Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 03, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
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 Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 31,566,410 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Fixed maturity securities, available for sale, at fair value (amortized cost of $509,184 and $370,967 in 2016 and 2015, respectively) | $ 517,573 | $ 371,783 |
Equity securities, available for sale, at fair value (cost of $33,935 and $32,439 in 2016 and 2015, respectively) | 32,205 | 28,313 |
Total investments | 549,778 | 400,096 |
Cash and cash equivalents | 130,835 | 236,277 |
Restricted cash | 19,261 | 13,085 |
Accrued investment income | 4,624 | 3,409 |
Premiums receivable, net | 35,161 | 30,565 |
Prepaid reinsurance premiums | 168,650 | 78,517 |
Income taxes receivable | 5,280 | |
Deferred income taxes | 7,964 | |
Deferred policy acquisition costs, net | 42,129 | 34,800 |
Property and equipment, net | 17,600 | 17,111 |
Intangibles, net | 26,402 | 2,120 |
Goodwill | 48,267 | 8,028 |
Other assets | 5,727 | 5,426 |
Total Assets | 1,053,714 | 837,398 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Unpaid losses and loss adjustment expenses | 125,695 | 83,722 |
Unearned premiums | 323,354 | 302,493 |
Reinsurance payable | 177,867 | 60,210 |
Deferred income taxes | 6,966 | |
Income tax payable | 2,092 | |
Advance premiums | 20,382 | 12,138 |
Accrued compensation | 5,500 | 2,305 |
Other liabilities | 16,706 | 17,885 |
Total Liabilities | 676,470 | 480,845 |
Commitments and contingencies (Note 15) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value, 50,000,000 shares authorized, 30,141,744 shares issued and 29,016,744 outstanding at September 30, 2016 and 30,441,410 outstanding at December 31, 2015 | 3 | 3 |
Additional paid-in capital | 206,240 | 202,628 |
Accumulated other comprehensive income (loss) | 4,116 | (2,033) |
Treasury stock, at cost, 1,424,666 shares at September 30, 2016 | (20,562) | |
Retained earnings | 187,447 | 155,955 |
Total Stockholders' Equity | 377,244 | 356,553 |
Total Liabilities and Stockholders' Equity | $ 1,053,714 | $ 837,398 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Fixed maturities available for sale, at amortized cost | $ 509,184 | $ 370,967 |
Equity securities, cost | $ 33,935 | $ 32,439 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 30,141,744 | |
Common stock, shares outstanding | 29,016,744 | 30,441,410 |
Treasury stock, shares | 1,424,666 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Other Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUE: | ||||
Gross premiums written | $ 147,232 | $ 148,993 | $ 471,793 | $ 418,558 |
Change in gross unearned premiums | 17,464 | (20,759) | 8,483 | (37,222) |
Gross premiums earned | 164,696 | 128,234 | 480,276 | 381,336 |
Ceded premiums | (63,141) | (45,873) | (163,461) | (102,640) |
Net premiums earned | 101,555 | 82,361 | 316,815 | 278,696 |
Net investment income | 2,326 | 1,973 | 6,586 | 5,696 |
Net realized gains | 1,119 | 1,946 | 1,762 | 1,827 |
Other revenue | 4,306 | 2,964 | 10,988 | 7,241 |
Total revenue | 109,306 | 89,244 | 336,151 | 293,460 |
EXPENSES: | ||||
Losses and loss adjustment expenses | 53,906 | 35,791 | 169,663 | 102,239 |
Policy acquisition costs | 22,597 | 15,512 | 61,478 | 40,858 |
General and administrative expenses | 14,191 | 10,226 | 44,602 | 33,366 |
Total expenses | 90,694 | 61,529 | 275,743 | 176,463 |
Income before income taxes | 18,612 | 27,715 | 60,408 | 116,997 |
Provision for income taxes | 7,682 | 10,902 | 23,688 | 44,728 |
Net income | 10,930 | 16,813 | 36,720 | 72,269 |
OTHER COMPREHENSIVE INCOME: | ||||
Change in net unrealized gains (losses) on investments | (1,237) | (1,168) | 11,773 | (6,638) |
Reclassification adjustment for net realized investment (gains) losses | (1,119) | (1,946) | (1,762) | (1,827) |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 908 | 1,201 | (3,862) | 3,265 |
Total comprehensive income | $ 9,482 | $ 14,900 | $ 42,869 | $ 67,069 |
Weighted average shares outstanding | ||||
Basic | 29,213,222 | 30,177,633 | 29,742,984 | 29,952,668 |
Diluted | 29,213,222 | 30,483,553 | 29,786,156 | 30,289,328 |
Earnings per share | ||||
Basic | $ 0.37 | $ 0.56 | $ 1.23 | $ 2.41 |
Diluted | $ 0.37 | $ 0.55 | $ 1.23 | $ 2.39 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Shares [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Deficit) [Member] | Treasury Shares [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2014 | $ 255,089 | $ 3 | $ 188,342 | $ 65,021 | $ 1,723 | |
Beginning Balance, Shares at Dec. 31, 2014 | 29,794,960 | |||||
Stock-based compensation | 1,873 | 1,873 | ||||
Issuance of restricted common stock in connection with the acquisition of BRC Restoration | 2,000 | 2,000 | ||||
Issuance of restricted common stock in connection with the acquisition of BRC Restoration, Shares | 79,850 | |||||
Exercise of stock options and warrants | 6,369 | 6,369 | ||||
Exercise of stock options and warrants, Shares | 410,600 | |||||
Net unrealized change in investments, net of tax | (5,200) | (5,200) | ||||
Net income | 72,269 | 72,269 | ||||
Ending balance at Sep. 30, 2015 | 332,400 | $ 3 | 198,584 | 137,290 | (3,477) | |
Ending balance, Shares at Sep. 30, 2015 | 30,285,410 | |||||
Beginning Balance at Dec. 31, 2014 | 255,089 | $ 3 | 188,342 | 65,021 | 1,723 | |
Beginning Balance, Shares at Dec. 31, 2014 | 29,794,960 | |||||
Dividends declared on common stock | (1,578) | |||||
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 | |||||
Buy-back common shares of Company stock | (20,562) | $ (20,562) | ||||
Buy back common shares of company stock, shares | (1,424,666) | |||||
Stock-based compensation | 3,612 | 3,612 | ||||
Dividends declared on common stock | (5,228) | (5,228) | ||||
Net unrealized change in investments, net of tax | 6,149 | 6,149 | ||||
Net income | 36,720 | 36,720 | ||||
Ending balance at Sep. 30, 2016 | $ 377,244 | $ 3 | $ 206,240 | $ 187,447 | $ (20,562) | $ 4,116 |
Ending balance, Shares at Sep. 30, 2016 | 29,016,744 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
OPERATING ACTIVITIES | ||
Net income | $ 36,720 | $ 72,269 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 3,612 | 1,873 |
Amortization of bond discount | 5,924 | 4,688 |
Depreciation and amortization | 6,075 | 926 |
Net realized gains | (1,762) | (1,827) |
Deferred income taxes, net of acquired | 11,069 | 3,445 |
Changes in operating assets and liabilities: | ||
Accrued investment income | (1,215) | (665) |
Premiums receivable, net | (3,194) | (6,561) |
Restricted cash | (6,176) | (8,447) |
Prepaid reinsurance premiums | (85,341) | (80,393) |
Reinsurance premium payable | (14,398) | |
Income taxes receivable | (5,280) | (6,666) |
Deferred policy acquisition costs, net | (7,329) | (8,124) |
Other assets | 225 | (1,284) |
Unpaid losses and loss adjustment expenses | 41,973 | 22,976 |
Unearned premiums | (8,484) | 37,222 |
Reinsurance payable | 117,657 | 118,476 |
Income taxes payable | (2,092) | (12,808) |
Accrued compensation | 1,977 | 11,224 |
Advance premiums | 6,153 | 7,923 |
Other liabilities | (10,917) | (22,311) |
Net cash provided by operating activities | 99,595 | 117,538 |
INVESTING ACTIVITIES | ||
Proceeds from sales and maturities of investments available for sale | 135,802 | 119,181 |
Purchases of investments available for sale | (203,091) | (201,885) |
Acquisition of a business, net of cash acquired | (110,319) | (6,000) |
Proceeds from sale of investment in mortgage loan | 6,849 | |
Cost of property and equipment acquired | (1,639) | (1,263) |
Net cash used in investing activities | (179,247) | (83,118) |
FINANCING ACTIVITIES | ||
Proceeds from exercise of stock options | 6,369 | |
Dividends | (5,228) | |
Purchase of treasury stock | (20,562) | |
Net cash (used in) provided by financing activities | (25,790) | 6,369 |
(Decrease) Increase in cash and cash equivalents | (105,442) | 40,789 |
Cash and cash equivalents at beginning of period | 236,277 | 160,481 |
Cash and cash equivalents at end of period | 130,835 | 201,270 |
Supplemental Cash Flows Information: | ||
Income taxes paid, net | $ 27,912 | 61,200 |
Issuance of shares for consideration in the acquisition of a business | $ 2,000 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1. BASIS OF PRESENTATION Basis of Presentation The condensed consolidated financial statements as of and for the three and nine months ended September 30, 2016 and 2015 include Heritage Insurance Holdings, Inc. (“Parent Company”) and its wholly owned subsidiaries: Heritage Property & Casualty Insurance Company (“Heritage P&C”), which provides personal and commercial residential insurance; Heritage MGA, LLC, the managing general agent that manages substantially all aspects of our insurance subsidiary’s business; Contractors’ Alliance Network, LLC (“CAN”), our vendor network manager which includes BRC Restoration Specialists, Inc. (“BRC”), our provider of restoration, emergency and recovery services; Zephyr Acquisition Company (“ZAC”) and its wholly-owned subsidiary, Zephyr Insurance Company, Inc. (“Zephyr”), our provider for writing insurance policies for residential wind insurance within the State of Hawaii; Skye Lane Properties, LLC, our property management subsidiary; First Access Insurance Group, LLC, our retail agency; Osprey Re Ltd. (“Osprey”), 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 assets of BRC, a building restoration company, were acquired and merged into CAN in 2015. The assets of SVM Restoration Services Inc. (“SVM”), a water mitigation company, were acquired and merged into CAN in 2014. Our primary products are personal and commercial residential insurance, which we currently offer in Florida, under authorization from the Florida Office of Insurance Regulation (“FLOIR”). We also began offering personal residential insurance in the states of North Carolina, South Carolina and through the Zephyr acquisition, Hawaii. We are also licensed to do business in Georgia, Alabama and Mississippi. We conduct our operations under one business segment. The condensed consolidated financial information included herein as of and for the three and nine months ended September 30, 2016 and 2015 does not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. However, such information reflects all adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for a fair statement of the financial condition and results of operations for the interim periods. The results for the three and nine months ended September 30, 2016 and 2015 are not indicative of annual results. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The December 31, 2015 consolidated balance sheet was derived from the Company’s audited consolidated financial statements as of and for the year ended December 31, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in Heritage Insurance Holdings, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. References to “we,” “us,” “our,” or the “Company” refer to Heritage Insurance Holdings, Inc. and its consolidated subsidiaries. The Company qualifies as an “emerging growth company” as defined in Section 2(a)(19) of the Securities Act, of 1933, as amended, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As a result, the Company is eligible to take advantage of certain temporary exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies. The Company intends to continue to take advantage of some, but not all, of the exemptions available to emerging growth companies until such time that it is no longer an emerging growth company. The Company has, however, irrevocably elected not to take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Changes to significant accounting policies We have made no material changes to our significant accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2015. Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation. Such classifications include reclassifying goodwill and intangibles from other assets in the accompanying condensed consolidated balance sheets. Recent The Company describes below recent pronouncements that may have a significant effect on its financial statements or on its disclosures upon future adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on, or are unrelated to, its financial condition, results of operations, or related disclosures. In August 2016, the Financial Accounting Standards Board issued (“FASB”) ASC 2016-15, Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued Accounting Standards Update (“ASU”), ASU 2016-13, Financial Instruments – Credit Losses Measurement of Credit Losses on Financial Instruments is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, with early adoption permitted for fiscal years and interim periods beginning after December 15, 2018. In March 2016, the FASB issued ASU 2016-09 , Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases In January 2016, the FASB issued ASU 2016-01 , Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU Topic 2014-09, Revenue from Contracts with Customers There are no other recently issued accounting standards that apply to the Company or that are expected to have a material impact on the Company’s results of operations, financial condition or cash flows. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 3. ACQUISITION On March 21, 2016, the Company acquired 100% of the outstanding stock of ZAC and its wholly-owned subsidiary, Zephyr, in exchange for approximately $110,319, net of cash acquired. Zephyr is a specialty property insurance provider that offers policies for residential customers in Hawaii that only cover the peril of the windstorm-hurricane insurance policies. This acquisition furthers the Company’s strategic push to diversify business operations and achieve potential reinsurance synergies while expanding growth opportunities outside of Florida. The transaction was accounted for using the acquisition method of accounting. The valuations of assets acquired and liabilities assumed are based on preliminary estimates of fair value and are subject to revision as the Company finalizes its analysis. The results of operations of ZAC have been included in the Company’s condensed consolidated financial statements since the date of acquisition. The acquisition method requires significant use of estimates and is based on the information available to management at the time these condensed consolidated financial statements were prepared. As the acquisition was recently completed, the Company has not yet completed its assessment of the fair value of the intangible assets acquired, nor the related amortization expense applicable to definite-lived intangible assets during the period between the acquisition date and period end. As such, the total estimated purchase price in excess of net assets acquired and liabilities assumed has initially been recorded as goodwill and identified intangible assets. Goodwill is not deductible for tax purposes and will not be amortized, but is subject to annual impairment tests using a fair-value based approach. The Company is entitled to a holdback provision, for purposes of securing the indemnification obligation of the sellers for any damages arising out of or relating to a previous dispute should one arise. The following table summarizes the preliminary unaudited, estimated fair value of the assets acquired and liabilities assumed. The Company is in the process of finalizing the purchase price allocation and, accordingly, the following allocation of the purchase price, before income taxes, is subject to adjustments during the measurement period: Purchase Consideration Cash, net of cash acquired $ 110,319 Assets acquired Investments $ 76,543 Premiums and agent's receivable 1,403 Other assets 526 Prepaid reinsurance premiums 4,792 Intangible assets – value of business acquired 5,004 Intangible assets 24,203 Total assets acquired $ 112,471 Total liabilities assumed $ (42,391 ) Net assets acquired $ 70,080 Goodwill 40,239 Total purchase price $ 110,319 Pro Forma Information The following table presents selected unaudited pro forma information, assuming the acquisition of ZAC had occurred on January 1, 2015. The unaudited pro forma information is not necessarily indicative of the results that the Company would have achieved had the transaction taken place on January 1, 2015, and the unaudited pro forma information does not purport to be indicative of future financial results. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenue $ 109,306 $ 100,709 $ 344,972 $ 320,905 Net income $ 10,930 $ 20,982 $ 38,673 $ 80,886 Basic, earnings per share $ 0.37 $ 0.70 $ 1.33 $ 2.70 Diluted, earnings per share $ 0.37 $ 0.69 $ 1.33 $ 2.67 Our consolidated results of operations include the results of ZAC since the acquisition date. ZAC’s revenues and pre-tax net income included in our results of operations since the acquisition for the three months ended September 30, 2016 were $8,985 and $4,566, respectively, and for the nine months ended September 30, 2016, $19,347 and $11,073, respectively. For the three and nine months ended September 30, 2016, income before taxes included $2,016 and $4,780, respectively, of amortization expense related to the identified intangible assets recorded as a result of the acquisition. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | NOTE 4. INVESTMENTS The following table details the difference between cost or adjusted/amortized cost and estimated fair value, by major investment category, at September 30, 2016 and December 31, 2015: Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (In thousands) September 30, 2016 U.S. government and agency securities $ 27,473 $ 316 $ 7 27,782 States, municipalities and political subdivisions 284,949 4,815 124 289,640 Special revenue 56,957 438 185 57,210 Industrial and miscellaneous 136,392 3,053 30 139,415 Redeemable preferred stocks 3,413 124 11 3,526 Total fixed maturities 509,184 8,746 357 517,573 Nonredeemable preferred stocks 14,439 661 57 15,043 Equity securities 19,496 1,209 3,543 17,162 Total equity securities 33,935 1,870 3,600 32,205 Total investments $ 543,119 $ 10,616 $ 3,957 $ 549,778 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized 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 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 net realized gains (losses) by major investment category for the three and nine months ended September 30, 2016 and 2015. 2016 2015 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Three Months Ended September 30, Fixed maturities $ 1,091 $ 17,301 $ 1,200 $ 62,412 Equity securities 289 1,739 826 15,949 Total realized gains 1,380 19,040 2,026 78,361 Fixed maturities (232 ) 575 (75 ) 5,948 Equity securities (29 ) 445 (5 ) 328 Total realized losses (261 ) 1,020 (80 ) 6,276 Net realized gains $ 1,119 $ 20,060 $ 1,946 $ 84,637 2016 2015 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Nine Months Ended September 30, Fixed maturities $ 2,668 $ 166,350 $ 1,237 $ 66,513 Equity securities 46 7,855 716 20,581 Total realized gains 2,714 174,205 1,953 87,094 Fixed maturities (66 ) 12,973 (116 ) 11,219 Equity securities (886 ) 2,948 (10 ) 2,196 Total realized losses (952 ) 15,921 (126 ) 13,415 Net realized gains $ 1,762 $ 190,126 $ 1,827 $ 100,509 The table below summarizes the Company’s fixed maturities at September 30, 2016 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. September 30, 2016 Cost or Amortized Cost Percent of Total Fair Value Percent of Total (In thousands) (In thousands) Due in one year or less $ 70,683 14 % $ 70,696 14 % Due after one year through five years 177,559 35 % 178,915 34 % Due after five years through ten years 165,557 32 % 169,966 33 % Due after ten years 95,385 19 % 97,996 19 % Total $ 509,184 100 % $ 517,573 100 % The following table summarizes the Company’s net investment income by major investment category for the three and nine months ended September 30, 2016 and 2015: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) (In thousands) Fixed maturities $ 2,338 $ 1,936 $ 6,368 $ 5,254 Equity securities 495 439 1,465 1,292 Cash, cash equivalents and short-term investments 79 150 215 361 Other investments 14 67 (96 ) 128 Net investment income 2,926 2,592 7,952 7,035 Investment expenses 600 619 1,366 1,339 Net investment income, less investment expenses $ 2,326 $ 1,973 $ 6,586 $ 5,696 The Company does not intend to sell investments that are in an unrealized loss position and it is not likely that the Company will be required to sell any investments before recovery of their amortized cost basis. As such, the Company does not consider those investments with an unrealized loss to be other-than-temporarily impaired at September 30, 2016 or December 31, 2015. There were no material other-than-temporary impairments or credit losses related to available-for-sale securities in the nine months ended September 30, 2016 and 2015. In addition, there were no material gross realized gains or losses in the nine months ended September 30, 2016 and 2015. The following tables present an aging of our unrealized investment losses by investment class as of September 30, 2016 and December 31, 2015: 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) September 30, 2016 U.S. government and agency securities 13 $ 7 $ 7,815 1 $ — $ 38 States, municipalities and political subdivisions 111 116 62,818 2 8 1,492 Special revenue 30 23 6,623 4 7 1,972 Industrial and miscellaneous 82 157 12,402 13 27 2,215 Redeemable preferred stocks 8 5 384 1 6 212 Total fixed maturities 244 308 90,042 21 48 5,929 Nonredeemable preferred stocks 138 35 2,165 5 22 324 Equity securities 52 304 2,848 126 3,240 8,066 Total equity securities 190 339 5,013 131 3,262 8,390 Total investments 434 $ 647 $ 95,055 152 $ 3,310 $ 14,319 Less Than Twelve Months Twelve Months or More Number Securities Gross Unrealized Losses Fair Number Securities Gros s Unrealized Losses Fai r (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 Special revenue 141 870 73,312 5 61 1,318 Industrial and miscellaneous 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 investments 384 $ 4,609 $ 175,269 43 $ 1,934 $ 6,455 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 5. FAIR VALUE OF 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 value from its third-party valuation service and evaluates 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 its calculations are not quoted prices in active markets, but are observable inputs, and therefore represent Level 2 inputs. The following tables present 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 nine months ended September 30, 2016 and the year ended December 31, 2015, there were no transfers in or out of Levels 1, 2 and 3. September 30, 2016 Total Level 1 Level 2 Level 3 (in thousands) Fixed maturities investments: U.S. government and agency securities $ 27,782 $ 766 $ 27,016 $ — States, municipalities and political subdivisions 289,640 — 289,640 — Special revenue 57,210 23,947 33,263 — Industrial and miscellaneous 139,415 — 139,415 — Redeemable preferred stocks 3,526 3,526 — — Total fixed maturities investments 517,573 28,239 489,334 — Nonredeemable preferred stocks 15,043 15,043 — — Equity securities 17,162 17,162 — — Total equity securities 32,205 32,205 — — Total investments $ 549,778 $ 60,444 $ 489,334 $ — December 31, 2015 Total Level 1 Level 2 Level 3 (in thousands) Assets: Certificates of deposit (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 $ — (1) Includes commercial paper with maturities of three months or less at time of purchase of $3,300 classified in cash and cash equivalents. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 (In thousands) Land $ 2,582 $ 2,582 Building 10,301 9,599 Computer hardware and software 3,132 2,502 Office furniture and equipment 759 634 Tenant and leasehold improvements 3,330 3,300 Vehicle fleet 845 693 Total, at cost 20,949 19,310 Less: accumulated depreciation and amortization 3,349 2,199 Property and equipment, net $ 17,600 $ 17,111 Depreciation expense for property and equipment was $797 and $1,150 for the three and nine months ended September 30, 2016, respectively. The Company’s real estate consists of 14 acres of land and four buildings with a gross area of approximately 191 square feet. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Intangible Assets As of September 30, 2016 and December 31, 2015 goodwill was $48,267 and $8,028, respectively, and intangible assets were $26,402 and $2,120, respectively. The increase in goodwill and intangible assets reflects the goodwill and intangible assets recorded in connection with the Zephyr acquisition. The preliminary purchase price allocation to goodwill and intangible assets has not been finalized and is subject to change. As of September 30, 2016, the amount of goodwill that we expect to be deductible for income tax purposes is $8,028. The Company has estimated the useful life of the value of business acquired (see Note 3) to be one year and is amortizing the balance based on the remaining percentage of acquired unearned premium from Zephyr. The Company has estimated the useful life of the other intangible assets to range between 10-15 years and is currently amortizing at an average of 12.5 years until the finalization of the purchase price allocation is completed and the useful lives have been finalized. Goodwill (in thousands) Balance as of December 31, 2015 $ 8,028 Goodwill acquired 40,239 Impairment — Balance as of September 30, 2016 $ 48,267 Estimated annual pretax amortization of intangible assets for the remainder of 2016 and each of the next five years and thereafter is as follows (in thousands): Remainder of 2016 $ 931 2017 2,435 2018 2,128 2019 2,128 2020 2,116 2021 2,104 Thereafter 14,560 $ 26,402 Amortization expense of intangible assets was $2,061 and $4,924 for the three and nine months ended September 30, 2016, respectively. The Company recorded no amortization expense for the three and nine months ended September 30, 2015. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 8. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Basic earnings per share: Net income attributable to common stockholders (000's) $ 10,930 $ 16,813 $ 36,720 $ 72,269 Weighted average shares outstanding 29,213,222 30,177,633 29,742,984 29,952,668 Basic earnings per share: $ 0.37 $ 0.56 $ 1.23 $ 2.41 Diluted earnings per share: Net income attributable to common stockholders (000's) $ 10,930 $ 16,813 $ 36,720 $ 72,269 Weighted average shares outstanding 29,213,222 30,177,633 29,742,984 29,952,668 Weighted average dilutive shares - 305,920 43,172 336,660 Total weighted average dilutive shares 29,213,222 30,483,553 29,786,156 30,289,328 Diluted earnings per share: $ 0.37 $ 0.55 $ 1.23 $ 2.39 As of September 30, 2016, the Company has repurchased 1,424,666 shares of the Company’s stock in open market transactions for $20,562. As of September 30, 2016, the Company had $49,438 remaining to purchase shares under its authorized $70,000 share repurchase plan. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 9 Months Ended |
Sep. 30, 2016 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | NOTE 9. 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 during the three and nine months ended September 30, 2016 and 2015: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Beginning Balance $ 42,568 $ 31,948 $ 34,800 $ 24,370 Policy acquisition costs deferred 22,158 16,058 68,807 48,982 Amortization (22,597 ) (15,512 ) (61,478 ) (40,858 ) Ending Balance $ 42,129 $ 32,494 $ 42,129 $ 32,494 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. INCOME TAXES During the nine months ended September 30, 2016 and 2015, the Company recorded $23,688 and $44,728, respectively, of income tax expense which corresponds to an estimated annual effective tax rate of 39.2% and 38.2%, respectively. The table below summarizes the significant components of our net deferred tax assets (liabilities): September 30, 2016 December 31, 2015 (in thousands) Deferred tax assets: Unearned premiums $ 17,772 $ 17,979 Tax-related discount on loss reserve 1,766 1,140 Unrealized loss — 1,617 Stock-based compensation 2,828 1,277 Other 1,705 256 Total deferred tax assets $ 24,071 $ 22,269 Deferred tax liabilities: Deferred acquisition costs $ 15,664 $ 13,424 Unrealized gain 2,542 — Investment basis difference on purchase 840 — Intangibles 10,224 — Property and equipment 477 473 Other 1,290 408 Total deferred tax liabilities 31,037 14,305 Net deferred tax (liabilities) assets $ (6,966 ) $ 7,964 In assessing the net realizable value of deferred tax assets, the Company considered whether it is more likely than not that it 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. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. As of September 30, 2016 and December 31, 2015, we had no significant uncertain tax positions. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2016 | |
Insurance [Abstract] | |
Reinsurance | NOTE 11. REINSURANCE The Company’s reinsurance program is designed, utilizing the Company’s risk management methodology, to address its exposure to catastrophes or large non-catastrophic losses. The Company’s program provides reinsurance protection for catastrophes including hurricanes, tropical storms and tornadoes. The Company’s reinsurance agreements are part of its 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. 2016 - 2017 Reinsurance Program The Company placed its reinsurance program for the period from June 1, 2016 through May 31, 2017 during the second quarter of 2016. This reinsurance program incorporates the catastrophe risk of our two insurance subsidiaries, Heritage P&C, a Florida based insurer and Zephyr, a Hawaii based insurer, into one reinsurance structure. The programs are incorporated into one reinsurance structure and are allocated amongst traditional reinsurers, catastrophe bonds issued by Citrus Re Ltd., a Bermuda special purpose insurer formed in 2014 (“Citrus Re”), and the Florida Hurricane Catastrophe Fund (“FHCF”).Coverage is shared by both insurers unless otherwise noted. The 2016-2017 reinsurance program provides, including retention, first event coverage up to $1.9 billion in Florida, first event coverage up to $1.1 billion in Hawaii, and multiple event coverage up to $3.0 billion. The reinsurance program, which is segmented into layers of coverage, protects the Company for excess property catastrophe losses and loss adjustment expenses. The Company’s 2016-2017 reinsurance program incorporates the mandatory coverage required by law to be placed with FHCF, which is available only for Florida catastrophe risk. For the 2016 hurricane season, the Company reduced its selected participation percentage in the FHCF from 75% to 45%. 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, 2016 to May 31, 2017 reinsurance program. • The Company’s Retention . If a first catastrophic event strikes Florida, the Company has a primary retention of the first $40 million of losses and loss adjustment expenses, of which Osprey is responsible for $20 million. If a first catastrophic event strikes Hawaii, the Company has a primary retention of the first $30 million of losses and loss adjustment expenses, of which Osprey is responsible for $15 million. If a second event strikes Florida, Heritage P&C’s primary retention decreases to $15 million and the remainder of the losses are ceded to third parties. If a second event strikes Hawaii, Zephyr’s primary retention decreases to $5 million. In the second event only for a loss exceeding $190 million, there is an additional Company co-participation of 5.4% subject to a maximum co-participation of $11.6 million. Heritage P&C and Zephyr each have a $5 million primary retention for events beyond the second catastrophic event. Osprey has no primary retention beyond the first catastrophic event in Florida or Hawaii. Additionally, Osprey is responsible for payment of up to $5.3 million of reinstatement premium, depending on the amount of losses incurred. • Shared Layers above retention and below FHCF . Immediately above the retention, the Company has purchased $374 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 $374 million or a portion thereof is exhausted in a first catastrophic event, the Company has purchased reinstatement premium protection insurance to pay the required premium necessary for the reinstatement of this coverage. • FHCF Layer . The Company’s FHCF program provides coverage for Florida events only and includes an estimated maximum provisional limit of 45% of $1.3 billion, in excess of its retention of $399 million. The limit and retention of the FHCF coverage is subject to upward or downward adjustment based on, among other things, submitted exposures to FHCF by all participants. The Company has purchased coverage alongside from third party reinsurers and through reinsurance agreements with Citrus Re. To the extent the FHCF coverage is adjusted, this private reinsurance with third party reinsurers and Citrus Re will adjust to fill in any gaps in coverage up to the reinsurers’ aggregate limits for this layer. The FHCF coverage cannot be reinstated once exhausted, but it does provide coverage for multiple events. • Layers alongside the FHCF. The Florida reinsurance program includes third party layers alongside the FHCF. These include 2015 C and 2015 B series catastrophe bonds, which cover Florida only for the 2016 season, and 2016 D and 2016 E catastrophe bond series issued by Citrus Re, which total $377.5 million of coverage, as discussed below, as well as a traditional reinsurance layer providing $200 million of coverage. Through a reinstatement, the Company is able to reinstate the full amount of the $200 million of reinsurance one time. These 2016 catastrophe bonds and the traditional reinsurance layer provide coverage for both Florida and Hawaii catastrophe losses. • 2016 Class D and E Notes: During February 2016, Heritage P&C and Zephyr entered into two catastrophe reinsurance agreements with Citrus Re. The agreements provide for three years of coverage from catastrophic losses caused by named storms, including hurricanes, beginning on June 1, 2016. Heritage P&C and Zephyr pay a periodic premium to Citrus Re during this three-year risk period. Citrus Re issued an aggregate of $250 million of principal-at-risk variable notes due February 2019 to fund the reinsurance trust account and its obligations to Heritage P&C and Zephyr under the reinsurance agreements. The Class D notes provide $150 million of coverage and the Class E notes provide $100 million of coverage. The Class D and Class E notes provide reinsurance coverage for a sliver of the catastrophe coverage that had previously been provided by the FHCF. The limit of coverage is fully collateralized by a reinsurance trust account for the benefit of Heritage P&C and Zephyr. 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. • 2015 Class B and C Notes : During April 2015, Heritage P&C entered into catastrophe reinsurance agreements with Citrus Re. The 2015 notes do not provide coverage for Zephyr for the 2016 hurricane season. The agreements provide for three years of coverage from catastrophic losses caused by named storms, including hurricanes, beginning on June 1, 2015. Heritage P&C pays a periodic premium to Citrus Re during this three-year risk period. Citrus Re issued principal-at-risk variable notes due April 2018 to fund the reinsurance trust account and its obligations to Heritage P&C under the reinsurance agreements. The Class B notes provide $97.5 million of coverage, and the Class C notes provide $30 million of coverage. The Class B and Class C notes provide reinsurance coverage for a sliver of the catastrophe coverage that had previously been provided by the FHCF. The limit of coverage is fully collateralized by a reinsurance trust account for the benefit of Heritage P&C. 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. Layers above the FHCF - Florida program • 2015 Class A Notes: During April 2015, Heritage P&C entered into catastrophe reinsurance agreements with Citrus Re. The 2015 notes do not provide coverage for Zephyr for the 2016 hurricane season. The agreements provide for three years of coverage from catastrophic losses caused by named storms, including hurricanes, beginning on June 1, 2015. Heritage P&C pays a periodic premium to Citrus Re during this three-year risk period. Citrus Re issued principal-at-risk variable notes due April 2018 to fund the reinsurance trust account and its obligations to Heritage P&C under the reinsurance agreements. The Class A notes provide $150 million of coverage for a layer above the FHCF. The limit of coverage is fully collateralized by a reinsurance trust account for the benefit of Heritage P&C. 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. • 2014 Class A Notes: Coverage immediately below and above the 2015 Class A notes is provided by the 2014 reinsurance agreements entered into with Citrus Re. The first contract with Citrus Re provides $150 million of coverage immediately below 2015 Class A, and the second contract provides an additional $50 million of coverage which sits immediately above 2015 Class A. During April 2014, Heritage P&C entered into two catastrophe reinsurance agreements with Citrus Re. The 2014 notes do not provide coverage for Zephyr for the 2016 hurricane season. 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 during this three-year risk period. Citrus Re 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. • Multi-Zonal Layers – The Company purchased additional layers which provide coverage for Florida for a second event and both first and second event coverage for Hawaii. The first event coverage for Hawaii is a counterpart to the Florida-only catastrophe bond layers and FHCF layer. There is a total of $282 million of reinsurance coverage purchased on this basis, with $260 million having a prepaid reinstatement. The multi-zonal occurrence layer provides first and second event coverage of $260 million for Hawaii and second event coverage of $260 million for Florida. A top and drop multi-zonal layer provides first and subsequent event coverage of $22 million for Hawaii and second or subsequent event coverage of $22 million for Florida. • Aggregate Coverage . In addition to what is described above, much of the reinsurance is structured in a way to provide aggregate coverage. $682 million of limit is structured on this basis. To the extent that this coverage is not fully exhausted in the first catastrophic event, it provides coverage commencing at its reduced retention for second and subsequent events where underlying coverage has been previously exhausted. $460 million has a reinstatement, which is prepaid. For a first catastrophic event striking Florida, our reinsurance program provides coverage for $1.9 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 a first catastrophic event striking Hawaii, our reinsurance program provides coverage for $1.1 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. $860 million of limit purchased in 2016 includes a reinstatement, with $825 million being prepaid. In total, we have purchased $3.0 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. 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 2015-2016 reinsurance program incorporated 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 had a primary retention of the first $35 million of losses and loss adjustment expenses, of Osprey was responsible for $20 million. For a second event, Heritage P&C’s primary retention decreased 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 had no primary retention beyond the second catastrophic event. • Layers Below FHCF . Immediately above the Company’s retention, the Company purchased $440 million of reinsurance from third party reinsurers. Through the payment of a reinstatement premium, the Company was able to reinstate the full amount of this reinsurance one time. To the extent that $440 million or a portion thereof was exhausted in a first catastrophic event, the Company had purchased reinstatement premium protection insurance to pay the required premium necessary for the reinstatement of this coverage. A portion of this coverage wrapped around the FHCF and provided 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 2015-2016 reinsurance program provided coverage for $1.8 billion of losses and loss adjustment expenses, including our retention, and were responsible for all losses and loss adjustment expenses in excess of such amount. For subsequent catastrophic events, our total available coverage depended on the magnitude of the first event, as we may have had coverage remaining from layers that were not previously fully exhausted. We also purchased reinstatement premium protection insurance to provide an additional $440.0 million of coverage. Our aggregate reinsurance layer also provided coverage for second and subsequent events to the extent not exhausted in prior events. In total, we purchased $2.3 billion of reinsurance coverage, including our retention, for multiple catastrophic events for the 2015-2016 hurricane season. 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 for which the total insured value exceeded $10 million. 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 2014-2015 reinsurance program incorporated 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 2014-2015 reinsurance program provided 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 depended on the magnitude of the first event, as the Company may have had 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’s aggregate reinsurance layer also provided coverage for second and subsequent events to the extent not exhausted in prior events. 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 operations and comprehensive income: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Premium written: Direct $ 147,691 $ 115,876 $ 463,778 $ 352,162 Assumed (459 ) 33,117 8,015 66,396 Ceded (5,164 ) (611 ) (248,823 ) (183,033 ) Net premium written $ 142,068 $ 148,382 $ 222,970 $ 235,525 Change in unearned premiums: Direct $ 8,538 $ (11,996 ) $ (32,143 ) $ (82,979 ) Assumed 8,926 (8,763 ) 40,626 45,757 Ceded (57,977 ) (45,262 ) 85,362 80,393 Net change $ (40,513 ) $ (66,021 ) $ 93,845 $ 43,171 Premiums earned: Direct $ 156,229 $ 103,880 $ 431,635 $ 269,183 Assumed 8,467 24,354 48,641 112,153 Ceded (63,141 ) (45,873 ) (163,461 ) (102,640 ) Net premiums earned $ 101,555 $ 82,361 $ 316,815 $ 278,696 Losses and LAE incurred: Direct $ 59,381 $ 25,266 $ 141,181 $ 68,269 Assumed (3,753 ) 10,525 30,208 33,970 Ceded (1,722 ) — (1,726 ) — Net losses and LAE incurred $ 53,906 $ 35,791 $ 169,663 $ 102,239 The following table highlights the effects that the Company’s assumption transactions have on unpaid losses and loss adjustment expenses and unearned premiums: September 30, 2016 December 31, 2015 (In thousands) Unpaid losses and loss adjustment expenses: Direct $ 96,604 $ 60,223 Assumed 30,155 23,499 Gross unpaid losses and LAE 126,759 83,722 Ceded (1,064 ) — Net unpaid losses and LAE $ 125,695 $ 83,722 Unearned premiums: Direct $ 320,241 $ 258,754 Assumed 3,113 43,739 Gross unearned premiums 323,354 302,493 Ceded (168,650 ) (78,517 ) Net unearned premiums $ 154,704 $ 223,976 |
Reserve For Unpaid Losses
Reserve For Unpaid Losses | 9 Months Ended |
Sep. 30, 2016 | |
Insurance [Abstract] | |
Reserve for Unpaid Losses | NOTE 12. 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 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: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Balance, beginning of period $ 117,485 $ 61,846 $ 83,722 $ 51,469 Less: reinsurance recoverable on paid losses — — — — Net balance, beginning of period 117,485 61,846 83,722 51,469 Incurred related to: Current year 50,746 38,258 152,372 109,070 Prior years 3,160 (2,467 ) 17,291 (6,831 ) Total incurred 53,906 35,791 169,663 102,239 Paid related to: Current year 33,330 18,721 71,383 55,399 Prior years 12,366 4,471 56,307 23,864 Total paid 45,696 23,192 127,690 79,263 Net balance, end of period 125,695 74,445 125,695 74,445 Plus: reinsurance recoverable on unpaid losses — — — — Balance, end of period $ 125,695 $ 74,445 $ 125,695 $ 74,445 The Company writes insurance in the states of Florida, North Carolina, South Carolina and Hawaii, which could be exposed to hurricanes or other natural catastrophes. Although the occurrence of a major catastrophe could have a significant effect on our monthly or quarterly results, such an event is unlikely to be so material as to disrupt our 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 nine months ended September 30, 2016 and 2015 reflect a prior year deficiency of $17,291 and a redundancy of $6,831, respectively, associated with management’s best estimate of the actuarial loss and LAE reserves with consideration given to Company specific historical loss experience. All of the unfavorable development was from personal lines. Also, most of the unfavorable emergence came from the second, third and fourth quarters of 2015, primarily related to claims involving litigation and claims that were represented by attorneys, public adjusters or others (sometimes referred to as Assignment of Benefits). Also, a majority of the unfavorable development in 2016 has been isolated to the tri-county region of Florida (the counties of Miami-Dade, Broward and Palm Beach). |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | NOTE 13. OTHER LIABILITIES At September 30, 2016 and December 31, 2015, other liabilities included approximately $2,926 and $4,920, respectively, related to amounts owed to Citizens for policies assumed by the Company, where the policyholder subsequently opted-out of the assumption program. Also, included in other liabilities for the periods ended September 30, 2016 and December 31, 2015 was $4,550 and $5,793 for commissions payable, $4,220 and $3,919 for accounts payable and other payables, and $5,010 and $3,253 for taxes, remittances and items not allocated and unearned revenue, respectively. |
Statutory Accounting and Regula
Statutory Accounting and Regulations | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Statutory Accounting and Regulations | NOTE 14. 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; restrict the allowable investment types and investment mixes, and subject the Company’s insurers to assessments. The Company’s insurance subsidiaries are required to file with state insurance regulatory authorities an “Annual Statement” which reports, among other items, net income and surplus as regards policyholders, which is called stockholder’s equity under GAAP. Combined results of the Company’s insurance subsidiaries reported statutory net income of $24 for the nine months ended September 30, 2016 and statutory net income of $45,000 for the year ended December 31, 2015.The Company’s insurance subsidiaries must maintain capital and surplus ratios or balances as determined by the regulatory authority of the states in which they are domiciled. Heritage P&C and Zephyr are required to maintain capital and surplus equal to the greater of $15,000 or 10% of their respective liabilities. The Company’s combined statutory surplus was $277,148 and $216,600 at September 30, 2016 and December 31, 2015, respectively. State law also requires the Company’s insurance subsidiary to adhere to prescribed premium-to-capital surplus ratios, with which the Company 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 FLOIR 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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 15. 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. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
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 each of 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 September 30, 2016 and 2015. • The Company has entered into an agreement with a real estate management company controlled by one of its directors to manage its Clearwater office space. Management services are provided at a fixed fee, plus ordinary and necessary out of pocket expenses. Fees for additional services, such as the oversight of construction activity, are provided for on an as-needed basis. For the nine month period ended September 30, 2016 and 2015, the Company paid the management service company approximately $86 and $94, respectively. |
Employee Benefit Plan
Employee Benefit Plan | 9 Months Ended |
Sep. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | NOTE 17. EMPLOYEE BENEFIT PLAN The Company provides a 401(k) plan for 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 nine months ended September 30, 2016 and 2015, the Company’s contributions to the plan on behalf of the participating employees were $408 and $203, respectively. The Company provides for its employees a partially self-insured healthcare plan and benefits. For the nine months ended September 30, 2016 and 2015, the Company incurred medical premium costs in the aggregate of $1,535 and $897, respectively. The Company also recorded approximately $472 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 for which any excess cost would be covered by the reinsurer subject to an aggregate limit for losses in excess of $1,500 which would provide up to $1,000 of coverage. Any excess of the $1,500 retention and the $1 million of aggregate coverage would be borne by the Company. The aggregate stop loss commences once our expenses exceed 125% of the annual aggregate expected claims. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Equity | NOTE 18. EQUITY The total amount of authorized capital stock consists of 50,000,000 shares of common stock and 5,000,000 shares of preferred stock. As of September 30, 2016, the Company had 29,016,744 shares of common stock outstanding, 1,424,666 treasury shares of common stock and 1,125,000 unvested restricted common stock issued reflecting total paid-in capital of $206,240 as of such date. Common Stock Holders of common stock are entitled to one vote for each share held on all matters subject to a vote of stockholders, subject to the rights of holders of any outstanding preferred stock. Accordingly, holders of a majority of the shares of common stock entitled to vote in any election of directors may elect all of the directors standing for election, subject to the rights of holders of any outstanding preferred stock. Holders of common stock will be entitled to receive ratably any dividends that the board of directors may declare out of funds legally available therefor, subject to any preferential dividend rights of outstanding preferred stock. Upon the Company’s liquidation, dissolution or winding up, the holders of common stock will be entitled to receive ratably its net assets available after the payment of all debts and other liabilities and subject to the prior rights of holders of any outstanding preferred stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights. There are no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of the Company’s capital stock are fully paid and nonassessable. Equity As more fully disclosed in our audited consolidated financial statements for the year ended December 31, 2015, there were, as of December 31, 2015, 30,441,410 shares of common stock outstanding, 1,149,923 stock options outstanding, and 1,125,000 unvested restricted stock grants, representing $202,628 of additional paid-in capital. Stock Repurchase Program On September 14, 2015, the Company announced that the Company’s Board of Directors, authorized a stock repurchase program authorizing the Company to repurchase up to $20,000 of the Company’s common stock. The stock repurchase program expires December 31, 2016. The Company purchased 612,300 shares at a total cost of $9,635 during the three months ended March 31, 2016, through open market or private transactions. The Company purchased an additional 527,989 shares at a cost of $6,927 during the three months ending months ended June 30, 2016, through open market or private transactions. On May 4, 2016, the Board of Directors authorized an additional stock repurchase of up to $50,000 of the Company’s common stock through on December 31, 2017. The Company purchased an additional 284,377 shares at a cost of $4,000 during the three months ended September 30, 2016, through open market or private transactions. Dividends On March 2, 2016, the Company announced a first quarter dividend of $0.05 per share payable on April 5, 2016, to stockholders of record as of the close of business on March 15, 2016. On December 17, 2015, the Company announced a cash dividend of $0.05 per share on the Company’s common stock, payable on January 13, 2016 to stockholders of record as of the close of business on December 31, 2015. On May 4, 2016, the Company announced a second quarter dividend of $0.06 per share payable on July 1, 2016, to stockholders of record as of the close of business on June 15, 2016. On August 3, 2016, the Company announced a third quarter dividend of $0.06 per share payable on October 3, 2016 to stockholders of record as of the close of business on September 15, 2016. During the nine months ended September 30, 2016 and the year ended December 31, 2015, dividends charged to retained earnings were $5,228 and $1,578, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
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”), which became effective on May 22, 2014. The Plan has authorized 2,981,737 shares of common stock reserved for issuance under the Plan for future grants. At September 30, 2016 and December 31, 2015, there were 170,814 shares available for grant under the Plan. 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 (“Black-Scholes model”). The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. Stock Options and Restricted Stock Stock Options A summary of information related to stock options and restricted stock outstanding at September 30, 2016 is as follows: Options Weighted - Average Grant Date Fair Value Balance at December 31, 2015 1,149,923 $ 2.99 Granted — Exercised — Balance at September 30, 2016 1,149,923 $ 2.99 Vested and exercisable as of September 30, 2016 1,149,923 $ 2.99 The Company had approximately $0 and $25 of unrecognized stock compensation expense at September 30, 2016 and 2015, respectively, related to unvested stock-based compensation granted. The Company recognized approximately $0 and $1,900 of compensation expense during the nine months ended September 30, 2016 and 2015, respectively. Stock-based compensation costs for restricted grants is measured based on the closing fair market value of our common stock on the date of grant. The Company recognizes stock-based compensation costs over the award’s requisite service period on a straight-line basis for time-based restricted stock grants. Restricted Stock Weighted-Average Grant-Date Fair Number of shares Value per Share Unvested, at December 31, 2015 1,125,000 $ 21.40 Granted — — Vested — — Canceled and forfeited — — Unvested at September 30, 2016 1,125,000 $ 21.40 The Company recognized $3,612 of compensation expense during the nine months ended September 30, 2016. The Company had approximately $19,715 of unrecognized stock compensation expense at September 30, 2016 related to unvested compensation, which the Company expects to recognize ratably over the period of 4.2 years. The Company did not have any compensation expense for the comparable period for 2015 relating to restricted stock. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 20. SUBSEQUENT EVENTS On November 8, 2016, the Company announced that its Board of Directors has declared a quarterly cash dividend on the Company’s common stock of $0.06 per share. The fourth quarter dividend of $0.06 per share is payable on January 4, 2017 to stockholders of record as of December 15, 2016. The declaration and payment of any future dividends will be subject to the discretion of the Board of Directors and will depend on a variety of factors including the Company’s financial condition and results of operations. During the fourth quarter of 2016, Hurricane Matthew impacted Florida and North Carolina where the Company writes property insurance. The Company has been working diligently to address claims of insureds that were impacted by the storm. To date, the Company has received approximately 2,500 claims related to Hurricane Matthew and now expect to incur pre-tax catastrophe losses of approximately $30,000 during the fourth quarter of 2016. Heritage does not expect to incur its full retention of $40,000. |
Significant Accounting Polici27
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements as of and for the three and nine months ended September 30, 2016 and 2015 include Heritage Insurance Holdings, Inc. (“Parent Company”) and its wholly owned subsidiaries: Heritage Property & Casualty Insurance Company (“Heritage P&C”), which provides personal and commercial residential insurance; Heritage MGA, LLC, the managing general agent that manages substantially all aspects of our insurance subsidiary’s business; Contractors’ Alliance Network, LLC (“CAN”), our vendor network manager which includes BRC Restoration Specialists, Inc. (“BRC”), our provider of restoration, emergency and recovery services; Zephyr Acquisition Company (“ZAC”) and its wholly-owned subsidiary, Zephyr Insurance Company, Inc. (“Zephyr”), our provider for writing insurance policies for residential wind insurance within the State of Hawaii; Skye Lane Properties, LLC, our property management subsidiary; First Access Insurance Group, LLC, our retail agency; Osprey Re Ltd. (“Osprey”), 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 assets of BRC, a building restoration company, were acquired and merged into CAN in 2015. The assets of SVM Restoration Services Inc. (“SVM”), a water mitigation company, were acquired and merged into CAN in 2014. Our primary products are personal and commercial residential insurance, which we currently offer in Florida, under authorization from the Florida Office of Insurance Regulation (“FLOIR”). We also began offering personal residential insurance in the states of North Carolina, South Carolina and through the Zephyr acquisition, Hawaii. We are also licensed to do business in Georgia, Alabama and Mississippi. We conduct our operations under one business segment. The condensed consolidated financial information included herein as of and for the three and nine months ended September 30, 2016 and 2015 does not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. However, such information reflects all adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for a fair statement of the financial condition and results of operations for the interim periods. The results for the three and nine months ended September 30, 2016 and 2015 are not indicative of annual results. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The December 31, 2015 consolidated balance sheet was derived from the Company’s audited consolidated financial statements as of and for the year ended December 31, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in Heritage Insurance Holdings, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. References to “we,” “us,” “our,” or the “Company” refer to Heritage Insurance Holdings, Inc. and its consolidated subsidiaries. The Company qualifies as an “emerging growth company” as defined in Section 2(a)(19) of the Securities Act, of 1933, as amended, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As a result, the Company is eligible to take advantage of certain temporary 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. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation. Such classifications include reclassifying goodwill and intangibles from other assets in the accompanying condensed consolidated balance sheets. |
Recent Accounting Pronouncements | Recent The Company describes below recent pronouncements that may have a significant effect on its financial statements or on its disclosures upon future adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on, or are unrelated to, its financial condition, results of operations, or related disclosures. In August 2016, the Financial Accounting Standards Board issued (“FASB”) ASC 2016-15, Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued Accounting Standards Update (“ASU”), ASU 2016-13, Financial Instruments – Credit Losses Measurement of Credit Losses on Financial Instruments is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, with early adoption permitted for fiscal years and interim periods beginning after December 15, 2018. In March 2016, the FASB issued ASU 2016-09 , Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases In January 2016, the FASB issued ASU 2016-01 , Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU Topic 2014-09, Revenue from Contracts with Customers There are no other recently issued accounting standards that apply to the Company or that are expected to have a material impact on the Company’s results of operations, financial condition or cash flows. |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The following table summarizes the preliminary unaudited, estimated fair value of the assets acquired and liabilities assumed. The Company is in the process of finalizing the purchase price allocation and, accordingly, the following allocation of the purchase price, before income taxes, is subject to adjustments during the measurement period: Purchase Consideration Cash, net of cash acquired $ 110,319 Assets acquired Investments $ 76,543 Premiums and agent's receivable 1,403 Other assets 526 Prepaid reinsurance premiums 4,792 Intangible assets – value of business acquired 5,004 Intangible assets 24,203 Total assets acquired $ 112,471 Total liabilities assumed $ (42,391 ) Net assets acquired $ 70,080 Goodwill 40,239 Total purchase price $ 110,319 |
Summary of Pro Forma Information | The following table presents selected unaudited pro forma information, assuming the acquisition of ZAC had occurred on January 1, 2015. The unaudited pro forma information is not necessarily indicative of the results that the Company would have achieved had the transaction taken place on January 1, 2015, and the unaudited pro forma information does not purport to be indicative of future financial results. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenue $ 109,306 $ 100,709 $ 344,972 $ 320,905 Net income $ 10,930 $ 20,982 $ 38,673 $ 80,886 Basic, earnings per share $ 0.37 $ 0.70 $ 1.33 $ 2.70 Diluted, earnings per share $ 0.37 $ 0.69 $ 1.33 $ 2.67 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015: Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (In thousands) September 30, 2016 U.S. government and agency securities $ 27,473 $ 316 $ 7 27,782 States, municipalities and political subdivisions 284,949 4,815 124 289,640 Special revenue 56,957 438 185 57,210 Industrial and miscellaneous 136,392 3,053 30 139,415 Redeemable preferred stocks 3,413 124 11 3,526 Total fixed maturities 509,184 8,746 357 517,573 Nonredeemable preferred stocks 14,439 661 57 15,043 Equity securities 19,496 1,209 3,543 17,162 Total equity securities 33,935 1,870 3,600 32,205 Total investments $ 543,119 $ 10,616 $ 3,957 $ 549,778 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized 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 |
Schedule of Net Realized Gains (Losses) by Major Investment Category | 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 net realized gains (losses) by major investment category for the three and nine months ended September 30, 2016 and 2015. 2016 2015 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Three Months Ended September 30, Fixed maturities $ 1,091 $ 17,301 $ 1,200 $ 62,412 Equity securities 289 1,739 826 15,949 Total realized gains 1,380 19,040 2,026 78,361 Fixed maturities (232 ) 575 (75 ) 5,948 Equity securities (29 ) 445 (5 ) 328 Total realized losses (261 ) 1,020 (80 ) 6,276 Net realized gains $ 1,119 $ 20,060 $ 1,946 $ 84,637 2016 2015 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Nine Months Ended September 30, Fixed maturities $ 2,668 $ 166,350 $ 1,237 $ 66,513 Equity securities 46 7,855 716 20,581 Total realized gains 2,714 174,205 1,953 87,094 Fixed maturities (66 ) 12,973 (116 ) 11,219 Equity securities (886 ) 2,948 (10 ) 2,196 Total realized losses (952 ) 15,921 (126 ) 13,415 Net realized gains $ 1,762 $ 190,126 $ 1,827 $ 100,509 |
Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity | The table below summarizes the Company’s fixed maturities at September 30, 2016 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. September 30, 2016 Cost or Amortized Cost Percent of Total Fair Value Percent of Total (In thousands) (In thousands) Due in one year or less $ 70,683 14 % $ 70,696 14 % Due after one year through five years 177,559 35 % 178,915 34 % Due after five years through ten years 165,557 32 % 169,966 33 % Due after ten years 95,385 19 % 97,996 19 % Total $ 509,184 100 % $ 517,573 100 % |
Summary of Net Investment Income | The following table summarizes the Company’s net investment income by major investment category for the three and nine months ended September 30, 2016 and 2015: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) (In thousands) Fixed maturities $ 2,338 $ 1,936 $ 6,368 $ 5,254 Equity securities 495 439 1,465 1,292 Cash, cash equivalents and short-term investments 79 150 215 361 Other investments 14 67 (96 ) 128 Net investment income 2,926 2,592 7,952 7,035 Investment expenses 600 619 1,366 1,339 Net investment income, less investment expenses $ 2,326 $ 1,973 $ 6,586 $ 5,696 |
Aging of Gross Unrealized Investment Losses | The following tables present an aging of our unrealized investment losses by investment class as of September 30, 2016 and December 31, 2015: 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) September 30, 2016 U.S. government and agency securities 13 $ 7 $ 7,815 1 $ — $ 38 States, municipalities and political subdivisions 111 116 62,818 2 8 1,492 Special revenue 30 23 6,623 4 7 1,972 Industrial and miscellaneous 82 157 12,402 13 27 2,215 Redeemable preferred stocks 8 5 384 1 6 212 Total fixed maturities 244 308 90,042 21 48 5,929 Nonredeemable preferred stocks 138 35 2,165 5 22 324 Equity securities 52 304 2,848 126 3,240 8,066 Total equity securities 190 339 5,013 131 3,262 8,390 Total investments 434 $ 647 $ 95,055 152 $ 3,310 $ 14,319 Less Than Twelve Months Twelve Months or More Number Securities Gross Unrealized Losses Fair Number Securities Gros s Unrealized Losses Fai r (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 Special revenue 141 870 73,312 5 61 1,318 Industrial and miscellaneous 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 investments 384 $ 4,609 $ 175,269 43 $ 1,934 $ 6,455 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | The following tables present 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 nine months ended September 30, 2016 and the year ended December 31, 2015, there were no transfers in or out of Levels 1, 2 and 3. September 30, 2016 Total Level 1 Level 2 Level 3 (in thousands) Fixed maturities investments: U.S. government and agency securities $ 27,782 $ 766 $ 27,016 $ — States, municipalities and political subdivisions 289,640 — 289,640 — Special revenue 57,210 23,947 33,263 — Industrial and miscellaneous 139,415 — 139,415 — Redeemable preferred stocks 3,526 3,526 — — Total fixed maturities investments 517,573 28,239 489,334 — Nonredeemable preferred stocks 15,043 15,043 — — Equity securities 17,162 17,162 — — Total equity securities 32,205 32,205 — — Total investments $ 549,778 $ 60,444 $ 489,334 $ — December 31, 2015 Total Level 1 Level 2 Level 3 (in thousands) Assets: Certificates of deposit (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 $ — (1) Includes commercial paper with maturities of three months or less at time of purchase of $3,300 classified in cash and cash equivalents. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 (In thousands) Land $ 2,582 $ 2,582 Building 10,301 9,599 Computer hardware and software 3,132 2,502 Office furniture and equipment 759 634 Tenant and leasehold improvements 3,330 3,300 Vehicle fleet 845 693 Total, at cost 20,949 19,310 Less: accumulated depreciation and amortization 3,349 2,199 Property and equipment, net $ 17,600 $ 17,111 |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill (in thousands) Balance as of December 31, 2015 $ 8,028 Goodwill acquired 40,239 Impairment — Balance as of September 30, 2016 $ 48,267 |
Schedule of Estimated Amortization of Intangible Assets | Estimated annual pretax amortization of intangible assets for the remainder of 2016 and each of the next five years and thereafter is as follows (in thousands): Remainder of 2016 $ 931 2017 2,435 2018 2,128 2019 2,128 2020 2,116 2021 2,104 Thereafter 14,560 $ 26,402 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share (EPS) | The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Basic earnings per share: Net income attributable to common stockholders (000's) $ 10,930 $ 16,813 $ 36,720 $ 72,269 Weighted average shares outstanding 29,213,222 30,177,633 29,742,984 29,952,668 Basic earnings per share: $ 0.37 $ 0.56 $ 1.23 $ 2.41 Diluted earnings per share: Net income attributable to common stockholders (000's) $ 10,930 $ 16,813 $ 36,720 $ 72,269 Weighted average shares outstanding 29,213,222 30,177,633 29,742,984 29,952,668 Weighted average dilutive shares - 305,920 43,172 336,660 Total weighted average dilutive shares 29,213,222 30,483,553 29,786,156 30,289,328 Diluted earnings per share: $ 0.37 $ 0.55 $ 1.23 $ 2.39 |
Deferred Policy Acquisition C34
Deferred Policy Acquisition Costs (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Insurance [Abstract] | |
Summary of Activity in Deferred Policy Acquisition Costs (DPAC) | 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 during the three and nine months ended September 30, 2016 and 2015: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Beginning Balance $ 42,568 $ 31,948 $ 34,800 $ 24,370 Policy acquisition costs deferred 22,158 16,058 68,807 48,982 Amortization (22,597 ) (15,512 ) (61,478 ) (40,858 ) Ending Balance $ 42,129 $ 32,494 $ 42,129 $ 32,494 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets (Liabilities) | The table below summarizes the significant components of our net deferred tax assets (liabilities): September 30, 2016 December 31, 2015 (in thousands) Deferred tax assets: Unearned premiums $ 17,772 $ 17,979 Tax-related discount on loss reserve 1,766 1,140 Unrealized loss — 1,617 Stock-based compensation 2,828 1,277 Other 1,705 256 Total deferred tax assets $ 24,071 $ 22,269 Deferred tax liabilities: Deferred acquisition costs $ 15,664 $ 13,424 Unrealized gain 2,542 — Investment basis difference on purchase 840 — Intangibles 10,224 — Property and equipment 477 473 Other 1,290 408 Total deferred tax liabilities 31,037 14,305 Net deferred tax (liabilities) assets $ (6,966 ) $ 7,964 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 operations and comprehensive income: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Premium written: Direct $ 147,691 $ 115,876 $ 463,778 $ 352,162 Assumed (459 ) 33,117 8,015 66,396 Ceded (5,164 ) (611 ) (248,823 ) (183,033 ) Net premium written $ 142,068 $ 148,382 $ 222,970 $ 235,525 Change in unearned premiums: Direct $ 8,538 $ (11,996 ) $ (32,143 ) $ (82,979 ) Assumed 8,926 (8,763 ) 40,626 45,757 Ceded (57,977 ) (45,262 ) 85,362 80,393 Net change $ (40,513 ) $ (66,021 ) $ 93,845 $ 43,171 Premiums earned: Direct $ 156,229 $ 103,880 $ 431,635 $ 269,183 Assumed 8,467 24,354 48,641 112,153 Ceded (63,141 ) (45,873 ) (163,461 ) (102,640 ) Net premiums earned $ 101,555 $ 82,361 $ 316,815 $ 278,696 Losses and LAE incurred: Direct $ 59,381 $ 25,266 $ 141,181 $ 68,269 Assumed (3,753 ) 10,525 30,208 33,970 Ceded (1,722 ) — (1,726 ) — Net losses and LAE incurred $ 53,906 $ 35,791 $ 169,663 $ 102,239 |
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: September 30, 2016 December 31, 2015 (In thousands) Unpaid losses and loss adjustment expenses: Direct $ 96,604 $ 60,223 Assumed 30,155 23,499 Gross unpaid losses and LAE 126,759 83,722 Ceded (1,064 ) — Net unpaid losses and LAE $ 125,695 $ 83,722 Unearned premiums: Direct $ 320,241 $ 258,754 Assumed 3,113 43,739 Gross unearned premiums 323,354 302,493 Ceded (168,650 ) (78,517 ) Net unearned premiums $ 154,704 $ 223,976 |
Reserve for Unpaid Losses (Tabl
Reserve for Unpaid Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Insurance [Abstract] | |
Summary of Reserve for Unpaid Losses | The table below summarizes the activity related to the Company’s reserve for unpaid losses: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Balance, beginning of period $ 117,485 $ 61,846 $ 83,722 $ 51,469 Less: reinsurance recoverable on paid losses — — — — Net balance, beginning of period 117,485 61,846 83,722 51,469 Incurred related to: Current year 50,746 38,258 152,372 109,070 Prior years 3,160 (2,467 ) 17,291 (6,831 ) Total incurred 53,906 35,791 169,663 102,239 Paid related to: Current year 33,330 18,721 71,383 55,399 Prior years 12,366 4,471 56,307 23,864 Total paid 45,696 23,192 127,690 79,263 Net balance, end of period 125,695 74,445 125,695 74,445 Plus: reinsurance recoverable on unpaid losses — — — — Balance, end of period $ 125,695 $ 74,445 $ 125,695 $ 74,445 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Information Related to Stock Options and Restricted Stock | Stock Options A summary of information related to stock options and restricted stock outstanding at September 30, 2016 is as follows: Options Weighted - Average Grant Date Fair Value Balance at December 31, 2015 1,149,923 $ 2.99 Granted — Exercised — Balance at September 30, 2016 1,149,923 $ 2.99 Vested and exercisable as of September 30, 2016 1,149,923 $ 2.99 The Company had approximately $0 and $25 of unrecognized stock compensation expense at September 30, 2016 and 2015, respectively, related to unvested stock-based compensation granted. The Company recognized approximately $0 and $1,900 of compensation expense during the nine months ended September 30, 2016 and 2015, respectively. Stock-based compensation costs for restricted grants is measured based on the closing fair market value of our common stock on the date of grant. The Company recognizes stock-based compensation costs over the award’s requisite service period on a straight-line basis for time-based restricted stock grants. Restricted Stock Weighted-Average Grant-Date Fair Number of shares Value per Share Unvested, at December 31, 2015 1,125,000 $ 21.40 Granted — — Vested — — Canceled and forfeited — — Unvested at September 30, 2016 1,125,000 $ 21.40 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - Zephyr Acquisition Company [Member] - USD ($) $ in Thousands | Mar. 21, 2016 | Sep. 30, 2016 | Sep. 30, 2016 |
Business Acquisition [Line Items] | |||
Percentage of outstanding stock acquired | 100.00% | ||
Cash payment for business acquisition | $ 110,319 | ||
Revenues of the acquiree since the acquisition date | $ 8,985 | $ 19,347 | |
Net income of the acquiree since the acquisition date | 4,566 | 11,073 | |
Amortization expenses related to intangible assets | $ 2,016 | $ 4,780 |
Acquisition - Schedule of Purch
Acquisition - Schedule of Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Mar. 21, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Purchase Consideration | ||||
Cash, net of cash acquired | $ 110,319 | $ 6,000 | ||
Assets acquired | ||||
Goodwill | $ 48,267 | $ 8,028 | ||
Zephyr Acquisition Company [Member] | ||||
Purchase Consideration | ||||
Cash, net of cash acquired | $ 110,319 | |||
Assets acquired | ||||
Investments | 76,543 | |||
Premiums and agent's receivable | 1,403 | |||
Other assets | 526 | |||
Prepaid reinsurance premiums | 4,792 | |||
Intangible assets – value of business acquired | 5,004 | |||
Intangible assets | 24,203 | |||
Total assets acquired | 112,471 | |||
Total liabilities assumed | (42,391) | |||
Net assets acquired | 70,080 | |||
Goodwill | 40,239 | |||
Total purchase price | $ 110,319 |
Acquisition - Summary of Pro Fo
Acquisition - Summary of Pro Forma Information (Detail) - Zephyr Acquisition Company [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | ||||
Revenue | $ 109,306 | $ 100,709 | $ 344,972 | $ 320,905 |
Net income | $ 10,930 | $ 20,982 | $ 38,673 | $ 80,886 |
Basic, earnings per share | $ 0.37 | $ 0.70 | $ 1.33 | $ 2.70 |
Diluted, earnings per share | $ 0.37 | $ 0.69 | $ 1.33 | $ 2.67 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value of Investment Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | $ 509,184 | $ 370,967 |
Gross Unrealized Gains | 10,616 | 3,233 |
Gross Unrealized Losses | 3,957 | 6,543 |
Fair Value | 549,778 | |
Investments | 543,119 | 403,406 |
Fair Value | 549,778 | 400,096 |
Cost or Adjusted / Amortized Cost | 33,935 | 32,439 |
Fixed Maturity [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 | |
Fixed Maturities Excluding Certificate of Deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 509,184 | |
Gross Unrealized Gains | 8,746 | |
Gross Unrealized Losses | 357 | |
Fair Value | 517,573 | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Gains | 1,870 | 736 |
Gross Unrealized Losses | 3,600 | 4,862 |
Fair Value | 32,205 | 28,313 |
Cost or Adjusted / Amortized Cost | 33,935 | 32,439 |
U.S. government and agency securities [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 27,473 | 25,474 |
Gross Unrealized Gains | 316 | 16 |
Gross Unrealized Losses | 7 | 387 |
Fair Value | 27,782 | 25,103 |
States, Municipalities and Political Subdivisions [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 284,949 | 184,145 |
Gross Unrealized Gains | 4,815 | 2,107 |
Gross Unrealized Losses | 124 | 137 |
Fair Value | 289,640 | 186,115 |
Special Revenue [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 56,957 | 42,593 |
Gross Unrealized Gains | 438 | 19 |
Gross Unrealized Losses | 185 | 204 |
Fair Value | 57,210 | 42,408 |
Industrial and Miscellaneous [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 136,392 | 115,313 |
Gross Unrealized Gains | 3,053 | 294 |
Gross Unrealized Losses | 30 | 932 |
Fair Value | 139,415 | 114,675 |
Redeemable Preferred Stocks [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 3,413 | 3,442 |
Gross Unrealized Gains | 124 | 61 |
Gross Unrealized Losses | 11 | 21 |
Fair Value | 3,526 | 3,482 |
Nonredeemable Preferred Stocks [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Gains | 661 | 338 |
Gross Unrealized Losses | 57 | 43 |
Fair Value | 15,043 | 12,738 |
Cost or Adjusted / Amortized Cost | 14,439 | 12,443 |
Common Stock [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Gains | 1,209 | 398 |
Gross Unrealized Losses | 3,543 | 4,819 |
Fair Value | 17,162 | 15,575 |
Cost or Adjusted / Amortized Cost | $ 19,496 | $ 19,996 |
Investments - Schedule of Net R
Investments - Schedule of Net Realized Gains (Losses) by Major Investment Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Total realized gains | $ 1,380 | $ 2,026 | $ 2,714 | $ 1,953 |
Total realized losses | (261) | (80) | (952) | (126) |
Net realized gains | 1,119 | 1,946 | 1,762 | 1,827 |
Total realized gains, Fair Value at Sale | 19,040 | 78,361 | 174,205 | 87,094 |
Total realized losses, Fair Value at Sale | 1,020 | 6,276 | 15,921 | 13,415 |
Net realized gains, Fair Value at Sale | 20,060 | 84,637 | 190,126 | 100,509 |
Fixed Maturity [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total realized gains | 1,091 | 1,200 | 2,668 | 1,237 |
Total realized losses | (232) | (75) | (66) | (116) |
Total realized gains, Fair Value at Sale | 17,301 | 62,412 | 166,350 | 66,513 |
Total realized losses, Fair Value at Sale | 575 | 5,948 | 12,973 | 11,219 |
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total realized gains | 289 | 826 | 46 | 716 |
Total realized losses | (29) | (5) | (886) | (10) |
Total realized gains, Fair Value at Sale | 1,739 | 15,949 | 7,855 | 20,581 |
Total realized losses, Fair Value at Sale | $ 445 | $ 328 | $ 2,948 | $ 2,196 |
Investments - Schedule of Amo44
Investments - Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less, Cost or Amortized Cost | $ 70,683 | |
Due after one year through five years, Cost or Amortized Cost | 177,559 | |
Due after five years through ten years, Cost or Amortized Cost | 165,557 | |
Due after ten years, Cost or Amortized Cost | 95,385 | |
Cost or Adjusted / Amortized Cost | $ 509,184 | $ 370,967 |
Due in one year or less, Percentage of Total | 14.00% | |
Due after one year through five years, Percentage of Total | 35.00% | |
Due after five years through ten years, Percentage of Total | 32.00% | |
Due after ten years, Percentage of Total | 19.00% | |
Total, Percentage | 100.00% | |
Due in one year or less, Fair Value | $ 70,696 | |
Due after one year through five years, Fair Value | 178,915 | |
Due after five years through ten years, Fair Value | 169,966 | |
Due after ten years, Fair Value | 97,996 | |
Total, Fair Value | $ 517,573 | $ 371,783 |
Due in one year or less, Percentage of Total | 14.00% | |
Due after one year through five years, Percentage of Total | 34.00% | |
Due after five years through ten years, Percentage of Total | 33.00% | |
Due after ten years, Percentage of Total | 19.00% | |
Total, Percentage | 100.00% |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income | $ 2,926 | $ 2,592 | $ 7,952 | $ 7,035 |
Investment expenses | 600 | 619 | 1,366 | 1,339 |
Net investment income, less investment expenses | 2,326 | 1,973 | 6,586 | 5,696 |
Fixed Maturity [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | 2,338 | 1,936 | 6,368 | 5,254 |
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | 495 | 439 | 1,465 | 1,292 |
Cash and Cash Equivalents [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income | 79 | 150 | 215 | 361 |
Other Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | $ 14 | $ 67 | $ (96) | $ 128 |
Investments - Aging of Gross Un
Investments - Aging of Gross Unrealized Investment Losses (Detail) $ in Thousands | Sep. 30, 2016USD ($)Security | Dec. 31, 2015USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 434 | 384 |
Gross Unrealized Losses, Less Than Twelve Months | $ 647 | $ 4,609 |
Fair Value, Less Than Twelve Months | $ 95,055 | $ 175,269 |
Number of Securities, Twelve Months or Greater | Security | 152 | 43 |
Gross Unrealized Losses, Twelve Months or Greater | $ 3,310 | $ 1,934 |
Fair Value, Twelve Months or Greater | $ 14,319 | $ 6,455 |
Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 244 | 317 |
Gross Unrealized Losses, Less Than Twelve Months | $ 308 | $ 1,605 |
Fair Value, Less Than Twelve Months | $ 90,042 | $ 165,293 |
Number of Securities, Twelve Months or Greater | Security | 21 | 18 |
Gross Unrealized Losses, Twelve Months or Greater | $ 48 | $ 76 |
Fair Value, Twelve Months or Greater | $ 5,929 | $ 3,525 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 190 | 67 |
Gross Unrealized Losses, Less Than Twelve Months | $ 339 | $ 3,004 |
Fair Value, Less Than Twelve Months | $ 5,013 | $ 9,976 |
Number of Securities, Twelve Months or Greater | Security | 131 | 25 |
Gross Unrealized Losses, Twelve Months or Greater | $ 3,262 | $ 1,858 |
Fair Value, Twelve Months or Greater | $ 8,390 | $ 2,930 |
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 | 13 | 19 |
Gross Unrealized Losses, Less Than Twelve Months | $ 7 | $ 385 |
Fair Value, Less Than Twelve Months | $ 7,815 | $ 19,849 |
Number of Securities, Twelve Months or Greater | Security | 1 | 2 |
Gross Unrealized Losses, Twelve Months or Greater | $ 3 | |
Fair Value, Twelve Months or Greater | $ 38 | $ 397 |
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 | 111 | 14 |
Gross Unrealized Losses, Less Than Twelve Months | $ 116 | $ 50 |
Fair Value, Less Than Twelve Months | $ 62,818 | $ 10,979 |
Number of Securities, Twelve Months or Greater | Security | 2 | 1 |
Gross Unrealized Losses, Twelve Months or Greater | $ 8 | $ 3 |
Fair Value, Twelve Months or Greater | $ 1,492 | $ 164 |
Special Revenue [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 30 | 141 |
Gross Unrealized Losses, Less Than Twelve Months | $ 23 | $ 870 |
Fair Value, Less Than Twelve Months | $ 6,623 | $ 73,312 |
Number of Securities, Twelve Months or Greater | Security | 4 | 5 |
Gross Unrealized Losses, Twelve Months or Greater | $ 7 | $ 61 |
Fair Value, Twelve Months or Greater | $ 1,972 | $ 1,318 |
Industrial and Miscellaneous [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 82 | 134 |
Gross Unrealized Losses, Less Than Twelve Months | $ 157 | $ 279 |
Fair Value, Less Than Twelve Months | $ 12,402 | $ 60,203 |
Number of Securities, Twelve Months or Greater | Security | 13 | 10 |
Gross Unrealized Losses, Twelve Months or Greater | $ 27 | $ 9 |
Fair Value, Twelve Months or Greater | $ 2,215 | $ 1,646 |
Redeemable Preferred Stocks [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 8 | 9 |
Gross Unrealized Losses, Less Than Twelve Months | $ 5 | $ 21 |
Fair Value, Less Than Twelve Months | $ 384 | $ 950 |
Number of Securities, Twelve Months or Greater | Security | 1 | |
Gross Unrealized Losses, Twelve Months or Greater | $ 6 | |
Fair Value, Twelve Months or Greater | $ 212 | |
Nonredeemable Preferred Stocks [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 138 | 19 |
Gross Unrealized Losses, Less Than Twelve Months | $ 35 | $ 29 |
Fair Value, Less Than Twelve Months | $ 2,165 | $ 1,560 |
Number of Securities, Twelve Months or Greater | Security | 5 | 5 |
Gross Unrealized Losses, Twelve Months or Greater | $ 22 | $ 14 |
Fair Value, Twelve Months or Greater | $ 324 | $ 250 |
Common Stock [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 52 | 48 |
Gross Unrealized Losses, Less Than Twelve Months | $ 304 | $ 2,975 |
Fair Value, Less Than Twelve Months | $ 2,848 | $ 8,416 |
Number of Securities, Twelve Months or Greater | Security | 126 | 20 |
Gross Unrealized Losses, Twelve Months or Greater | $ 3,240 | $ 1,844 |
Fair Value, Twelve Months or Greater | $ 8,066 | $ 2,680 |
Fair Value of Financial Instr47
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | $ 517,573 | $ 371,783 | |
Available for sale equity securities | 32,205 | 28,313 | |
Available for sale securities | 549,778 | ||
Cash Equivalent and available for sale debt securities | 375,083 | ||
Cash equivalent and available for sale securities | 403,396 | ||
Certificates of Deposit [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalent | [1] | 3,300 | |
Nonredeemable Preferred Stocks [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale equity securities | 15,043 | 12,738 | |
Equity Investment [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale equity securities | 17,162 | 15,575 | |
Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale equity securities | 32,205 | 28,313 | |
Available for sale securities | 60,444 | ||
Cash Equivalent and available for sale debt securities | 29,143 | ||
Cash equivalent and available for sale securities | 57,456 | ||
Level 1 [Member] | Certificates of Deposit [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalent | [1] | 3,300 | |
Level 1 [Member] | Nonredeemable Preferred Stocks [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale equity securities | 15,043 | 12,738 | |
Level 1 [Member] | Equity Investment [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale equity securities | 17,162 | 15,575 | |
Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale securities | 489,334 | ||
Cash Equivalent and available for sale debt securities | 345,940 | ||
Cash equivalent and available for sale securities | 345,940 | ||
Fixed Maturity [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 517,573 | ||
Available for sale securities | 371,783 | ||
Fixed Maturity [Member] | U.S. government and agency securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 27,782 | 25,103 | |
Available for sale securities | 27,782 | 25,103 | |
Fixed Maturity [Member] | States, Municipalities and Political Subdivisions [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 289,640 | 186,115 | |
Available for sale securities | 289,640 | 186,115 | |
Fixed Maturity [Member] | Special Revenue [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 57,210 | 42,408 | |
Available for sale securities | 57,210 | 42,408 | |
Fixed Maturity [Member] | Industrial and Miscellaneous [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 139,415 | 114,675 | |
Available for sale securities | 139,415 | 114,675 | |
Fixed Maturity [Member] | Redeemable Preferred Stocks [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 3,526 | 3,482 | |
Available for sale securities | 3,526 | 3,482 | |
Fixed Maturity [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 28,239 | ||
Fixed Maturity [Member] | Level 1 [Member] | U.S. government and agency securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 766 | 22,361 | |
Fixed Maturity [Member] | Level 1 [Member] | Special Revenue [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 23,947 | ||
Fixed Maturity [Member] | Level 1 [Member] | Redeemable Preferred Stocks [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 3,526 | 3,482 | |
Fixed Maturity [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 489,334 | ||
Fixed Maturity [Member] | Level 2 [Member] | U.S. government and agency securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 27,016 | 2,742 | |
Fixed Maturity [Member] | Level 2 [Member] | States, Municipalities and Political Subdivisions [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 289,640 | 186,115 | |
Fixed Maturity [Member] | Level 2 [Member] | Special Revenue [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | 33,263 | 42,408 | |
Fixed Maturity [Member] | Level 2 [Member] | Industrial and Miscellaneous [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available for sale debt securities | $ 139,415 | $ 114,675 | |
[1] | Includes commercial paper with maturities of three months or less at time of purchase of $3,300 classified in cash and cash equivalents. |
Fair Value of Financial Instr48
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Parenthetical) (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Commercial Paper [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Cash equivalent | $ 3,300 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 20,949 | $ 19,310 |
Less: accumulated depreciation and amortization | 3,349 | 2,199 |
Property and equipment, net | 17,600 | 17,111 |
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 | 10,301 | 9,599 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 3,132 | 2,502 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 759 | 634 |
Tenant and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 3,330 | 3,300 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 845 | $ 693 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016USD ($)Building | Sep. 30, 2016USD ($)aft²Building | |
Property Plant And Equipment Useful Life And Values [Abstract] | ||
Depreciation expense | $ | $ 797 | $ 1,150 |
Number of acres of land purchased | a | 14 | |
Number of buildings | Building | 4 | 4 |
Gross area of acquired property | ft² | 191 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Finite Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 48,267,000 | $ 48,267,000 | $ 8,028,000 | ||
Intangibles, net | 26,402,000 | 26,402,000 | $ 2,120,000 | ||
Goodwill expected to be deductible fro income tax purposes | 8,028,000 | $ 8,028,000 | |||
Estimated value of business acquired | 1 year | ||||
Amortization of intangible assets | $ 2,061,000 | $ 0 | $ 4,924,000 | $ 0 | |
Minimum [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Useful life of intangible asset | 10 years | ||||
Maximum [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Useful life of intangible asset | 15 years | ||||
Weighted Average [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Useful life of intangible asset | 12 years 6 months |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 8,028 |
Goodwill acquired | 40,239 |
Ending balance | $ 48,267 |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of 2016 | $ 931 |
2,017 | 2,435 |
2,018 | 2,128 |
2,019 | 2,128 |
2,020 | 2,116 |
2,021 | 2,104 |
Thereafter | 14,560 |
Total | $ 26,402 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (EPS) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Basic earnings per share: | ||||
Net income attributable to common stockholders (000's) | $ 10,930 | $ 16,813 | $ 36,720 | $ 72,269 |
Weighted average shares outstanding | 29,213,222 | 30,177,633 | 29,742,984 | 29,952,668 |
Basic earnings per share: | $ 0.37 | $ 0.56 | $ 1.23 | $ 2.41 |
Diluted earnings per share: | ||||
Net income attributable to common stockholders (000's) | $ 10,930 | $ 16,813 | $ 36,720 | $ 72,269 |
Weighted average shares outstanding | 29,213,222 | 30,177,633 | 29,742,984 | 29,952,668 |
Weighted average dilutive shares | 305,920 | 43,172 | 336,660 | |
Total weighted average dilutive shares | 29,213,222 | 30,483,553 | 29,786,156 | 30,289,328 |
Diluted earnings per share: | $ 0.37 | $ 0.55 | $ 1.23 | $ 2.39 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - USD ($) | Sep. 30, 2016 | May 04, 2016 | Sep. 14, 2015 |
Earnings Per Share [Abstract] | |||
Shares repurchased | 1,424,666 | ||
Shares repurchased, value | $ 20,562,000 | ||
Stock repurchase program remaining authorized repurchase amount | 49,438,000 | ||
Share repurchase plan, authorized amount | $ 70,000,000 | $ 50,000,000 | $ 20,000,000 |
Deferred Policy Acquisition C56
Deferred Policy Acquisition Costs - Summary of Activity in Deferred Policy Acquisition Costs (DPAC) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Insurance [Abstract] | ||||
Beginning Balance | $ 42,568 | $ 31,948 | $ 34,800 | $ 24,370 |
Policy acquisition costs deferred | 22,158 | 16,058 | 68,807 | 48,982 |
Amortization | (22,597) | (15,512) | (61,478) | (40,858) |
Ending Balance | $ 42,129 | $ 32,494 | $ 42,129 | $ 32,494 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 7,682,000 | $ 10,902,000 | $ 23,688,000 | $ 44,728,000 | |
Annual effective tax rate | 39.20% | 38.20% | |||
Uncertain tax positions | $ 0 | $ 0 | $ 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Unearned premiums | $ 17,772 | $ 17,979 |
Tax-related discount on loss reserve | 1,766 | 1,140 |
Unrealized loss | 1,617 | |
Stock-based compensation | 2,828 | 1,277 |
Other | 1,705 | 256 |
Total deferred tax assets | 24,071 | 22,269 |
Deferred tax liabilities: | ||
Deferred acquisition costs | 15,664 | 13,424 |
Unrealized gain | 2,542 | |
Investment basis difference on purchase | 840 | |
Intangibles | 10,224 | |
Property and equipment | 477 | 473 |
Other | 1,290 | 408 |
Total deferred tax liabilities | 31,037 | 14,305 |
Net deferred tax liabilities | $ (6,966) | |
Net deferred tax assets | $ 7,964 |
Reinsurance - Additional inform
Reinsurance - Additional information (Detail) | Feb. 29, 2016USD ($) | Apr. 30, 2015USD ($) | Apr. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Reinsurer | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Number of reinstatements available | Reinsurer | 2 | ||||||||||
Primary retention | $ 3,000,000,000 | ||||||||||
Percentage comprising aggregate participation | 5.40% | ||||||||||
Primary retention of losses and loss adjustment expenses | $ 190,000,000 | $ 190,000,000 | $ 15,000,000 | ||||||||
Aggregate participation, losses and loss adjustment expenses | 3,160,000 | $ (2,467,000) | 17,291,000 | $ (6,831,000) | |||||||
Purchase of reinsurance from third party | 63,141,000 | 45,873,000 | 163,461,000 | 102,640,000 | |||||||
Agreement of coverage | 3 years | ||||||||||
Additional maturity period of collateral notes | 2 years | 2 years | |||||||||
Reinsurance agreement | 3 years | ||||||||||
Prepaid reinsurance premiums | 168,650,000 | 168,650,000 | $ 78,517,000 | ||||||||
Unpaid losses and loss adjustment expenses | 125,695,000 | $ 74,445,000 | 125,695,000 | $ 74,445,000 | 83,722,000 | 51,469,000 | $ 117,485,000 | $ 61,846,000 | |||
Reinsurance payable | 177,867,000 | 177,867,000 | 60,210,000 | ||||||||
Insurance Claims [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Unpaid losses and loss adjustment expenses | 1,000,000 | 1,000,000 | |||||||||
Notes Due February 2019 [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Collateralized by a reinsurance trust | $ 250,000,000 | ||||||||||
Class D Notes Due February 2019 [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Collateralized by a reinsurance trust | 150,000,000 | ||||||||||
Class E Notes Due February 2019 [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Collateralized by a reinsurance trust | $ 100,000,000 | ||||||||||
Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Purchased reinstatement premium | 185,000,000 | ||||||||||
Purchase of reinsurance from third party | 2,300,000,000 | ||||||||||
Unpaid losses and loss adjustment expenses | 990,000,000 | ||||||||||
Reinsurance purchase limit | 860,000,000 | 860,000,000 | |||||||||
Reinsurance prepaid amount | 825,000,000 | 825,000,000 | |||||||||
Catastrophe [Member] | 2014 Class A Notes [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Collateralized by a reinsurance trust | 200,000,000 | ||||||||||
Additional coverage of second catastrophe reinsurance agreement | $ 50,000,000 | ||||||||||
Reinsurance agreement | 3 years | ||||||||||
Coverage of first catastrophe reinsurance agreement | $ 150,000,000 | ||||||||||
Maximum [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Aggregate participation, losses and loss adjustment expenses | 11,600,000 | ||||||||||
Purchased reinstatement premium | 5,300,000 | ||||||||||
Osprey [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Primary retention | 4,000,000 | ||||||||||
Primary retention of losses and loss adjustment expenses | 6,000,000 | ||||||||||
Catastrophe excess of loss reinsurance | 0 | 0 | |||||||||
Heritage P&C [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Primary retention | 2,000,000 | ||||||||||
Catastrophe excess of loss reinsurance | 2,000,000 | ||||||||||
Heritage P&C [Member] | Two Thousand Fifteen Class B And C Notes [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Agreement of coverage | 3 years | ||||||||||
Heritage P&C [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 | $ 97,500,000 | |||||||||
Heritage P&C [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 | 30,000,000 | |||||||||
Zephyr [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Catastrophe excess of loss reinsurance | 5,000,000 | ||||||||||
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 | 9,000,000 | ||||||||||
Reinsurance payable | 27,000,000 | 27,000,000 | |||||||||
Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Purchased reinstatement premium | 440,000,000 | ||||||||||
Unpaid losses and loss adjustment expenses | 1,800,000,000 | ||||||||||
Property Per Risk Coverage [Member] | Osprey [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Primary retention | 10,000,000 | ||||||||||
Primary retention of losses and loss adjustment expenses | 20,000,000 | ||||||||||
Property Per Risk Coverage [Member] | Heritage P&C [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Primary retention | 5,000,000 | ||||||||||
Catastrophe excess of loss reinsurance | $ 5,000,000 | ||||||||||
Property Per Risk Coverage [Member] | Citrus [Member] | Catastrophe [Member] | Two Thousand Fifteen C And B Series Bond And Two Thousand Sixteen Bond [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Collateralized by a reinsurance trust | 377,500,000 | 377,500,000 | |||||||||
Additional coverage of second catastrophe reinsurance agreement | $ 200,000,000 | ||||||||||
FHCF Layer [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Catastrophe excess of loss reinsurance | $ 181,000,000 | ||||||||||
Percentage of maximum provisional limit | 90.00% | ||||||||||
Estimated provisional limit percentage calculation base amount | $ 484,000,000 | ||||||||||
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 | ||||||||||
FHCF Layer [Member] | Property Per Risk Coverage [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Percentage comprising aggregate participation | 45.00% | 75.00% | |||||||||
Catastrophe excess of loss reinsurance | $ 399,000,000 | $ 336,000,000 | |||||||||
Percentage of maximum provisional limit | 45.00% | 75.00% | |||||||||
Estimated provisional limit percentage calculation base amount | $ 1,300,000,000 | $ 920,000,000 | |||||||||
FHCF Layer [Member] | Property Per Risk Coverage [Member] | Maximum [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Estimated maximum provisional limit, amount | 690,000,000 | ||||||||||
Shared Layers Above Retention And Below FHCF [Member] | Property Per Risk Coverage [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Purchase of reinsurance from third party | 374,000,000 | ||||||||||
Layers Below FHCF [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Purchase of reinsurance from third party | 185,000,000 | ||||||||||
Layers Below FHCF [Member] | Heritage P&C [Member] | Class A Notes Due April Two Thousand Seventeen [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Collateralized by a reinsurance trust | 150,000,000 | $ 150,000,000 | |||||||||
Agreement of coverage | 3 years | ||||||||||
Reinsurance agreement | 3 years | ||||||||||
Layers Below FHCF [Member] | Property Per Risk Coverage [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Purchase of reinsurance from third party | 440,000,000 | ||||||||||
Multi-Zonal Layers [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Coverage of first catastrophe reinsurance agreement | 282,000,000 | ||||||||||
Prepaid reinsurance premiums | 260,000,000 | 260,000,000 | |||||||||
Aggregate Coverage [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Aggregate participation, losses and loss adjustment expenses | 825,000,000 | ||||||||||
Catastrophe excess of loss reinsurance | 940,000,000 | ||||||||||
Purchase of reinsurance from third party | 105,000,000 | ||||||||||
Aggregate Coverage [Member] | Osprey [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Coverage of reinsurance agreement | 20,000,000 | ||||||||||
Aggregate Coverage [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Aggregate participation, losses and loss adjustment expenses | 1,648,000,000 | ||||||||||
Purchased reinstatement premium | 682,000,000 | ||||||||||
Purchase of reinsurance from third party | $ 125,000,000 | ||||||||||
Prepaid reinsurance premiums | 460,000,000 | 460,000,000 | |||||||||
2016-2017 Reinsurance Program [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Purchase of reinsurance from third party | 3,000,000,000 | ||||||||||
Cat Bond Layer Alongside FHCF [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Agreement of coverage | 3 years | ||||||||||
Reinsurance agreement | 3 years | ||||||||||
Cat Bond Layer Alongside FHCF [Member] | Property Per Risk Coverage [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 | $ 97,500,000 | |||||||||
Cat Bond Layer Alongside FHCF [Member] | Property Per Risk Coverage [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 | 30,000,000 | |||||||||
Cat Bond Layer Alongside FHCF [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | Class A Notes Due April Two Thousand Seventeen [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Collateralized by a reinsurance trust | 150,000,000 | 150,000,000 | |||||||||
Cat Bond Layer Alongside FHCF [Member] | Property Per Risk Coverage [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 | $ 277,500,000 | |||||||||
Cat Bond Layer [Member] | Osprey [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Catastrophe coverage of reinsurance agreement | 25,000,000 | ||||||||||
Cat Bond Layer [Member] | Citrus [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Additional coverage of second catastrophe reinsurance agreement | 50,000,000 | ||||||||||
Coverage of first catastrophe reinsurance agreement | $ 150,000,000 | ||||||||||
Cat Bond Layer [Member] | Property Per Risk Coverage [Member] | Citrus [Member] | Class A Notes [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Collateralized by a reinsurance trust | $ 150,000,000 | ||||||||||
Additional coverage of second catastrophe reinsurance agreement | 50,000,000 | ||||||||||
Coverage of first catastrophe reinsurance agreement | $ 150,000,000 | ||||||||||
Facultative Reinsurance [Member] | Maximum [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Reinsurance payable | 10,000,000 | 10,000,000 | |||||||||
Facultative Reinsurance [Member] | Minimum [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Facultative reinsurance purchase amount | 10,000,000 | ||||||||||
Florida [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Primary retention | 1,900,000,000 | ||||||||||
Primary retention of losses and loss adjustment expenses | 40,000,000 | 40,000,000 | |||||||||
Florida [Member] | Osprey [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Primary retention of losses and loss adjustment expenses | 20,000,000 | 20,000,000 | |||||||||
Florida [Member] | Heritage P&C [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Primary retention | 15,000,000 | ||||||||||
Florida [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Unpaid losses and loss adjustment expenses | 1,900,000,000 | 1,900,000,000 | |||||||||
Florida [Member] | Multi-Zonal Layers [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Purchased reinstatement premium | 260,000,000 | ||||||||||
Florida [Member] | A Top And Drop Multi-Zonal Layer [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Purchased reinstatement premium | 22,000,000 | ||||||||||
Hawaii [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Primary retention | 1,100,000,000 | ||||||||||
Primary retention of losses and loss adjustment expenses | 30,000,000 | 30,000,000 | |||||||||
Hawaii [Member] | Osprey [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Primary retention of losses and loss adjustment expenses | 15,000,000 | 15,000,000 | |||||||||
Hawaii [Member] | Zephyr [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Primary retention | 5,000,000 | ||||||||||
Hawaii [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Unpaid losses and loss adjustment expenses | $ 1,100,000,000 | 1,100,000,000 | |||||||||
Hawaii [Member] | Multi-Zonal Layers [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Purchased reinstatement premium | 260,000,000 | ||||||||||
Hawaii [Member] | A Top And Drop Multi-Zonal Layer [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||
Purchased reinstatement premium | $ 22,000,000 |
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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Premium written: | ||||
Direct | $ 147,691 | $ 115,876 | $ 463,778 | $ 352,162 |
Assumed | (459) | 33,117 | 8,015 | 66,396 |
Ceded | (5,164) | (611) | (248,823) | (183,033) |
Net premium written | 142,068 | 148,382 | 222,970 | 235,525 |
Change in unearned premiums: | ||||
Direct | 8,538 | (11,996) | (32,143) | (82,979) |
Assumed | 8,926 | (8,763) | 40,626 | 45,757 |
Ceded | (57,977) | (45,262) | 85,362 | 80,393 |
Net change | (40,513) | (66,021) | 93,845 | 43,171 |
Premiums earned: | ||||
Direct | 156,229 | 103,880 | 431,635 | 269,183 |
Assumed | 8,467 | 24,354 | 48,641 | 112,153 |
Ceded | (63,141) | (45,873) | (163,461) | (102,640) |
Net premiums earned | 101,555 | 82,361 | 316,815 | 278,696 |
Losses and LAE incurred: | ||||
Direct | 59,381 | 25,266 | 141,181 | 68,269 |
Assumed | (3,753) | 10,525 | 30,208 | 33,970 |
Ceded | (1,722) | (1,726) | ||
Net losses and LAE incurred | $ 53,906 | $ 35,791 | $ 169,663 | $ 102,239 |
Reinsurance - Effects of Reinsu
Reinsurance - Effects of Reinsurance Transactions on Unpaid Losses and Loss Adjustment Expenses and Unearned Premiums (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Unpaid losses and loss adjustment expenses: | ||
Direct | $ 96,604 | $ 60,223 |
Assumed | 30,155 | 23,499 |
Gross unpaid losses and LAE | 126,759 | 83,722 |
Ceded | (1,064) | |
Net unpaid losses and LAE | 125,695 | 83,722 |
Unearned premiums: | ||
Direct | 320,241 | 258,754 |
Assumed | 3,113 | 43,739 |
Gross unearned premiums | 323,354 | 302,493 |
Ceded | (168,650) | (78,517) |
Net unearned premiums | $ 154,704 | $ 223,976 |
Reserve for Unpaid Losses - Sum
Reserve for Unpaid Losses - Summary of Reserve for Unpaid Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Insurance [Abstract] | |||||
Balance, beginning of period | $ 117,485 | $ 61,846 | $ 83,722 | $ 51,469 | $ 51,469 |
Less: reinsurance recoverable on paid losses | 0 | 0 | 0 | 0 | 0 |
Net balance, beginning of period | 117,485 | 61,846 | 83,722 | 51,469 | 51,469 |
Incurred related to: | |||||
Current year | 50,746 | 38,258 | 152,372 | 109,070 | |
Prior years | 3,160 | (2,467) | 17,291 | (6,831) | |
Total incurred | 53,906 | 35,791 | 169,663 | 102,239 | |
Paid related to: | |||||
Current year | 33,330 | 18,721 | 71,383 | 55,399 | |
Prior years | 12,366 | 4,471 | 56,307 | 23,864 | |
Total paid | 45,696 | 23,192 | 127,690 | 79,263 | |
Net balance, end of period | 125,695 | 74,445 | 125,695 | 74,445 | 83,722 |
Plus: reinsurance recoverable on unpaid losses | 0 | 0 | 0 | 0 | |
Balance, end of period | $ 125,695 | $ 74,445 | $ 125,695 | $ 74,445 | $ 83,722 |
Reserve for Unpaid Losses - Add
Reserve for Unpaid Losses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Insurance [Abstract] | ||||
Increase (decrease) in losses incurred | $ 3,160 | $ (2,467) | $ 17,291 | $ (6,831) |
Other Liabilities - Additional
Other Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Liabilities related to amounts owed to Citizens for policies | $ 2,926 | $ 4,920 |
Other liabilities, commissions payable | 4,550 | 5,793 |
Accounts and other payable | 4,220 | 3,919 |
Taxes, remittances, items not allocated and unearned revenue | $ 5,010 | $ 3,253 |
Statutory Accounting and Regu65
Statutory Accounting and Regulations - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | ||
Statutory net income of insurance subsidiary | $ 24,000 | $ 45,000,000 |
Statutory accounting practices, capital and surplus requirements of insurance subsidiary | Greater of $15,000 or 10% of their respective 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 | $ 277,148,000 | $ 216,600,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Immediate Family Member Of Management Or Principal Owner [Member] | ||
Related Party Transaction [Line Items] | ||
Payments for management services | $ 86 | $ 94 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of contribution on employee salary | 3.00% | ||
Contribution for participating employees | $ 408,000 | $ 203,000 | |
Medical premium cost | 1,535,000 | $ 897,000 | |
Unpaid claims | $ 472,000 | ||
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 ($) | Aug. 03, 2016 | May 04, 2016 | Mar. 02, 2016 | Dec. 17, 2015 | Sep. 14, 2015 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Class Of Stock [Line Items] | ||||||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||||||||
Common stock, shares outstanding | 29,016,744 | 29,016,744 | 30,441,410 | |||||||
Treasury stock, shares | 1,424,666 | 1,424,666 | ||||||||
Additional paid-in capital | $ 206,240,000 | $ 206,240,000 | $ 202,628,000 | |||||||
Stock options, outstanding | 1,149,923 | 1,149,923 | 1,149,923 | |||||||
Stock Repurchase Program, Authorized Amount | $ 50,000,000 | $ 20,000,000 | $ 70,000,000 | $ 70,000,000 | ||||||
Stock Repurchase Program Expiration Date | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||
Stock Repurchased During Period, Shares | 284,377 | 527,989 | 612,300 | |||||||
Stock Repurchased During Period, Value | $ 4,000,000 | $ 6,927,000 | $ 9,635,000 | 20,562,000 | ||||||
Cash dividend, declared date | Aug. 3, 2016 | May 4, 2016 | Mar. 2, 2016 | Dec. 17, 2015 | ||||||
Dividend payable, record date | Sep. 15, 2016 | Jun. 15, 2016 | Mar. 15, 2016 | Dec. 31, 2015 | ||||||
Cash dividend, payable date | Oct. 3, 2016 | Jul. 1, 2016 | Apr. 5, 2016 | Jan. 13, 2016 | ||||||
Cash dividend, declared | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | ||||||
Dividend charged to retained earning | $ 5,228,000 | $ 1,578,000 | ||||||||
Restricted Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Unvested restricted common stock issued | 1,125,000 | 1,125,000 | 1,125,000 | |||||||
Unvested restricted stock grants | 1,125,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | 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 days | |||
Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized stock compensation expense | $ 0 | $ 25 | ||
Stock-based compensation expense | 0 | 1,900 | ||
Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 3,612 | $ 0 | ||
Unrecognized stock compensation expense | $ 19,715 | |||
Unrecognized stock compensation expense, period | 4 years 2 months 12 days | |||
Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock options, Vesting period | 1 year | |||
Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock options, Vesting period | 5 years | |||
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 | 170,814 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Information Related to Stock Option and Restricted Stock (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock options, outstanding | 1,149,923 | 1,149,923 |
Vested and exercisable, Shares | 1,149,923 | |
Weighted-Average Grant Date Fair Value | $ 2.99 | $ 2.99 |
Weighted-Average Grant Date Fair Value, Vested and exercisable | $ 2.99 | |
Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested restricted common stock issued | 1,125,000 | 1,125,000 |
Granted, shares | 1,125,000 | |
Weighted-Average Grant Date Fair Value | $ 21.40 | $ 21.40 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Nov. 08, 2016$ / shares | Aug. 03, 2016$ / shares | May 04, 2016$ / shares | Mar. 02, 2016$ / shares | Dec. 17, 2015$ / shares | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Nov. 03, 2016Claim |
Subsequent Event [Line Items] | ||||||||
Cash dividend, declared date | Aug. 3, 2016 | May 4, 2016 | Mar. 2, 2016 | Dec. 17, 2015 | ||||
Cash dividend, declared | $ / shares | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | ||||
Cash dividend, payable date | Oct. 3, 2016 | Jul. 1, 2016 | Apr. 5, 2016 | Jan. 13, 2016 | ||||
Dividend payable, record date | Sep. 15, 2016 | Jun. 15, 2016 | Mar. 15, 2016 | Dec. 31, 2015 | ||||
Primary retention | $ 3,000,000,000 | |||||||
Hurricane Matthew [Member] | Florida and North Carolina [Member] | Scenario Forecast [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Pre-tax catastrophe losses | $ 30,000,000 | |||||||
Primary retention | $ 40,000,000 | |||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Cash dividend, declared date | Nov. 8, 2016 | |||||||
Cash dividend, declared | $ / shares | $ 0.06 | |||||||
Cash dividend, payable date | Jan. 3, 2017 | |||||||
Dividend payable, record date | Dec. 15, 2016 | |||||||
Subsequent Event [Member] | Hurricane Matthew [Member] | Florida and North Carolina [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of claims received | Claim | 2,500 |