Company’s losses incurred related to prior years reflect redundancies of $223,000 and $467,000 for the years ended December 31, 2014 and 2013, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes The following table summarizes the provision for income taxes: For the Year Ended December 31, 2015 2014 2013 (In thousands) Federal: Current $ 48,524 $ 26,440 $ 19,066 Deferred 970 (3,219 ) (769 ) Provision for Federal income tax expense 49,494 23,221 18,297 State: Current 8,238 4,479 3,075 Deferred 46 (545 ) (124 ) Provision for State income tax expense 8,284 3,934 2,951 Provision for income taxes $ 57,778 $ 27,155 $ 21,248 The following table sets forth the components of income before income taxes for the years ended December 31, 2015, 2014 and 2013 (in thousands): 2015 2014 2013 Pass-through entities (Through May 22, 2014) $ — $ 2,668 $ 1,888 Non-pass through entities 150,290 71,584 53,573 Income before income taxes $ 150,290 $ 74,252 $ 55,461 The actual income tax expense differs from the expected income tax expense computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows: For the Year Ended December 31, 2015 2014 2013 Expected income tax expense at federal rate 35.0 % 35.0 % 35.0 % State tax expense, net of federal tax benefits 3.6 % 3.6 % 3.6 % Permanent items -1.0 % 0.0 % 0.0 % Other 0.9 % -2.0 % -0.3 % Reported income tax expense 38.5 % 36.6 % 38.3 % The effective income tax rate differs from the statutory income tax rate in 2015, 2014 and 2013 primarily due to state income taxes and the fact that a portion of the Company’s consolidated pre-tax income through May 22, 2014 was earned at our limited liability companies that had elected to be taxed under the Partnership provisions of the Internal Revenue Code. Accordingly, all income or losses and applicable tax credits generated by these entities through that date are reported on the common shareholders’ individual tax returns, and no federal income taxes were recorded by the Company. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The table below summarizes the significant components of our net deferred tax assets: For the Year Ended December 31, 2015 2014 Deferred tax assets: (In thousands) Unearned premiums $ 17,979 $ 15,567 Tax-related discount on loss reserve 1,140 1,022 Unrealized loss 1,277 — Stock-based compensation 1,617 1,258 Other 257 545 Total deferred tax assets 22,269 18,392 Deferred tax liabilities: Deferred acquisition costs 13,424 9,401 Unrealized gain — 1,081 Property and equipment 473 633 Other 408 655 Total deferred tax liabilities 14,305 11,770 Less: valuation allowance — — Net deferred tax assets $ 7,964 $ 6,622 In assessing the net carrying amount of deferred tax assets, we consider whether it is more likely than not that we will not realize some portion or all of the deferred tax assets. The ultimate realization of deferred tax assets depends upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The statute of limitations related to our federal and state income tax returns remains open from our first filings for 2012 through 2014. No taxing authorities are currently examining any of our federal or state income tax returns. The reinsurance affiliate, which is based in Bermuda, made an irrevocable election under section 953(d) of the U.S. Internal Revenue Code of 1986, as amended, to be treated as a domestic insurance company for U.S. Federal income tax purposes. As a result of this election, our reinsurance subsidiary is subject to United States income tax as if it were a U.S. corporation. As of December 31, 2015, the Company had no uncertain tax positions or unrecognized tax benefits that, if recognized, would impact the effective income tax rate. |
Statutory Accounting and Regula
Statutory Accounting and Regulations | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Statutory Accounting and Regulations | Note 12. Statutory Accounting and Regulations 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, restrict insurers’ ability to pay dividends, specify allowable investment types and investment mixes, and subject insurers to assessments. The Company’s insurance subsidiary, Heritage P&C, files with the insurance regulatory authorities an “Annual Statement”. For the years ended December 31, 2015 and 2014, the Company’s insurance subsidiary recorded statutory net income of $45.4 million and $9.8 million, respectively. The Company’s insurance subsidiary is domiciled in Florida, and the laws of that state require that the Company’s insurance subsidiary maintain capital and surplus equal to the greater of $15 million or 10% of its liabilities. The Company’s statutory capital surplus was $216.6 million and $172.7 million at December 31, 2015 and 2014, respectively. State law also requires the Company’s insurance subsidiary to adhere to prescribed premium-to-capital surplus ratios, with which the subsidiary is in compliance. In 2014, the Florida legislature passed Senate Bill 1308, which was signed into law by the Governor. Among other things, this bill incorporates the National Association of Insurance Commissioners (“NAIC”) recommendations with regard to expansion of the regulation of insurers to include non-insurance entity affiliates. Specifically, the new law permits the Office of Insurance Regulation to examine affiliated entities within an insurance holding company system in order to ascertain the financial condition of the insurer. The law also provides for certain disclosures with regard to enterprise risk, which are satisfied by the provision of related information filed with the SEC. This legislation was designed to bolster regulation for insurer solvency and governance and became effective January 1, 2015. The NAIC published risk-based capital guidelines for insurance companies that are designed to assess capital adequacy and to raise the level of protection that statutory surplus provides for policy holders. Most states, including Florida, have enacted the NAIC guidelines as statutory requirements, and insurers having less statutory surplus than required will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. State insurance regulatory authorities could require an insurer to cease operations in the event the insurer fails to maintain the required statutory capital. The level of required risk-based capital (“RBC”) is calculated and reported annually. There are five outcomes to the RBC calculation set forth by the NAIC which are as follows: 1. No Action Level—If RBC is greater than 200%, no further action is required. 2. Company Action Level—If RBC is between 150%-200%, the insurer must prepare a report to the regulator outlining a comprehensive financial plan that identifies conditions that contributed to the insurer’s financial condition and proposes corrective actions. 3. Regulatory Action Level—If RBC is between 100%-150%, the state insurance commissioner is required to perform any examinations or analyses to the insurer’s business and operations that he or she deems necessary as well as issuing appropriate corrective orders. 4. Authorized Control Level—If RBC is between 70%-100%, this is the first point that the regulator may take control of the insurer even if the insurer is still technically solvent and is in addition to all the remedies available at the higher action levels. 5. Mandatory Control Level—If RBC is less than 70%, the regulator is required to take steps to place the insurer under its control regardless of the level of capital and surplus. At December 31, 2014, the ratio of adjusted capital to authorized control level risk based capital was 368%. Florida law permits an insurer to pay dividends or make distributions out of that part of statutory surplus derived from net operating profit and net realized capital gains. The law further provides calculations to determine the amount of dividends or distributions that can be made without the prior approval of the insurance regulatory authority and the amount of dividends or distributions that would require prior approval of the insurance regulatory authority. Statutory risk-based capital requirements may further restrict our insurance subsidiary’s ability to pay dividends or make distributions if the amount of the intended dividend or distribution would cause statutory surplus to fall below minimum risk-based capital requirements. However, the consent order authorizing our commencement of operations precludes us from paying dividends without the prior approval of FLOIR until July 31, 2017. Florida law limits an insurer’s investment in equity instruments and also restricts investments in medium to low quality debt instruments. The Company was in compliance with all investment restrictions at December 31, 2015 and 2014. Governmental agencies or certain quasi-governmental entities can levy assessments upon the Company in the states in which the Company writes policies. See Note 2 for a description of how the Company recovers assessments imposed upon it. Governmental agencies or certain quasi-governmental entities can also levy assessments upon policyholders, and the Company collects the amount of the assessments from policyholders as surcharges for the benefit of the assessing agency. We currently collect assessments levied upon policyholders on behalf of Citizens in the amount of 1.0%, and on behalf of FHCF in the amount of 1.3%. The Company multiplies the premium written on each policy by these assessment percentages to determine the additional amount that it will collect from the policyholder and remit to the assessing agencies. The Company reported its insurance subsidiary’s assets, liabilities and results of operations in accordance with GAAP, which varies from statutory accounting principles prescribed or permitted by state laws and regulations, as well as by general industry practices. The following items are principal differences between statutory accounting and GAAP: • Statutory accounting requires that the Company excluded certain assets, called non-admitted assets, from the balance sheet. • Statutory accounting requires the Company to expense policy acquisition costs when incurred, while GAAP allows the Company to defer and amortize policy acquisition costs over the estimated life of the policies. • Statutory accounting dictates how much of a deferred income tax asset the Company can admit on a statutory balance sheet. • Statutory accounting requires that the Company record certain investments at cost or amortized cost, while the Company records other investments at fair value; however, GAAP requires that we record all available for sale investments at fair value. • Statutory accounting requires that surplus notes, also known as surplus debentures, be recorded in statutory surplus, while GAAP requires the Company to record surplus notes as a liability. • Statutory accounting allows bonds to be carried at amortized cost or fair value based on the rating received from the Securities Valuation Office of the NAIC, while they are recorded at fair value for GAAP if designated as available for sale. • Statutory accounting allows ceding commission income to be recognized when written if the cost of acquiring and renewing the associated business exceeds the ceding commissions, but under GAAP such income is deferred and recognized over the coverage period. • Statutory accounting requires that unearned premiums and loss reserves be presented net of related reinsurance rather than on a gross basis under GAAP. • Statutory accounting requires a provision for reinsurance liability be established for reinsurance recoverable on paid losses aged over ninety days and for unsecured amounts recoverable from unauthorized reinsurers. Under GAAP there is no charge for uncollateralized amounts ceded to a company not licensed in the insurance affiliate’s domiciliary state and a reserve for uncollectable reinsurance is charged through earnings rather than surplus or equity. • Statutory accounting requires an additional admissibility test outlined in Statements on Statutory Accounting Principles, No. 101 and the change in deferred income tax is reported directly in capital and surplus, rather than being reported as a component of income tax expense under GAAP. The table below reconciles the Company’s consolidated GAAP net income (loss) to statutory net income (loss) of its insurance subsidiary (in thousands): For the Year Ended December 31, 2015 2014 2013 Consolidated GAAP net income $ 92,512 $ 47,097 $ 34,213 Increase (decrease) due to: Deferred income taxes 1,755 (3,764 ) (893 ) Deferred policy acquisition costs (10,430 ) (14,605 ) (9,733 ) Surplus note interest (347 ) (1,445 ) (278 ) Non-statutory subsidiaries (36,569 ) (16,788 ) (2,191 ) Equity compensation (1,074 ) (1,106 ) — Allowance for doubtful accounts (250 ) 250 — Other — 199 (128 ) Statutory net income of insurance subsidiary $ 45,597 $ 9,838 $ 20,990 The table below reconciles the Company’s consolidated GAAP stockholders’ equity to surplus with regards to policyholders of the Company’s insurance subsidiary (in thousands): For the Year Ended December 31, 2015 2014 2013 Consolidated GAAP stockholders’ equity $ 356,553 $ 255,089 $ 79,984 Increase (decrease) due to: Ownership shares issued (201,892 ) (176,464 ) (72,948 ) Dividends to shareholders (1,578 ) — — Excess tax benefit share-based compensation 739 — — Redeemable shares classified as temporary equity — — 20,921 Subsidiary capitalization — — 20,000 Surplus debentures and paid in surplus 129,180 128,106 17,000 Deferred policy acquisition costs (34,800 ) (24,370 ) (9,765 ) Deferred income taxes 8,232 8,308 2,891 Non-admitted assets (400 ) (320 ) (511 ) Surplus debenture interest 339 (1,723 ) (278 ) Non-statutory subsidiaries (38,527 ) (10,825 ) 5,355 Unrealized investment losses/gains 955 (2,227 ) 746 Equity compensation (2,180 ) (3,106 ) — Allowance for doubtful accounts — 250 — Other — (7 ) (341 ) Statutory surplus as regards policyholders of insurance subsidiary $ 216,621 $ 172,711 $ 63,054 The Company’s reinsurance subsidiary, Osprey Re Ltd (“Osprey”), which was incorporated on April 23, 2013, is licensed as a Class 3a Insurer under The Bermuda Insurance Act 1978 and related regulations. Osprey is required to maintain statutory capital and surplus of at least $1.0 million and maintain liquid resources or have access to liquid resources equal to its maximum obligation for which it is responsible under the terms of any reinsurance arrangement to which it is a party. In May 2013, the Company contributed $1.7 million in cash to Osprey. Osprey secures its reinsurance obligations to our insurance subsidiary with an irrevocable letter of credit in the amount of $10 million. These resources, in addition to premiums ceded to it by our insurance subsidiary are sufficient to comply with regulatory requirements as of December 31, 2015. Bermuda’s standard for financial statement reporting is U.S. GAAP. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. Commitments 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. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 14. Other Liabilities At December 31, 2015 and 2014, other liabilities included approximately $4.9 million and $21.1 million related to amounts owed to Citizens for policies assumed by the Company, where the policyholder subsequently opted-out of the assumption program. |
Accrued Bonus Compensation
Accrued Bonus Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Compensation Related Costs [Abstract] | |
Accrued Bonus Compensation | Note 15. Accrued Bonus Compensation For the year ended December 31, 2015, the Company recognized employee bonus compensation expense of approximately $14.1 million based on 8.5% of earnings before interest, taxes, depreciation and amortization, which the Company paid out in cash of approximately $12.1 million as of December 31, 2015. For the year ended December 31, 2014, the Company accrued bonuses of $7.7 million based on 8.5% of earnings before interest, taxes, depreciation and amortization, which was paid out in cash as of December 31, 2014. For the year ended December 31, 2013, the Company awarded its directors, executive officers and select employees’ bonus compensation of $11.5 million in the aggregate for 2013, comprised of $6.4 million in cash and $5.1 million in ownership equity. The equity component was issued in the form of 389 ownership shares at a value of $13,125 per share. The per share value was determined based on an independent valuation, and the Company evaluated the assumptions, methodologies and conclusions associated with that valuation. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 16. Related Party Transactions The Company has been party to various related party transactions involving certain of its officers, directors and significant stockholders as set forth below. 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 December 31, 2015 and December 31, 2014. • 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 years ended December 31, 2015, 2014 and 2013 the Company incurred rent expense of approximately $0, $70,000 and $488,000 respectively. • 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. As of December 31, 2015 and 2014, the Company has made payments of $113,400 and $93,000 under this agreement, respectively. Fees for additional services, such as the oversight of construction activity, are provided for on an as needed basis. • The Company entered into an agreement for the construction of a parking facility for its Clearwater property with a relative of one of its directors. As of December 31, 2014, the Company has made payments of approximately $2.6 million for engineering, construction and architectural services. The project was completed during September 2014. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Note 17. 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 years ended December 31, 2015 and 2014, the Company’s contributions to the plan on behalf of the participating employees were $276,300 and $209,400, respectively. The Company provides for its employees’ healthcare benefits. During the third quarter of 2015 the Company changed the healthcare plan from a fully insured plan to a partially self-insured plan. For the years ended December 31, 2015 and 2014, the Company incurred medical premium costs in aggregate of $1.4 million and $646,900, respectively. The Company also recorded approximately $238,000 as unpaid claims as of December 31, 2015. A stop loss reinsurance policy caps the maximum loss that could be incurred by the Company under the self-insured Plan. The Company’s stop loss coverage per employee is $60,000 for which any excess cost would be covered by the reinsurer. There is an aggregate limit for losses in excess of $1.5 million which would provide up to $1.0 million of coverage. Any excess of the $1.5 million retention and the $1 million of aggregate coverage would be borne by the Company. The aggregate stop loss commences once our expenses exceeds 125% of the annual aggregate expected claims. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Equity | Note 18. Equity The total amount of our authorized capital stock consists of 50,000,000 shares of common stock, $0.0001 par value, and 5,000,000 shares of preferred stock, $0.0001 par value. As of December 31, 2015, the Company had 30,441,410 shares of common stock outstanding and no shares of preferred stock outstanding. 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 (excluding restricted stock) are fully paid and nonassessable. Equity Issuances As of December 31, 2014, there were 29,794,960 shares of common stock outstanding and 30,600 warrants and 1,685,923 stock options outstanding representing $188.3 million of additional paid-in capital. The following discloses the changes in the Company’s stockholders’ equity during 2015. First Quarter 2015 In March 2015, the Company issued 12,500 shares of common stock upon the exercise of 12,500 stock options granted at an exercise price of $16.89 per share and received proceeds of $211,125. Second Quarter 2015 In May 2015, the Company issued 30,600 shares of common stock upon the exercise of 30,600 warrants for gross proceeds of $180,000 or an exercise price of $5.88 per share of common stock. In May and June 2015, the Company issued an aggregate of 157,500 shares of common stock upon the exercise of 137,500 and 20,000 stock options which were granted at an exercise price of $16.89 and $14.02 per share and received proceeds of $2,322,375 and $280,400, respectively. Third Quarter 2015 In July and August 2015, the Company issued an aggregate of 210,000 shares of common stock upon the exercise of 60,000 and 150,000 stock options, which were granted at an exercise price of $14.02 and $16.89 per share and received proceeds of $841,195 and $2,533,485, respectively. In August 2015, in connection with the acquisition of BRC Restoration Specialists, Inc., (“BRC”) the Company issued 79,850 shares of common stock with a fair value of approximately $2,000,000. Fourth Quarter 2015 In November and December 2015, the Company issued an aggregate of 156,000 shares of common stock upon the exercise of 120,000 and 36,000 stock options, which were granted at an exercise price of $16.89 and $14.02 per share and received proceeds of $2,026,800 and $504,720, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 19. Stock-Based Compensation The Company has adopted the Heritage Insurance Holdings, Inc., Omnibus Incentive Plan (the “Plan”) effective on May 22, 2014. The Plan authorized 2,981,737 shares of common stock for issuance under the Plan for future grants. At December 31, 2015 and 2014, there were 170,814 and 1,295,814 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 On September 24, 2014, the Company granted options to purchase 359,000 shares to certain employees and directors. No stock options were granted in 2013. These options were awarded with the strike price set at the fair market value at the grant date, and vested on March 15, 2015 with an expiration date of September 24, 2017. The fair value of each option grant, which was $2.70 per option granted in 2014, was estimated on the date of grant using the Black-Scholes option-pricing model. On December 2, 2014, the Company granted options to purchase 1,326,923 shares to certain employees and directors. The employee options were awarded with the strike price set at the fair market value at the grant date, and vest at 50 percent upon grant and 50 percent on April 30, 2015 with an expiration date of December 2, 2017. The directors’ options were awarded with the strike price set at the fair market value at the grant date, and vest quarterly commencing on January 1, 2015 with an expiration date of December 2, 2017. The fair value of each option grant, which ranged from $3.07 to $3.54 per option granted in 2014, is estimated on the date of grant using the Black-Scholes option-pricing model. The following table provides the assumptions utilized in the Black-Scholes model for options granted during the year ended December 31, 2014. No options were granted during the years ended December 31, 2015 and 2013. December 2, 2014 September 24, 2014 Weighted-average risk-free interest rate 0.51 0.42 Expected term of option in years 1.60 1.70 Weighted-average volatility 35.56 % 36.47 % Dividend yield 0 % 0 % Weighted average grant date fair value per share $ 3.19 $ 2.70 A summary of information related to stock options outstanding at December 31, 2015 is as follows: Shares Weighted-Average Grant Date Fair Value Balance at December 31, 2013 — Granted 1,685,923 $ 3.09 Exercised — Forfeited — Balance at December 31, 2014 1,685,923 $ 3.09 Granted — Exercised (536,000 ) $ 16.27 Balance at December 31, 2015 1,149,923 $ 2.99 Vested and exercisable as of December 31, 2015 1,149,923 $ 2.99 Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding Average Life (in years) Weighted Exercise Price Number Exercisable Average Life (in years) Weighted Exercise Price $ 14.02 243,000 1.75 $ 14.02 243,000 1.75 $ 14.02 16.89 906,923 2 16.89 906,923 2 16.89 $ 15.46 1,149,923 1.875 $ 15.46 1,149,923 1.875 $ 15.46 The Company has recognized $1.9 million and $3.3 million of compensation expense during the years ended December 31, 2015 and 2014 relative to the stock options granted above. Restricted Stock The Company has also granted shares of its common stock subject to certain restrictions under the Plan. Restricted stock awards granted to employees vest in equal installments generally over a five year period from the grant date subject to the recipient’s continued employment. The fair value of restricted stock awards are estimated by the market price at the date of grant and amortized on a straight-line basis to expense over the period of vesting. Recipients of restricted stock awards have the right to receive dividends. No restricted stock was granted during the years ended December 31, 2014 and 2013. Restricted stock activity during the year ended December 31, 2015 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2014 — — Granted 1,125,000 $ 21.40 Vested — — Canceled and forfeited — — Non-vested, at December 31, 2015 1,125,000 $ 21.40 Awards are being amortized to expense over the five year vesting period. The following table summarizes information about deferred tax benefits recognized and tax benefits realized to restricted stock awards and related paid dividends, and the fair value of vested restricted stock for the year ended December 31, 2015 and 2014, respectively. For the Year Ended December 31, 2015 Deferred tax benefit recognized $ 76 Tax benefit realized for restricted stock and paid dividends 357 Fair value of vested restricted stock — |
Stock Split
Stock Split | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Stock Split | Note 20. 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 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. |
Condensed Financial Information
Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Financial Information of Registrant | Note 21. Condensed Financial Information of Registrant Heritage Insurance Holdings, Inc. (the “parent company”) has no long term debt obligations, guarantees or material contingencies as of December 31, 2015, 2014 and 2013. The following summarizes the major categories of the parent company’s financial statements (in thousands, except share and per share data): As of December 31, 2015 2014 (In thousands) ASSETS Cash and cash equivalents $ 36,762 $ 30,927 Investment in and advances to subsidiaries 166,597 218,600 Other assets 7,355 6,473 Total Assets $ 210,714 $ 256,000 LIABILITIES AND STOCKHOLDERS' EQUITY Other liabilities 349 911 Total Liabilities $ 349 $ 911 Paid-in-capital 201,892 188,345 Accumulated other comprehensive income — 1,723 Retained earnings 8,473 65,021 Total Stockholders' Equity $ 210,365 $ 255,089 Total Liabilities and Stockholders' Equity $ 210,714 $ 256,000 For the Year Ended December 31, 2015 2014 2013 (In thousands) Revenue: Other income $ 1,129 $ 1,896 $ 1,075 Total revenue 1,129 1,896 1,075 Expenses: General and administrative 9,036 6,649 4,119 Interest — — 16 Total expenses $ 9,036 $ 6,649 $ 4,135 Loss before income taxes and equity in net income of subsidiaries (7,907 ) (4,753 ) (3,060 ) Benefit from income taxes (2,227 ) (801 ) — Loss before equity in net income of subsidiaries (5,680 ) (3,952 ) (3,060 ) Equity in net income of subsidiaries 98,192 51,049 37,273 Net income $ 92,512 $ 47,097 $ 34,213 Weighted average shares outstanding Basic 30,056,491 24,568,876 14,313,150 Diluted 30,326,468 25,816,590 14,473,800 Earnings per share Basic $ 3.08 $ 1.92 $ 2.39 Diluted $ 3.05 $ 1.82 $ 2.36 For the Year Ended December 31, 2015 2014 2013 (In thousands) Net cash provided by (used in) operating activities $ 7,935 $ 1,280 $ 2,925 Investing Activities Dividends received from subsidiaries 21,400 16,099 — Investments and advances to subsidiaries (32,400 ) (98,469 ) (26,895 ) Net cash used in investing activities (11,000 ) (82,370 ) (26,895 ) Financing Activities Proceeds from issuance of equity from IPO and private placement, net of discount fee and direct costs of issuance — 78,670 — Proceeds from exercise of stock options and warrants 8,900 22,515 — Proceeds from issuance of equity and redeemable shares — 88 33,630 Net cash provided by financing activities 8,900 101,273 33,630 Increase in cash and cash equivalents 5,835 20,183 8,660 Cash and cash equivalents at beginning of period 30,927 10,744 2,084 Cash and cash equivalents at end of year $ 36,762 $ 30,927 $ 10,744 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) - Summary of Quarterly Consolidated Results of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) - Summary of Quarterly Consolidated Results of Operations | Note 22. Quarterly Results for 2015 and 2014 (unaudited) The following table provides a summary of quarterly results for the periods presented (in thousands, except per share data): For the year ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 101,489 $ 94,846 $ 82,361 $ 97,572 Investment income $ 1,633 $ 2,090 $ 1,973 $ 1,725 Total revenues $ 105,128 $ 99,088 $ 89,244 $ 101,332 Total expenses $ 56,836 $ 58,098 $ 61,529 $ 68,039 Net income $ 30,056 $ 25,400 $ 16,813 $ 20,243 Basic earnings per share $ 1.01 $ 0.85 $ 0.56 $ 0.67 Diluted earnings per share $ 1.00 $ 0.84 $ 0.55 $ 0.66 For the year ended December 31, 2014 Net premiums earned $ 43,878 $ 44,295 $ 55,527 $ 79,912 Investment income $ 618 $ 719 $ 1,126 $ 1,386 Total revenues $ 43,878 $ 46,529 $ 58,013 $ 85,400 Total expenses $ 32,057 $ 31,429 $ 41,904 $ 54,178 Net income $ 7,888 $ 9,566 $ 9,965 $ 19,678 Basic earnings per share $ 0.48 $ 0.43 $ 0.33 $ 0.67 Diluted earnings per share $ 0.42 $ 0.39 $ 0.33 $ 0.67 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 23. Subsequent Events During February 2016, the Company entered into two catastrophe reinsurance agreements with Citrus Re Ltd. The agreements provide for three years of coverage from catastrophe losses caused by certain named storms, including hurricanes, beginning on June 1, 2016. The Company pays a periodic premium to Citrus Re Ltd during this three-year risk period. Citrus Re Ltd issued $250 million of principal-at-risk variable notes due February 2019 to fund the reinsurance trust account and its obligations to the Company under the reinsurance agreements. The Class D-50 notes provide up to $150 million of coverage and the Class E-50 notes provide $100 million of coverage. Proceeds from the Class D-50 and Class E-50 notes provide reinsurance coverage for a portion of the sliver of the catastrophe coverage that had previously been provided by the Florida Hurricane Catastrophe Fund. The limit of coverage is fully collateralized by a reinsurance trust account for the benefit of the Company. 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 reinsurance agreements related to the 2016 notes provide coverage from catastrophe losses incurred by the Company in Florida and other states and also provides coverage to future affiliates once named. Zephyr Insurance Company (“ZIC”) is specifically covered with the expectation that the Company acquires Zephyr Acquisition Company (“ZAC”); if ZAC is not ultimately acquired, ZIC will be not covered under these reinsurance agreements. The Company received authorization to write business in South Carolina in January 2016 and began writing business in North Carolina in January 2016. The Company has also submitted applications Massachusetts, Mississippi, Georgia and Alabama. In February 2016, the Commissioner of the Hawaii Division of Insurance approved the filing for the indirect acquisition of ZIC. The Company anticipates to complete the acquisition of ZAC and its wholly-owned subsidiaries, HI Holdings, Inc. and Zephyr Insurance Company, Inc. (“Zephyr”), a specialty insurance provider in Hawaii in March 2016. The acquisition purchase price is for approximately $120 million adjusted by any increase or decrease in stockholders equity of ZAC. On March 1, 2016, the Company’s Board of Directors declared a $0.05 per share quarterly cash dividends payable on April 5, 2016, to stockholders of record on March 15, 2016. |
Significant Accounting Polici31
Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Heritage Insurance Holdings, Inc. and its wholly-owned subsidiaries. The accompanying consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest (none of which are variable interest entities). All intercompany accounts and transactions have been eliminated in consolidation. 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 for 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. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with United States Generally Accepted Accounting Principles (“U.S. GAAP”) requires us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and accompanying notes. We evaluate our estimates on an ongoing basis when updated information related to such estimates becomes available. We base our estimates on historical experience and information available to us at the time these estimates are made. Actual results could differ materially from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company’s cash and cash equivalents include demand deposits with financial institutions and short-term, highly-liquid instruments with original maturities of three months or less when purchased. The carrying amounts reported in the consolidated balance sheets for interest bearing deposits approximate their fair value because of the short maturity of these investments. |
Restricted Cash | Restricted Cash As of December 31, 2015 and 2014, restricted cash was $13.1 million and $4.3 million, respectively. Heritage P&C holds approximately $13.1 million relating to a reinsurance agreement with an entity that issued catastrophe (“CAT”) bonds, as Heritage P&C is contractually required to deposit two installments of reinsurance premiums into a trust account. |
Investments | Investments The Company classifies all of its investments in fixed maturity securities and equity securities as available-for-sale, and reports them at fair value. The Company’s investment in a mortgage loan was classified as held to maturity and reported at amortized cost. Subsequent to its acquisition of available-for-sale securities, the Company records changes in value through the date of disposition as unrealized holding gains and losses, net of tax effects, and includes them as a component of other comprehensive income. The Company includes realized gains and losses, which it calculates using the specific-identification method for determining the cost of securities sold, in net income. The Company amortizes any premium or discount on fixed maturities over the remaining maturity period of the related securities using the effective interest method, and reports the amortization in net investment income. The Company recognizes dividends and interest income when earned. Quarterly, the Company performs an assessment of its investments to determine if any are “other-than-temporarily” impaired. An investment is impaired when the fair value of the investment declines to an amount less than the cost or amortized cost of that investment. As part of the assessment process, the Company determines whether the impairment is temporary or “other-than-temporary”. The Company bases its assessment on both quantitative criteria and qualitative information, considering a number of factors including, but not limited to: how long the security has been impaired; the amount of the impairment; whether, in the case of equity securities, the Company intends to hold, and have the ability to hold, the security for a period sufficient for us to recover our cost basis, or whether, in the case of debt securities and participations in mortgage loans, the Company intends to sell the investment or it is more likely than not that the Company will have to sell the investment before it recovers the amortized cost or cost; the financial condition and near-term prospects of the issuer; whether the issuer is current on contractually-obligated interest and principal payments; key corporate events pertaining to the issuer and whether the market decline was affected by macroeconomic conditions. If the Company were to determine that an equity security has incurred an “other-than-temporary” impairment, the Company would permanently reduce the cost of the security to fair value and recognize an impairment charge in its consolidated statements of operations and comprehensive income. If a debt security or participation in a commercial mortgage loan was impaired and the Company either intends to sell the investment or it is more likely than not that the Company will have to sell the investment before it is able to recover the amortized cost or cost, then the Company would record the full amount of the impairment in its consolidated statement of operations and other comprehensive income. A large portion of the Company’s investment portfolio consists of fixed maturity securities, which may be adversely affected by changes in interest rates as a result of governmental monetary policies, domestic and international economic and political conditions and other factors beyond its control. A rise in interest rates would decrease the net unrealized holding gains of our investment portfolio, offset by the Company’s ability to earn higher rates of return on funds reinvested. Conversely, a decline in interest rates would increase the net unrealized holding gains of our investment portfolio, offset by lower rates of return on funds reinvested. |
Fair Value | Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (an exit price). When reporting the fair values of the Company’s financial instruments, the Company prioritizes those fair value measurements into one of three levels based on the nature of the inputs, as follows: • Level 1—Assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company is able to access; • Level 2—Asset and liabilities with values based on quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; or valuation models with inputs that are observable, directly or indirectly for substantially the term of the asset or liability. • Level 3—Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date based on the best information available in the circumstances. The Company estimates the fair value of its investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE, NASDAQ and NYSE MKT. For securities for which quoted prices in active markets are unavailable, the Company uses observable inputs such as quoted prices in inactive markets, quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs. The Company does not have any investments in its portfolio which require the use of unobservable inputs. The Company’s estimate of fair value reflects the interest rate environment that existed as of the close of business on December 31, 2015. Changes in interest rates subsequent to December 31, 2015 may affect the fair value of the Company’s investments. The carrying amounts for the following financial instruments approximate their fair values at December 31, 2015 because of their short-term nature: cash and cash equivalents, restricted cash, accrued investment income, premiums receivable, net, reinsurance payable, and accrued compensation. The Company’s non-financial assets, such as goodwill (reported in other assets), and property, plant and equipment are carried at cost until there are indicators of impairment, and are recorded at fair value only when an impairment charge is recognized. |
Premiums | Premiums The Company records assumed premiums written (premiums from policies that the Company assumed from Sunshine State Insurance Company (“SSIC”) and from Citizens Property Insurance Corporation (“Citizens”), net of opt-outs) and direct premiums written (premiums from subsequent renewals of Citizens’ and SSIC policies and voluntary policies written during the period) as revenue, net of ceded amounts, on a daily pro rata basis over the contract period of the related policies that are in force. For any portion of premiums not earned at the end of the reporting period, the Company records an unearned premium liability. As a one-time only transaction on June 27, 2014, the Company assumed approximately $58.9 million of annualized premiums from SSIC. The Company acquired 32,000 policies and as of December 31, 2015 have renewed approximately 24,100. At December 31, 2015, the Company assumed approximately $53.3 million of annualized premium. The SSIC policies account for approximately 7% of the Company’s total policies in force as of December 31, 2015. Premiums receivable represents amounts due from our policyholders for billed premiums and related policy fees. We perform a policy-level evaluation to determine the extent to which the balance of premiums receivable exceeds the balance of unearned premiums. We then age any resulting exposure based on the last date the policy was billed to the policyholder, and we establish an allowance for credit losses for any amounts outstanding for more than 90 days. When we receive payments on amounts previously charged off, we reduce bad debt expense in the period we receive the payment. Balances in premiums receivable and the associated allowance account are removed upon cancellation of the policy due to non-payment. We recorded an allowance of $0 and $250,000 for uncollectible premiums at December 31, 2015 and 2014, respectively. Bad debt expense recovery related to uncollectible premiums was $(250,000), $250,000 and $0 for the years ended December 31, 2015, 2014 and 2013, respectively. When the Company receives premium payments from policyholders prior to the effective date of the related policy, the Company records an advance premiums liability. On the policy effective date, the Company reduces the advance premium liability and records the premiums as described above. |
Policy Acquisition Costs | Policy Acquisition Costs The Company incurs policy acquisition costs that vary with, and are directly related to, the production of new business. Policy acquisition costs consist of the following four items: (i) commissions paid to outside agents at the time of policy issuance; (ii) policy administration fees paid to a third-party administrator at the time of policy issuance; (iii) premium taxes; and (iv) inspection fees. The Company capitalizes policy acquisition costs to the extent recoverable, then the Company amortizes those costs over the contract period of the related policy. At each reporting date, the Company determines whether it has a premium deficiency. A premium deficiency would result if the sum of the Company’s expected losses, deferred policy acquisition costs, and policy maintenance costs (such as costs to store records and costs incurred to collect premiums and pay commissions) exceeded the Company’s related unearned premiums plus investment income. Should the Company determine that a premium deficiency exists, the Company would write off the unrecoverable portion of deferred policy acquisition cost. |
Long-Lived Assets-Property and Equipment | Long-Lived Assets—Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: building—40 years; computer hardware and software 3—years; office and furniture equipment—3 to 7 years. Leasehold improvements are amortized over the shorter of the lease term or the asset’s useful life. Expenditures for improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. |
Business Combination | Business Combination The application of the purchase method of accounting for business combinations requires the use of significant estimates and assumptions in determining the fair value of assets acquired and liabilities assumed in order to properly allocate the purchase price. The estimates of the fair value of the assets acquired and liabilities assumed are based upon assumptions believed to be reasonable using established valuation techniques that consider a number of factors and when appropriate, valuations performed by independent third party appraisers. Asset acquired and liabilities assumed in connection with business combinations are recorded based on their respective fair values at the date of acquisition. The identifiable intangible assets that we have acquired are non-compete agreements, customer relationships and trade names and associated trademarks. Goodwill is calculated as the excess of the cost of the acquired entity over the net fair value of the assets acquired and the liabilities assumed. Non-compete agreements, customer relationships and trade names and associated trademarks are valued based on an excess earnings or income approach based on projected cash flows. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is subject to evaluation for impairment using a fair value based test. This evaluation is performed annually, during the fourth quarter or more frequently if facts and circumstances warrant. The Company uses a qualitative approach to test goodwill for impairment by first assessing qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The Company applied this qualitative approach to its insurance operations reporting unit. If required following the qualitative assessment, the first step in the goodwill impairment test involves comparing the fair value of each of its reporting units to the carrying value of those reporting units. If the carrying value of a reporting unit exceeds the fair value of the reporting unit, the Company is required to proceed to the second step. In the second step, the fair value of the reporting unit would be allocated to the assets (including unrecognized intangibles) and liabilities of the reporting unit, with any residual representing the implied fair value of goodwill. An impairment loss would be recognized if, and to the extent that, the carrying value of goodwill exceeded the implied value. The Company reviews amortizable intangible assets for impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. If the Company concludes that impairment exists, the carrying amount is reduced to fair value. |
Impairment of Long-Lived Assets Including Intangible Assets Subject to Amortization | Impairment of Long-Lived Assets Including Intangible Assets Subject to Amortization The Company assesses the recoverability of long-lived assets when events or circumstances indicate that the assets might have become impaired. The Company determines whether the assets can be recovered from undiscounted future cash flows and, if not recoverable, the Company recognizes impairment to reduce the carrying value to fair value. Recoverability of long lived assets is dependent upon, among other things, the Company’s ability to maintain profitability, so as to be able to meet its obligations when they become due. No impairment was recognized in any period presented. |
Unpaid Losses and Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses The Company’s reserves for unpaid losses and loss adjustment expenses represent the estimated ultimate cost of settling all reported claims plus all claims we incurred related to insured events that have occurred as of the reporting date, but that policyholders have not yet reported to the Company (incurred but not reported, or “IBNR”). The Company estimates its reserves for unpaid losses and loss adjustment expenses using individual case-based estimates for reported claims and actuarial estimates for IBNR losses. The Company continually reviews and adjusts its estimated losses as necessary based on industry development trends, the Company’s evolving claims experience and new information obtained. If the Company’s unpaid losses and loss adjustment expenses are considered to be deficient or redundant, the Company increases or decreases the liability in the period in which it identifies the difference and reflects the change in its current period results of operations. Though the Company’s estimate of the ultimate cost of settling all reported and unreported claims may change at any point in the future, a reasonable possibility exists that its estimate may vary significantly in the near term from the estimated amounts included in the Company’s consolidated financial statements. The Company reports its reserves for unpaid losses and loss adjustment expenses gross of the amounts related to unpaid losses recoverable from reinsurers and reports losses net of amounts ceded to reinsurers. The Company does not discount its loss reserves for financial statement purposes. |
Other Revenue | Other Revenue Other revenue represents rental income due under non-cancelable leases for space at the Company’s commercial property in Clearwater, Florida that we acquired in April 2013, and all policy and pay-plan fees. Florida law allows insurers to charge policyholders a $25 policy fee on each policy written; these fees are not subject to refund, and the Company recognizes the income immediately when collected. The Company also charges pay-plan fees to policyholders that pay its premiums in more than one installment and record the fees as income when collected. In addition, the Company records revenue earned from its restoration subsidiary for non-insurance construction as services performed. |
Reinsurance | Reinsurance The Company follows industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or “ceding”, all or a portion of the risk exposure on policies the Company writes to another insurer, known as a reinsurer. To the extent that the Company’s reinsurers are unable to meet the obligations they assume under the Company’s reinsurance agreements, the Company remains liable for the entire insured loss. The Company’s reinsurance agreements are short-term, prospective contracts. The Company records an asset, prepaid reinsurance premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of new reinsurance agreements. The Company amortizes its prepaid reinsurance premiums over the 12-month contract period. In the event that the Company incurs losses recoverable under its reinsurance program, the Company records amounts recoverable from its reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of the Company’s liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to the estimate of unpaid losses. Though an estimate of amounts recoverable from reinsurers on unpaid losses may change at any point in the future because of its relation to the Company’s reserves for unpaid losses, a reasonable possibility exists that an estimated recovery may change significantly from initial estimates. The Company estimates uncollectible amounts receivable from reinsurers based on an assessment of factors including the creditworthiness of the reinsurers and the adequacy of collateral obtained, where applicable. The Company recorded no uncollectible amounts under its reinsurance program or bad debt expense related to reinsurance for the years ended December 31, 2015, 2014 and 2013. |
Assessments | Assessments Guaranty fund and other insurance-related assessments imposed upon the Company are recorded as policy acquisition costs in the period the regulatory agency imposes the assessment. To recover Florida Insurance Guaranty Association (“FIGA”) assessments, the Company in turn calculates and begins collecting a policy surcharge that will allow it to collect the entire assessment over a 12-month period, based on an estimate of the number of policies the Company expects to write. The Company then submits an information only filing, pursuant to Florida Statute 631.57(3)(h), to the insurance regulatory authority requesting formal approval of the policy FIGA surcharge. The process may be repeated in successive 12-month periods until the Company collects the entire assessment. The Company records the recoveries as revenue in the period that it collects the cash. While current regulations allow the Company to recover from policyholders the amount of assessments imposed upon the Company, the Company’s payment of the assessments and recoveries may not offset each other in the same year. There were no such assessments during the periods presented. The Company collects other assessments imposed upon policyholders as a policy surcharge and records the amounts collected as a liability until the Company remits the amounts to the regulatory agency that imposed the assessment. |
Accrued Bonus Compensation | Accrued Bonus Compensation Our Board of Directors determined in 2013 that a bonus pool was appropriate based on an 8.5% of earnings before interest, taxes, depreciation and amortization. For the year ended December 31, 2015 the Board of Directors approved approximately $14.1 million in bonuses to be paid to officers and employees and for the years ended December 31, 2014 and 2013, the Board of Directors approved approximately $7.2 million and an aggregate of $11.5 million paid in cash and equity, respectively. |
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 was historically driven primarily by the taxable income recognized by its taxable subsidiaries. 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 combined federal and state statutory tax rate of approximately 38.575% under current tax law. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which it expects to recover or settle those temporary differences. Should a change in tax rates occur, the Company recognizes the effect on deferred tax assets and liabilities in operations in the period that includes the enactment date. Realization of the Company’s deferred income tax assets depends upon our generation of sufficient future taxable income. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. The Company records any income tax penalties and income-tax-related interest as income tax expense in the period incurred. The Company did not incur any material tax penalties or income-tax-related interest for the years ended December 31, 2015, 2014, and 2013, respectively. |
Advertising Costs | Advertising Costs The Company expenses all advertising costs when it incurs those costs. For the years ended December 31, 2015, 2014 and 2013, the Company incurred advertising costs of $27,000, $14,200, and $393,000, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company measures stock-based compensation at the grant date based on the fair value of the award and recognizes stock-based compensation expense over the requisite vesting period. Determining the fair value of stock option awards requires judgment, including estimating stock price volatility, forfeiture rates and expected option life. Restricted stock awards are valued based on the fair value of the stock on the grant date and the related compensation expense is recognized over the vesting period. |
Earnings Per Share | Earnings Per Share The Company reports both basic earnings per share and diluted earnings per share. To calculate basic earnings per share, the Company divides net income attributable to common shareholders by the weighted-average number of shares outstanding during the period, including vested and unvested restricted shares. The Company calculates diluted earnings per share by dividing net income attributable to common shareholders by the weighted-average number of shares, and the effect of share equivalents, and vested and unvested restricted shares outstanding during the period using the treasury stock method to calculate common stock equivalents. |
Concentrations of Risk | Concentrations of Risk The Company’s current operations subject us to the following concentrations of risk: • Revenue—The Company writes residential property and liability policies exclusively • Geographic—The Company writes 100% of its premium in Florida • Group concentration of credit risk—all of the Company’s reinsurers engage in similar activities and have similar economic characteristics that could cause their ability to repay us to be similarly affected by changes in economic or other conditions • Credit risk—The Company chooses to deposit all its cash at four financial institutions The Company mitigates its geographic and group concentrations of risk by entering into reinsurance contracts with highly rated, financially-stable reinsurers, and by securing irrevocable letters of credit from reinsurers when necessary. With regard to cash, the Company had $243.7 million and $154.4 million in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits at December 31, 2015 and December 31, 2014, respectively. Deposits held in non- interest-bearing transaction accounts are combined with interest-bearing accounts and are insured up to $250,000. |
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 Topic 2014-09, Revenue from Contracts with Customers In June 2014, the FASB issued ASU Topic 2014-12, Compensation - Stock Compensation, In September 2015, the FASB issued ASU Topic 2015-16, Business Combinations In January 2016, the FASB issued ASU Topic 2016-1, Financial Statements - Overall No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our consolidated financial statements or disclosures. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Restricted Stock Activity | ERROR: Could not retrieve Word content for note block Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2014 — — Granted 1,125,000 $ 21.40 Vested — — Canceled and forfeited — — Non-vested, at December 31, 2015 1,125,000 $ 21.40 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table provides the assumptions utilized in the Black-Scholes model for options granted during the year ended December 31, 2014. No options were granted during the years ended December 31, 2015 and 2013. December 2, 2014 September 24, 2014 Weighted-average risk-free interest rate 0.51 0.42 Expected term of option in years 1.60 1.70 Weighted-average volatility 35.56 % 36.47 % Dividend yield 0 % 0 % Weighted average grant date fair value per share $ 3.19 $ 2.70 |
Summary of Information Related to Stock Option | A summary of information related to stock options outstanding at December 31, 2015 is as follows: Shares Weighted-Average Grant Date Fair Value Balance at December 31, 2013 — Granted 1,685,923 $ 3.09 Exercised — Forfeited — Balance at December 31, 2014 1,685,923 $ 3.09 Granted — Exercised (536,000 ) $ 16.27 Balance at December 31, 2015 1,149,923 $ 2.99 Vested and exercisable as of December 31, 2015 1,149,923 $ 2.99 |
Assumptions Used in Determining Fair Value of Stock Options and Stock Appreciation Rights Using Black Schools Option-Pricing Model | Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding Average Life (in years) Weighted Exercise Price Number Exercisable Average Life (in years) Weighted Exercise Price $ 14.02 243,000 1.75 $ 14.02 243,000 1.75 $ 14.02 16.89 906,923 2 16.89 906,923 2 16.89 $ 15.46 1,149,923 1.875 $ 15.46 1,149,923 1.875 $ 15.46 |
Summary of Deferred Tax Benefits Recognized and Tax Benefits Realized to Restricted Stock Awards | The following table summarizes information about deferred tax benefits recognized and tax benefits realized to restricted stock awards and related paid dividends, and the fair value of vested restricted stock for the year ended December 31, 2015 and 2014, respectively. For the Year Ended December 31, 2015 Deferred tax benefit recognized $ 76 Tax benefit realized for restricted stock and paid dividends 357 Fair value of vested restricted stock — |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 and December 31, 2014: Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (In thousands) December 31, 2015 U.S. government and agency securities $ 25,474 $ 16 $ 387 $ 25,103 States, municipalities and political subdivisions 184,145 2,107 137 186,115 Special revenue 42,593 19 204 42,408 Industrial and miscellaneous 115,313 294 932 114,675 Redeemable preferred stocks 3,442 61 21 3,482 Total fixed maturities 370,967 2,497 1,681 371,783 Nonredeemable preferred stocks 12,443 338 43 12,738 Equity securities 19,996 398 4,819 15,575 Total equity securities 32,439 736 4,862 28,313 Total investments $ 403,406 $ 3,233 $ 6,543 $ 400,096 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) December 31, 2014 U.S. government and agency securities $ 7,002 $ 22 $ 16 $ 7,008 States, municipalities and political subdivisions 41,578 560 18 42,120 Special revenue 133,269 1,349 237 134,381 Industrial and miscellaneous 105,591 668 254 106,005 Redeemable preferred stocks 3,511 84 24 3,571 Total fixed maturities 290,951 2,683 549 293,085 Nonredeemable preferred stocks 11,494 237 53 11,678 Equity securities 19,061 1,525 1,039 19,547 Total equity securities 30,555 1,762 1,092 31,225 Mortgage loan participation 6,849 — — 6,849 Total investments $ 328,355 $ 4,445 $ 1,641 $ 331,159 |
Schedule of Realized Gains (Losses) by Major Investment Category | The following tables detail the Company’s realized gains (losses) by major investment category as of December 31, 2015 and 2014, respectively: 2015 2014 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Year Ended December 31, Fixed maturities $ 1,318 $ 78,161 $ 429 $ 8,632 Equity securities 448 24,100 — — Total realized gains 1,766 102,261 429 8,632 Fixed maturities (133 ) 13,343 (114 ) 4,164 Equity securities (125 ) 1,616 (11 ) 19,680 Total realized losses (258 ) 14,959 (125 ) 23,844 Net realized gains $ 1,508 $ 117,220 $ 304 $ 32,476 |
Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity | The table below summarizes the Company’s fixed maturities at December 31, 2015 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. December 31, 2015 Cost or Amortized Cost Percent of Total Fair Value Percent of Total (In thousands) (In thousands) Due in one year or less $ 34,162 9 % $ 34,165 9 % Due after one year through five years 146,616 40 % 146,211 40 % Due after five years through ten years 79,380 21 % 79,887 21 % Due after ten years 110,809 30 % 111,520 30 % Total $ 370,967 100 % $ 371,783 100 % December 31, 2014 Cost or Amortized Cost Percent of Total Fair Value Percent of Total (In thousands) (In thousands) Due in one year or less $ 13,709 5 % $ 13,712 5 % Due after one year through five years 171,091 59 % 171,382 59 % Due after five years through ten years 61,114 21 % 62,091 21 % Due after ten years 45,037 15 % 45,900 15 % Total $ 290,951 100 % $ 293,085 100 % |
Summary of Net Investment Income | The following table summarizes the Company’s net investment income by major investment category for the years ended December 31, 2015 and 2014, and 2013 respectively: For the Year Ended December 31, 2015 2014 2013 (In thousands) Fixed maturities $ 6,960 $ 3,100 $ 914 Equity securities 1,811 1,159 456 Cash, cash equivalents and short-term investments 258 181 83 Other investments 259 243 93 Net investment income 9,289 4,683 1,546 Investment expenses 1,868 834 497 Net investment income, less investment expenses $ 7,421 $ 3,849 $ 1,049 |
Aging of Gross Unrealized Investment Losses | The following table presents an aging of the Company’s unrealized investment losses by investment class as of December 31, 2015 and December 31, 2014: Less Than Twelve Months Twelve Months or More Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value (In thousands) December 31, 2015 U.S. government and agency securities 19 $ 385 $ 19,849 2 $ 3 $ 397 States, municipalities and political subdivisions 14 50 10,979 1 3 164 Industrial and miscellaneous 141 870 73,312 5 61 1,318 Special revenue 134 279 60,203 10 9 1,646 Redeemable preferred stocks 9 21 950 — — — Total fixed maturities 317 1,605 165,293 18 76 3,525 Nonredeemable preferred stocks 19 29 1,560 5 14 250 Equity securities 48 2,975 8,416 20 1,844 2,680 Total equity securities 67 $ 3,004 $ 9,976 25 $ 1,858 $ 2,930 Total 384 $ 4,609 $ 175,269 43 $ 1,934 $ 6,455 Less Than Twelve Months Twelve Months or More Number Gross Losses Fair Number Gross Losses Fair (In thousands) December 31, 2014 U.S. government and agency securities 11 $ 15 $ 2,451 1 $ 1 $ 109 States, municipalities and political subdivisions 14 15 7,661 1 3 177 Industrial and miscellaneous 98 204 51,156 10 50 1,975 Special revenue 71 213 36,643 6 23 1,592 Redeemable preferred stocks 18 9 854 8 15 355 Total fixed maturities 212 457 98,765 26 92 4,208 Nonredeemable preferred stocks 1 31 2,552 1 22 490 Equity securities 1 1,039 9,792 — — — Total equity securities 2 $ 1,070 $ 12,344 1 $ 22 $ 490 Total 214 $ 1,527 $ 111,109 27 $ 114 $ 4,698 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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. For the Year Ended December 31, 2015 2014 2013 Basic earnings per share: Net income attributable to common stockholders (000's) $ 92,512 $ 47,097 $ 34,213 Weighted average shares outstanding 30,056,491 24,568,876 14,313,150 Basic earnings per share: $ 3.08 $ 1.92 $ 2.39 Diluted earnings per share: Net income attributable to common stockholders (000's) $ 92,512 $ 47,097 $ 34,213 Weighted average shares outstanding 30,056,491 24,568,876 14,313,150 Weighted average dilutive shares 269,977 1,247,684 160,650 Total weighted average dilutive shares 30,326,468 25,816,560 14,473,800 Diluted earnings per share: $ 3.05 $ 1.82 $ 2.36 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | The following table presents information about the Company’s assets measured at fair value on a recurring basis. The Company assesses the levels for the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognitions of transfers between levels of the fair value hierarchy. For the years ended December 31, 2015 and 2014, there were no transfers in or out of Level 1, 2, and 3. December 31, 2015 Total Level 1 Level 2 Level 3 (in thousands) Assets: Certificate of deposits (1) $ 3,300 $ 3,300 $ — $ — Fixed maturities investments: U.S. government and agency securities $ 25,103 $ 22,361 $ 2,742 $ — States, municipalities and political subdivisions 186,115 — 186,115 — Special revenue 42,408 — 42,408 — Industrial and miscellaneous 114,675 — 114,675 — Redeemable preferred stocks 3,482 3,482 — — Total fixed maturities investments $ 375,083 $ 29,143 $ 345,940 $ — Nonredeemable preferred stocks 12,738 12,738 — — Equity securities 15,575 15,575 — — Total equity securities $ 28,313 $ 28,313 $ — $ — Total investments $ 403,396 $ 57,456 $ 345,940 $ — December 31, 2014 Total Level 1 Level 2 Level 3 (in thousands) Fixed maturities investments: U.S. government and agency securities $ 7,008 $ 3,211 $ 3,797 $ — States, municipalities and political subdivisions 42,120 — 42,120 — Special revenue 134,381 — 134,381 — Industrial and miscellaneous 106,005 — 106,005 — Redeemable preferred stocks 3,571 3,571 — — Total fixed maturities investments $ 293,085 $ 6,782 $ 286,303 $ — Nonredeemable preferred stocks 11,678 11,678 — — Equity securities 19,547 19,547 — — Total equity securities $ 31,225 $ 31,225 $ — $ — Total investments $ 324,310 $ 38,007 $ 286,303 $ — (1) Includes commercial paper with a maturity of three months or less at the time of purchase of $3.3 million classified in cash and cash equivalents. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following at December 31, 2015 and 2014 (in thousands): December 31, 2015 December 31, 2014 (In thousands) Land $ 2,582 $ 2,582 Building 9,599 9,599 Computer hardware and software 2,502 2,155 Office furniture and equipment 634 445 Tenant and leasehold improvements 3,300 2,812 Vehicle fleet 693 421 Total, at cost 19,310 18,014 Less: accumulated depreciation and amortization 2,199 927 Property and equipment, net $ 17,111 $ 17,087 |
Schedule of Expected Annual Rental Income Due Under Non-Cancellable Operating Leases for Real Estate Properties | Expected annual rental income due under non-cancellable operating leases for our real estate properties is as follows (in thousands): Year Amount January 1 to December 31, 2016 2,483 January 1 to December 31, 2017 2,529 January 1 to December 31, 2018 2,394 January 1 to December 31, 2019 2,396 January 1 to December 31, 2020 2,497 Thereafter 6,723 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation Based on Fair Valuation | Based on the fair valuation, the purchase price is allocated as follows: Purchase Price Allocation (in thousands): BRC Restoration Specialists, Inc. Preliminary value assigned Property, plant and equipment $ 122 Intangibles 2,200 Goodwill 5,678 Total purchase price $ 8,000 |
Deferred Policy Acquisition C38
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Summary of Activity in Deferred Policy Acquisition Costs (DPAC) | The table below depicts the activity with regard to DPAC for the years ended December 31, 2015 and 2014: For the Year Ended December 2015 2014 (In thousands) Beginning Balance $ 24,370 $ 9,765 Policy acquisition costs deferred 67,616 51,115 Amortization (57,186 ) (36,510 ) Ending Balance $ 34,800 $ 24,370 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Schedule of Reinsurance Transactions on Components of Condensed Consolidated Statements of Income and Comprehensive 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 consolidated statements of income and comprehensive income: For the Year Ended December 31, 2015 2014 2013 (In thousands) Premium written: Direct $ 487,583 $ 283,295 $ 120,893 Assumed 98,515 153,112 97,644 Ceded (183,841 ) (99,798 ) (75,459 ) Net premium written $ 402,257 $ 336,609 $ 143,078 Change in unearned premiums: Direct $ (103,138 ) $ (80,617 ) $ (74,797 ) Assumed 41,780 (44,276 ) (3,781 ) Ceded 35,369 11,896 30,659 Net decrease (increase) $ (25,989 ) $ (112,997 ) $ (47,919 ) Premiums earned: Direct $ 384,445 $ 202,678 $ 46,096 Assumed 140,295 108,836 93,863 Ceded (148,472 ) (87,902 ) (44,800 ) Net premiums earned $ 376,268 $ 223,612 $ 95,159 Losses and LAE incurred: Direct $ 107,552 $ 64,686 $ 14,674 Assumed 33,639 24,874 23,827 Ceded — — — Net losses and LAE incurred $ 141,191 $ 89,560 $ 38,501 |
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: For the Year Ended December 31, 2015 2014 2013 (In thousands) Unpaid losses and loss adjustment expenses: Direct $ 60,223 $ 34,420 $ 10,037 Assumed 23,499 17,049 9,307 Gross unpaid losses and LAE 83,722 51,469 19,344 Ceded — — — Net unpaid losses and LAE $ 83,722 $ 51,469 $ 19,344 Unearned premiums: Direct $ 258,754 $ 155,617 $ 75,000 Assumed 43,739 85,519 41,243 Gross unearned premiums 302,493 241,136 116,243 Ceded (78,517 ) (43,148 ) (31,252 ) Net unearned premiums $ 223,976 $ 197,988 $ 84,991 |
Reserve for Unpaid Losses (Tabl
Reserve for Unpaid Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 Year Ended December 31, 2015 2014 2013 Balance, beginning of period $ 51,469 $ 19,344 $ 1,393 Less: reinsurance recoverable on paid losses — — — Net balance, beginning of period 51,469 19,344 1,393 Incurred related to: Current year 146,484 89,783 38,968 Prior years (5,293 ) (223 ) (467 ) Total incurred 141,191 89,560 38,501 Paid related to: Current year 81,673 45,618 20,010 Prior years 27,265 11,817 540 Total paid 108,938 57,435 20,550 Net balance, end of period 83,722 51,469 19,344 Plus: reinsurance recoverable on unpaid losses — — — Balance, end of period $ 83,722 $ 51,469 $ 19,344 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Taxes | The following table summarizes the provision for income taxes: For the Year Ended December 31, 2015 2014 2013 (In thousands) Federal: Current $ 48,524 $ 26,440 $ 19,066 Deferred 970 (3,219 ) (769 ) Provision for Federal income tax expense 49,494 23,221 18,297 State: Current 8,238 4,479 3,075 Deferred 46 (545 ) (124 ) Provision for State income tax expense 8,284 3,934 2,951 Provision for income taxes $ 57,778 $ 27,155 $ 21,248 |
Components of Income Before Income Taxes | The following table sets forth the components of income before income taxes for the years ended December 31, 2015, 2014 and 2013 (in thousands): 2015 2014 2013 Pass-through entities (Through May 22, 2014) $ — $ 2,668 $ 1,888 Non-pass through entities 150,290 71,584 53,573 Income before income taxes $ 150,290 $ 74,252 $ 55,461 |
Summary of Effective Federal and State Tax Rates to Income Before Provision for Income Taxes | The actual income tax expense differs from the expected income tax expense computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows: For the Year Ended December 31, 2015 2014 2013 Expected income tax expense at federal rate 35.0 % 35.0 % 35.0 % State tax expense, net of federal tax benefits 3.6 % 3.6 % 3.6 % Permanent items -1.0 % 0.0 % 0.0 % Other 0.9 % -2.0 % -0.3 % Reported income tax expense 38.5 % 36.6 % 38.3 % |
Components of Deferred Tax Assets and Liabilities | The table below summarizes the significant components of our net deferred tax assets: For the Year Ended December 31, 2015 2014 Deferred tax assets: (In thousands) Unearned premiums $ 17,979 $ 15,567 Tax-related discount on loss reserve 1,140 1,022 Unrealized loss 1,277 — Stock-based compensation 1,617 1,258 Other 257 545 Total deferred tax assets 22,269 18,392 Deferred tax liabilities: Deferred acquisition costs 13,424 9,401 Unrealized gain — 1,081 Property and equipment 473 633 Other 408 655 Total deferred tax liabilities 14,305 11,770 Less: valuation allowance — — Net deferred tax assets $ 7,964 $ 6,622 |
Statutory Accounting and Regu42
Statutory Accounting and Regulations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Statement Of Stockholders Equity [Member] | |
Consolidated GAAP Net Income (Loss) to Statutory Net Income (Loss) of Insurance Subsidiary | The table below reconciles the Company’s consolidated GAAP stockholders’ equity to surplus with regards to policyholders of the Company’s insurance subsidiary (in thousands): For the Year Ended December 31, 2015 2014 2013 Consolidated GAAP stockholders’ equity $ 356,553 $ 255,089 $ 79,984 Increase (decrease) due to: Ownership shares issued (201,892 ) (176,464 ) (72,948 ) Dividends to shareholders (1,578 ) — — Excess tax benefit share-based compensation 739 — — Redeemable shares classified as temporary equity — — 20,921 Subsidiary capitalization — — 20,000 Surplus debentures and paid in surplus 129,180 128,106 17,000 Deferred policy acquisition costs (34,800 ) (24,370 ) (9,765 ) Deferred income taxes 8,232 8,308 2,891 Non-admitted assets (400 ) (320 ) (511 ) Surplus debenture interest 339 (1,723 ) (278 ) Non-statutory subsidiaries (38,527 ) (10,825 ) 5,355 Unrealized investment losses/gains 955 (2,227 ) 746 Equity compensation (2,180 ) (3,106 ) — Allowance for doubtful accounts — 250 — Other — (7 ) (341 ) Statutory surplus as regards policyholders of insurance subsidiary $ 216,621 $ 172,711 $ 63,054 |
Income Statement [Member] | |
Consolidated GAAP Net Income (Loss) to Statutory Net Income (Loss) of Insurance Subsidiary | The table below reconciles the Company’s consolidated GAAP net income (loss) to statutory net income (loss) of its insurance subsidiary (in thousands): For the Year Ended December 31, 2015 2014 2013 Consolidated GAAP net income $ 92,512 $ 47,097 $ 34,213 Increase (decrease) due to: Deferred income taxes 1,755 (3,764 ) (893 ) Deferred policy acquisition costs (10,430 ) (14,605 ) (9,733 ) Surplus note interest (347 ) (1,445 ) (278 ) Non-statutory subsidiaries (36,569 ) (16,788 ) (2,191 ) Equity compensation (1,074 ) (1,106 ) — Allowance for doubtful accounts (250 ) 250 — Other — 199 (128 ) Statutory net income of insurance subsidiary $ 45,597 $ 9,838 $ 20,990 |
Condensed Financial Informati43
Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Condensed Balance Sheets | The following summarizes the major categories of the parent company’s financial statements (in thousands, except share and per share data): As of December 31, 2015 2014 (In thousands) ASSETS Cash and cash equivalents $ 36,762 $ 30,927 Investment in and advances to subsidiaries 166,597 218,600 Other assets 7,355 6,473 Total Assets $ 210,714 $ 256,000 LIABILITIES AND STOCKHOLDERS' EQUITY Other liabilities 349 911 Total Liabilities $ 349 $ 911 Paid-in-capital 201,892 188,345 Accumulated other comprehensive income — 1,723 Retained earnings 8,473 65,021 Total Stockholders' Equity $ 210,365 $ 255,089 Total Liabilities and Stockholders' Equity $ 210,714 $ 256,000 |
Schedule of Condensed Statements of Operations | For the Year Ended December 31, 2015 2014 2013 (In thousands) Revenue: Other income $ 1,129 $ 1,896 $ 1,075 Total revenue 1,129 1,896 1,075 Expenses: General and administrative 9,036 6,649 4,119 Interest — — 16 Total expenses $ 9,036 $ 6,649 $ 4,135 Loss before income taxes and equity in net income of subsidiaries (7,907 ) (4,753 ) (3,060 ) Benefit from income taxes (2,227 ) (801 ) — Loss before equity in net income of subsidiaries (5,680 ) (3,952 ) (3,060 ) Equity in net income of subsidiaries 98,192 51,049 37,273 Net income $ 92,512 $ 47,097 $ 34,213 Weighted average shares outstanding Basic 30,056,491 24,568,876 14,313,150 Diluted 30,326,468 25,816,590 14,473,800 Earnings per share Basic $ 3.08 $ 1.92 $ 2.39 Diluted $ 3.05 $ 1.82 $ 2.36 |
Schedule of Condensed Statements of Cash Flows | For the Year Ended December 31, 2015 2014 2013 (In thousands) Net cash provided by (used in) operating activities $ 7,935 $ 1,280 $ 2,925 Investing Activities Dividends received from subsidiaries 21,400 16,099 — Investments and advances to subsidiaries (32,400 ) (98,469 ) (26,895 ) Net cash used in investing activities (11,000 ) (82,370 ) (26,895 ) Financing Activities Proceeds from issuance of equity from IPO and private placement, net of discount fee and direct costs of issuance — 78,670 — Proceeds from exercise of stock options and warrants 8,900 22,515 — Proceeds from issuance of equity and redeemable shares — 88 33,630 Net cash provided by financing activities 8,900 101,273 33,630 Increase in cash and cash equivalents 5,835 20,183 8,660 Cash and cash equivalents at beginning of period 30,927 10,744 2,084 Cash and cash equivalents at end of year $ 36,762 $ 30,927 $ 10,744 |
Summary of Quarterly Results (T
Summary of Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results | The following table provides a summary of quarterly results for the periods presented (in thousands, except per share data): For the year ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 101,489 $ 94,846 $ 82,361 $ 97,572 Investment income $ 1,633 $ 2,090 $ 1,973 $ 1,725 Total revenues $ 105,128 $ 99,088 $ 89,244 $ 101,332 Total expenses $ 56,836 $ 58,098 $ 61,529 $ 68,039 Net income $ 30,056 $ 25,400 $ 16,813 $ 20,243 Basic earnings per share $ 1.01 $ 0.85 $ 0.56 $ 0.67 Diluted earnings per share $ 1.00 $ 0.84 $ 0.55 $ 0.66 For the year ended December 31, 2014 Net premiums earned $ 43,878 $ 44,295 $ 55,527 $ 79,912 Investment income $ 618 $ 719 $ 1,126 $ 1,386 Total revenues $ 43,878 $ 46,529 $ 58,013 $ 85,400 Total expenses $ 32,057 $ 31,429 $ 41,904 $ 54,178 Net income $ 7,888 $ 9,566 $ 9,965 $ 19,678 Basic earnings per share $ 0.48 $ 0.43 $ 0.33 $ 0.67 Diluted earnings per share $ 0.42 $ 0.39 $ 0.33 $ 0.67 |
Basis of Presentation and Nat45
Basis of Presentation and Nature of Business - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | May. 22, 2014 | Aug. 31, 2015 | Jul. 31, 2015 | May. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Description Of Business [Line Items] | ||||||
Common stock, shares issued | 30,441,410 | 29,794,960 | ||||
Issuance of common stock, net of transaction expenses, shares | 210,000 | 210,000 | 30,600 | |||
Completed a private placement | $ 10 | |||||
IPO [Member] | ||||||
Schedule Of Description Of Business [Line Items] | ||||||
Common stock, shares issued | 6,900,000 | |||||
Common stock, price per share | $ 11 | |||||
Issuance of common stock, net of transaction expenses, shares | 900,000 | |||||
Initial Public Offering And Private Placement [Member] | ||||||
Schedule Of Description Of Business [Line Items] | ||||||
Net proceeds from the IPO and the Private Placement | $ 78.6 |
Significant Accounting Polici46
Significant Accounting Policies and Practices - Additional Information (Detail) | May. 22, 2014 | Dec. 31, 2015USD ($)InstallmentPolicy | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 27, 2014USD ($) |
Schedule Of Accounting Policies [Line Items] | |||||
Restricted cash | $ 13,085,000 | $ 4,339,000 | |||
Number of policies acquired | Policy | 32,000 | ||||
Number of policies renewed | Policy | 24,100 | ||||
Allowance for uncollectible premiums | $ 0 | 250,000 | |||
Bad debt expense (recovery), uncollectible premiums | (250,000) | 250,000 | $ 0 | ||
Impairment of long-lived assets | 0 | 0 | 0 | ||
Policy fee | 25 | ||||
Amounts recoverable under reinsurance program | $ 0 | $ 0 | 0 | ||
Percentage of earnings | 8.50% | 8.50% | |||
Accrued bonus to be paid | $ 14,100,000 | $ 7,700,000 | |||
Bonus paid in cash and equity | $ 7,200,000 | $ 11,500,000 | |||
Statutory tax rate of current tax law | 38.575% | 35.00% | 35.00% | 35.00% | |
Material tax penalties | $ 0 | $ 0 | $ 0 | ||
Advertising costs | 27,000 | 14,200 | $ 393,000 | ||
Cash deposits in excess of FDIC insurance limits | 243,700,000 | $ 154,400,000 | |||
Deposits held | $ 250,000 | ||||
Building [Member] | |||||
Schedule Of Accounting Policies [Line Items] | |||||
Property plant and equipment useful life | 40 years | ||||
Computer Hardware and Software [Member] | |||||
Schedule Of Accounting Policies [Line Items] | |||||
Property plant and equipment useful life | 3 years | ||||
Minimum [Member] | |||||
Schedule Of Accounting Policies [Line Items] | |||||
Allowance for credit losses for amounts outstanding, term | 90 days | ||||
Tax benefit likelihood percentage | 50.00% | ||||
Minimum [Member] | Office and Furniture Equipment [Member] | |||||
Schedule Of Accounting Policies [Line Items] | |||||
Property plant and equipment useful life | 3 years | ||||
Maximum [Member] | Office and Furniture Equipment [Member] | |||||
Schedule Of Accounting Policies [Line Items] | |||||
Property plant and equipment useful life | 7 years | ||||
Sunshine State Insurance Company [Member] | |||||
Schedule Of Accounting Policies [Line Items] | |||||
Policies in force assumed | $ 58,900,000 | ||||
Annualized premium | $ 53,300,000 | ||||
Policies in force assumed, percentage | 7.00% | ||||
Heritage Property and Casualty Insurance Company [Member] | |||||
Schedule Of Accounting Policies [Line Items] | |||||
Restricted cash | $ 13,100,000 | ||||
Number of installments to deposit | Installment | 2 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value of Investment Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Gains | $ 3,233 | $ 4,445 |
Gross Unrealized Losses | 6,543 | 1,641 |
Fair Value | 403,396 | 324,310 |
Investments | 403,406 | 328,355 |
Fair Value | 400,096 | 331,159 |
Mortgage loan, held to maturity, at amortized cost | 6,849 | |
Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 290,951 | |
Gross Unrealized Gains | 2,683 | |
Gross Unrealized Losses | 549 | |
Fair Value | 375,083 | 293,085 |
Fixed Maturities Excluding Certificate of Deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 370,967 | |
Gross Unrealized Gains | 2,497 | |
Gross Unrealized Losses | 1,681 | |
Fair Value | 371,783 | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 32,439 | 30,555 |
Gross Unrealized Gains | 736 | 1,762 |
Gross Unrealized Losses | 4,862 | 1,092 |
Fair Value | 28,313 | 31,225 |
U.S. government and agency securities [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 25,474 | 7,002 |
Gross Unrealized Gains | 16 | 22 |
Gross Unrealized Losses | 387 | 16 |
Fair Value | 25,103 | 7,008 |
States, Municipalities and Political Subdivisions [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 184,145 | 41,578 |
Gross Unrealized Gains | 2,107 | 560 |
Gross Unrealized Losses | 137 | 18 |
Fair Value | 186,115 | 42,120 |
Special Revenue [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 42,593 | 133,269 |
Gross Unrealized Gains | 19 | 1,349 |
Gross Unrealized Losses | 204 | 237 |
Fair Value | 42,408 | 134,381 |
Industrial and Miscellaneous [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 115,313 | 105,591 |
Gross Unrealized Gains | 294 | 668 |
Gross Unrealized Losses | 932 | 254 |
Fair Value | 114,675 | 106,005 |
Redeemable Preferred Stocks [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 3,442 | 3,511 |
Gross Unrealized Gains | 61 | 84 |
Gross Unrealized Losses | 21 | 24 |
Fair Value | 3,482 | 3,571 |
Nonredeemable Preferred Stocks [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 12,443 | 11,494 |
Gross Unrealized Gains | 338 | 237 |
Gross Unrealized Losses | 43 | 53 |
Fair Value | 12,738 | 11,678 |
Common Stock [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 19,996 | 19,061 |
Gross Unrealized Gains | 398 | 1,525 |
Gross Unrealized Losses | 4,819 | 1,039 |
Fair Value | $ 15,575 | 19,547 |
Mortgage Loan Participation [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Mortgage loan, held to maturity, at amortized cost | 6,849 | |
Mortgage loan, held to maturity, Fair Value | $ 6,849 |
Investments - Schedule of Reali
Investments - Schedule of Realized Gains (Losses) by Major Investment Category (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Total realized gains | $ 1,766 | $ 429 |
Total realized losses | (258) | (125) |
Net realized gains | 1,508 | 304 |
Total realized gains, Fair Value at Sale | 102,261 | 8,632 |
Total realized losses, Fair Value at Sale | 14,959 | 23,844 |
Net realized gain (losses), Fair Value at Sale | 117,220 | 32,476 |
Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total realized gains | 1,318 | 429 |
Total realized losses | (133) | (114) |
Total realized gains, Fair Value at Sale | 78,161 | 8,632 |
Total realized losses, Fair Value at Sale | 13,343 | 4,164 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total realized gains | 448 | |
Total realized losses | (125) | (11) |
Total realized gains, Fair Value at Sale | 24,100 | |
Total realized losses, Fair Value at Sale | $ 1,616 | $ 19,680 |
Investments - Schedule of Amo49
Investments - Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less, Cost or Amortized Cost | $ 34,162 | $ 13,709 |
Due after one year through five years, Cost or Amortized Cost | 146,616 | 171,091 |
Due after five years through ten years, Cost or Amortized Cost | 79,380 | 61,114 |
Due after ten years, Cost or Amortized Cost | 110,809 | 45,037 |
Total, Cost or Amortized Cost | $ 370,967 | $ 290,951 |
Due in one year or less, Percentage of Total | 9.00% | 5.00% |
Due after one year through five years, Percentage of Total | 40.00% | 59.00% |
Due after five years through ten years, Percentage of Total | 21.00% | 21.00% |
Due after ten years, Percentage of Total | 30.00% | 15.00% |
Total, Percentage | 100.00% | 100.00% |
Due in one year or less, Fair Value | $ 34,165 | $ 13,712 |
Due after one year through five years, Fair Value | 146,211 | 171,382 |
Due after five years through ten years, Fair Value | 79,887 | 62,091 |
Due after ten years, Fair Value | 111,520 | 45,900 |
Total, Fair Value | $ 371,783 | $ 293,085 |
Due in one year or less, Percentage of Total | 9.00% | 5.00% |
Due after one year through five years, Percentage of Total | 40.00% | 59.00% |
Due after five years through ten years, Percentage of Total | 21.00% | 21.00% |
Due after ten years, Percentage of Total | 30.00% | 15.00% |
Total, Percentage | 100.00% | 100.00% |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income | $ 9,289 | $ 4,683 | $ 1,546 |
Investment expenses | 1,868 | 834 | 497 |
Net investment income, less investment expenses | 7,421 | 3,849 | 1,049 |
Fixed Maturity [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income | 6,960 | 3,100 | 914 |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income | 1,811 | 1,159 | 456 |
Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income | 258 | 181 | 83 |
Other Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income | $ 259 | $ 243 | $ 93 |
Investments - Aging of Gross Un
Investments - Aging of Gross Unrealized Investment Losses (Detail) $ in Thousands | Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 384 | 214 |
Gross Unrealized Losses, Less Than Twelve Months | $ 4,609 | $ 1,527 |
Fair Value, Less Than Twelve Months | $ 175,269 | $ 111,109 |
Number of Securities, Twelve Months or Greater | Security | 43 | 27 |
Gross Unrealized Losses, Twelve Months or Greater | $ 1,934 | $ 114 |
Fair Value, Twelve Months or Greater | $ 6,455 | $ 4,698 |
Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 317 | 212 |
Gross Unrealized Losses, Less Than Twelve Months | $ 1,605 | $ 457 |
Fair Value, Less Than Twelve Months | $ 165,293 | $ 98,765 |
Number of Securities, Twelve Months or Greater | Security | 18 | 26 |
Gross Unrealized Losses, Twelve Months or Greater | $ 76 | $ 92 |
Fair Value, Twelve Months or Greater | $ 3,525 | $ 4,208 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 67 | 2 |
Gross Unrealized Losses, Less Than Twelve Months | $ 3,004 | $ 1,070 |
Fair Value, Less Than Twelve Months | $ 9,976 | $ 12,344 |
Number of Securities, Twelve Months or Greater | Security | 25 | 1 |
Gross Unrealized Losses, Twelve Months or Greater | $ 1,858 | $ 22 |
Fair Value, Twelve Months or Greater | $ 2,930 | $ 490 |
U.S. government and agency securities [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 19 | 11 |
Gross Unrealized Losses, Less Than Twelve Months | $ 385 | $ 15 |
Fair Value, Less Than Twelve Months | $ 19,849 | $ 2,451 |
Number of Securities, Twelve Months or Greater | Security | 2 | 1 |
Gross Unrealized Losses, Twelve Months or Greater | $ 3 | $ 1 |
Fair Value, Twelve Months or Greater | $ 397 | $ 109 |
States, Municipalities and Political Subdivisions [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 14 | 14 |
Gross Unrealized Losses, Less Than Twelve Months | $ 50 | $ 15 |
Fair Value, Less Than Twelve Months | $ 10,979 | $ 7,661 |
Number of Securities, Twelve Months or Greater | Security | 1 | 1 |
Gross Unrealized Losses, Twelve Months or Greater | $ 3 | $ 3 |
Fair Value, Twelve Months or Greater | $ 164 | $ 177 |
Industrial and Miscellaneous [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 141 | 98 |
Gross Unrealized Losses, Less Than Twelve Months | $ 870 | $ 204 |
Fair Value, Less Than Twelve Months | $ 73,312 | $ 51,156 |
Number of Securities, Twelve Months or Greater | Security | 5 | 10 |
Gross Unrealized Losses, Twelve Months or Greater | $ 61 | $ 50 |
Fair Value, Twelve Months or Greater | $ 1,318 | $ 1,975 |
Special Revenue [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 134 | 71 |
Gross Unrealized Losses, Less Than Twelve Months | $ 279 | $ 213 |
Fair Value, Less Than Twelve Months | $ 60,203 | $ 36,643 |
Number of Securities, Twelve Months or Greater | Security | 10 | 6 |
Gross Unrealized Losses, Twelve Months or Greater | $ 9 | $ 23 |
Fair Value, Twelve Months or Greater | $ 1,646 | $ 1,592 |
Redeemable Preferred Stocks [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 9 | 18 |
Gross Unrealized Losses, Less Than Twelve Months | $ 21 | $ 9 |
Fair Value, Less Than Twelve Months | $ 950 | $ 854 |
Number of Securities, Twelve Months or Greater | Security | 8 | |
Gross Unrealized Losses, Twelve Months or Greater | $ 15 | |
Fair Value, Twelve Months or Greater | $ 355 | |
Nonredeemable Preferred Stocks [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 19 | 1 |
Gross Unrealized Losses, Less Than Twelve Months | $ 29 | $ 31 |
Fair Value, Less Than Twelve Months | $ 1,560 | $ 2,552 |
Number of Securities, Twelve Months or Greater | Security | 5 | 1 |
Gross Unrealized Losses, Twelve Months or Greater | $ 14 | $ 22 |
Fair Value, Twelve Months or Greater | $ 250 | $ 490 |
Equity Investment [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 48 | 1 |
Gross Unrealized Losses, Less Than Twelve Months | $ 2,975 | $ 1,039 |
Fair Value, Less Than Twelve Months | $ 8,416 | $ 9,792 |
Number of Securities, Twelve Months or Greater | Security | 20 | |
Gross Unrealized Losses, Twelve Months or Greater | $ 1,844 | |
Fair Value, Twelve Months or Greater | $ 2,680 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic earnings per share: | |||||||||||
Net income attributable to common stockholders (000's) | $ 92,512 | $ 47,097 | $ 34,213 | ||||||||
Weighted average shares outstanding | 30,056,491 | 24,568,876 | 14,313,150 | ||||||||
Basic earnings per share: | $ 0.67 | $ 0.56 | $ 0.85 | $ 1.01 | $ 0.67 | $ 0.33 | $ 0.43 | $ 0.48 | $ 3.08 | $ 1.92 | $ 2.39 |
Diluted earnings per share: | |||||||||||
Net income attributable to common stockholders (000's) | $ 92,512 | $ 47,097 | $ 34,213 | ||||||||
Weighted average shares outstanding | 30,056,491 | 24,568,876 | 14,313,150 | ||||||||
Weighted average dilutive shares | 269,977 | 1,247,684 | 160,650 | ||||||||
Total weighted average dilutive shares | 30,326,468 | 25,816,560 | 14,473,800 | ||||||||
Diluted earnings per share: | $ 0.66 | $ 0.55 | $ 0.84 | $ 1 | $ 0.67 | $ 0.33 | $ 0.39 | $ 0.42 | $ 3.05 | $ 1.82 | $ 2.36 |
Fair Value of Financial Instr53
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | $ 403,396 | $ 324,310 |
Certificate of deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 3,300 | |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 57,456 | 38,007 |
Level 1 [Member] | Certificate of deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 3,300 | |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 345,940 | 286,303 |
Fixed Maturity [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 375,083 | 293,085 |
Fixed Maturity [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 29,143 | 6,782 |
Fixed Maturity [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 345,940 | 286,303 |
Fixed Maturity [Member] | U.S. government and agency securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 25,103 | 7,008 |
Fixed Maturity [Member] | U.S. government and agency securities [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 22,361 | 3,211 |
Fixed Maturity [Member] | U.S. government and agency securities [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 2,742 | 3,797 |
Fixed Maturity [Member] | States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 186,115 | 42,120 |
Fixed Maturity [Member] | States, Municipalities and Political Subdivisions [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 186,115 | 42,120 |
Fixed Maturity [Member] | Special Revenue [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 42,408 | 134,381 |
Fixed Maturity [Member] | Special Revenue [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 42,408 | 134,381 |
Fixed Maturity [Member] | Industrial and Miscellaneous [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 114,675 | 106,005 |
Fixed Maturity [Member] | Industrial and Miscellaneous [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 114,675 | 106,005 |
Fixed Maturity [Member] | Redeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 3,482 | 3,571 |
Fixed Maturity [Member] | Redeemable Preferred Stocks [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 3,482 | 3,571 |
Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 28,313 | 31,225 |
Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 28,313 | 31,225 |
Equity Securities [Member] | Nonredeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 12,738 | 11,678 |
Equity Securities [Member] | Nonredeemable Preferred Stocks [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 12,738 | 11,678 |
Equity Securities [Member] | Equity Investment [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 15,575 | 19,547 |
Equity Securities [Member] | Equity Investment [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | $ 15,575 | $ 19,547 |
Fair Value of Financial Instr54
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Parenthetical) (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Commercial Paper [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Purchase of assets | $ 3.3 |
Fair Value of Financial Instr55
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value measurement period | 1 year | ||
Nonrecurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Non-recurring fair value adjustments | $ 0 | $ 0 | $ 0 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 19,310 | $ 18,014 |
Less: accumulated depreciation and amortization | 2,199 | 927 |
Property and equipment, net | 17,111 | 17,087 |
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 | 9,599 | 9,599 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 2,502 | 2,155 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 634 | 445 |
Tenant and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 3,300 | 2,812 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 693 | $ 421 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2013USD ($) | Dec. 31, 2015USD ($)aft²Building | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Property Plant And Equipment Useful Life And Values [Abstract] | ||||
Depreciation expense | $ 1.3 | $ 0.8 | $ 0.2 | |
Number of acres of land purchased | a | 13 | |||
Number of buildings | Building | 2 | |||
Gross area of acquired property | ft² | 148,000 | |||
Aggregate purchase price | $ 9.8 |
Property and Equipment - Sche58
Property and Equipment - Schedule of Expected Annual Rental Income Due Under Non-Cancellable Operating Leases for Real Estate Properties (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Property Plant And Equipment [Abstract] | |
January 1 to December 31, 2016 | $ 2,483 |
January 1 to December 31, 2017 | 2,529 |
January 1 to December 31, 2018 | 2,394 |
January 1 to December 31, 2019 | 2,396 |
January 1 to December 31, 2020 | 2,497 |
Thereafter | $ 6,723 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Jul. 31, 2015 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Cash payment for business acquisition | $ 6,000 | |
BRC Restoration Specialists, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Purchase price | $ 8,000 | |
Issuance of common stock for business acquisition, number of restricted common shares | 79,850 | |
Issuance of common stock for business acquisition | $ 2,000 | |
Cash payment for business acquisition | $ 6,000 |
Acquisition - Schedule of Purch
Acquisition - Schedule of Purchase Price Allocation Based on Fair Valuation (Detail) - BRC Restoration Specialists, Inc. [Member] $ in Thousands | Jul. 31, 2015USD ($) |
Business Acquisition [Line Items] | |
Property, plant and equipment | $ 122 |
Intangibles | 2,200 |
Goodwill | 5,678 |
Purchase price | $ 8,000 |
Deferred Policy Acquisition C61
Deferred Policy Acquisition Costs - Summary of Activity in Deferred Policy Acquisition Costs (DPAC) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Insurance [Abstract] | |||
Beginning Balance | $ 24,370 | $ 9,765 | |
Policy acquisition costs deferred | 67,616 | 51,115 | |
Amortization | (57,186) | (36,510) | $ (6,150) |
Ending Balance | $ 34,800 | $ 24,370 | $ 9,765 |
Reinsurance - Additional inform
Reinsurance - Additional information (Detail) | Apr. 17, 2014USD ($) | Dec. 31, 2015USD ($)Reinsurer | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Aug. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Dec. 31, 2012USD ($) |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Primary retention of losses and loss adjustment expenses | $ 15,000,000 | $ 9,000,000 | |||||
Purchase of reinsurance from third party | $ 148,472,000 | 87,902,000 | 44,800,000 | ||||
Aggregate participation, losses and loss adjustment expenses | (5,293,000) | (223,000) | (467,000) | ||||
Losses and loss adjustment expenses including retention | 83,722,000 | 51,469,000 | 19,344,000 | $ 1,393,000 | |||
Coverage limit | $ 60,210,000 | 17,113,000 | |||||
Number of reinstatements available | Reinsurer | 2 | ||||||
Amounts receivables to reinsurers | $ 0 | 0 | 0 | ||||
Concentrations of credit risk | $ 0 | $ 0 | $ 0 | ||||
Percentages of assumed premiums earned | 37.30% | 48.70% | 98.60% | ||||
Insurance Claims [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Losses and loss adjustment expenses including retention | $ 1,000,000 | ||||||
Catastrophe [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Purchase of reinsurance from third party | 2,300,000,000 | $ 170,000,000 | |||||
Aggregate participation, losses and loss adjustment expenses | 401,500,000 | ||||||
Losses and loss adjustment expenses including retention | $ 990,000,000 | 571,500,000 | |||||
Purchased reinstatement premium | 185,000,000 | 149,500,000 | |||||
Collateralized by a reinsurance trust | $ 200,000,000 | ||||||
Agreement of coverage | 3 years | ||||||
Reinsurance agreement | 3 years | ||||||
Coverage limit | $ 76,900,000,000 | ||||||
Catastrophe [Member] | Notes Due April 2017 [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Collateralized by a reinsurance trust | $ 200,000,000 | ||||||
Layers Below FHCF [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Primary retention | 3,500,000 | ||||||
Purchase of reinsurance from third party | $ 185,000,000 | $ 94,000,000 | |||||
FHCF Layer [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Percentage of maximum provisional limit | 90.00% | 90.00% | |||||
Estimated provisional limit percentage calculation base amount | $ 484,000,000 | $ 270,000,000 | |||||
Catastrophe excess of loss reinsurance | 181,000,000 | 103,000,000 | |||||
Purchased coverage price | 48,000,000 | ||||||
FHCF Layer [Member] | Maximum [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Estimated maximum provisional limit, amount | 436,000,000 | 243,000,000 | |||||
Purchased coverage price | 28,500,000 | ||||||
FHCF Layer [Member] | Minimum [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Purchased coverage price | 27,000,000 | ||||||
Cat Bond Layer [Member] | Catastrophe [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Purchase of reinsurance from third party | 105,000,000 | ||||||
Aggregate participation, losses and loss adjustment expenses | 825,000,000 | ||||||
Catastrophe excess of loss reinsurance | 940,000,000 | ||||||
Facultative Reinsurance [Member] | Minimum [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Coverage limit | 10,000,000 | ||||||
Facultative reinsurance purchase amount | 10,000,000 | ||||||
3% Participation [Member] | Layers Below FHCF [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Primary retention of losses and loss adjustment expenses | $ 900,000 | ||||||
Percentage comprising aggregate participation | 3.00% | ||||||
Aggregate participation, losses and loss adjustment expenses | $ 31,000,000 | ||||||
Excess of losses and loss adjustment expenses | 9,000,000 | ||||||
4% Participation [Member] | Layers Below FHCF [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Primary retention of losses and loss adjustment expenses | $ 2,500,000 | ||||||
Percentage comprising aggregate participation | 4.00% | ||||||
Aggregate participation, losses and loss adjustment expenses | $ 63,000,000 | ||||||
Excess of losses and loss adjustment expenses | 40,000,000 | ||||||
Property Per Risk Coverage [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Primary retention of losses and loss adjustment expenses | 35,000,000 | ||||||
Coverage limit | 27,000,000 | ||||||
Coverage limit | 9,000,000 | ||||||
Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Losses and loss adjustment expenses including retention | 1,800,000,000 | ||||||
Purchased reinstatement premium | 440,000,000 | ||||||
Property Per Risk Coverage [Member] | Layers Below FHCF [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Purchase of reinsurance from third party | $ 440,000,000 | ||||||
Property Per Risk Coverage [Member] | FHCF Layer [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Percentage comprising aggregate participation | 75.00% | ||||||
Percentage of maximum provisional limit | 75.00% | ||||||
Estimated provisional limit percentage calculation base amount | $ 920,000,000 | ||||||
Catastrophe excess of loss reinsurance | 336,000,000 | ||||||
Property Per Risk Coverage [Member] | FHCF Layer [Member] | Maximum [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Estimated maximum provisional limit, amount | $ 690,000,000 | ||||||
Property Per Risk Coverage [Member] | Cat Bond Layer Alongside FHCF [Member] | Catastrophe [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Agreement of coverage | 3 years | ||||||
Reinsurance agreement | 3 years | ||||||
Property Per Risk Coverage [Member] | Cat Bond Layer Alongside FHCF [Member] | Catastrophe [Member] | Notes Due April 2017 [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Collateralized by a reinsurance trust | $ 277,500,000 | ||||||
Property Per Risk Coverage [Member] | Cat Bond Layer Alongside FHCF [Member] | Catastrophe [Member] | Class A Notes Due April 2017 [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Collateralized by a reinsurance trust | 150,000,000 | ||||||
Property Per Risk Coverage [Member] | Cat Bond Layer Alongside FHCF [Member] | Catastrophe [Member] | Class B Notes Due April 2017 [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Collateralized by a reinsurance trust | 97,500,000 | ||||||
Property Per Risk Coverage [Member] | Cat Bond Layer Alongside FHCF [Member] | Catastrophe [Member] | Class C Notes Due April 2017 [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Collateralized by a reinsurance trust | $ 30,000,000 | ||||||
Property Per Risk Coverage [Member] | Cat Bond Layer Above FHCF [Member] | Catastrophe [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Purchase of reinsurance from third party | $ 125,000,000 | ||||||
Aggregate participation, losses and loss adjustment expenses | 1,648,000,000 | ||||||
Osprey [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Primary retention of losses and loss adjustment expenses | 6,000,000 | 3,000,000 | |||||
Primary retention | 4,000,000 | ||||||
Osprey [Member] | Cat Bond Layer [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Catastrophe coverage of reinsurance agreement | 25,000,000 | ||||||
Osprey [Member] | Cat Bond Layer [Member] | Catastrophe [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Coverage of reinsurance agreement | 20,000,000 | ||||||
Osprey [Member] | Property Per Risk Coverage [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Primary retention of losses and loss adjustment expenses | 20,000,000 | ||||||
Primary retention | 10,000,000 | ||||||
Heritage P&C [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Primary retention | 2,000,000 | $ 3,000,000 | |||||
Catastrophe excess of loss reinsurance | 2,000,000 | ||||||
Heritage P&C [Member] | Property Per Risk Coverage [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Primary retention | 5,000,000 | ||||||
Catastrophe excess of loss reinsurance | 5,000,000 | ||||||
Citrus [Member] | Cat Bond Layer [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Coverage of first catastrophe reinsurance agreement | 150,000,000 | ||||||
Additional coverage of second catastrophe reinsurance agreement | $ 50,000,000 | ||||||
Citrus [Member] | Property Per Risk Coverage [Member] | Cat Bond Layer Above FHCF [Member] | Class A Notes [Member] | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Collateralized by a reinsurance trust | 150,000,000 | ||||||
Coverage of first catastrophe reinsurance agreement | 150,000,000 | ||||||
Additional coverage of second catastrophe reinsurance agreement | $ 50,000,000 |
Reinsurance - Schedule of Reins
Reinsurance - Schedule of Reinsurance Transactions on Components of Condensed Consolidated Statements of Income and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premium written: | |||||||||||
Direct | $ 487,583 | $ 283,295 | $ 120,893 | ||||||||
Assumed | 98,515 | 153,112 | 97,644 | ||||||||
Ceded | (183,841) | (99,798) | (75,459) | ||||||||
Net premium written | 402,257 | 336,609 | 143,078 | ||||||||
Change in unearned premiums: | |||||||||||
Direct | (103,138) | (80,617) | (74,797) | ||||||||
Assumed | 41,780 | (44,276) | (3,781) | ||||||||
Ceded | 35,369 | 11,896 | 30,659 | ||||||||
Net decrease (increase) | (25,989) | (112,997) | (47,919) | ||||||||
Premiums earned: | |||||||||||
Direct | 384,445 | 202,678 | 46,096 | ||||||||
Assumed | 140,295 | 108,836 | 93,863 | ||||||||
Ceded | (148,472) | (87,902) | (44,800) | ||||||||
Net premiums earned | $ 97,572 | $ 82,361 | $ 94,846 | $ 101,489 | $ 79,912 | $ 55,527 | $ 44,295 | $ 43,878 | 376,268 | 223,612 | 95,159 |
Losses and LAE incurred: | |||||||||||
Direct | 107,552 | 64,686 | 14,674 | ||||||||
Assumed | 33,639 | 24,874 | 23,827 | ||||||||
Net losses and LAE incurred | $ 141,191 | $ 89,560 | $ 38,501 |
Reinsurance - Effects of Reinsu
Reinsurance - Effects of Reinsurance Transactions on Unpaid Losses and Loss Adjustment Expenses and Unearned Premiums (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unpaid losses and loss adjustment expenses: | |||
Direct | $ 60,223 | $ 34,420 | $ 10,037 |
Assumed | 23,499 | 17,049 | 9,307 |
Gross unpaid losses and LAE | 83,722 | 51,469 | 19,344 |
Net unpaid losses and LAE | 83,722 | 51,469 | 19,344 |
Unearned premiums: | |||
Direct | 258,754 | 155,617 | 75,000 |
Assumed | 43,739 | 85,519 | 41,243 |
Gross unearned premiums | 302,493 | 241,136 | 116,243 |
Ceded | (78,517) | (43,148) | (31,252) |
Net unearned premiums | $ 223,976 | $ 197,988 | $ 84,991 |
Reserve for Unpaid Losses - Sum
Reserve for Unpaid Losses - Summary of Reserve for Unpaid Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Insurance [Abstract] | |||
Balance, beginning of period | $ 51,469 | $ 19,344 | $ 1,393 |
Less: reinsurance recoverable on paid losses | 0 | 0 | 0 |
Net balance, beginning of period | 51,469 | 19,344 | 1,393 |
Incurred related to: | |||
Current year | 146,484 | 89,783 | 38,968 |
Prior years | (5,293) | (223) | (467) |
Total incurred | 141,191 | 89,560 | 38,501 |
Paid related to: | |||
Current year | 81,673 | 45,618 | 20,010 |
Prior years | 27,265 | 11,817 | 540 |
Total paid | 108,938 | 57,435 | 20,550 |
Net balance, end of period | 83,722 | 51,469 | 19,344 |
Plus: reinsurance recoverable on unpaid losses | 0 | 0 | 0 |
Balance, end of period | $ 83,722 | $ 51,469 | $ 19,344 |
Reserve for Unpaid Losses - Add
Reserve for Unpaid Losses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Insurance [Abstract] | |||
Losses incurred related to the prior year redundancy | $ (5,293) | $ (223) | $ (467) |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal: | |||
Current | $ 48,524 | $ 26,440 | $ 19,066 |
Deferred | 970 | (3,219) | (769) |
Provision for Federal income tax expense | 49,494 | 23,221 | 18,297 |
State: | |||
Current | 8,238 | 4,479 | 3,075 |
Deferred | 46 | (545) | (124) |
Provision for State income tax expense | 8,284 | 3,934 | 2,951 |
Provision for income taxes | $ 57,778 | $ 27,155 | $ 21,248 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Income Before Income Tax Domestic And Foreign [Line Items] | |||
Income (loss) before income taxes | $ 150,290 | $ 74,252 | $ 55,461 |
Pass-through entities [Member] | |||
Schedule Of Income Before Income Tax Domestic And Foreign [Line Items] | |||
Income (loss) before income taxes | 2,668 | 1,888 | |
Non-pass Through Entities [Member] | |||
Schedule Of Income Before Income Tax Domestic And Foreign [Line Items] | |||
Income (loss) before income taxes | $ 150,290 | $ 71,584 | $ 53,573 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Federal and State Tax Rates to Income Before Provision for Income Taxes (Detail) | May. 22, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||||
Expected income tax expense at federal rate | 38.575% | 35.00% | 35.00% | 35.00% |
State tax expense, net of federal tax benefits | 3.60% | 3.60% | 3.60% | |
Permanent items | (1.00%) | (0.00%) | (0.00%) | |
Other | 0.90% | (2.00%) | (0.30%) | |
Reported income tax expense | 38.50% | 36.60% | 38.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax [Line Items] | |||
Federal income tax recorded for income earned from limited liability companies | $ 49,494,000 | $ 23,221,000 | $ 18,297,000 |
Uncertain tax positions | 0 | ||
Limited Liability Company [Member] | |||
Income Tax [Line Items] | |||
Federal income tax recorded for income earned from limited liability companies | $ 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Unearned premiums | $ 17,979 | $ 15,567 |
Tax-related discount on loss reserve | 1,140 | 1,022 |
Unrealized loss | 1,277 | |
Stock-based compensation | 1,617 | 1,258 |
Other | 257 | 545 |
Total deferred tax assets | 22,269 | 18,392 |
Deferred tax liabilities: | ||
Deferred acquisition costs | 13,424 | 9,401 |
Unrealized gain | 1,081 | |
Property and equipment | 473 | 633 |
Other | 408 | 655 |
Total deferred tax liabilities | 14,305 | 11,770 |
Net deferred tax assets | $ 7,964 | $ 6,622 |
Statutory Accounting and Regu72
Statutory Accounting and Regulations - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 23, 2013 | |
Statutory Accounting Practices [Line Items] | ||||
Statutory net income of insurance subsidiary | $ 45,400,000 | $ 9,800,000 | ||
Statutory accounting practices, capital and surplus requirements of insurance subsidiary | Greater of $15 million or 10% of its liabilities | |||
Minimum required amount of capital and surplus maintained by the insurance subsidiary | $ 15,000,000 | |||
Statutory capital and surplus requirements, percentage | 10.00% | |||
Statutory capital and surplus | $ 216,600,000 | $ 172,700,000 | $ 1,000,000 | |
Risk-based capital | 368.00% | |||
Reinsurance Policy, Description | Statutory accounting requires a provision for reinsurance liability be established for reinsurance recoverable on paid losses aged over ninety days and for unsecured amounts recoverable from unauthorized reinsurers. | |||
Date of incorporation/ Acquisition | Apr. 23, 2013 | |||
Investment in subsidiary | $ 1,700,000 | |||
Letter of credit | $ 10,000,000 | |||
Citizens Layer [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Assessment surcharge | 1.00% | |||
FHCF Layer [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Assessment surcharge | 1.30% | |||
No Action Level [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 200.00% | |||
Company Action Level [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 150.00% | |||
Company Action Level [Member] | Maximum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 200.00% | |||
Regulatory Action Level [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 100.00% | |||
Regulatory Action Level [Member] | Maximum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 150.00% | |||
Authorized Control Level [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 70.00% | |||
Authorized Control Level [Member] | Maximum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 100.00% | |||
Mandatory Control Level [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 70.00% |
Statutory Accounting and Regu73
Statutory Accounting and Regulations - Consolidated GAAP Net Income (Loss) to Statutory Net Income (Loss) of Insurance Subsidiary (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statutory Accounting Practices [Line Items] | |||||||||||
Consolidated GAAP net income | $ 20,243 | $ 16,813 | $ 25,400 | $ 30,056 | $ 19,678 | $ 9,965 | $ 9,566 | $ 7,888 | $ 92,512 | $ 47,097 | $ 34,213 |
Deferred policy acquisition costs | 10,430 | 14,605 | 9,733 | ||||||||
Allowance for doubtful accounts | (250) | 250 | |||||||||
Net Income Reconciliation [Member] | |||||||||||
Statutory Accounting Practices [Line Items] | |||||||||||
Consolidated GAAP net income | 92,512 | 47,097 | 34,213 | ||||||||
Deferred income taxes | 1,755 | (3,764) | (893) | ||||||||
Deferred policy acquisition costs | (10,430) | (14,605) | (9,733) | ||||||||
Surplus note interest | (347) | (1,445) | (278) | ||||||||
Non-statutory subsidiaries | (36,569) | (16,788) | (2,191) | ||||||||
Equity compensation | (1,074) | (1,106) | |||||||||
Allowance for doubtful accounts | (250) | 250 | |||||||||
Other | 199 | (128) | |||||||||
Statutory net income of insurance subsidiary | $ 45,597 | $ 9,838 | $ 20,990 |
Statutory Accounting and Regu74
Statutory Accounting and Regulations - Reconciliation of Consolidated GAAP stockholders' Equity to Surplus with Regards to Policyholders of Insurance Subsidiary (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statutory Accounting Practices [Line Items] | ||||
Consolidated GAAP stockholders’ equity | $ 356,553 | $ 255,089 | $ 79,984 | $ 28,119 |
Dividends to shareholders | (1,578) | |||
Allowance for doubtful accounts | (250) | 250 | ||
Statutory surplus as regards policyholders of insurance subsidiary | 216,621 | 172,711 | 63,054 | |
Stockholder Equity Reconciliation [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Consolidated GAAP stockholders’ equity | 356,553 | 255,089 | 79,984 | |
Ownership shares issued | (201,892) | (176,464) | (72,948) | |
Dividends to shareholders | (1,578) | |||
Excess tax benefit share-based compensation | 739 | |||
Redeemable shares classified as temporary equity | 20,921 | |||
Subsidiary capitalization | 20,000 | |||
Surplus debentures and paid in surplus | 129,180 | 128,106 | 17,000 | |
Deferred policy acquisition costs | (34,800) | (24,370) | (9,765) | |
Deferred income taxes | 8,232 | 8,308 | 2,891 | |
Non-admitted assets | (400) | (320) | (511) | |
Surplus debenture interest | 339 | (1,723) | (278) | |
Non-statutory subsidiaries | (38,527) | (10,825) | 5,355 | |
Unrealized investment losses/gains | 955 | (2,227) | 746 | |
Equity compensation | $ (2,180) | (3,106) | ||
Allowance for doubtful accounts | 250 | |||
Other | $ (7) | $ (341) |
Other Liabilities - Additional
Other Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other liabilities | $ 17,885 | $ 31,831 |
Citizens Layer [Member] | ||
Other liabilities | $ 4,900 | $ 21,100 |
Accrued Bonus Compensation - Ad
Accrued Bonus Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation Related Costs [Abstract] | |||
Accrued employee's bonus compensation | $ 14.1 | $ 7.7 | |
Percentage of earnings | 8.50% | 8.50% | |
Accrued employee's bonus compensation paid in cash | $ 12.1 | ||
Awarded its directors, executive officers and select employees' bonus compensation, total | $ 7.2 | $ 11.5 | |
Awarded its directors, executive officers and select employees' bonus compensation, cash | 6.4 | ||
Awarded its directors, executive officers and select employees' bonus compensation, ownership equity | $ 5.1 | ||
Awarded its directors, executive officers and select employees' bonus compensation, ownership equity, shares | 389 | ||
Awarded its directors, executive officers and select employees' bonus compensation, ownership equity, share price | $ 13,125 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Majority Shareholder [Member] | |||
Related Party Transaction [Line Items] | |||
Rent expenses | $ 0 | $ 70,000 | $ 488,000 |
Immediate Family Member Of Management Or Principal Owner [Member] | |||
Related Party Transaction [Line Items] | |||
Payments for management services | $ 113,400 | 93,000 | |
Payments for engineering, construction and architectural services | $ 2,600,000 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of contribution on employee salary | 3.00% | |
Contribution for participating employees | $ 276,300 | $ 209,400 |
Medical premium cost | 1,400,000 | $ 646,900 |
Unpaid claims | 238,000 | |
Stop loss coverage per employee | 60,000 | |
Defined contribution plan, aggregate limit for losses | $ 1,500,000 | |
Defined contribution plan, aggregate stop loss commences threshold percentage | 125.00% | |
Maximum [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, aggregate limit for losses in excess provided amount | $ 1,000,000 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Nov. 30, 2015 | Aug. 31, 2015 | Jul. 31, 2015 | Jun. 30, 2015 | May. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class Of Stock [Line Items] | ||||||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||||||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | ||||||||
Common stock, shares outstanding | 30,441,410 | 30,441,410 | 29,794,960 | |||||||
Preferred stock, shares outstanding | 0 | 0 | ||||||||
Common stock voting rights | one vote | |||||||||
Warrants Outstanding | 30,600 | |||||||||
Stock options, outstanding | 1,149,923 | 1,149,923 | 1,685,923 | |||||||
Additional paid-in capital | $ 202,628,000 | $ 202,628,000 | $ 188,342,000 | |||||||
Stock issued during period (in shares) | 210,000 | 210,000 | 30,600 | |||||||
Stock options exercised | 36,000 | 120,000 | 150,000 | 60,000 | 20,000 | 137,500 | 12,500 | 536,000 | ||
Exercise price, granted | $ 14.02 | $ 16.89 | $ 16.89 | $ 14.02 | $ 14.02 | $ 16.89 | $ 16.89 | $ 3.09 | ||
Proceeds from issuance of common stock | $ 504,720 | $ 2,026,800 | $ 2,533,485 | $ 841,195 | $ 280,400 | $ 2,322,375 | $ 211,125 | $ 88,000 | $ 33,630,000 | |
Warrants to purchase shares of common stock | 30,600 | |||||||||
Warrant exercisable price per share | $ 5.88 | |||||||||
Cash received from warrant exercisable | $ 180,000 | |||||||||
Fair value of common stock issued in connection with acquisition | $ 2,000,000 | |||||||||
Common Stock [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Stock issued during period (in shares) | 17,850 | |||||||||
Issuance of common stock in connection with acquisition | 79,850 | |||||||||
Common Stock [Member] | BRC Restoration Specialists, Inc. [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Issuance of common stock in connection with acquisition | 79,850 | |||||||||
Fair value of common stock issued in connection with acquisition | $ 2,000,000 | |||||||||
Common Stock [Member] | Stock Options [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Stock issued during period (in shares) | 156,000 | 156,000 | 157,500 | 157,500 | 12,500 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Apr. 30, 2015 | Dec. 02, 2014 | Sep. 24, 2014 | Sep. 24, 2013 | Sep. 24, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 22, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Maximum tenure of stock option from the date of grant | 10 years | ||||||||
Exercisable period of vested awards | 30 months | ||||||||
Shares granted to employees and directors | 1,326,923 | 359,000 | 0 | 0 | 0 | 1,685,923 | 0 | ||
Stock options expiration date | Sep. 24, 2017 | ||||||||
Fair value of option granted | $ 3.19 | $ 2.70 | $ 2.70 | ||||||
Stock-based compensation expense | $ 1.9 | $ 3.3 | |||||||
Employee Stock Option [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock options expiration date | Dec. 2, 2017 | ||||||||
Director Stock Options [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock options expiration date | Dec. 2, 2017 | ||||||||
Restricted Stock [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock options, Vesting period | 5 years | ||||||||
Restricted stock awards granted | 1,125,000 | 0 | 0 | ||||||
Share-based Compensation Award, Tranche One [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Percentage of vesting of awards granted | 50.00% | ||||||||
Share-based Compensation Award, Tranche Two [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Percentage of vesting of awards granted | 50.00% | ||||||||
Minimum [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock options, Vesting period | 1 year | ||||||||
Fair value of option granted | $ 3.07 | ||||||||
Maximum [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock options, Vesting period | 5 years | ||||||||
Fair value of option granted | $ 3.54 | ||||||||
Omnibus Incentive Plan [Member] | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Common stock reserved for issuance | 2,981,737 | ||||||||
Shares available for grant | 170,814 | 1,295,814 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Utilized For Options Granted (Detail) - $ / shares | Dec. 02, 2014 | Sep. 24, 2014 | Dec. 31, 2015 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Weighted-average risk-free interest rate | 0.51% | 0.42% | |
Expected term of option in years | 1 year 7 months 6 days | 1 year 8 months 12 days | |
Weighted-average volatility | 35.56% | 36.47% | |
Dividend yield | 0.00% | 0.00% | |
Weighted average grant date fair value per share | $ 3.19 | $ 2.70 | $ 2.70 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Information Related to Stock Option (Detail) - $ / shares | Dec. 02, 2014 | Sep. 24, 2014 | Sep. 24, 2013 | Sep. 24, 2012 | Dec. 31, 2015 | Nov. 30, 2015 | Aug. 31, 2015 | Jul. 31, 2015 | Jun. 30, 2015 | May. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||||
Beginning Balance, Shares | 1,685,923 | |||||||||||||
Granted, Shares | 1,326,923 | 359,000 | 0 | 0 | 0 | 1,685,923 | 0 | |||||||
Exercised, Shares | (36,000) | (120,000) | (150,000) | (60,000) | (20,000) | (137,500) | (12,500) | (536,000) | ||||||
Ending Balance, Shares | 1,149,923 | 1,149,923 | 1,685,923 | |||||||||||
Vested and exercisable, Shares | 1,149,923 | 1,149,923 | ||||||||||||
Weighted-Average Grant Date Fair Value, Beginning Balance | $ 3.09 | |||||||||||||
Weighted-Average Grant Date Fair Value, Granted | $ 14.02 | $ 16.89 | $ 16.89 | $ 14.02 | $ 14.02 | $ 16.89 | $ 16.89 | $ 3.09 | ||||||
Weighted-Average Grant Date Fair Value, Exercised | 16.27 | |||||||||||||
Weighted-Average Grant Date Fair Value, Ending Balance | 2.99 | 2.99 | $ 3.09 | |||||||||||
Weighted-Average Grant Date Fair Value, Vested and exercisable | $ 2.99 | $ 2.99 |
Stock-Based Compensation - As83
Stock-Based Compensation - Assumptions Used in Determining Fair Value of Stock Options and Stock Appreciation Rights Using Black Scholes Option-Pricing Model (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Option Outstanding, Number | 1,149,923 | 1,685,923 |
Option Outstanding, Weighted Average Exercise Price | $ 2.99 | $ 3.09 |
$ 14.02 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Range of Exercise Price | $ 14.02 | |
Option Outstanding, Number | 243,000 | |
Option Outstanding, Average Remaining Contractual Life (in years) | 1 year 9 months | |
Option Outstanding, Weighted Average Exercise Price | $ 14.02 | |
Option Exercisable, Number | 243,000 | |
Option Exercisable, Average Remaining Contractual Life (in years) | 1 year 9 months | |
Option Exercisable, Weighted Average Exercise Price | $ 14.02 | |
$ 16.89 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Range of Exercise Price | $ 16.89 | |
Option Outstanding, Number | 906,923 | |
Option Outstanding, Average Remaining Contractual Life (in years) | 2 years | |
Option Outstanding, Weighted Average Exercise Price | $ 16.89 | |
Option Exercisable, Number | 906,923 | |
Option Exercisable, Average Remaining Contractual Life (in years) | 2 years | |
Option Exercisable, Weighted Average Exercise Price | $ 16.89 | |
$ 15.46 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Range of Exercise Price | $ 15.46 | |
Option Outstanding, Number | 1,149,923 | |
Option Outstanding, Average Remaining Contractual Life (in years) | 1 year 10 months 15 days | |
Option Outstanding, Weighted Average Exercise Price | $ 15.46 | |
Option Exercisable, Number | 1,149,923 | |
Option Exercisable, Average Remaining Contractual Life (in years) | 1 year 10 months 15 days | |
Option Exercisable, Weighted Average Exercise Price | $ 15.46 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, shares | 1,125,000 | 0 | 0 |
Ending balance, shares | 1,125,000 | ||
Granted, Weighted-Average Grant Date Fair Value | $ 21.40 | ||
Ending balance, Weighted-Average Grant Date Fair Value | $ 21.40 |
Stock-Based Compensation - Su85
Stock-Based Compensation - Summary of Deferred Tax Benefits Recognized and Tax Benefits Realized to Restricted Stock Awards (Detail) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Deferred tax benefit recognized | $ 76 |
Tax benefit realized for restricted stock and paid dividends | $ 357 |
Stock Split - Additional Inform
Stock Split - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders equity stock split | 2,550 |
Condensed Financial Informati87
Condensed Financial Information of Registrant - Schedule of Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Cash and cash equivalents | $ 236,277 | $ 160,481 | $ 65,059 | $ 63,872 |
Other assets | 15,574 | 5,180 | ||
Total Assets | 837,398 | 615,031 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Other liabilities | 17,885 | 31,831 | ||
Total Liabilities | 480,845 | 359,942 | ||
Accumulated other comprehensive income | (2,033) | 1,723 | ||
Retained earnings | 155,955 | 65,021 | ||
Total Stockholders' Equity | 356,553 | 255,089 | 79,984 | 28,119 |
Total Liabilities and Stockholders' Equity | 837,398 | 615,031 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 36,762 | 30,927 | $ 10,744 | $ 2,084 |
Investment in and advances to subsidiaries | 166,597 | 218,600 | ||
Other assets | 7,355 | 6,473 | ||
Total Assets | 210,714 | 256,000 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Other liabilities | 349 | 911 | ||
Total Liabilities | 349 | 911 | ||
Paid-in-capital | 201,892 | 188,345 | ||
Accumulated other comprehensive income | 1,723 | |||
Retained earnings | 8,473 | 65,021 | ||
Total Stockholders' Equity | 210,365 | 255,089 | ||
Total Liabilities and Stockholders' Equity | $ 210,714 | $ 256,000 |
Condensed Financial Informati88
Condensed Financial Information of Registrant - Schedule of Condensed Statements of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | |||||||||||
Other income | $ 9,595 | $ 6,055 | $ 2,901 | ||||||||
Total revenue | $ 101,332 | $ 89,244 | $ 99,088 | $ 105,128 | $ 85,400 | $ 58,013 | $ 46,529 | $ 43,878 | 394,792 | 233,820 | 124,832 |
Expenses: | |||||||||||
General and administrative | 46,125 | 33,498 | 24,720 | ||||||||
Total expenses | 68,039 | 61,529 | 58,098 | 56,836 | 54,178 | 41,904 | 31,429 | 32,057 | 244,502 | 159,568 | 69,371 |
Benefit from income taxes | 57,778 | 27,155 | 21,248 | ||||||||
Net income | $ 20,243 | $ 16,813 | $ 25,400 | $ 30,056 | $ 19,678 | $ 9,965 | $ 9,566 | $ 7,888 | $ 92,512 | $ 47,097 | $ 34,213 |
Weighted average shares outstanding | |||||||||||
Basic | 30,056,491 | 24,568,876 | 14,313,150 | ||||||||
Diluted | 30,326,468 | 25,816,560 | 14,473,800 | ||||||||
Earnings per share | |||||||||||
Basic | $ 0.67 | $ 0.56 | $ 0.85 | $ 1.01 | $ 0.67 | $ 0.33 | $ 0.43 | $ 0.48 | $ 3.08 | $ 1.92 | $ 2.39 |
Diluted | $ 0.66 | $ 0.55 | $ 0.84 | $ 1 | $ 0.67 | $ 0.33 | $ 0.39 | $ 0.42 | $ 3.05 | $ 1.82 | $ 2.36 |
Parent Company [Member] | |||||||||||
Revenue: | |||||||||||
Other income | $ 1,129 | $ 1,896 | $ 1,075 | ||||||||
Total revenue | 1,129 | 1,896 | 1,075 | ||||||||
Expenses: | |||||||||||
General and administrative | 9,036 | 6,649 | 4,119 | ||||||||
Interest | 16 | ||||||||||
Total expenses | 9,036 | 6,649 | 4,135 | ||||||||
Loss before income taxes and equity in net income of subsidiaries | (7,907) | (4,753) | (3,060) | ||||||||
Benefit from income taxes | (2,227) | (801) | |||||||||
Loss before equity in net income of subsidiaries | (5,680) | (3,952) | (3,060) | ||||||||
Equity in net income of subsidiaries | 98,192 | 51,049 | 37,273 | ||||||||
Net income | $ 92,512 | $ 47,097 | $ 34,213 | ||||||||
Weighted average shares outstanding | |||||||||||
Basic | 30,056,491 | 24,568,876 | 14,313,150 | ||||||||
Diluted | 30,326,468 | 25,816,590 | 14,473,800 | ||||||||
Earnings per share | |||||||||||
Basic | $ 3.08 | $ 1.92 | $ 2.39 | ||||||||
Diluted | $ 3.05 | $ 1.82 | $ 2.36 |
Condensed Financial Informati89
Condensed Financial Information of Registrant - Schedule of Condensed Statements of Cash Flows (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Nov. 30, 2015 | Aug. 31, 2015 | Jul. 31, 2015 | Jun. 30, 2015 | May. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Net cash provided by (used in) operating activities | $ 153,860,000 | $ 194,196,000 | $ 105,051,000 | |||||||
Investing Activities | ||||||||||
Net cash used in investing activities | (86,964,000) | (200,047,000) | (136,494,000) | |||||||
Financing Activities | ||||||||||
Proceeds from exercise of stock options and warrants | 8,900,000 | 22,515,000 | ||||||||
Proceeds from issuance of equity and redeemable shares | $ 504,720 | $ 2,026,800 | $ 2,533,485 | $ 841,195 | $ 280,400 | $ 2,322,375 | $ 211,125 | 88,000 | 33,630,000 | |
Net cash provided by financing activities | 8,900,000 | 101,273,000 | 32,630,000 | |||||||
Increase in cash and cash equivalents | 75,796,000 | 95,422,000 | 1,187,000 | |||||||
Cash and cash equivalents at beginning of period | 160,481,000 | 65,059,000 | 63,872,000 | |||||||
Cash and cash equivalents at end of period | 236,277,000 | 236,277,000 | 160,481,000 | 65,059,000 | ||||||
Parent Company [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Net cash provided by (used in) operating activities | 7,935,000 | 1,280,000 | 2,925,000 | |||||||
Investing Activities | ||||||||||
Dividends received from subsidiaries | 21,400,000 | 16,099,000 | ||||||||
Investments and advances to subsidiaries | (32,400,000) | (98,469,000) | (26,895,000) | |||||||
Net cash used in investing activities | (11,000,000) | (82,370,000) | (26,895,000) | |||||||
Financing Activities | ||||||||||
Proceeds from issuance of equity from IPO and private placement, net of discount fee and direct costs of issuance | 78,670,000 | |||||||||
Proceeds from exercise of stock options and warrants | 8,900,000 | 22,515,000 | ||||||||
Proceeds from issuance of equity and redeemable shares | 88,000 | 33,630,000 | ||||||||
Net cash provided by financing activities | 8,900,000 | 101,273,000 | 33,630,000 | |||||||
Increase in cash and cash equivalents | 5,835,000 | 20,183,000 | 8,660,000 | |||||||
Cash and cash equivalents at beginning of period | 30,927,000 | 10,744,000 | 2,084,000 | |||||||
Cash and cash equivalents at end of period | $ 36,762,000 | $ 36,762,000 | $ 30,927,000 | $ 10,744,000 |
Quarterly Results of Operatio90
Quarterly Results of Operations (Unaudited) - Summary of Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net premiums earned | $ 97,572 | $ 82,361 | $ 94,846 | $ 101,489 | $ 79,912 | $ 55,527 | $ 44,295 | $ 43,878 | $ 376,268 | $ 223,612 | $ 95,159 |
Investment income | 1,725 | 1,973 | 2,090 | 1,633 | 1,386 | 1,126 | 719 | 618 | |||
Total revenues | 101,332 | 89,244 | 99,088 | 105,128 | 85,400 | 58,013 | 46,529 | 43,878 | 394,792 | 233,820 | 124,832 |
Total expenses | 68,039 | 61,529 | 58,098 | 56,836 | 54,178 | 41,904 | 31,429 | 32,057 | 244,502 | 159,568 | 69,371 |
Net income | $ 20,243 | $ 16,813 | $ 25,400 | $ 30,056 | $ 19,678 | $ 9,965 | $ 9,566 | $ 7,888 | $ 92,512 | $ 47,097 | $ 34,213 |
Basic earnings per share: | $ 0.67 | $ 0.56 | $ 0.85 | $ 1.01 | $ 0.67 | $ 0.33 | $ 0.43 | $ 0.48 | $ 3.08 | $ 1.92 | $ 2.39 |
Diluted earnings per share: | $ 0.66 | $ 0.55 | $ 0.84 | $ 1 | $ 0.67 | $ 0.33 | $ 0.39 | $ 0.42 | $ 3.05 | $ 1.82 | $ 2.36 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 29, 2016 | Apr. 17, 2014 | Mar. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||
Cash dividend, declared date | Mar. 1, 2016 | |||
Cash dividend, payable date | Apr. 5, 2016 | |||
Dividend payable, record date | Mar. 15, 2016 | |||
Scenario Forecast [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash dividend, declared | $ 0.05 | |||
Scenario Forecast [Member] | Zephyr Acquisition Company [Member] | ||||
Subsequent Event [Line Items] | ||||
Purchase price | $ 120 | |||
Catastrophe [Member] | ||||
Subsequent Event [Line Items] | ||||
Agreement of coverage | 3 years | |||
Collateralized by a reinsurance trust | $ 200 | |||
Reinsurance agreement | 3 years | |||
Subsequent Event [Member] | Notes Due February 2019 [Member] | ||||
Subsequent Event [Line Items] | ||||
Reinsurance agreement | 2 years | |||
Subsequent Event [Member] | Catastrophe [Member] | ||||
Subsequent Event [Line Items] | ||||
Agreement of coverage | 3 years | |||
Subsequent Event [Member] | Catastrophe [Member] | Notes Due February 2019 [Member] | ||||
Subsequent Event [Line Items] | ||||
Collateralized by a reinsurance trust | $ 250 | |||
Subsequent Event [Member] | Catastrophe [Member] | Class D-50 Notes Due February 2019 [Member] | ||||
Subsequent Event [Line Items] | ||||
Collateralized by a reinsurance trust | 150 | |||
Subsequent Event [Member] | Catastrophe [Member] | Class E-50 Notes Due February 2019 [Member] | ||||
Subsequent Event [Line Items] | ||||
Collateralized by a reinsurance trust | $ 100 |