Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 03, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 29,056,421 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Fixed maturity securities, available for sale, at fair value (amortized cost of $567,937 and $576,911 in 2017 and 2016, respectively) | $ 569,052 | $ 571,011 |
Equity securities, available for sale, at fair value (cost of $34,175 and $34,190 in 2017 and 2016, respectively) | 32,139 | 31,971 |
Total investments | 601,191 | 602,982 |
Cash and cash equivalents | 134,176 | 105,817 |
Restricted cash | 18,381 | 20,910 |
Accrued investment income | 5,105 | 4,764 |
Premiums receivable, net | 38,960 | 42,720 |
Prepaid reinsurance premiums | 213,009 | 106,609 |
Income taxes receivable | 2,297 | 10,713 |
Deferred policy acquisition costs, net | 41,792 | 42,779 |
Property and equipment, net | 16,547 | 17,179 |
Intangibles, net | 23,526 | 26,542 |
Goodwill | 46,454 | 46,454 |
Other assets | 7,197 | 5,775 |
Total Assets | 1,148,635 | 1,033,244 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Unpaid losses and loss adjustment expenses | 122,785 | 140,137 |
Unearned premiums | 312,552 | 318,024 |
Reinsurance payable | 224,807 | 96,667 |
Note payable, net of issuance costs | 73,276 | 72,905 |
Deferred income taxes | 4,651 | 3,003 |
Advance premiums | 25,884 | 18,565 |
Accrued compensation | 5,479 | 4,303 |
Other liabilities | 13,934 | 21,681 |
Total Liabilities | 783,368 | 675,285 |
Commitments and contingencies (Note 15) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value, 50,000,000 shares authorized, 29,056,421 shares issued and 28,156,421 outstanding at June 30, 2017 and 29,740,441 shares issued and 28,840,443 outstanding at December 31, 2016 | 3 | 3 |
Additional paid-in capital | 208,135 | 205,727 |
Accumulated other comprehensive loss | (569) | (5,018) |
Treasury stock, at cost, (2,443,352) shares at June 30, 2017 and (1,759,330) shares at December 31, 2016 | (34,169) | (25,562) |
Retained earnings | 191,867 | 182,809 |
Total Stockholders' Equity | 365,267 | 357,959 |
Total Liabilities and Stockholders' Equity | $ 1,148,635 | $ 1,033,244 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Fixed maturities available for sale, at amortized cost | $ 567,937 | $ 576,911 |
Equity securities, cost | $ 34,175 | $ 34,190 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 29,056,421 | 29,740,441 |
Common stock, shares outstanding | 28,156,421 | 28,840,443 |
Treasury stock, shares | (2,443,352) | (1,759,330) |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Other Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUE: | ||||
Gross premiums written | $ 159,255 | $ 177,295 | $ 301,490 | $ 324,561 |
Change in gross unearned premiums | (6,901) | (13,658) | 5,472 | (8,981) |
Gross premiums earned | 152,354 | 163,637 | 306,962 | 315,580 |
Ceded premiums | (61,902) | (54,719) | (124,334) | (100,320) |
Net premiums earned | 90,452 | 108,918 | 182,628 | 215,260 |
Net investment income | 2,973 | 2,223 | 5,475 | 4,260 |
Net realized (losses) gains | (125) | 263 | 646 | 644 |
Other revenue | 3,638 | 3,877 | 7,482 | 6,682 |
Total revenue | 96,938 | 115,281 | 196,231 | 226,846 |
OPERATING EXPENSES: | ||||
Losses and loss adjustment expenses | 46,046 | 48,794 | 92,693 | 115,757 |
Policy acquisition costs | 21,738 | 20,753 | 45,180 | 38,881 |
General and administrative expenses | 16,092 | 15,977 | 33,406 | 30,411 |
Total operating expenses | 83,876 | 85,524 | 171,279 | 185,049 |
Operating income | 13,062 | 29,757 | 24,952 | 41,797 |
Interest expense, net | 1,990 | 3,934 | ||
Amortization of debt issuance costs | 241 | 478 | ||
Income before income taxes | 10,831 | 29,757 | 20,540 | 41,797 |
Provision for income taxes | 4,189 | 11,389 | 7,915 | 16,006 |
Net income | 6,642 | 18,368 | 12,625 | 25,791 |
OTHER COMPREHENSIVE INCOME: | ||||
Change in net unrealized gains on investments | 3,899 | 8,928 | 7,880 | 13,010 |
Reclassification adjustment for net realized investment losses (gains) | 125 | (263) | (646) | (644) |
Income tax expense related to items of other comprehensive income | (1,549) | (3,348) | (2,785) | (4,770) |
Total comprehensive income | $ 9,117 | $ 23,685 | $ 17,074 | $ 33,387 |
Weighted average shares outstanding | ||||
Basic | 28,283,587 | 29,653,668 | 28,543,703 | 30,010,776 |
Diluted | 28,283,587 | 29,653,668 | 28,543,703 | 30,072,624 |
Earnings per share | ||||
Basic | $ 0.23 | $ 0.62 | $ 0.44 | $ 0.86 |
Diluted | $ 0.23 | $ 0.62 | $ 0.44 | $ 0.86 |
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 | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2015 | $ 356,553 | $ 3 | $ 202,628 | $ 155,955 | $ (2,033) | |
Beginning Balance, Shares at Dec. 31, 2015 | 30,441,410 | |||||
Stock buy-back | (16,562) | $ (16,562) | ||||
Stock buy-back, Shares | (1,140,289) | |||||
Stock-based compensation | 2,408 | 2,408 | ||||
Dividends declared on common stock | (3,419) | (3,419) | ||||
Net unrealized change in investments, net of tax | 7,596 | 7,596 | ||||
Net income | 25,791 | 25,791 | ||||
Ending balance at Jun. 30, 2016 | 372,367 | $ 3 | 205,036 | 178,327 | (16,562) | 5,563 |
Ending balance, Shares at Jun. 30, 2016 | 29,301,121 | |||||
Beginning Balance at Dec. 31, 2016 | 357,959 | $ 3 | 205,727 | 182,809 | (25,562) | (5,018) |
Beginning Balance, Shares at Dec. 31, 2016 | 28,840,443 | |||||
Stock buy-back | (8,607) | (8,607) | ||||
Stock buy-back, Shares | (684,022) | |||||
Stock-based compensation | 2,408 | 2,408 | ||||
Dividends declared on common stock | (3,567) | (3,567) | ||||
Net unrealized change in investments, net of tax | 4,449 | 4,449 | ||||
Net income | 12,625 | 12,625 | ||||
Ending balance at Jun. 30, 2017 | $ 365,267 | $ 3 | $ 208,135 | $ 191,867 | $ (34,169) | $ (569) |
Ending balance, Shares at Jun. 30, 2017 | 28,156,421 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net income | $ 12,625 | $ 25,791 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 2,408 | 2,408 |
Amortization of bond discount | 4,492 | 3,676 |
Depreciation and amortization | 3,798 | 3,611 |
Net realized gains | (646) | (644) |
Deferred income taxes, net of acquired | (1,137) | 10,810 |
Changes in operating assets and liabilities: | ||
Accrued investment income | (341) | (920) |
Premiums receivable, net | 3,760 | (2,611) |
Restricted cash | 2,529 | (5,559) |
Prepaid reinsurance premiums | (106,400) | (143,318) |
Income taxes receivable | 8,416 | (2,969) |
Deferred policy acquisition costs, net | 987 | (7,768) |
Other assets | (1,422) | 1,209 |
Unpaid losses and loss adjustment expenses | (17,353) | 33,763 |
Unearned premiums | (5,472) | 8,981 |
Reinsurance payable | 128,140 | 176,810 |
Accrued interest | (3,938) | |
Income taxes payable | (2,092) | |
Accrued compensation | 1,176 | 2,715 |
Advance premiums | 7,320 | 9,598 |
Other liabilities | (3,438) | (9,218) |
Net cash provided by operating activities | 35,504 | 104,273 |
INVESTING ACTIVITIES | ||
Proceeds from sales and maturities of investments available for sale | 99,041 | 90,321 |
Purchases of investments available for sale | (93,862) | (154,518) |
Acquisition of a business, net of cash acquired | (111,907) | |
Cost of property and equipment acquired | (150) | (1,513) |
Net cash used in investing activities | 5,029 | (177,617) |
FINANCING ACTIVITIES | ||
Dividends | (3,567) | (3,419) |
Purchase of treasury stock | (8,607) | (16,562) |
Net cash used in financing activities | (12,174) | (19,981) |
Increase (decrease) in cash and cash equivalents | 28,359 | (93,325) |
Cash and cash equivalents, beginning of period | 105,817 | 236,277 |
Cash and cash equivalents, end of period | 134,176 | 142,952 |
Supplemental Cash Flows Information: | ||
Income taxes paid, net | $ 601 | $ 16,754 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements as of and for the three and six months ended June 30, 2017 and 2016 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 Florida insurance subsidiary’s business; Contractors’ Alliance Network, LLC (“CAN”), our vendor network manager for Florida claims 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 may provide a portion of the reinsurance protection purchased by our insurance subsidiaries; 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. Through our insurance subsidiaries, Heritage P&C and Zephyr, we write personal residential insurance for single-family homeowners and condominium owners, and rental property insurance in the states of Florida, Hawaii, North Carolina, South Carolina and Georgia. We also provide commercial residential insurance for Florida properties and are also licensed in the states of Alabama and Mississippi. We are vertically integrated and control or manage substantially all aspects of insurance underwriting, customer service, actuarial analysis, distribution and claims processing and adjusting. We conduct our operations under a single reporting segment. The condensed consolidated financial information included herein as of and for the three and six months ended June 30, 2017 and 2016 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 six months ended June 30, 2017 and 2016 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, 2016 consolidated balance sheet was derived from the Company’s audited consolidated financial statements as of and for the year ended December 31, 2016. 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, 2016. 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 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. 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, 2016. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting Accounting Pronouncements 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 May 2017, the FASB issued ASU No. 2017-09, Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses Measurement of Credit Losses on Financial Instruments 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 This guidance is not applicable to insurance contracts. . The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The standard is effective for the Company in the first quarter of 2018 with early adoption permitted. Accordingly, while the Company is in the early stages of evaluating the effect of adopting this new guidance, the Company believes the application of this guidance will be less complex in relation to any non-insurance contracts. 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 | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 2. ACQUISITION On March 21, 2016, the Company completed its acquisition of ZAC and acquired 100% of its outstanding stock and its wholly-owned subsidiary, Zephyr, in exchange for approximately $110.3 million in cash, 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 windstorm-hurricane events. The purchase consideration for this acquisition has been allocated to the estimated fair market value of the net assets acquired, including approximately $31.8 million in identifiable intangible assets (primarily value of business acquired (“VOBA”), brand, customer relationships and trade name), and a residual amount of goodwill of approximately $38.4 million. 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 following table sets forth the allocation of the purchase consideration. 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 7,600 Intangible assets 24,245 Total assets acquired $ 115,109 Total liabilities assumed $ (43,216 ) Net assets acquired $ 71,893 Goodwill 38,426 Total purchase price $ 110,319 Pro Forma Information The following table presents selected pro forma information, assuming the acquisition of ZAC had occurred on January 1, 2016. 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, 2016 and the unaudited pro forma information does not purport to be indicative of future financial results. Three Months Ended June 30, Six Months Ended June 30, 2016 2016 (in thousands, except per share) Revenue $ 115,281 $ 235,668 Net income $ 18,368 $ 28,743 Basic, earnings per share $ 0.62 $ 0.96 Diluted, earnings per share $ 0.62 $ 0.95 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | NOTE 3. INVESTMENTS The following table details the difference between cost or adjusted/amortized cost and estimated fair value, by major investment category, at June 30, 2017 and December 31, 2016: Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (In thousands) June 30, 2017 U.S. government and agency securities $ 33,581 $ 27 $ 337 $ 33,271 States, municipalities and political subdivisions 305,713 2,061 1,348 306,426 Special revenue 87,617 43 489 87,171 Industrial and miscellaneous 136,515 1,277 252 137,540 Redeemable preferred stocks 4,511 145 12 4,644 Total fixed maturities 567,937 3,553 2,438 569,052 Nonredeemable preferred stocks 14,073 578 30 14,621 Equity securities 20,102 923 3,507 17,518 Total equity securities 34,175 1,501 3,537 32,139 Total investments $ 602,112 $ 5,054 $ 5,975 $ 601,191 Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (In thousands) December 31, 2016 U.S. government and agency securities $ 107,968 $ 29 $ 449 $ 107,548 States, municipalities and political subdivisions 281,935 298 4,872 277,361 Special revenue 53,726 29 759 52,996 Industrial and miscellaneous 129,687 535 577 129,645 Redeemable preferred stocks 3,595 15 149 3,461 Total fixed maturities 576,911 906 6,806 571,011 Nonredeemable preferred stocks 14,935 40 460 14,515 Equity securities 19,255 1,197 2,996 17,456 Total equity securities 34,190 1,237 3,456 31,971 Total investments $ 611,101 $ 2,143 $ 10,262 $ 602,982 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 six months ended June 30, 2017 and 2016. 2017 2016 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Three Months Ended June 30, Fixed maturities $ 15 $ 5,706 $ 338 $ 8,686 Equity securities 54 2,352 20 600 Total realized gains 69 8,058 358 9,286 Fixed maturities (170 ) 1,686 (30 ) 2,903 Equity securities (24 ) 1,130 (65 ) 2,503 Total realized losses (194 ) 2,816 (95 ) 5,406 Net realized gain $ (125 ) $ 10,874 $ 263 $ 14,692 2017 2016 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Six Months Ended June 30, Fixed maturities $ 34 $ 8,635 $ 1,467 $ 46,978 Equity securities 811 9,565 65 6,084 Total realized gains 845 18,200 1,532 53,062 Fixed maturities (174 ) 7,244 (35 ) 92,698 Equity securities (25 ) 657 (853 ) 2,589 Total realized losses (199 ) 7,901 (888 ) 95,287 Net realized gain $ 646 $ 26,101 $ 644 $ 148,349 The table below summarizes the Company’s fixed maturities at June 30, 2017 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. June 30, 2017 Cost or Amortized Cost Percent of Total Fair Value Percent of Total (In thousands) (In thousands) Due in one year or less $ 105,534 19 % $ 105,518 19 % Due after one year through five years 143,843 25 % 144,265 25 % Due after five years through ten years 158,991 28 % 159,341 28 % Due after ten years 159,569 28 % 159,928 28 % Total $ 567,937 100 % $ 569,052 100 % The following table summarizes the Company’s net investment income by major investment category for the three and six months ended June 30, 2017 and 2016, respectively: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Fixed maturities $ 2,650 $ 5,609 $ 5,161 $ 4,030 Equity securities 482 (2,983 ) 979 970 Cash, cash equivalents and short-term investments 34 136 103 137 Other investments — (138 ) — (111 ) Net investment income 3,166 2,624 6,243 5,026 Investment expenses 193 401 768 766 Net investment income, less investment expenses $ 2,973 $ 2,223 $ 5,475 $ 4,260 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 June 30, 2017 or December 31, 2016. There were no material other-than-temporary impairments or credit losses related to available-for-sale securities in the three and six months ended June 30, 2017 and 2016. The following tables present an aging of our unrealized investment losses by investment class as of June 30, 2017 and December 31, 2016: 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) June 30, 2017 U.S. government and agency securities 41 $ 336 $ 30,596 3 $ 1 $ 155 States, municipalities and political subdivisions 155 1,348 132,490 — — $ — Special revenue 103 246 43,588 3 4 $ 1,064 Industrial and miscellaneous 159 434 40,247 34 55 $ 3,131 Redeemable preferred stocks 21 11 637 2 2 $ 40 Total fixed maturities 479 2,375 247,558 42 62 $ 4,390 Nonredeemable preferred stocks 40 30 2,789 3 1 $ 8 Equity securities 39 336 4,042 25 3,171 $ 6,448 Total equity securities 79 366 6,831 28 3,172 $ 6,456 Total investments 558 $ 2,741 $ 254,389 70 $ 3,234 $ 10,846 Less Than Twelve Months Twelve Months or More Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value (In thousands) December 31, 2016 U.S. government and agency securities 35 $ 448 $ 24,649 2 $ 1 $ 200 States, municipalities and political subdivisions 265 4,869 220,034 2 3 1,497 Special revenue 161 571 56,996 2 6 974 Industrial and miscellaneous 189 631 44,712 11 129 1,828 Redeemable preferred stocks 19 143 2,425 1 6 212 Total fixed maturities 669 6,662 348,816 18 145 4,711 Nonredeemable preferred stocks 77 439 11,298 5 20 234 Equity securities 26 191 2,542 29 2,805 7,317 Total equity securities 103 630 13,840 34 2,825 7,551 Total investments 772 $ 7,292 $ 362,656 52 $ 2,970 $ 12,262 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 4. 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 we evaluate the relevant inputs, assumptions, methodologies and conclusions associated with such valuations. The valuation service calculates prices for the Company’s investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, then adds final spreads to the U.S. Treasury curve as of quarter end. The inputs the valuation service uses in 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 six months ended June 30, 2017 and the year ended December 31, 2016, there were no transfers in or out of Level 1, 2, and 3. June 30, 2017 Total Level 1 Level 2 Level 3 (in thousands) Fixed maturities investments: U.S. government and agency securities $ 33,271 $ 2,726 $ 30,545 $ — States, municipalities and political subdivisions 306,426 3,000 303,426 — Special revenue 87,171 33,800 53,371 — Industrial and miscellaneous 137,540 — 137,540 — Redeemable preferred stocks 4,644 4,644 — — Total fixed maturities investments $ 569,052 $ 44,170 $ 524,882 $ — Nonredeemable preferred stocks 14,621 14,621 — — Equity securities 17,518 17,518 — — Total equity securities $ 32,139 $ 32,139 $ — $ — Total investments $ 601,191 $ 76,309 $ 524,882 $ — December 31, 2016 Total Level 1 Level 2 Level 3 (in thousands) Fixed maturities investments: U.S. government and agency securities $ 107,548 $ 103,997 $ 3,551 $ — States, municipalities and political subdivisions 277,361 — 277,361 — Special revenue 52,996 — 52,996 — Industrial and miscellaneous 129,645 — 129,645 — Redeemable preferred stocks 3,461 3,461 — — Total fixed maturities investments $ 571,011 $ 107,458 $ 463,553 $ — Nonredeemable preferred stocks 14,515 14,515 — — Equity securities 17,456 17,456 — — Total equity securities $ 31,971 $ 31,971 $ — $ — Total investments $ 602,982 $ 139,429 $ 463,553 $ — |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | NOTE 5. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following at June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 (In thousands) Land $ 2,582 $ 2,582 Building 10,301 10,301 Computer hardware and software 3,132 3,113 Office furniture and equipment 759 759 Tenant and leasehold improvements 3,490 3,334 Vehicle fleet 817 842 Total, at cost 21,081 20,931 Less: accumulated depreciation and amortization 4,534 3,752 Property and equipment, net $ 16,547 $ 17,179 Depreciation and amortization expense for property and equipment was $782 thousand and $353 thousand for the six months ended June 30, 2017 and 2016, respectively. The Company’s real estate consists of 14 acres of land and four buildings with a gross area of 191 thousand square feet. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Intangible Assets As of June 30, 2017 and December 31, 2016 goodwill was $46.5 million and intangible assets were $23.5 million and $26.5 million, respectively. The Company has determined the useful life of the value of the business acquired (see Note 2) to be one year. The Company has determined the useful life of the other intangible assets to range between 2.5-15 years. The Company has recorded $175 thousand relating to an insurance license and classified as an indefinite lived intangible which is subject to annual impairment testing. Goodwill (In thousands) Balance as of December 31, 2016 $ 46,454 Goodwill acquired — Impairment — Balance as of June 30, 2017 $ 46,454 Other Intangible Assets Our intangible assets resulted primarily from the acquisition of Zephyr and consists of brand, agent relationships, renewal rights, customer relations, trade names, non-compete and insurance licenses. Finite-lived intangible assets are amortized over their useful lives from one to fifteen years. Estimated annual pretax amortization of intangible assets for remainder of 2017 and each of the next five years and thereafter (in thousands): Year Amount (1) 2017 $ 1,117 2018 1,982 2019 1,898 2020 1,888 2021 1,875 Thereafter 14,591 $ 23,351 (1) Excludes insurance license valued at $175 thousand and classified as an indefinite lived intangible which is subject to annual impairment testing and not amortized. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 7. 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Basic earnings per share: Net income attributable to common stockholders (000's) $ 6,642 $ 18,368 $ 12,625 $ 25,791 Weighted average shares outstanding 28,283,587 29,653,668 28,543,703 30,010,776 Basic earnings per share: $ 0.23 $ 0.62 $ 0.44 $ 0.86 Diluted earnings per share: Net income attributable to common stockholders (000's) $ 6,642 $ 18,368 $ 12,625 $ 25,791 Weighted average shares outstanding 28,283,587 29,653,668 28,543,703 30,010,776 Weighted average dilutive shares — — — 61,848 Total weighted average dilutive shares 28,283,587 29,653,668 28,543,703 30,072,624 Diluted earnings per share: $ 0.23 $ 0.62 $ 0.44 $ 0.86 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 6 Months Ended |
Jun. 30, 2017 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | NOTE 8. DEFERRED POLICY ACQUISITION COSTS The Company defers certain costs in connection with written policies, called deferred policy acquisition Costs (“DPAC”), net of corresponding amounts of ceded reinsurance commissions, called deferred reinsurance ceding commissions (“DRCC”). Net DPAC is amortized over the effective period of the related insurance policies. The Company anticipates that its DPAC costs will be fully recoverable in the near term. The table below depicts the activity with regard to DPAC during the three and six month periods ended June 30, 2017 and 2016: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Beginning Balance $ 41,215 $ 35,991 $ 42,779 $ 34,800 Policy acquisition costs deferred 22,315 27,330 44,193 46,649 Amortization (21,738 ) (20,753 ) (45,180 ) (38,881 ) Ending Balance $ 41,792 $ 42,568 $ 41,792 $ 42,568 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9. INCOME TAXES During the six months ended June 30, 2017 and 2016, the Company recorded $7.9 million and $16.0 million, respectively, of income tax expense which corresponds to an estimated annual effective tax rate of 38.5% and 38.3%, respectively. The table below summarizes the significant components of our net deferred tax assets (liabilities): June 30, 2017 December 31, 2016 Deferred tax assets: (In thousands) Unearned premiums $ 16,719 $ 17,209 Tax-related discount on loss reserve 1,810 1,829 Unrealized loss 353 3,113 Stock-based compensation 2,319 1,604 Prepaid expenses 1,562 1,482 Other 305 312 Total deferred tax asset 23,068 25,549 Deferred tax liabilities: Deferred acquisition costs 15,987 16,377 Property and equipment 355 355 Basis in purchased investments 1,765 1,697 Basis in purchased intangibles 9,278 9,791 Other 334 332 Total deferred tax liabilities 27,719 28,552 Less: valuation allowance — — Net deferred tax liability $ (4,651 ) $ (3,003 ) 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. The statute of limitations related to our federal and state income tax returns remains open from our first filings for 2013 through 2016. For the 2014 tax year, the federal income tax return was examined by the tax authority resulting in no material adjustment. Currently, no taxing authorities are examining any of our federal or state income tax returns. As of June 30, 2017 and December 31, 2016, we had no significant uncertain tax positions. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2017 | |
Insurance [Abstract] | |
Reinsurance | NOTE 10. 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. 2017 - 2018 Reinsurance Program The Company placed its reinsurance program for the period from June 1, 2017 through May 31, 2018 during the second quarter of 2017. This reinsurance program incorporates the catastrophe risk of our two insurance subsidiaries, Heritage P&C, a Florida based insurer writing property insurance in multiple states, and Zephyr, a Hawaii based insurer. The programs 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 specific to each insurer unless otherwise noted. The 2017-2018 reinsurance program provides, including retention, first event coverage up to $1.75 billion in Florida, first event coverage up to $731 million in Hawaii, and multiple event coverage up to $2.6 billion. This coverage exceeds the requirements established by the Company’s rating agency, Demotech, Inc., the Florida Office of Insurance Regulation, and the Hawaii Insurance Division. 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 2017-2018 reinsurance program incorporates the mandatory coverage required by law to be placed with FHCF, which is available only for Florida catastrophe risk. For the 2017 hurricane season, the Company maintained the prior year selected participation percentage in the FHCF at 45%. The Company also purchased private reinsurance below, alongside the FHCF layer, as well as aggregate reinsurance coverage. The Company is not utilizing its captive, Osprey, for any catastrophe risk for the 2017 hurricane season. The Company has a primary retention of the first $20 million of losses and loss adjustment expenses. Additionally, the December 1, 2016 treaty between Heritage P&C and Osprey was commuted effective June 1, 2017. Heritage P&C provides property insurance coverage for states other than Hawaii. The following describes the various layers of its June 1, 2017 to May 31, 2018 reinsurance program follows: • Heritage P&C’s Retention . If a first catastrophic event strikes a Heritage P&C risk, its primary retention is the first $20 million ($15 million plus $5 million co-participation on the Top and Aggregate layer described below) of losses and loss adjustment expenses. If a second catastrophic event strikes a Heritage P&C risk, its primary retention decreases to $16 million and the remainder of the losses are ceded to third parties. In a first event exceeding approximately $878 million, there is an additional co-participation of 20% subject to a maximum co-participation of $727,000. Assuming a 1-100yr 1 st st • Shared Layers . Immediately above the retention, the Company has purchased $372 million of reinsurance from third party a private sliver alongside those layers. Through the payment of a reinstatement premium, Heritage P&C and Zephyr are able to reinstate $352 million of this reinsurance one time. There is $20 million of shared coverage subject to a seasonal aggregate of $68 million. • FHCF Layer . Heritage P&C’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 $414 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. Heritage P&C 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 Heritage P&C reinsurance program includes third party layers alongside the FHCF. These include 2015 C and 2015 C series catastrophe bonds, 2016 D and 2016 E catastrophe bonds and 2017-2 catastrophe bonds issued by Citrus Re, which total $412.5 million of coverage, as discussed below, as well as a traditional reinsurance layer providing $5 million of coverage. • 2017-2 Notes: During May 2017, Heritage P&C entered into a catastrophe reinsurance agreement with Citrus Re. The agreements provide for three years of coverage from catastrophic losses caused by named storms, including hurricanes, beginning on June 1, 2017. Heritage P&C pays a periodic premium to Citrus Re during this three-year risk period. Citrus Re issued an aggregate of $35 million of principal-at-risk variable notes due March 2020 to fund the reinsurance trust account and its obligations to Heritage P&C for $35 million of coverage under the reinsurance agreements. 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. • 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. For the 2017 hurricane season these notes provide coverage only to Heritage P&C who pays 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 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. 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 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 • 2017-1 Notes: During March 2017, Heritage P&C entered into 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, 2017. 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 March 2020 to fund the reinsurance trust account and its obligations to Heritage P&C under the reinsurance agreements. The notes provide $125 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. • 2015 Class A Notes: During April 2015, Heritage P&C entered into 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, 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. • Multi-Zonal Layers – The Company purchased additional layers which provide coverage for Heritage P&C for a second event and both first and second event coverage for Hawaii. The first event coverage for Hawaii is a counterpart to the multi-state catastrophe bond layers and FHCF layer. There is a total of $254 million of reinsurance coverage purchased on this basis, for which the Company has a prepaid reinstatement. • Aggregate Coverage . In addition to what is described above, much of the reinsurance is structured in a way to provide aggregate coverage. $984 million of limit is structured on this basis (Top and Aggregate, Underlying, Layer 1, Layer 2, Private layers, Multi-Zonal, 2017-1 Notes, 2017-2 Notes, and 2015 Class A Notes). 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. $606 million has a reinstatement, which is prepaid. Layers (with exception to FHCF, 2016 Class D & E Notes, and 2015 Class B & C Notes) are “net” of a $40 million attachment point. Layers inure to the subsequent layers if the aggregate limit of the preceding layer(s) is exhausted, and the subsequent layer cascades down in its place. Zephyr provides property insurance coverage for Hawaii. The various layers of its 2017-2018 reinsurance program area as follows: • Zephyr’s Retention . If a first catastrophic event strikes Hawaii, Zephyr has a primary retention of the first $20 million ($15 million plus $5 million co-participation on the Top and Aggregate layer) of losses and loss adjustment expenses. If a second event strikes Hawaii, Zephyr’s primary retention decreases to $16 million and the remainder of losses are ceded to third parties. In a first event exceeding approximately $386million, there is an additional co-participation of 3.8% subject to a maximum co-participation of $12 million. Assuming a 1-100 year event, a second event exceeding approximately $386 million, results in an additional co-participation of 117.7% subject to a maximum co-participation of $56 million. Zephyr has a $16 million primary retention for events beyond the second catastrophic event. • Shared Layers above retention . Immediately above the retention, the Company has purchased $372 million of reinsurance from third party reinsurers. This coverage includes the following layers: Top and Aggregate layer, Underlying layer, Layer 1, Layer 2 and a private sliver alongside those layers. Through the payment of a reinstatement premium, Heritage P&C and Zephyr are able to reinstate $352 million of this reinsurance one time. There is $20 million of shared coverage subject to a seasonal aggregate of $68 million. • 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 multi-state catastrophe bond layers and FHCF layer. There is a total of $302 million of reinsurance coverage purchased on this basis, with $254 million having a prepaid reinstatement. The multi-zonal occurrence layer provides first and second event coverage of $254 million for Hawaii and second event coverage of $254 million for Florida. A Top and Aggregate multi-zonal layer provides first event coverage of $48 million for Hawaii and second or subsequent event coverage of $48 million for Florida. • Top Hawaii only layer – Zephyr has an additional layer purchased from third party reinsurers which provides $26 million of coverage for Hawaii only losses. This layer has one free reinstatement. • Aggregate Coverage . In addition to what is described above, much of the reinsurance is structured in a way to provide aggregate coverage. An aggregate of $700 million of limit is structured on this basis (Top and Aggregate, Underlying, Layer 1, Layer 2, Private Layers, Multi-Zonal, Hawaii Only). 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. $632 million has a reinstatement, which is prepaid or free. For a first catastrophic event striking Florida, our reinsurance program provides coverage up to $1.75 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 up to $731 million 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. An aggregate of $632 million of limit purchased in 2017 includes a reinstatement, with $632 million being prepaid or free. In total, we have purchased $2.6 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. Hurricane losses in states other than Hawaii would be covered under the Heritage P&C program with the exception of the FHCF and the series 2015, 2016 and 2017 catastrophe bonds. Management deemed this reinsurance protection to be sufficient given the level of catastrophe exposure in 2017 for North Carolina and South Carolina. In placing our 2017-2018 reinsurance program, we sought to capitalize on favorable reinsurance pricing and mitigate uncertainty surrounding the future cost of our reinsurance by negotiating multi-year arrangements. The $687.5 million of aggregate coverage we have purchased from Citrus Re Ltd, which includes the 2015 Class A, B, and C notes, the 2016 Class D & E notes, and the 2017 Series notes extends $277.5 million of coverage until May 2018. $250 million of coverage for another two-year period and $160 million of coverage for a three-year period. To the extent coverage is all or partially exhausted before the end of three years, it cannot be reinstated. In the aggregate, multi-year coverage from Citrus Re Ltd accounts for approximately 26% of our purchases of private reinsurance for the 2017 hurricane season. The terms of each of the multi-year coverage arrangements described above are subject to adjustment depending on, among other things, the size and composition of our portfolio of insured risks in future periods. 2016 - 2017 Reinsurance Program The Company had placed its reinsurance program for the period from June 1, 2016 through May 31, 2017 during the second quarter of 2016. This reinsurance program incorporated 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 and the FHCF. Coverage is shared by both insurers unless otherwise noted. The 2016-2017 reinsurance program provided, 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 billion. The reinsurance program, which is segmented into layers of coverage, protected 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 had 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 had a primary retention of the first $40 million of losses and loss adjustment expenses, of which Osprey was responsible for $20 million. If a first catastrophic event strikes Hawaii, the Company had a primary retention of the first $30 million of losses and loss adjustment expenses, of which Osprey was responsible for $15 million. If a second catastrophic event strikes Florida, Heritage P&C’s primary retention decreased to $15 million and the remainder of the losses are ceded to third parties. If a second event strikes Hawaii, Zephyr’s primary retention decreased to $5 million. In the second event only for a loss exceeding $190 million, there was an additional Company co-participation of 5.4% subject to a maximum co-participation of $11.6 million. Heritage P&C and Zephyr each had 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 was 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 had purchased $374 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 $374 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. • FHCF Layer . The Company’s FHCF program provided coverage for Florida events only and includes an estimated maximum provisional limit of 45% of $1.5 billion, in excess of its retention of $460 million. The limit and retention of the FHCF coverage was subject to upward or downward adjustment based on, among other things, submitted exposures to FHCF by all participants. The Company had purchased coverage alongside from third party reinsurers and through reinsurance agreements with Citrus Re. To the extent the FHCF coverage was adjusted, this private reinsurance with third party reinsurers and Citrus Re would 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 did provide coverage for multiple events. • Layers alongside the FHCF. The Florida reinsurance program included 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 was 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 provided for three years of coverage from catastrophic losses caused by named storms, including hurricanes, beginning on June 1, 2016. Heritage P&C and Zephyr paid 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 provided $150 million of coverage and the Class E notes provided $100 million of coverage. The Class D and Class E notes provided reinsurance coverage for a sliver of the catastrophe coverage that had previously been provided by the FHCF. The limit of coverage was 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 did not provide coverage for Zephyr for the 2016 hurricane season. The agreements provided for three years of coverage from catastrophic losses caused by named storms, including hurricanes, beginning on June 1, 2015. Heritage P&C paid 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 provided $97.5 million of coverage, and the Class C notes provided $30 million of coverage. The Class B and Class C notes provided 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 did not provide coverage for Zephyr for the 2016 hurricane season. The agreements provided for three years of coverage from catastrophic losses caused by named storms, including hurricanes, beginning on June 1, 2015. Heritage P&C paid 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 provided $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 did 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 provided coverage for Florida for a second event and both first and second event coverage for Hawaii. The first event coverage for Hawaii was a counterpart to the Florida-only catastrophe bond layers and FHCF layer. There was 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. An aggregate of $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 provided coverage commencing at its reduced retention for second and subsequent events where underlying coverage had been previously exhausted. An aggregate of $460 million has a reinstatement, which is prepaid. For a first catastrophic event striking Florida, our reinsurance program provides coverage for $2 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. An aggregate of $860 million of limit purchased in 2016 includes a reinstatement, with $825 million being prepaid. In total, we have purchased $3.1 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. Hurricane losses in states other than Hawaii would be covered under the Heritage P&C program with the exception of the FHCF and the series 2015, 2016 and 2017 catastrophe bonds. Management deemed this reinsurance protection to be sufficient given the level of catastrophe exposure in 2017 for North Carolina and South Carolina. In placing our 2016-2017 reinsurance program, we sought to capitalize on favorable reinsurance pricing and mitigate uncertainty surrounding the future cost of our reinsurance by negotiating multi-year arrangements. The $727.5 million of aggregate coverage we have purchased from Citrus Re Ltd, which includes the 2014 Class A & B notes, the 2015 Class A, B, and C notes, and the 2016 Class D & E notes extends $200 million until May of 2017, $277.5 million for another two-year period and $250 million for a three-year period. To the extent coverage is all or partially exhausted before the end of three years, it cannot be reinstated. In the aggregate, multi-year coverage from Citrus Re Ltd accounts for approximately 42% of our purchases of private reinsurance for the 2016 hurricane season. The terms of each of the multi-year coverage arrangements described above are subject to adjustment depending on, among other things, the size and composition of our portfolio of insured risks in future periods. Assuming the reoccurrence of Hurricane Andrew, which is considered to be the most catastrophic single event in Florida’s recorded history, the probable maximum net loss to us in 2016, assuming the reinsurance coverage described above, would be $24.8 million (after tax, net of all reinsurance recoveries and including our retention through Osprey). This loss would have represented 6.9% of our stockholders’ equity at December 31, 2016. We estimate that, based on our portfolio of insured risks as of August 31, 2016, Hurricane Andrew would have represented a catastrophic event likely to occur approximately once every 49 years and would have exhausted approximately 56.6% of our first event expected reinsurance coverage. For the twelve months ending May 31, 2017, we purchased reinsurance from the following sources: (i) FHCF, (ii) Citrus Re Ltd, (iii) 23 third-party private reinsurers, all of which were rated “A-” or higher by A.M. Best or S&P and (iv) our wholly-owned reinsurance subsidiary, Osprey. Allianz Global Corporate & Specialty SE provides approximately 38% of our third-party reinsurance program, including Citrus Re catastrophe bonds. 2015 – 2016 Reinsurance Program During the second quarter of 2015, the Company placed its reinsurance program for the period from June 1, 2015 through May 31, 2016. The Company’s reinsurance program, which was segmented into layers of coverage, protected it for excess property catastrophe losses and loss adjustment expenses. 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 had also purchased private reinsurance below, alongside and above the FHCF layer, as well as aggregate reinsurance coverage. The following describes the various layers of the Company’s June 1, 2015 to May 31, 2016 reinsurance program. • The Company’s Retention . For the first catastrophic event, the Company has a primary retention of the first $35 million of losses and loss adjustment expenses, of Osprey is responsible for $20 million. For a second event, Heritage P&C’s primary retention decreases to $5 million and Osprey is responsible for $10 million. To the extent that there is reinsurance coverage remaining, Heritage P&C has a $5 million primary retention for events beyond the second catastrophic event. Osprey has no primary retention beyond the second catastrophic event. • Layers Below FHCF . Immediately above the Company’s retention, the Company has purchased $440 million of reinsurance from third party reinsurers. Through the payment of a reinstatement premium, the Company is able to reinstate the full amount of this reinsurance one time. To the extent that $440 million or a portion thereof is exhausted in a first catastrophic event, the Company has purchased reinstatement premium protection insurance to pay the required premium necessary for the reinstatement of |
Reserve For Unpaid Losses
Reserve For Unpaid Losses | 6 Months Ended |
Jun. 30, 2017 | |
Insurance [Abstract] | |
Reserve for Unpaid Losses | NOTE 11. 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) (in thousands) Balance, beginning of period $ 131,572 $ 108,443 $ 140,137 $ 83,722 Less: reinsurance recoverable on paid losses 1,321 — 586 — Net balance, beginning of period 130,251 108,443 139,551 83,722 Incurred related to: Current year 46,944 49,126 94,819 101,626 Prior years (897 ) (332 ) (2,126 ) 14,131 Total incurred 46,047 48,794 92,693 115,757 Paid related to: Current year 28,001 25,421 39,238 38,053 Prior years 28,010 14,331 72,719 43,941 Total paid 56,011 39,752 111,957 81,994 Net balance, end of period 120,287 117,485 120,287 117,485 Plus: reinsurance recoverable on unpaid losses 2,498 — 2,498 — Balance, end of period $ 122,785 $ 117,485 $ 122,785 $ 117,485 As of June 30, 2017, we reported $120.3 million in unpaid losses and loss adjustment expenses, net of reinsurance which included $65.3 million attributable to IBNR, or 54.3% of net reserves for unpaid losses and loss adjustment expenses. The Company’s losses incurred for the six months ended June 30, 2017 and 2016 reflect a prior year redundancy of $2.1 million and a deficiency of $14.1 million, respectively, associated with management’s best estimate of the actuarial loss and LAE reserves with consideration given to Company specific historical loss experience. Most of the unfavorable development during the six months ended June 30, 2016 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 the six months ended June 30, 2016 was isolated to the tri-county region of Florida (the counties of Miami-Dade, Broward and Palm Beach). The favorable development recorded in the first six months ended June 30, 2017 is generally related to lower expected loss adjustment expenses. The Company writes insurance in the states of Florida, North Carolina, South Carolina, Hawaii and Georgia, any of 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 June 30, 2017. |
Note Payable
Note Payable | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Note Payable | NOTE 12. NOTE PAYABLE On December 15, 2016, we issued $79.5 million aggregate amount of Senior Secured Notes (“Secured Notes”) to six accredited investors. The Secured Notes bear interest of 8.75% per annum plus the three month average of LIBOR. Principal and interest is paid quarterly. Interest payments commenced on March 15, 2017 and the quarterly principal payments commence on December 31, 2018. At June 30, 2017, we owed $73.3 million on the Secured Notes, net of issuance costs which totaled approximately $6.2 million. At June 30, 2017, the Company made interest payments of approximately $3.9 million. Long-term debt at June 30, 2017, consisted of the following: Principal Unamortized Debt Issuance Costs (in thousands) Senior Secured Notes, due December 15, 2023 (interest computed at 8.75% plus 3 month Libor average, at June 30, 2017) $ 79,500 $ 6,224 The Secured Notes contain customary restrictive covenants relating to merger, modification of the indenture, subordination, issuance of debt securities and sale of assets, the most significant of which include limitations with respect to certain designated subsidiaries on the incurrence of additional indebtedness or guarantees secured by any security interest on any shares of their capital stock. The Secured Notes covenants also limit the Company’s ability to sell or otherwise dispose of any shares of capital stock of such designated subsidiaries. The Secured Notes do not have the benefit of any sinking funds. They also contain customary limitations and lien provisions as well as customary events of default provisions, which if breached, could result in the accelerated maturity of the Secured Notes. The Company was in compliance with the Senior Notes covenants for the three and six months ended June 30, 2017. Subject to the replacement capital covenant, the Secured Notes may be redeemed, in whole or in part, at any time on or after December 15, 2018, based on the quarterly payment date, at the following redemption prices (as a percentage of outstanding principal amount of the notes to be redeemed) plus accrued and unpaid interest and principal: 2018 – 103%; 2019 – 102%; 2020 – 101%; and thereafter at 100%. If there is a change in control, a holder has the right to require the Company to purchase such holder’s Secured Notes at a price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any. At June 30, 2017, the effective interest rate, taking into account the stated interest expense and amortization of debt issuance costs, approximates 10.0%. |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | NOTE 13. OTHER LIABILITIES At June 30, 2017 and December 31, 2016, other liabilities were approximately $13.9 million and $21.7 million respectively, of which $19 thousand and $178 thousand 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 six months ended June 30, 2017 and the year ended December 31, 2016 was $5.4 and $6.2 million for commissions payable, $4.5 and $3.5 million for accounts payable and other payables, and $1.2 million held in escrow and $1.8 million and $1.8 million for dividends payable, respectively. At December 31, 2016, other liabilities included $4.8 million relating to debt issuances. |
Statutory Accounting and Regula
Statutory Accounting and Regulations | 6 Months Ended |
Jun. 30, 2017 | |
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 subsidiaries. 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. On a combined basis, the Company’s insurance subsidiaries reported statutory net loss of $4.5 million and $638 thousand for the six months ended June 30, 2017 and 2016, respectively. 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 is required to maintain capital and surplus equal to the greater of $15 million or 10% of its respective liabilities. Zephyr is required to maintain a deposit of $750 thousand in a federally insured financial institution. The insurance subsidiaries’ combined statutory surplus was $264.5 million and $276.1 million at June 30, 2017 and December 31, 2016, respectively. State law also requires the Company’s insurance subsidiaries to adhere to prescribed premium-to-capital surplus ratios, with which the Company is in compliance. At December 31, 2016, our insurance subsidiaries met the financial and regulatory requirements of the states in which they do business. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
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 | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and 2016. • 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 six month periods ended June 30, 2017 and 2016, the Company paid the management service company approximately $50 thousand and $35 thousand, respectively. • In January 2017, the Company entered into a consulting agreement with Ms. Shannon Lucas, the wife of the Chairman and CEO, in which she agreed to provide consulting services related to the Company’s catastrophe reinsurance and risk management program at a rate of $400 per hour. The consulting agreement has no specific term and either party may terminate the agreement upon providing written notice. Additionally, she serves as a director of Heritage P&C with an annual compensation of $150 thousand. For the six month period ended June 30, 2017, the Company paid consulting fees to Ms. Lucas of approximately $184 thousand. |
Employee Benefit Plan
Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | NOTE 17. EMPLOYEE BENEFIT PLAN The Company provides a 401(k) plan for substantially all of its employees. The Company contributes 3% of employees’ salary, up to the maximum allowable contribution, regardless of the employees’ level of participation in the plan. For the six-month periods ended June 30, 2017 and 2016, the Company’s contributions to the plan on behalf of the participating employees were $425 thousand and $248 thousand, respectively. The Company provides for its employees a partially self-insured healthcare plan and benefits. For the six months ended June 30, 2017 and 2016, the Company incurred medical premium costs in the aggregate of $1.5 million and $1.4 million, respectively. The Company also recorded approximately $154 thousand as unpaid claims as of June 30, 2017. 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 thousand for which any excess cost would be covered by the reinsurer subject to an aggregate limit for losses in excess of $1.5 million which would provide up to $1.0 million of coverage. Any excess of the $1.5 million retention and the $1 million of aggregate coverage would be borne by the Company. The aggregate stop loss commences once our expenses exceed 125% of the annual aggregate expected claims. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017, the Company had 28,156,421 shares of common stock outstanding, 2,443,352 treasury shares of common stock and 900,000 unvested shares of restricted common stock issued, reflecting total paid-in capital of $208.1 million as of such date. As more fully disclosed in our audited consolidated financial statements for the year ended December 31, 2016, there were 28,840,443 shares of common stock outstanding, 1,149,923 stock options outstanding, and 900,000 unvested restricted stock grants, representing $205.7 million of additional paid-in capital at December 31, 2016. 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. Stock Repurchase Program On May 4, 2016, the Company announced that the Company’s Board of Directors, authorized a stock repurchase program authorizing the Company to repurchase up to $70 million of the Company’s common stock. The stock repurchase program expires on December 31, 2017. During the quarter ended March 31, 2017, the Company repurchased an aggregate of 361,211 shares at a cost of $4.5 million through open market or private transactions. During the quarter ended June 30, 2017, the Company repurchased an aggregate of 322,811 shares of the Company’s stock in open market transactions for $4.1 million. As of June 30, 2017, the Company had $35.8 million remaining to purchase shares under its authorized $70 million share repurchase plan. See Part II, Item 2, “Unregistered Sales of Equity Securities and Use of Proceeds” of this report for additional information. Dividends On November 8, 2016, the Company announced that its Board of Directors declared a $0.06 per share quarterly dividend payable on January 4, 2017 to stockholders of record as of December 15, 2016. On March 2, 2017, the Company’s Board of Directors declared a $0.06 per share quarterly dividend payable on April 4, 2017, to stockholders of record March 15, 2017. On May 2, 2017, the Company’s Board of Directors declared a $0.06 per share quarterly dividend payable on July 5, 2017, to stockholders of record June 15, 2017. 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. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 19. STOCK-BASED COMPENSATION The Company has adopted the Heritage Insurance Holdings, Inc., Omnibus Incentive Plan (the “Plan”) effective on May 22, 2014. The Plan authorized 2,981,737 shares of common stock for issuance under the Plan for future grants. At June 30, 2017 and December 31, 2016, 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 June 30, 2017 is as follows: Stock Options Weighted-Average Grant Date Fair Value Balance at December 31, 2016 1,149,923 $ 2.99 Granted — Exercised — Balance at June 30, 2017 1,149,923 $ 2.99 Vested and exercisable as of June 30, 2017 1,149,923 $ 2.99 No compensation expense was recognized for stock options granted above for the three and six months ended June 30, 2017 and 2016. Restricted Stock The Company has also granted shares of its common stock subject to certain restrictions under the Plan. Restricted stock awards granted to employees vest in equal installments, generally over a five year period from the grant date, subject to the recipient’s continued employment. The fair values of restricted stock awards are estimated by the market price at the date of grant and amortized on a straight-line basis to expense over the period of vesting. Recipients of restricted stock awards have the right to receive dividends. No restricted stock was granted during six months ended June 30, 2017. Restricted stock activity during the six months ended June 30, 2017 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2016 900,000 $ 18.82 Granted — Vested — Canceled and forfeited — Non-vested, at June 30, 2017 900,000 $ 18.82 Awards are being amortized to expense over the five year vesting period. The Company recognized $2.4 million and $2.4 million of compensation expense for the six months ended June 30, 2017 and 2016, respectively. There was approximately $16.1 million of unrecognized compensation expense related to the non-vested restricted stock at June 30, 2017. The Company expects to recognize the remaining compensation expense over a weighted average period of 3.4 years. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 20. SUBSEQUENT EVENTS On August 3, 2017, the Company announced that its Board of Directors declared a third quarter dividend of $0.06 per common share. The dividend is payable on October 2, 2017 to stockholders of record on September 15, and 2017. On August 8, 2017, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and among the Company, Gator Acquisition Merger Sub, Inc., a wholly-owned subsidiary of the Company (“Merger Sub”), and NBIC Holdings, Inc. (“NBIC”) and PBRA, LLC, in its capacity as Stockholder Representative. Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will be merged with and into NBIC, resulting in NBIC becoming a wholly-owned subsidiary of the Company (the “Acquisition”). The purchase price for the Acquisition will consist of $210 million in cash (the “Cash Consideration”), plus approximately $40 million of the Company’s common stock (the “Stock Consideration”), subject to a post-closing book value adjustment. The value of each share of the Company’s common stock will be based on the volume-weighted average price of the Company’s common stock during the five business-day period ending on the business day immediately preceding closing. The Stock Consideration will be issued at closing in an exempt private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). Following the closing of the Acquisition, the Company intends to file a shelf registration statement on Form S-3 with the SEC providing for the registered resale of the Stock Consideration. In accordance with the Merger Agreement, a certain portion of the Stock Consideration will be placed in an escrow account at closing to secure any amounts payable pursuant to the post-closing book value adjustment provisions set forth in the Merger Agreement. The size of this escrow will be either $12.5 million or $25.0 million of the Stock Consideration (depending on the preliminary, pre-closing estimate of the closing book value of NBIC and its subsidiaries, and subject to further potential adjustment depending on whether there are any disputes between the Company and NBIC with respect to this pre-closing estimate that remain unresolved as of the closing). The Merger Agreement contains customary representations and warranties, covenants and agreements of the parties. The Acquisition is expected to close in the first quarter of 2018, subject to satisfaction of customary closing conditions, including obtaining regulatory clearance. |
Basis of Presentation and Sig27
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements as of and for the three and six months ended June 30, 2017 and 2016 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 Florida insurance subsidiary’s business; Contractors’ Alliance Network, LLC (“CAN”), our vendor network manager for Florida claims 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 may provide a portion of the reinsurance protection purchased by our insurance subsidiaries; 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. Through our insurance subsidiaries, Heritage P&C and Zephyr, we write personal residential insurance for single-family homeowners and condominium owners, and rental property insurance in the states of Florida, Hawaii, North Carolina, South Carolina and Georgia. We also provide commercial residential insurance for Florida properties and are also licensed in the states of Alabama and Mississippi. We are vertically integrated and control or manage substantially all aspects of insurance underwriting, customer service, actuarial analysis, distribution and claims processing and adjusting. We conduct our operations under a single reporting segment. The condensed consolidated financial information included herein as of and for the three and six months ended June 30, 2017 and 2016 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 six months ended June 30, 2017 and 2016 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, 2016 consolidated balance sheet was derived from the Company’s audited consolidated financial statements as of and for the year ended December 31, 2016. 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, 2016. 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 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. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting Accounting Pronouncements 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 May 2017, the FASB issued ASU No. 2017-09, Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses Measurement of Credit Losses on Financial Instruments 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 This guidance is not applicable to insurance contracts. . The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The standard is effective for the Company in the first quarter of 2018 with early adoption permitted. Accordingly, while the Company is in the early stages of evaluating the effect of adopting this new guidance, the Company believes the application of this guidance will be less complex in relation to any non-insurance contracts. 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) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Purchase Consideration and Allocation of Assets and Liabilities Assumed | The following table sets forth the allocation of the purchase consideration. 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 7,600 Intangible assets 24,245 Total assets acquired $ 115,109 Total liabilities assumed $ (43,216 ) Net assets acquired $ 71,893 Goodwill 38,426 Total purchase price $ 110,319 |
Summary of Pro Forma Information | The following table presents selected pro forma information, assuming the acquisition of ZAC had occurred on January 1, 2016. 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, 2016 and the unaudited pro forma information does not purport to be indicative of future financial results. Three Months Ended June 30, Six Months Ended June 30, 2016 2016 (in thousands, except per share) Revenue $ 115,281 $ 235,668 Net income $ 18,368 $ 28,743 Basic, earnings per share $ 0.62 $ 0.96 Diluted, earnings per share $ 0.62 $ 0.95 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Investment Securities | The following table details the difference between cost or adjusted/amortized cost and estimated fair value, by major investment category, at June 30, 2017 and December 31, 2016: Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (In thousands) June 30, 2017 U.S. government and agency securities $ 33,581 $ 27 $ 337 $ 33,271 States, municipalities and political subdivisions 305,713 2,061 1,348 306,426 Special revenue 87,617 43 489 87,171 Industrial and miscellaneous 136,515 1,277 252 137,540 Redeemable preferred stocks 4,511 145 12 4,644 Total fixed maturities 567,937 3,553 2,438 569,052 Nonredeemable preferred stocks 14,073 578 30 14,621 Equity securities 20,102 923 3,507 17,518 Total equity securities 34,175 1,501 3,537 32,139 Total investments $ 602,112 $ 5,054 $ 5,975 $ 601,191 Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (In thousands) December 31, 2016 U.S. government and agency securities $ 107,968 $ 29 $ 449 $ 107,548 States, municipalities and political subdivisions 281,935 298 4,872 277,361 Special revenue 53,726 29 759 52,996 Industrial and miscellaneous 129,687 535 577 129,645 Redeemable preferred stocks 3,595 15 149 3,461 Total fixed maturities 576,911 906 6,806 571,011 Nonredeemable preferred stocks 14,935 40 460 14,515 Equity securities 19,255 1,197 2,996 17,456 Total equity securities 34,190 1,237 3,456 31,971 Total investments $ 611,101 $ 2,143 $ 10,262 $ 602,982 |
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 six months ended June 30, 2017 and 2016. 2017 2016 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Three Months Ended June 30, Fixed maturities $ 15 $ 5,706 $ 338 $ 8,686 Equity securities 54 2,352 20 600 Total realized gains 69 8,058 358 9,286 Fixed maturities (170 ) 1,686 (30 ) 2,903 Equity securities (24 ) 1,130 (65 ) 2,503 Total realized losses (194 ) 2,816 (95 ) 5,406 Net realized gain $ (125 ) $ 10,874 $ 263 $ 14,692 2017 2016 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Six Months Ended June 30, Fixed maturities $ 34 $ 8,635 $ 1,467 $ 46,978 Equity securities 811 9,565 65 6,084 Total realized gains 845 18,200 1,532 53,062 Fixed maturities (174 ) 7,244 (35 ) 92,698 Equity securities (25 ) 657 (853 ) 2,589 Total realized losses (199 ) 7,901 (888 ) 95,287 Net realized gain $ 646 $ 26,101 $ 644 $ 148,349 |
Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity | The table below summarizes the Company’s fixed maturities at June 30, 2017 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. June 30, 2017 Cost or Amortized Cost Percent of Total Fair Value Percent of Total (In thousands) (In thousands) Due in one year or less $ 105,534 19 % $ 105,518 19 % Due after one year through five years 143,843 25 % 144,265 25 % Due after five years through ten years 158,991 28 % 159,341 28 % Due after ten years 159,569 28 % 159,928 28 % Total $ 567,937 100 % $ 569,052 100 % |
Summary of Net Investment Income | The following table summarizes the Company’s net investment income by major investment category for the three and six months ended June 30, 2017 and 2016, respectively: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Fixed maturities $ 2,650 $ 5,609 $ 5,161 $ 4,030 Equity securities 482 (2,983 ) 979 970 Cash, cash equivalents and short-term investments 34 136 103 137 Other investments — (138 ) — (111 ) Net investment income 3,166 2,624 6,243 5,026 Investment expenses 193 401 768 766 Net investment income, less investment expenses $ 2,973 $ 2,223 $ 5,475 $ 4,260 |
Aging of Gross Unrealized Investment Losses | The following tables present an aging of our unrealized investment losses by investment class as of June 30, 2017 and December 31, 2016: 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) June 30, 2017 U.S. government and agency securities 41 $ 336 $ 30,596 3 $ 1 $ 155 States, municipalities and political subdivisions 155 1,348 132,490 — — $ — Special revenue 103 246 43,588 3 4 $ 1,064 Industrial and miscellaneous 159 434 40,247 34 55 $ 3,131 Redeemable preferred stocks 21 11 637 2 2 $ 40 Total fixed maturities 479 2,375 247,558 42 62 $ 4,390 Nonredeemable preferred stocks 40 30 2,789 3 1 $ 8 Equity securities 39 336 4,042 25 3,171 $ 6,448 Total equity securities 79 366 6,831 28 3,172 $ 6,456 Total investments 558 $ 2,741 $ 254,389 70 $ 3,234 $ 10,846 Less Than Twelve Months Twelve Months or More Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value (In thousands) December 31, 2016 U.S. government and agency securities 35 $ 448 $ 24,649 2 $ 1 $ 200 States, municipalities and political subdivisions 265 4,869 220,034 2 3 1,497 Special revenue 161 571 56,996 2 6 974 Industrial and miscellaneous 189 631 44,712 11 129 1,828 Redeemable preferred stocks 19 143 2,425 1 6 212 Total fixed maturities 669 6,662 348,816 18 145 4,711 Nonredeemable preferred stocks 77 439 11,298 5 20 234 Equity securities 26 191 2,542 29 2,805 7,317 Total equity securities 103 630 13,840 34 2,825 7,551 Total investments 772 $ 7,292 $ 362,656 52 $ 2,970 $ 12,262 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 six months ended June 30, 2017 and the year ended December 31, 2016, there were no transfers in or out of Level 1, 2, and 3. June 30, 2017 Total Level 1 Level 2 Level 3 (in thousands) Fixed maturities investments: U.S. government and agency securities $ 33,271 $ 2,726 $ 30,545 $ — States, municipalities and political subdivisions 306,426 3,000 303,426 — Special revenue 87,171 33,800 53,371 — Industrial and miscellaneous 137,540 — 137,540 — Redeemable preferred stocks 4,644 4,644 — — Total fixed maturities investments $ 569,052 $ 44,170 $ 524,882 $ — Nonredeemable preferred stocks 14,621 14,621 — — Equity securities 17,518 17,518 — — Total equity securities $ 32,139 $ 32,139 $ — $ — Total investments $ 601,191 $ 76,309 $ 524,882 $ — December 31, 2016 Total Level 1 Level 2 Level 3 (in thousands) Fixed maturities investments: U.S. government and agency securities $ 107,548 $ 103,997 $ 3,551 $ — States, municipalities and political subdivisions 277,361 — 277,361 — Special revenue 52,996 — 52,996 — Industrial and miscellaneous 129,645 — 129,645 — Redeemable preferred stocks 3,461 3,461 — — Total fixed maturities investments $ 571,011 $ 107,458 $ 463,553 $ — Nonredeemable preferred stocks 14,515 14,515 — — Equity securities 17,456 17,456 — — Total equity securities $ 31,971 $ 31,971 $ — $ — Total investments $ 602,982 $ 139,429 $ 463,553 $ — |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following at June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 (In thousands) Land $ 2,582 $ 2,582 Building 10,301 10,301 Computer hardware and software 3,132 3,113 Office furniture and equipment 759 759 Tenant and leasehold improvements 3,490 3,334 Vehicle fleet 817 842 Total, at cost 21,081 20,931 Less: accumulated depreciation and amortization 4,534 3,752 Property and equipment, net $ 16,547 $ 17,179 |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill (In thousands) Balance as of December 31, 2016 $ 46,454 Goodwill acquired — Impairment — Balance as of June 30, 2017 $ 46,454 |
Schedule of Estimated Amortization of Intangible Assets | Estimated annual pretax amortization of intangible assets for remainder of 2017 and each of the next five years and thereafter (in thousands): Year Amount (1) 2017 $ 1,117 2018 1,982 2019 1,898 2020 1,888 2021 1,875 Thereafter 14,591 $ 23,351 (1) Excludes insurance license valued at $175 thousand and classified as an indefinite lived intangible which is subject to annual impairment testing and not amortized. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Basic earnings per share: Net income attributable to common stockholders (000's) $ 6,642 $ 18,368 $ 12,625 $ 25,791 Weighted average shares outstanding 28,283,587 29,653,668 28,543,703 30,010,776 Basic earnings per share: $ 0.23 $ 0.62 $ 0.44 $ 0.86 Diluted earnings per share: Net income attributable to common stockholders (000's) $ 6,642 $ 18,368 $ 12,625 $ 25,791 Weighted average shares outstanding 28,283,587 29,653,668 28,543,703 30,010,776 Weighted average dilutive shares — — — 61,848 Total weighted average dilutive shares 28,283,587 29,653,668 28,543,703 30,072,624 Diluted earnings per share: $ 0.23 $ 0.62 $ 0.44 $ 0.86 |
Deferred Policy Acquisition C34
Deferred Policy Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Insurance [Abstract] | |
Summary of Activity in Deferred Policy Acquisition Costs (DPAC) | The table below depicts the activity with regard to DPAC during the three and six month periods ended June 30, 2017 and 2016: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Beginning Balance $ 41,215 $ 35,991 $ 42,779 $ 34,800 Policy acquisition costs deferred 22,315 27,330 44,193 46,649 Amortization (21,738 ) (20,753 ) (45,180 ) (38,881 ) Ending Balance $ 41,792 $ 42,568 $ 41,792 $ 42,568 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets (Liabilities) | The table below summarizes the significant components of our net deferred tax assets (liabilities): June 30, 2017 December 31, 2016 Deferred tax assets: (In thousands) Unearned premiums $ 16,719 $ 17,209 Tax-related discount on loss reserve 1,810 1,829 Unrealized loss 353 3,113 Stock-based compensation 2,319 1,604 Prepaid expenses 1,562 1,482 Other 305 312 Total deferred tax asset 23,068 25,549 Deferred tax liabilities: Deferred acquisition costs 15,987 16,377 Property and equipment 355 355 Basis in purchased investments 1,765 1,697 Basis in purchased intangibles 9,278 9,791 Other 334 332 Total deferred tax liabilities 27,719 28,552 Less: valuation allowance — — Net deferred tax liability $ (4,651 ) $ (3,003 ) |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Insurance [Abstract] | |
Schedule of Reinsurance Transactions on Components of Condensed Consolidated Statements of Operations 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Premium written: Direct $ 159,256 $ 177,955 $ 301,545 $ 316,087 Assumed (1 ) (660 ) (55 ) 8,474 Ceded (228,853 ) (242,927 ) (230,734 ) (243,659 ) Net premium written $ (69,598 ) $ (65,632 ) $ 70,756 $ 80,902 Change in unearned premiums: Direct $ (6,970 ) $ (30,294 ) $ 5,027 $ (40,681 ) Assumed 69 16,636 445 31,700 Ceded 166,951 188,208 106,400 143,339 Net increase $ 160,050 $ 174,550 $ 111,872 $ 134,358 Premiums earned: Direct $ 152,286 $ 147,661 $ 306,572 $ 275,406 Assumed 68 15,976 390 40,174 Ceded (61,902 ) (54,719 ) (124,334 ) (100,320 ) Net premiums earned $ 90,452 $ 108,918 $ 182,628 $ 215,260 Losses and LAE incurred: Direct $ 47,474 $ 30,034 $ 96,391 $ 81,800 Assumed 1,804 18,758 3,007 33,961 Ceded (3,232 ) 2 (6,705 ) (4 ) Net losses and LAE incurred $ 46,046 $ 48,794 $ 92,693 $ 115,757 |
Effects of Reinsurance Transactions on Unpaid Losses and Loss Adjustment Expenses and Unearned Premiums | The following table highlights the effects that the Company’s assumption transactions have on unpaid losses and loss adjustment expenses and unearned premiums: June 30, 2017 December 31, 2016 (In thousands) Unpaid losses and loss adjustment expenses: Direct $ 106,896 $ 119,339 Assumed 15,889 20,798 Gross unpaid losses and LAE 122,785 140,137 Ceded (2,498 ) — Net unpaid losses and LAE 120,287 140,137 Unearned premiums: Direct $ 312,552 $ 317,579 Assumed — 445 Gross unearned premiums 312,552 318,024 Ceded (213,009 ) (106,609 ) Net unearned premiums $ 99,543 $ 211,415 |
Reserve for Unpaid Losses (Tabl
Reserve for Unpaid Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) (in thousands) Balance, beginning of period $ 131,572 $ 108,443 $ 140,137 $ 83,722 Less: reinsurance recoverable on paid losses 1,321 — 586 — Net balance, beginning of period 130,251 108,443 139,551 83,722 Incurred related to: Current year 46,944 49,126 94,819 101,626 Prior years (897 ) (332 ) (2,126 ) 14,131 Total incurred 46,047 48,794 92,693 115,757 Paid related to: Current year 28,001 25,421 39,238 38,053 Prior years 28,010 14,331 72,719 43,941 Total paid 56,011 39,752 111,957 81,994 Net balance, end of period 120,287 117,485 120,287 117,485 Plus: reinsurance recoverable on unpaid losses 2,498 — 2,498 — Balance, end of period $ 122,785 $ 117,485 $ 122,785 $ 117,485 |
Note Payable (Tables)
Note Payable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt at June 30, 2017, consisted of the following: Principal Unamortized Debt Issuance Costs (in thousands) Senior Secured Notes, due December 15, 2023 (interest computed at 8.75% plus 3 month Libor average, at June 30, 2017) $ 79,500 $ 6,224 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Information Related to Stock Option | A summary of information related to stock options and restricted stock outstanding at June 30, 2017 is as follows: Stock Options Weighted-Average Grant Date Fair Value Balance at December 31, 2016 1,149,923 $ 2.99 Granted — Exercised — Balance at June 30, 2017 1,149,923 $ 2.99 Vested and exercisable as of June 30, 2017 1,149,923 $ 2.99 |
Schedule of Restricted Stock Activity | Restricted stock activity during the six months ended June 30, 2017 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2016 900,000 $ 18.82 Granted — Vested — Canceled and forfeited — Non-vested, at June 30, 2017 900,000 $ 18.82 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 21, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Acquisition of a business, net of cash acquired | $ 111,907 | |||
Goodwill | $ 46,454 | $ 46,454 | ||
ZAC Business Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of outstanding stock acquired | 100.00% | |||
Acquisition of a business, net of cash acquired | $ 110,319 | |||
Intangible assets value of business acquired | 31,800 | |||
Goodwill | $ 38,426 |
Acquisition - Schedule of Purch
Acquisition - Schedule of Purchase Consideration and Allocation of Assets and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Mar. 21, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 |
Purchase Consideration | ||||
Cash, net of cash acquired | $ 111,907 | |||
Assets acquired | ||||
Goodwill | $ 46,454 | $ 46,454 | ||
ZAC Business Acquisition [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 | 31,800 | |||
Total assets acquired | 115,109 | |||
Total liabilities assumed | (43,216) | |||
Net assets acquired | 71,893 | |||
Goodwill | 38,426 | |||
Total purchase price | 110,319 | |||
ZAC Business Acquisition [Member] | Customer Relationships And Trade Name [Member] | ||||
Assets acquired | ||||
Intangible assets value of business acquired | 7,600 | |||
ZAC Business Acquisition [Member] | Primarily Value Of Business Acquired [Member] | ||||
Assets acquired | ||||
Intangible assets value of business acquired | $ 24,245 |
Acquisition - Summary of Pro Fo
Acquisition - Summary of Pro Forma Information (Detail) - ZAC Business Acquisition [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||
Revenue | $ 115,281 | $ 235,668 |
Net income | $ 18,368 | $ 28,743 |
Basic, earnings per share | $ 0.62 | $ 0.96 |
Diluted, earnings per share | $ 0.62 | $ 0.95 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value of Investment Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | $ 567,937 | $ 576,911 |
Gross Unrealized Gains | 5,054 | 2,143 |
Gross Unrealized Losses | 5,975 | 10,262 |
Fair Value | 601,191 | 602,982 |
Investments | 602,112 | 611,101 |
Fair Value | 601,191 | 602,982 |
Fixed Maturities Excluding Certificate of Deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 567,937 | 576,911 |
Gross Unrealized Gains | 3,553 | 906 |
Gross Unrealized Losses | 2,438 | 6,806 |
Fair Value | 569,052 | 571,011 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 34,175 | 34,190 |
Gross Unrealized Gains | 1,501 | 1,237 |
Gross Unrealized Losses | 3,537 | 3,456 |
Fair Value | 32,139 | 31,971 |
U.S. government and agency securities [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 33,581 | 107,968 |
Gross Unrealized Gains | 27 | 29 |
Gross Unrealized Losses | 337 | 449 |
Fair Value | 33,271 | 107,548 |
States, Municipalities and Political Subdivisions [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 305,713 | 281,935 |
Gross Unrealized Gains | 2,061 | 298 |
Gross Unrealized Losses | 1,348 | 4,872 |
Fair Value | 306,426 | 277,361 |
Special Revenue [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 87,617 | 53,726 |
Gross Unrealized Gains | 43 | 29 |
Gross Unrealized Losses | 489 | 759 |
Fair Value | 87,171 | 52,996 |
Industrial and Miscellaneous [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 136,515 | 129,687 |
Gross Unrealized Gains | 1,277 | 535 |
Gross Unrealized Losses | 252 | 577 |
Fair Value | 137,540 | 129,645 |
Redeemable Preferred Stocks [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 4,511 | 3,595 |
Gross Unrealized Gains | 145 | 15 |
Gross Unrealized Losses | 12 | 149 |
Fair Value | 4,644 | 3,461 |
Nonredeemable Preferred Stocks [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 14,073 | 14,935 |
Gross Unrealized Gains | 578 | 40 |
Gross Unrealized Losses | 30 | 460 |
Fair Value | 14,621 | 14,515 |
Common Stock [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 20,102 | 19,255 |
Gross Unrealized Gains | 923 | 1,197 |
Gross Unrealized Losses | 3,507 | 2,996 |
Fair Value | $ 17,518 | $ 17,456 |
Investments - Schedule of Net R
Investments - Schedule of Net Realized Gains (Losses) by Major Investment Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Total realized gains | $ 69 | $ 358 | $ 845 | $ 1,532 |
Total realized losses | (194) | (95) | (199) | (888) |
Net realized gain | (125) | 263 | 646 | 644 |
Total realized gains, Fair Value at Sale | 8,058 | 9,286 | 18,200 | 53,062 |
Total realized losses, Fair Value at Sale | 2,816 | 5,406 | 7,901 | 95,287 |
Net realized gain, Fair Value at Sale | 10,874 | 14,692 | 26,101 | 148,349 |
Fixed Maturity [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total realized gains | 15 | 338 | 34 | 1,467 |
Total realized losses | (170) | (30) | (174) | (35) |
Total realized gains, Fair Value at Sale | 5,706 | 8,686 | 8,635 | 46,978 |
Total realized losses, Fair Value at Sale | 1,686 | 2,903 | 7,244 | 92,698 |
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total realized gains | 54 | 20 | 811 | 65 |
Total realized losses | (24) | (65) | (25) | (853) |
Total realized gains, Fair Value at Sale | 2,352 | 600 | 9,565 | 6,084 |
Total realized losses, Fair Value at Sale | $ 1,130 | $ 2,503 | $ 657 | $ 2,589 |
Investments - Schedule of Amo45
Investments - Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less, Cost or Amortized Cost | $ 105,534 | |
Due after one year through five years, Cost or Amortized Cost | 143,843 | |
Due after five years through ten years, Cost or Amortized Cost | 158,991 | |
Due after ten years, Cost or Amortized Cost | 159,569 | |
Cost or Adjusted / Amortized Cost | $ 567,937 | $ 576,911 |
Due in one year or less, Percentage of Total | 19.00% | |
Due after one year through five years, Percentage of Total | 25.00% | |
Due after five years through ten years, Percentage of Total | 28.00% | |
Due after ten years, Percentage of Total | 28.00% | |
Total, Percentage | 100.00% | |
Due in one year or less, Fair Value | $ 105,518 | |
Due after one year through five years, Fair Value | 144,265 | |
Due after five years through ten years, Fair Value | 159,341 | |
Due after ten years, Fair Value | 159,928 | |
Total, Fair Value | $ 569,052 | $ 571,011 |
Due in one year or less, Percentage of Total | 19.00% | |
Due after one year through five years, Percentage of Total | 25.00% | |
Due after five years through ten years, Percentage of Total | 28.00% | |
Due after ten years, Percentage of Total | 28.00% | |
Total, Percentage | 100.00% |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income | $ 3,166 | $ 2,624 | $ 6,243 | $ 5,026 |
Investment expenses | 193 | 401 | 768 | 766 |
Net investment income, less investment expenses | 2,973 | 2,223 | 5,475 | 4,260 |
Fixed Maturity [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | 2,650 | 5,609 | 5,161 | 4,030 |
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | 482 | (2,983) | 979 | 970 |
Cash and Cash Equivalents [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income | $ 34 | 136 | $ 103 | 137 |
Other Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | $ (138) | $ (111) |
Investments - Aging of Gross Un
Investments - Aging of Gross Unrealized Investment Losses (Detail) $ in Thousands | Jun. 30, 2017USD ($)Security | Dec. 31, 2016USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 558 | 772 |
Gross Unrealized Losses, Less Than Twelve Months | $ 2,741 | $ 7,292 |
Fair Value, Less Than Twelve Months | $ 254,389 | $ 362,656 |
Number of Securities, Twelve Months or Greater | Security | 70 | 52 |
Gross Unrealized Losses, Twelve Months or Greater | $ 3,234 | $ 2,970 |
Fair Value, Twelve Months or Greater | $ 10,846 | $ 12,262 |
Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 479 | 669 |
Gross Unrealized Losses, Less Than Twelve Months | $ 2,375 | $ 6,662 |
Fair Value, Less Than Twelve Months | $ 247,558 | $ 348,816 |
Number of Securities, Twelve Months or Greater | Security | 42 | 18 |
Gross Unrealized Losses, Twelve Months or Greater | $ 62 | $ 145 |
Fair Value, Twelve Months or Greater | $ 4,390 | $ 4,711 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 79 | 103 |
Gross Unrealized Losses, Less Than Twelve Months | $ 366 | $ 630 |
Fair Value, Less Than Twelve Months | $ 6,831 | $ 13,840 |
Number of Securities, Twelve Months or Greater | Security | 28 | 34 |
Gross Unrealized Losses, Twelve Months or Greater | $ 3,172 | $ 2,825 |
Fair Value, Twelve Months or Greater | $ 6,456 | $ 7,551 |
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 | 41 | 35 |
Gross Unrealized Losses, Less Than Twelve Months | $ 336 | $ 448 |
Fair Value, Less Than Twelve Months | $ 30,596 | $ 24,649 |
Number of Securities, Twelve Months or Greater | Security | 3 | 2 |
Gross Unrealized Losses, Twelve Months or Greater | $ 1 | $ 1 |
Fair Value, Twelve Months or Greater | $ 155 | $ 200 |
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 | 155 | 265 |
Gross Unrealized Losses, Less Than Twelve Months | $ 1,348 | $ 4,869 |
Fair Value, Less Than Twelve Months | $ 132,490 | $ 220,034 |
Number of Securities, Twelve Months or Greater | Security | 2 | |
Gross Unrealized Losses, Twelve Months or Greater | $ 3 | |
Fair Value, Twelve Months or Greater | $ 1,497 | |
Special Revenue [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 103 | 161 |
Gross Unrealized Losses, Less Than Twelve Months | $ 246 | $ 571 |
Fair Value, Less Than Twelve Months | $ 43,588 | $ 56,996 |
Number of Securities, Twelve Months or Greater | Security | 3 | 2 |
Gross Unrealized Losses, Twelve Months or Greater | $ 4 | $ 6 |
Fair Value, Twelve Months or Greater | $ 1,064 | $ 974 |
Industrial and Miscellaneous [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 159 | 189 |
Gross Unrealized Losses, Less Than Twelve Months | $ 434 | $ 631 |
Fair Value, Less Than Twelve Months | $ 40,247 | $ 44,712 |
Number of Securities, Twelve Months or Greater | Security | 34 | 11 |
Gross Unrealized Losses, Twelve Months or Greater | $ 55 | $ 129 |
Fair Value, Twelve Months or Greater | $ 3,131 | $ 1,828 |
Redeemable Preferred Stocks [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 21 | 19 |
Gross Unrealized Losses, Less Than Twelve Months | $ 11 | $ 143 |
Fair Value, Less Than Twelve Months | $ 637 | $ 2,425 |
Number of Securities, Twelve Months or Greater | Security | 2 | 1 |
Gross Unrealized Losses, Twelve Months or Greater | $ 2 | $ 6 |
Fair Value, Twelve Months or Greater | $ 40 | $ 212 |
Nonredeemable Preferred Stocks [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 40 | 77 |
Gross Unrealized Losses, Less Than Twelve Months | $ 30 | $ 439 |
Fair Value, Less Than Twelve Months | $ 2,789 | $ 11,298 |
Number of Securities, Twelve Months or Greater | Security | 3 | 5 |
Gross Unrealized Losses, Twelve Months or Greater | $ 1 | $ 20 |
Fair Value, Twelve Months or Greater | $ 8 | $ 234 |
Common Shares [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 39 | 26 |
Gross Unrealized Losses, Less Than Twelve Months | $ 336 | $ 191 |
Fair Value, Less Than Twelve Months | $ 4,042 | $ 2,542 |
Number of Securities, Twelve Months or Greater | Security | 25 | 29 |
Gross Unrealized Losses, Twelve Months or Greater | $ 3,171 | $ 2,805 |
Fair Value, Twelve Months or Greater | $ 6,448 | $ 7,317 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | $ 569,052 | $ 571,011 |
Available for sale equity securities | 32,139 | 31,971 |
Available for sale securities | 601,191 | 602,982 |
Nonredeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 14,621 | 14,515 |
Equity Investment [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 17,518 | 17,456 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 32,139 | 31,971 |
Available for sale securities | 76,309 | 139,429 |
Level 1 [Member] | Nonredeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 14,621 | 14,515 |
Level 1 [Member] | Equity Investment [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 17,518 | 17,456 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 524,882 | 463,553 |
Fixed Maturity [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 569,052 | 571,011 |
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 | 33,271 | 107,548 |
Available for sale securities | 33,271 | 107,548 |
Fixed Maturity [Member] | States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 306,426 | 277,361 |
Available for sale securities | 306,426 | 277,361 |
Fixed Maturity [Member] | Special Revenue [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 87,171 | 52,996 |
Available for sale securities | 87,171 | 52,996 |
Fixed Maturity [Member] | Industrial and Miscellaneous [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 137,540 | 129,645 |
Available for sale securities | 137,540 | 129,645 |
Fixed Maturity [Member] | Redeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 4,644 | 3,461 |
Available for sale securities | 4,644 | 3,461 |
Fixed Maturity [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 44,170 | 107,458 |
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 | 2,726 | 103,997 |
Fixed Maturity [Member] | Level 1 [Member] | States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 3,000 | |
Fixed Maturity [Member] | Level 1 [Member] | Special Revenue [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 33,800 | |
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 | 4,644 | 3,461 |
Fixed Maturity [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 524,882 | 463,553 |
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 | 30,545 | 3,551 |
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 | 303,426 | 277,361 |
Fixed Maturity [Member] | Level 2 [Member] | Special Revenue [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 53,371 | 52,996 |
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 | $ 137,540 | $ 129,645 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 21,081 | $ 20,931 |
Less: accumulated depreciation and amortization | 4,534 | 3,752 |
Property and equipment, net | 16,547 | 17,179 |
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 | 10,301 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 3,132 | 3,113 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 759 | 759 |
Tenant and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 3,490 | 3,334 |
Vehicle Fleet [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 817 | $ 842 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) ft² in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2017USD ($)aft²Building | Jun. 30, 2016USD ($) | |
Property Plant And Equipment Useful Life And Values [Abstract] | ||
Depreciation and amortization expense | $ | $ 782 | $ 353 |
Number of acres of land purchased | a | 14 | |
Number of buildings | Building | 4 | |
Gross area of acquired property | ft² | 191 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | ||
Goodwill | $ 46,454 | $ 46,454 |
Intangibles, net | $ 23,526 | $ 26,542 |
Estimated value of business acquired | 1 year | |
Indefinite lived intangible, insurance license | $ 175 | |
Minimum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life of intangible asset | 2 years 6 months | |
Finite-lived intangible assets useful lives | 1 year | |
Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life of intangible asset | 15 years | |
Finite-lived intangible assets useful lives | 15 years |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 46,454 |
Ending balance | $ 46,454 |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Details) $ in Thousands | Jun. 30, 2017USD ($) | [1] |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 1,117 | |
2,018 | 1,982 | |
2,019 | 1,898 | |
2,020 | 1,888 | |
2,021 | 1,875 | |
Thereafter | 14,591 | |
Intangible Assets, net | $ 23,351 | |
[1] | Excludes insurance license valued at $175 thousand and classified as an indefinite lived intangible which is subject to annual impairment testing and not amortized |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Parenthetical) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Indefinite lived intangible, insurance license | $ 175 |
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic earnings per share: | ||||
Net income attributable to common stockholders (000's) | $ 6,642 | $ 18,368 | $ 12,625 | $ 25,791 |
Weighted average shares outstanding | 28,283,587 | 29,653,668 | 28,543,703 | 30,010,776 |
Basic earnings per share: | $ 0.23 | $ 0.62 | $ 0.44 | $ 0.86 |
Diluted earnings per share: | ||||
Net income attributable to common stockholders (000's) | $ 6,642 | $ 18,368 | $ 12,625 | $ 25,791 |
Weighted average shares outstanding | 28,283,587 | 29,653,668 | 28,543,703 | 30,010,776 |
Weighted average dilutive shares | 61,848 | |||
Total weighted average dilutive shares | 28,283,587 | 29,653,668 | 28,543,703 | 30,072,624 |
Diluted earnings per share: | $ 0.23 | $ 0.62 | $ 0.44 | $ 0.86 |
Deferred Policy Acquisition C56
Deferred Policy Acquisition Costs - Summary of Activity in Deferred Policy Acquisition Costs (DPAC) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Insurance [Abstract] | ||||
Beginning Balance | $ 41,215 | $ 35,991 | $ 42,779 | $ 34,800 |
Policy acquisition costs deferred | 22,315 | 27,330 | 44,193 | 46,649 |
Amortization | (21,738) | (20,753) | (45,180) | (38,881) |
Ending Balance | $ 41,792 | $ 42,568 | $ 41,792 | $ 42,568 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 4,189,000 | $ 11,389,000 | $ 7,915,000 | $ 16,006,000 | |
Annual effective tax rate | 38.50% | 38.30% | |||
Uncertain tax positions | $ 0 | $ 0 | $ 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Unearned premiums | $ 16,719 | $ 17,209 |
Tax-related discount on loss reserve | 1,810 | 1,829 |
Unrealized loss | 353 | 3,113 |
Stock-based compensation | 2,319 | 1,604 |
Prepaid expenses | 1,562 | 1,482 |
Other | 305 | 312 |
Total deferred tax asset | 23,068 | 25,549 |
Deferred tax liabilities: | ||
Deferred acquisition costs | 15,987 | 16,377 |
Property and equipment | 355 | 355 |
Basis in purchased investments | 1,765 | 1,697 |
Basis in purchased intangibles | 9,278 | 9,791 |
Other | 334 | 332 |
Total deferred tax liabilities | 27,719 | 28,552 |
Net deferred tax liability | $ (4,651) | $ (3,003) |
Reinsurance - Additional inform
Reinsurance - Additional information (Detail) | Aug. 31, 2016 | Feb. 29, 2016USD ($) | Apr. 30, 2015USD ($) | May 31, 2017USD ($) | Mar. 31, 2017USD ($) | Apr. 30, 2015USD ($) | Jun. 30, 2017USD ($)Reinsurer | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Reinsurer | Jun. 30, 2016USD ($) | May 31, 2017USD ($) | Dec. 31, 2016USD ($)Reinsurer | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2016USD ($) | Aug. 31, 2015USD ($) |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Number of reinstatements available | Reinsurer | 2 | 2 | 2 | |||||||||||||
Primary retention | $ 2,600,000,000 | $ 3,000,000,000 | ||||||||||||||
Percentage comprising aggregate participation | 5.40% | |||||||||||||||
Primary retention of losses and loss adjustment expenses | 20,000,000 | $ 20,000,000 | $ 190,000,000 | |||||||||||||
Aggregate participation, losses and loss adjustment expenses | (897,000) | $ (332,000) | (2,126,000) | $ 14,131,000 | ||||||||||||
Purchase of reinsurance from third party | 61,902,000 | 54,719,000 | 124,334,000 | 100,320,000 | ||||||||||||
Agreement of coverage | 3 years | |||||||||||||||
Additional maturity period of collateral notes | 2 years | 2 years | ||||||||||||||
Reinsurance agreement | 3 years | |||||||||||||||
Prepaid reinsurance premiums | 213,009,000 | 213,009,000 | 106,609,000 | |||||||||||||
Unpaid losses and loss adjustment expenses | $ 131,572,000 | 122,785,000 | $ 117,485,000 | 122,785,000 | $ 117,485,000 | 140,137,000 | $ 83,722,000 | $ 108,443,000 | ||||||||
Reinsurance coverage | 1,321,000 | 586,000 | 0 | $ 0 | ||||||||||||
Reinsurance payable | 224,807,000 | 224,807,000 | 96,667,000 | |||||||||||||
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] | ||||||||||||||||
Purchase of reinsurance from third party | 2,300,000,000 | |||||||||||||||
Reinsurance purchase limit | 632,000,000 | 632,000,000 | 860,000,000 | |||||||||||||
Reinsurance prepaid amount | 632,000,000 | 632,000,000 | 825,000,000 | |||||||||||||
Reinsurance payable | $ 76,900,000,000 | |||||||||||||||
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 | |||||||||||||||
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 | |||||||||||||||
Osprey [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Catastrophe excess of loss reinsurance | 0 | |||||||||||||||
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 | |||||||||||||||
Reinsurance payable | 27,000,000 | 27,000,000 | ||||||||||||||
Coverage limit | $ 9,000,000 | |||||||||||||||
Property Per Risk Coverage [Member] | Catastrophe [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchased reinstatement premium | 440,000,000 | |||||||||||||||
Unpaid losses and loss adjustment expenses | 1,800,000,000 | |||||||||||||||
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 | |||||||||||||||
Additional coverage of second catastrophe reinsurance agreement | $ 200,000,000 | |||||||||||||||
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 | |||||||||||||||
FHCF Layer [Member] | Property Per Risk Coverage [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Percentage comprising aggregate participation | 45.00% | 45.00% | 75.00% | |||||||||||||
Catastrophe excess of loss reinsurance | $ 460,000,000 | $ 336,000,000 | ||||||||||||||
Percentage of maximum provisional limit | 45.00% | 75.00% | ||||||||||||||
Estimated provisional limit percentage calculation base amount | $ 1,500,000,000 | $ 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 [Member] | Property Per Risk Coverage [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchase of reinsurance from third party | $ 372,000,000 | |||||||||||||||
Shared coverage amount available subject to seasonal aggregate | 20,000,000 | |||||||||||||||
Seasonal aggregate amount | 68,000,000 | |||||||||||||||
Shared Layers [Member] | Property Per Risk Coverage [Member] | Heritage P&C and Zephyr [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchased reinstatement premium | 352,000,000 | |||||||||||||||
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 | |||||||||||||||
Multi-Zonal Layers [Member] | Property Per Risk Coverage [Member] | Zephyr [Member] | Catastrophe [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Coverage of first catastrophe reinsurance agreement | 302,000,000 | |||||||||||||||
Prepaid reinsurance premiums | 254,000,000 | 254,000,000 | ||||||||||||||
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 | |||||||||||||||
Purchase of reinsurance from third party | 125,000,000 | |||||||||||||||
Purchased reinstatement premium | 700,000,000 | 682,000,000 | ||||||||||||||
Prepaid reinsurance premiums | 632,000,000 | 632,000,000 | 460,000,000 | |||||||||||||
Top Hawaii Only Layer [Member] | Property Per Risk Coverage [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchase of reinsurance from third party | 26,000,000 | |||||||||||||||
2017 - 2018 Reinsurance Program [Member] | Catastrophe [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchase of reinsurance from third party | $ 2,600,000,000 | |||||||||||||||
Description of hurricane losses coverage and protection | Hurricane losses in states other than Hawaii would be covered under the Heritage P&C program with the exception of the FHCF and the series 2015, 2016 and 2017 catastrophe bonds. Management deemed this reinsurance protection to be sufficient given the level of catastrophe exposure in 2017 for North Carolina and South Carolina. | |||||||||||||||
2017 - 2018 Reinsurance Program [Member] | Citrus Re Ltd [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Percentage comprising aggregate participation | 26.00% | |||||||||||||||
Purchase of reinsurance from third party | $ 687,500,000 | |||||||||||||||
Coverage arrangements, period | multi-year | |||||||||||||||
2017 - 2018 Reinsurance Program [Member] | Citrus Re Ltd [Member] | Class A and B and C Due in May 2018 [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchase of reinsurance from third party | $ 277,500,000 | |||||||||||||||
Notes maturity date | May 31, 2018 | |||||||||||||||
2017 - 2018 Reinsurance Program [Member] | Citrus Re Ltd [Member] | Class D and E Due in Two-year Period [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchase of reinsurance from third party | $ 250,000,000 | |||||||||||||||
Additional maturity period of collateral notes | 2 years | |||||||||||||||
2017 - 2018 Reinsurance Program [Member] | Citrus Re Ltd [Member] | Notes Due in Three-year Period [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchase of reinsurance from third party | $ 160,000,000 | |||||||||||||||
Notes maturity period | 3 years | |||||||||||||||
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] | 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 | |||||||||||||||
2016-2017 Reinsurance Program [Member] | Catastrophe [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchase of reinsurance from third party | $ 3,100,000,000 | |||||||||||||||
Description of hurricane losses coverage and protection | Hurricane losses in states other than Hawaii would be covered under the Heritage P&C program with the exception of the FHCF and the series 2015, 2016 and 2017 catastrophe bonds. Management deemed this reinsurance protection to be sufficient given the level of catastrophe exposure in 2017 for North Carolina and South Carolina. | |||||||||||||||
Percentage of third-party reinsurance program | 38.00% | |||||||||||||||
2016-2017 Reinsurance Program [Member] | Citrus Re Ltd [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Percentage comprising aggregate participation | 42.00% | |||||||||||||||
Purchase of reinsurance from third party | $ 727,500 | |||||||||||||||
Additional maturity period of collateral notes | 2 years | |||||||||||||||
Notes maturity date | May 31, 2017 | |||||||||||||||
Notes maturity period | 3 years | |||||||||||||||
Coverage arrangements, period | multi-year | |||||||||||||||
2016-2017 Reinsurance Program [Member] | Citrus Re Ltd [Member] | 2014 Class A & B Notes [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchase of reinsurance from third party | $ 200,000 | |||||||||||||||
2016-2017 Reinsurance Program [Member] | Citrus Re Ltd [Member] | 2015 Class A, B, and C Notes [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchase of reinsurance from third party | 277,500 | |||||||||||||||
2016-2017 Reinsurance Program [Member] | Citrus Re Ltd [Member] | 2016 Class D & E Notes [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchase of reinsurance from third party | 250,000 | |||||||||||||||
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 Above FHCF [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 | 1,750,000,000 | 1,900,000,000 | ||||||||||||||
Primary retention of losses and loss adjustment expenses | 40,000,000 | |||||||||||||||
Florida [Member] | Heritage P&C [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Primary retention | 15,000,000 | |||||||||||||||
Florida [Member] | Osprey [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Primary retention of losses and loss adjustment expenses | 20,000,000 | |||||||||||||||
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 | 1,750,000,000 | 1,750,000,000 | 2,000,000,000 | |||||||||||||
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] | Multi-Zonal Layers [Member] | Property Per Risk Coverage [Member] | Zephyr [Member] | Catastrophe [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchased reinstatement premium | 254,000,000 | |||||||||||||||
Florida [Member] | A Top And Aggregate Multi Zonal Layer [Member] | Property Per Risk Coverage [Member] | Zephyr [Member] | Catastrophe [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchased reinstatement premium | 48,000,000 | |||||||||||||||
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 | |||||||||||||||
Florida [Member] | 2016-2017 Reinsurance Program [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Occurrence of catestrophic event | 49 years | |||||||||||||||
Florida [Member] | 2016-2017 Reinsurance Program [Member] | Catastrophe [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Reinsurance coverage | $ 24,800,000 | |||||||||||||||
Percentage of loss on stockholders'equity | 6.90% | |||||||||||||||
First event expected reinsurance coverage | 56.60% | |||||||||||||||
Hawaii [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Primary retention | 731,000,000 | $ 1,100,000,000 | ||||||||||||||
Primary retention of losses and loss adjustment expenses | 30,000,000 | |||||||||||||||
Hawaii [Member] | Zephyr [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Primary retention | 16,000,000 | 5,000,000 | ||||||||||||||
Primary retention of losses and loss adjustment expenses | 20,000,000 | 20,000,000 | ||||||||||||||
Catastrophe excess of loss reinsurance | $ 16,000,000 | |||||||||||||||
Hawaii [Member] | Zephyr [Member] | First Catastrophic Event [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Percentage comprising aggregate participation | 3.80% | |||||||||||||||
Primary retention of losses and loss adjustment expenses | 386,000,000 | $ 386,000,000 | ||||||||||||||
Hawaii [Member] | Zephyr [Member] | Second Catastrophic Event [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Percentage comprising aggregate participation | 117.70% | |||||||||||||||
Primary retention of losses and loss adjustment expenses | 386,000,000 | $ 386,000,000 | ||||||||||||||
Hawaii [Member] | Zephyr [Member] | Top and Aggregate Layer [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 | ||||||||||||||
Aggregate participation, losses and loss adjustment expenses | 5,000,000 | |||||||||||||||
Hawaii [Member] | Zephyr [Member] | Maximum [Member] | First Catastrophic Event [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Aggregate participation, losses and loss adjustment expenses | 12,000,000 | |||||||||||||||
Hawaii [Member] | Zephyr [Member] | Maximum [Member] | Second Catastrophic Event [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Aggregate participation, losses and loss adjustment expenses | 56,000,000 | |||||||||||||||
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 | |||||||||||||||
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 | 731,000,000 | 731,000,000 | 1,100,000,000 | |||||||||||||
Hawaii [Member] | Shared Layers [Member] | Property Per Risk Coverage [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchase of reinsurance from third party | 372,000,000 | |||||||||||||||
Shared coverage amount available subject to seasonal aggregate | 20,000,000 | |||||||||||||||
Seasonal aggregate amount | 68,000,000 | |||||||||||||||
Hawaii [Member] | Shared Layers [Member] | Property Per Risk Coverage [Member] | Heritage P&C and Zephyr [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchased reinstatement premium | 352,000,000 | |||||||||||||||
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] | Multi-Zonal Layers [Member] | Property Per Risk Coverage [Member] | Zephyr [Member] | Catastrophe [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchased reinstatement premium | 254,000,000 | |||||||||||||||
Hawaii [Member] | A Top And Aggregate Multi Zonal Layer [Member] | Property Per Risk Coverage [Member] | Zephyr [Member] | Catastrophe [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchased reinstatement premium | 48,000,000 | |||||||||||||||
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 | |||||||||||||||
States Other Than Hawaii [Member] | Heritage P&C [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Primary retention | $ 16,000,000 | |||||||||||||||
Percentage comprising aggregate participation | 20.00% | |||||||||||||||
Primary retention of losses and loss adjustment expenses | 20,000,000 | $ 20,000,000 | ||||||||||||||
Catastrophe excess of loss reinsurance | $ 16,000,000 | |||||||||||||||
Agreement of coverage | 3 years | 3 years | ||||||||||||||
Additional maturity period of collateral notes | 2 years | 2 years | ||||||||||||||
Reinsurance agreement | 3 years | 3 years | ||||||||||||||
States Other Than Hawaii [Member] | Heritage P&C [Member] | Notes Due March 2020 [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Collateralized by a reinsurance trust | $ 35,000,000 | $ 35,000,000 | ||||||||||||||
States Other Than Hawaii [Member] | Heritage P&C [Member] | Notes Due February 2019 [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Collateralized by a reinsurance trust | $ 250,000,000 | |||||||||||||||
States Other Than Hawaii [Member] | Heritage P&C [Member] | 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 | |||||||||||||||
States Other Than Hawaii [Member] | Heritage P&C [Member] | 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 | |||||||||||||||
States Other Than Hawaii [Member] | 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 | |||||||||||||||
States Other Than Hawaii [Member] | 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 | ||||||||||||||
States Other Than Hawaii [Member] | 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 | ||||||||||||||
States Other Than Hawaii [Member] | Heritage P&C [Member] | First Catastrophic Event [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Percentage comprising aggregate participation | 20.00% | |||||||||||||||
Primary retention of losses and loss adjustment expenses | 878,000,000 | $ 878,000,000 | ||||||||||||||
States Other Than Hawaii [Member] | Heritage P&C [Member] | Second Catastrophic Event [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Percentage comprising aggregate participation | 11.50% | |||||||||||||||
Primary retention of losses and loss adjustment expenses | 420,000,000 | $ 420,000,000 | ||||||||||||||
States Other Than Hawaii [Member] | Heritage P&C [Member] | Top and Aggregate Layer [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 | ||||||||||||||
Aggregate participation, losses and loss adjustment expenses | 5,000,000 | |||||||||||||||
States Other Than Hawaii [Member] | Heritage P&C [Member] | Maximum [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Aggregate participation, losses and loss adjustment expenses | 36,000,000 | |||||||||||||||
States Other Than Hawaii [Member] | Heritage P&C [Member] | Maximum [Member] | First Catastrophic Event [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Aggregate participation, losses and loss adjustment expenses | 727,000 | |||||||||||||||
States Other Than Hawaii [Member] | Property Per Risk Coverage [Member] | Citrus [Member] | Catastrophe [Member] | Two Thousand Fifteen C And C Series Bond And Two Thousand Sixteen D and E Bond And Two Thousand Seventeen Two Bond [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Collateralized by a reinsurance trust | 412,500,000 | 412,500,000 | ||||||||||||||
Additional coverage of second catastrophe reinsurance agreement | 5,000,000 | |||||||||||||||
States Other Than Hawaii [Member] | FHCF Layer [Member] | Property Per Risk Coverage [Member] | Heritage P&C [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Catastrophe excess of loss reinsurance | $ 414,000,000 | |||||||||||||||
Percentage of maximum provisional limit | 45.00% | |||||||||||||||
Estimated provisional limit percentage calculation base amount | $ 1,300,000,000 | |||||||||||||||
States Other Than Hawaii [Member] | Layers Above FHCF -Florida Program [Member] | Heritage P&C [Member] | 2017-1 Notes [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Collateralized by a reinsurance trust | $ 125,000,000 | |||||||||||||||
Agreement of coverage | 3 years | |||||||||||||||
Additional maturity period of collateral notes | 2 years | |||||||||||||||
Reinsurance agreement | 3 years | |||||||||||||||
States Other Than Hawaii [Member] | Layers Above FHCF -Florida Program [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 | |||||||||||||||
Additional maturity period of collateral notes | 2 years | |||||||||||||||
Reinsurance agreement | 3 years | |||||||||||||||
States Other Than Hawaii [Member] | Multi-Zonal Layers [Member] | Property Per Risk Coverage [Member] | Heritage P&C [Member] | Catastrophe [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Coverage of first catastrophe reinsurance agreement | 254,000 | |||||||||||||||
States Other Than Hawaii [Member] | Aggregate Coverage [Member] | Property Per Risk Coverage [Member] | Heritage P&C [Member] | Catastrophe [Member] | ||||||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||||||||||||
Purchased reinstatement premium | 984,000,000 | |||||||||||||||
Prepaid reinsurance premiums | 606,000,000 | 606,000,000 | ||||||||||||||
Net of prepaid reinsurrance premium as attachement point | $ 40,000,000 | $ 40,000,000 |
Reinsurance - Schedule of Reins
Reinsurance - Schedule of Reinsurance Transactions on Components of Condensed Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Premium written: | ||||
Direct | $ 159,256 | $ 177,955 | $ 301,545 | $ 316,087 |
Assumed | (1) | (660) | (55) | 8,474 |
Ceded | (228,853) | (242,927) | (230,734) | (243,659) |
Net premium written | (69,598) | (65,632) | 70,756 | 80,902 |
Change in unearned premiums: | ||||
Direct | (6,970) | (30,294) | 5,027 | (40,681) |
Assumed | 69 | 16,636 | 445 | 31,700 |
Ceded | 166,951 | 188,208 | 106,400 | 143,339 |
Net increase | 160,050 | 174,550 | 111,872 | 134,358 |
Premiums earned: | ||||
Direct | 152,286 | 147,661 | 306,572 | 275,406 |
Assumed | 68 | 15,976 | 390 | 40,174 |
Ceded | (61,902) | (54,719) | (124,334) | (100,320) |
Net premiums earned | 90,452 | 108,918 | 182,628 | 215,260 |
Losses and LAE incurred: | ||||
Direct | 47,474 | 30,034 | 96,391 | 81,800 |
Assumed | 1,804 | 18,758 | 3,007 | 33,961 |
Ceded | (3,232) | 2 | (6,705) | (4) |
Net losses and LAE incurred | $ 46,046 | $ 48,794 | $ 92,693 | $ 115,757 |
Reinsurance - Effects of Reinsu
Reinsurance - Effects of Reinsurance Transactions on Unpaid Losses and Loss Adjustment Expenses and Unearned Premiums (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Unpaid losses and loss adjustment expenses: | ||
Direct | $ 106,896 | $ 119,339 |
Assumed | 15,889 | 20,798 |
Gross unpaid losses and LAE | 122,785 | 140,137 |
Ceded | (2,498) | |
Net unpaid losses and LAE | 120,287 | 140,137 |
Unearned premiums: | ||
Direct | 312,552 | 317,579 |
Assumed | 445 | |
Gross unearned premiums | 312,552 | 318,024 |
Ceded | (213,009) | (106,609) |
Net unearned premiums | $ 99,543 | $ 211,415 |
Reserve for Unpaid Losses - Sum
Reserve for Unpaid Losses - Summary of Reserve for Unpaid Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Insurance [Abstract] | |||||
Balance, beginning of period | $ 131,572 | $ 108,443 | $ 140,137 | $ 83,722 | $ 83,722 |
Less: reinsurance recoverable on paid losses | 1,321 | 0 | 586 | 0 | 0 |
Net balance, beginning of period | 130,251 | 108,443 | 139,551 | 83,722 | 83,722 |
Incurred related to: | |||||
Current year | 46,944 | 49,126 | 94,819 | 101,626 | |
Prior years | (897) | (332) | (2,126) | 14,131 | |
Total incurred | 46,047 | 48,794 | 92,693 | 115,757 | |
Paid related to: | |||||
Current year | 28,001 | 25,421 | 39,238 | 38,053 | |
Prior years | 28,010 | 14,331 | 72,719 | 43,941 | |
Total paid | 56,011 | 39,752 | 111,957 | 81,994 | |
Net balance, end of period | 120,287 | 117,485 | 120,287 | 117,485 | 139,551 |
Plus: reinsurance recoverable on unpaid losses | 2,498 | 0 | 2,498 | 0 | |
Balance, end of period | $ 122,785 | $ 117,485 | $ 122,785 | $ 117,485 | $ 140,137 |
Reserve for Unpaid Losses - Add
Reserve for Unpaid Losses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | ||||||||
Unpaid losses and loss adjustment expenses | $ 120,287 | $ 117,485 | $ 120,287 | $ 117,485 | $ 130,251 | $ 139,551 | $ 108,443 | $ 83,722 |
Unpaid losses and loss adjustment expenses attributable to IBNR | $ 65,300 | $ 65,300 | ||||||
Net reserves for unpaid losses and loss adjustment expenses, percentage | 54.30% | 54.30% | ||||||
Losses incurred related to the prior year (redundancy) and deficiency | $ (897) | $ (332) | $ (2,126) | $ 14,131 |
Note Payable - Additional Infor
Note Payable - Additional Information (Detail) - Senior Secured Notes [Member] $ in Thousands | 6 Months Ended | |
Jun. 30, 2017USD ($) | Dec. 15, 2016USD ($)Investor | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 79,500 | $ 79,500 |
Number of accredited investors | Investor | 6 | |
Interest rate | 8.75% | |
Frequency of periodic principal and interest payments | quarterly | |
Interest payment commencement date | Mar. 15, 2017 | |
Principal payment commencement date | Dec. 31, 2018 | |
Net of issuance costs | $ 73,300 | |
Issuance costs | 6,200 | |
Interest payments | $ 3,900 | |
Debt instrument redemption price in cash due to change in control, percentage | 101.00% | |
Effective interest rate | 10.00% | |
2018 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument redemption price, percentage | 103.00% | |
2019 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument redemption price, percentage | 102.00% | |
2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument redemption price, percentage | 101.00% | |
Thereafter [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument redemption price, percentage | 100.00% |
Note Payable - Schedule of Long
Note Payable - Schedule of Long-Term Debt (Detail) - Senior Secured Notes [Member] - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 15, 2016 |
Debt Instrument [Line Items] | ||
Senior Notes, Principal | $ 79,500 | $ 79,500 |
Senior Notes, Unamortized Debt Issuance Costs | $ 6,224 |
Note Payable - Schedule of Lo66
Note Payable - Schedule of Long-Term Debt (Parenthetical) (Detail) - Senior Secured Notes [Member] | 6 Months Ended |
Jun. 30, 2017 | |
Debt Instrument [Line Items] | |
Maturity date | Dec. 15, 2023 |
Interest rate | 8.75% |
Other Liabilities - Additional
Other Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Other liabilities | $ 13,934 | $ 21,681 |
Liabilities related to amounts owed to Citizens for policies | 19 | 178 |
Other liabilities, commissions payable | 5,400 | 6,200 |
Accounts and other payable | 4,500 | 3,500 |
Other liabilities, held in escrow | 1,200 | |
Dividends payable | $ 1,800 | 1,800 |
Liabilities in connection with issuance of debt | $ 4,800 |
Statutory Accounting and Regu68
Statutory Accounting and Regulations - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Statutory Accounting Practices [Line Items] | |||
Statutory net loss of insurance subsidiary | $ 4,500,000 | $ 638,000 | |
Statutory capital and surplus | $ 264,500,000 | $ 276,100,000 | |
Heritage P&C [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory accounting practices, capital and surplus requirements of insurance subsidiary | Greater of $15 million 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% | ||
Zephyr [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Deposits held | $ 750,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Immediate Family Member Of Management Or Principal Owner [Member] | |||
Related Party Transaction [Line Items] | |||
Payments for management services | $ 50,000 | $ 35,000 | |
Consulting fees hourly rate | $ 400 | ||
Consulting fees | $ 184,000 | ||
Heritage P&C [Member] | Director [Member] | |||
Related Party Transaction [Line Items] | |||
Director annual compensation | $ 150,000 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of contribution on employee salary | 3.00% | |
Contribution for participating employees | $ 425,000 | $ 248,000 |
Medical premium cost | 1,500,000 | $ 1,400,000 |
Unpaid claims | 154,000 | |
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 provided amount | $ 1,000,000 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | May 02, 2017 | Mar. 02, 2017 | Nov. 08, 2016 | May 04, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
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 | 28,156,421 | 28,156,421 | 28,840,443 | ||||||
Treasury stock, shares | 2,443,352 | 2,443,352 | 1,759,330 | ||||||
Additional paid-in capital | $ 208,135,000 | $ 208,135,000 | $ 205,727,000 | ||||||
Stock options, outstanding | 1,149,923 | 1,149,923 | 1,149,923 | ||||||
Common stock voting rights | one vote | ||||||||
Stock Repurchase Program, Authorized Amount | $ 70,000,000 | $ 70,000,000 | $ 70,000,000 | ||||||
Stock Repurchase Program Expiration Date | Dec. 31, 2017 | ||||||||
Treasury shares repurchased, shares | 322,811 | 361,211 | |||||||
Treasury shares repurchased, value | $ 4,100,000 | $ 4,500,000 | 8,607,000 | $ 16,562,000 | |||||
Stock repurchase program remaining authorized repurchase amount | $ 35,800,000 | $ 35,800,000 | |||||||
Cash dividend per common share | $ 0.06 | $ 0.06 | $ 0.06 | ||||||
Cash dividend, payable date | Jul. 5, 2017 | Apr. 4, 2017 | Jan. 4, 2017 | ||||||
Dividend payable, record date | Jun. 15, 2017 | Mar. 15, 2017 | Dec. 15, 2016 | ||||||
Cash dividend, declared date | May 2, 2017 | ||||||||
Restricted Stock [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Unvested shares of restricted common stock issued | 900,000 | 900,000 | 900,000 | ||||||
Unvested restricted stock grants | 0 | 900,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | 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 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 0 | ||
Restricted Stock [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock options, Vesting period | 5 years | |||||
Unvested restricted stock grants | 0 | 900,000 | ||||
Stock-based compensation expense | $ 2,400,000 | $ 2,400,000 | ||||
Unrecognized stock compensation expense | $ 16,100,000 | $ 16,100,000 | ||||
Unrecognized stock compensation expense, weighted average period | 3 years 4 months 24 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 | 170,814 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Information Related to Stock Option (Detail) | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Beginning Balance, Shares | 1,149,923 |
Granted, Shares | |
Exercised, Shares | |
Ending Balance, Shares | 1,149,923 |
Vested and exercisable, Shares | 1,149,923 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | |
Weighted-Average Grant Date Fair Value, Exercised | $ / shares | |
Weighted-Average Grant Date Fair Value, Ending Balance | $ / shares | 2.99 |
Weighted-Average Grant Date Fair Value, Vested and exercisable | $ / shares | $ 2.99 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Beginning balance, Number of shares | 900,000 | |
Granted, Number of shares | 0 | 900,000 |
Ending balance, Number of shares | 900,000 | 900,000 |
Beginning balance, Weighted-Average Grant-Date Fair Value per Share | $ 18.82 | |
Ending balance, Weighted-Average Grant-Date Fair Value per Share | $ 18.82 | $ 18.82 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Aug. 08, 2017 | Aug. 03, 2017 | May 02, 2017 | Mar. 02, 2017 | Nov. 08, 2016 | Jun. 30, 2017 |
Subsequent Event [Line Items] | ||||||
Cash dividend, declared date | May 2, 2017 | |||||
Cash dividend per common share | $ 0.06 | $ 0.06 | $ 0.06 | |||
Cash dividend, payable date | Jul. 5, 2017 | Apr. 4, 2017 | Jan. 4, 2017 | |||
Dividend payable, record date | Jun. 15, 2017 | Mar. 15, 2017 | Dec. 15, 2016 | |||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend, declared date | Aug. 3, 2017 | |||||
Cash dividend per common share | $ 0.06 | |||||
Cash dividend, payable date | Oct. 2, 2017 | |||||
Dividend payable, record date | Sep. 15, 2017 | |||||
Subsequent Event [Member] | NBIC [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Purchase price for the acquisition in cash | $ 210 | |||||
Purchase price for the acquisition, common stock value | 40 | |||||
Subsequent Event [Member] | Minimum [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Value of stock consideration placed in an escrow account | 12.5 | |||||
Subsequent Event [Member] | Maximum [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Value of stock consideration placed in an escrow account | $ 25 |