Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 08, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 | 26,569,804 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Fixed maturity securities, available for sale, at fair value (amortized cost of $519,875 and $552,458 in 2018 and 2017, respectively) | $ 508,921 | $ 549,796 |
Equity securities, available for sale, at fair value (cost of $17,070 and $17,548 in 2018 and 2017, respectively) | 15,958 | 17,217 |
Total investments | 524,879 | 567,013 |
Cash and cash equivalents | 218,343 | 153,697 |
Restricted cash | 16,884 | 20,833 |
Accrued investment income | 4,306 | 5,057 |
Premiums receivable, net | 68,168 | 67,757 |
Reinsurance recoverable on paid and unpaid claims | 467,857 | 357,357 |
Prepaid reinsurance premiums | 295,924 | 227,764 |
Income taxes receivable | 42,492 | 37,338 |
Deferred policy acquisition costs, net | 69,648 | 41,678 |
Property and equipment, net | 18,329 | 18,748 |
Intangibles, net | 88,371 | 101,626 |
Goodwill | 152,459 | 152,459 |
Other assets | 23,239 | 19,883 |
Total Assets | 1,990,899 | 1,771,210 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Unpaid losses and loss adjustment expenses | 488,610 | 470,083 |
Unearned premiums | 485,230 | 475,334 |
Reinsurance payable | 276,507 | 17,577 |
Long-term debt, net | 177,257 | 184,405 |
Deferred income tax | 15,350 | 34,333 |
Advance premiums | 35,821 | 23,648 |
Accrued compensation | 6,754 | 16,477 |
Accounts payable and other liabilities | 119,290 | 169,537 |
Total Liabilities | 1,604,819 | 1,391,394 |
Commitments and contingencies (Note 16) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value, 50,000,000 shares authorized, 26,569,804 shares issued and 25,769,804 outstanding at June 30, 2018 and 26,560,004 shares issued and 25,885,004 outstanding at December 31, 2017 | 3 | 3 |
Additional paid-in capital | 294,183 | 294,836 |
Accumulated other comprehensive loss | (8,348) | (3,064) |
Treasury stock, at cost, 7,214,797 shares at June 30, 2018 and 7,099,597 shares at December 31, 2017 | (89,185) | (87,185) |
Retained earnings | 189,427 | 175,226 |
Total Stockholders' Equity | 386,080 | 379,816 |
Total Liabilities and Stockholders' Equity | $ 1,990,899 | $ 1,771,210 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Fixed maturities available for sale, at amortized cost | $ 519,875 | $ 552,458 |
Equity securities, cost | $ 17,070 | $ 17,548 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 26,569,804 | 26,560,004 |
Common stock, shares outstanding | 25,769,804 | 25,885,004 |
Treasury stock, shares | 7,214,797 | 7,099,597 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Other Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
REVENUES: | ||||
Gross premiums written | $ 263,664 | $ 159,255 | $ 468,030 | $ 301,490 |
Change in gross unearned premiums | (32,693) | (6,901) | (9,896) | 5,472 |
Gross premiums earned | 230,971 | 152,354 | 458,134 | 306,962 |
Ceded premiums | (119,767) | (61,902) | (240,822) | (124,334) |
Net premiums earned | 111,204 | 90,452 | 217,312 | 182,628 |
Net investment income | 2,555 | 2,973 | 5,857 | 5,475 |
Net realized (losses) gains | (85) | (125) | (312) | 646 |
Other revenue | 4,298 | 3,638 | 7,141 | 7,482 |
Total revenues | 117,972 | 96,938 | 229,998 | 196,231 |
EXPENSES: | ||||
Losses and loss adjustment expenses | 65,989 | 46,046 | 119,080 | 92,693 |
Policy acquisition costs, net of ceding commission income for the three and six months ended June 30, 2018, of $13,493 and $27,738 respectively | 19,411 | 21,738 | 31,598 | 45,180 |
General and administrative expenses, net of ceding commission income for the three and six months ended June 30, 2018, of $4,498 and $9,246 respectively | 24,422 | 16,092 | 46,352 | 33,406 |
Total expenses | 109,822 | 83,876 | 197,030 | 171,279 |
Operating income | 8,150 | 13,062 | 32,968 | 24,952 |
Interest expense, net | 5,386 | 2,231 | 10,206 | 4,412 |
Other non-operating income, net | (542) | (542) | ||
Income before income taxes | 3,306 | 10,831 | 23,304 | 20,540 |
Provision for income taxes | 898 | 4,189 | 6,066 | 7,915 |
Net income | 2,408 | 6,642 | 17,238 | 12,625 |
OTHER COMPREHENSIVE INCOME | ||||
Change in net unrealized (losses) gains on investments | (545) | 3,899 | (7,023) | 7,880 |
Reclassification adjustment for net realized investment losses (gains) | 85 | 125 | 312 | (646) |
Income tax (expense) benefit related to items of other comprehensive income | (239) | (1,549) | 1,584 | (2,785) |
Total comprehensive income | $ 1,709 | $ 9,117 | $ 12,111 | $ 17,074 |
Weighted average shares outstanding | ||||
Basic | 25,631,871 | 28,283,587 | 25,679,448 | 28,543,703 |
Diluted | 26,316,597 | 28,283,587 | 26,480,707 | 28,543,703 |
Earnings per share | ||||
Basic | $ 0.09 | $ 0.23 | $ 0.67 | $ 0.44 |
Diluted | $ 0.09 | $ 0.23 | $ 0.65 | $ 0.44 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Income and Other Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Policy Acquisition Costs [Member] | ||
Ceding commission income | $ 13,493 | $ 27,738 |
General and Administrative Expenses [Member] | ||
Ceding commission income | $ 4,498 | $ 9,246 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Shares [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Shares [Member] | Retained Earnings [Member] |
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 | |||||
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 | (47,000) | |||||
Ending balance at Dec. 31, 2017 | 379,816 | $ 3 | 294,836 | 175,226 | (87,185) | (3,064) |
Ending balance, Shares at Dec. 31, 2017 | 25,885,004 | |||||
Cumulative effect of change in accounting principle (ASU 2016-01), net of tax at Dec. 31, 2017 | (267) | 267 | ||||
Balance at December 31, 2017, as adjusted at Dec. 31, 2017 | 379,816 | $ 3 | 294,836 | 174,959 | (87,185) | (2,797) |
Stock buy-back | (2,000) | (2,000) | ||||
Stock buy-back, Shares | (115,200) | |||||
Stock-based compensation | 2,612 | 2,612 | ||||
Convertible Option debt extinguishment, net of tax | (4,235) | (4,235) | ||||
Reclassification of income taxes upon early adoption of ASU 2018-02 | 424 | (424) | ||||
Tax effect of warrant reclassification | 970 | 970 | ||||
Dividends declared on common stock | (3,194) | (3,194) | ||||
Net unrealized change in investments, net of tax | (5,127) | (5,127) | ||||
Net income | 17,238 | 17,238 | ||||
Ending balance at Jun. 30, 2018 | $ 386,080 | $ 3 | $ 294,183 | $ 189,427 | $ (89,185) | $ (8,348) |
Ending balance, Shares at Jun. 30, 2018 | 25,769,804 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 17,238 | $ 12,625 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Stock-based compensation | 2,612 | 2,408 |
Bond amortization and accretion | 3,454 | 4,492 |
Amortization of original issuance discount on debt | 2,050 | |
Depreciation and amortization | 14,041 | 3,798 |
Net realized gains | 312 | (646) |
Net gain on repurchase of debt | (542) | |
Deferred income taxes | (15,579) | (1,137) |
Changes in operating assets and liabilities: | ||
Accrued investment income | 751 | (341) |
Premiums receivable, net | (411) | 3,760 |
Prepaid reinsurance premiums | (68,160) | (106,400) |
Reinsurance premiums receivable and recoverable | (110,500) | |
Income taxes receivable | (5,154) | 8,416 |
Deferred policy acquisition costs, net | (27,970) | 987 |
Other assets | (3,356) | (1,422) |
Unpaid losses and loss adjustment expenses | 18,527 | (17,353) |
Unearned premiums | 9,896 | (5,472) |
Reinsurance payable | 258,930 | 128,140 |
Accrued interest | (3,148) | (3,938) |
Accrued compensation | (9,723) | 1,176 |
Advance premiums | 12,173 | 7,320 |
Other liabilities | (47,109) | (3,438) |
Net cash provided by operating activities | 48,332 | 32,975 |
INVESTING ACTIVITIES | ||
Proceeds from sales and maturities of investments available for sale | 163,611 | 99,041 |
Purchases of investments available for sale | (132,306) | (93,862) |
Cost of property and equipment acquired | (367) | (150) |
Net cash provided by investing activities | 30,938 | 5,029 |
FINANCING ACTIVITIES | ||
Mortgage loan payments | (131) | |
Repurchase of convertible note | (13,248) | |
Purchase of treasury stock | (2,000) | (8,607) |
Cash dividends paid | (3,194) | (3,567) |
Net cash used in financing activities | (18,573) | (12,174) |
Increase in cash, cash equivalents, and restricted cash | 60,697 | 25,830 |
Cash, cash equivalents and restricted cash, beginning of period | 174,530 | 126,727 |
Cash, cash equivalents and restricted cash, end of period | 235,227 | 152,557 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Income taxes paid | 5,406 | 601 |
Interest paid | $ 8,317 | $ 3,900 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Statement Of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 218,343 | $ 153,697 | ||
Restricted cash | 16,884 | 20,833 | ||
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ 235,227 | $ 174,530 | $ 152,557 | $ 126,727 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and 2017 include Heritage Insurance Holdings, Inc. (“Parent Company”); its property and casualty insurance subsidiaries: Heritage Property & Casualty Insurance Company (“Heritage P&C”), Narragansett Bay Insurance Company (“NBIC”) and Zephyr Insurance Company, Inc. (“Zephyr”); 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 (“BRC”), our provider of restoration, emergency and recovery services; 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. Through our insurance subsidiaries, Heritage P&C, Zephyr and NBIC, we write personal residential insurance for single-family homeowners and condominium owners, and rental property insurance in the states of Alabama, Connecticut, Florida, Georgia, Hawaii, Massachusetts, New Jersey, New York, North Carolina, Rhode Island and South Carolina. We also provide commercial residential insurance for Florida properties and are also licensed in the states of Mississippi and Pennsylvania. We are vertically integrated and control or manage substantially all aspects of insurance underwriting, customer service, actuarial analysis, distribution and claims processing and adjusting. The condensed consolidated financial information included herein as of and for the three and six months ended June 30, 2018 and 2017 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, 2018 and 2017 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, 2017 consolidated balance sheet was derived from the Company’s audited consolidated financial statements as of and for the year ended December 31, 2017. 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, 2017 (the “2017 Form 10-K”). References to “we”, “us”, “our”, or the “Company” refer to Heritage Insurance Holdings, Inc. and its consolidated subsidiaries. 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, 2017. Reclassification We have reclassified certain amounts in the 2017 statement of operations to conform to our 2018 presentation. Additionally, we reclassified certain amounts in the 2017 consolidated statement of cash flows to conform to the 2018 presentation, relating to the presentation of restricted cash and cash equivalents. This reclassification is a result of our adoption of Accounting Standards Update (ASU) 2016-18, Restricted Cash effective January 1, 2018. Recently Adopted Accounting Pronouncements In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) The Company early adopted the updated guidance effective January 1, 2018 and elected to reclassify the stranded income tax effects relating to the reduction in the federal corporate income tax rate from AOCI”) to retained earnings at the beginning of the period of adoption. The net impact of the accounting change resulted in a $0.4 million decrease in AOCI comprised of income taxes associated with net unrealized losses on investments and a corresponding increase in retained earnings. 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. 2017-01, 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 November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. Technical Corrections and Improvements to Financial Instruments—Overall In May 2014, the FASB issued ASU Topic 2014-09, Revenue from Contracts with Customers Accounting Pronouncements Not Yet Adopted The Company describes below recent pronouncements that may have a significant effect on its consolidated 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 March 2018, the FASB issued ASU 2018-04, Investments-Debt Securities (Topic 320) and Regulated Operations (Topic 980). Investments-Debt Securities Regulated Operations In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Lease Accounting, To date, we have taken an inventory of all our operating leases, which consist primarily of auto, equipment and real estate owned and unowned by the Company, started our review of key lease agreements including contract review for embedded leases, and are currently evaluating lease terms, lease payments and appropriate discount rates to use in calculating the right-to-use asset and lease liability. In addition, we are currently evaluating the transition package of practical expedients permitted within the new standard, which among other things, allows us to use hindsight to determine the reasonably certain lease term for existing leases, and allows for the adoption of the new standard at the effective date without adjusting the comparative prior periods presented. We will be continuously assessing the impact of the new standard and the impact on our systems, processes and controls through January 1, 2019, our planned adoption date. 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, 2018 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 2. ACQUISITION Acquisition of NBIC On November 30, 2017, the Company completed the acquisition of all the outstanding capital stock of NBIC Holdings, Inc., the parent company of Narragansett Bay Insurance Company, a leading specialty underwriter of personal residential insurance products and services in several states in the northeastern United States for $250.0 million, including $210.0 million in cash, plus 2,222,215 shares of the Company’s common stock with an aggregate fair value of $40.0 million. The completion of the NBIC acquisition represents a significant advancement in executing the Company’s geographic diversification strategy by leveraging the Company’s combined platform to accelerate growth along the Eastern region. The Company recognized goodwill of $106 million, attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes. Refer to the 2017 Form 10-K for additional information on this acquisition. Unaudited Pro Forma Financial Information The following unaudited pro forma results of operations assume that the NBIC acquisition occurred at the beginning of the periods presented. The pro forma amounts include certain adjustments, including depreciation and amortization expense and income taxes. The unaudited pro forma information assumes the acquisition had taken place January 1, 2017. The unaudited pro forma effects for the three and six months ended June 30, 2017 is as follows: For the Three Months Ended June 30, 2017 For the Six Months Ended June 30, 2017 (in thousands, except per share) Revenue $ 111,252 $ 224,938 Net income $ 10,056 $ 17,394 Basic, earnings per share $ 0.36 $ 0.61 Diluted, earnings per share $ 0.36 $ 0.61 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and December 31, 2017: Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (In thousands) June 30, 2018 U.S. government and agency securities $ 30,537 $ 8 $ 875 $ 29,670 States, municipalities and political subdivisions 63,340 7 1,257 62,090 Special revenue 274,357 32 5,097 269,292 Industrial and miscellaneous 146,817 14 3,628 143,203 Redeemable preferred stocks 4,824 7 165 4,666 Total fixed maturities 519,875 68 11,022 508,921 Nonredeemable preferred stocks 13,922 30 517 13,435 Equity securities 3,098 42 617 2,523 Total equity securities 17,020 72 1,134 15,958 Total investments $ 536,895 $ 140 $ 12,156 $ 524,879 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) December 31, 2017 U.S. government and agency securities $ 39,445 $ 7 $ 572 $ 38,880 States, municipalities and political subdivisions 76,876 104 569 76,411 Special revenue 269,277 524 2,124 267,677 Industrial and miscellaneous 162,093 668 633 162,128 Redeemable preferred stocks 4,767 4 71 4,700 Total fixed maturities 552,458 1,307 3,969 549,796 Nonredeemable preferred stocks 14,450 69 195 14,324 Equity securities 3,098 64 269 2,893 Total equity securities 17,548 133 464 17,217 Total investments $ 570,006 $ 1,440 $ 4,433 $ 567,013 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 (losses) gains by major investment category for the three and six months ended June 30, 2018 and 2017. 2018 2017 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) For the Three Months Ended June 30, Fixed maturities $ 2 $ 70,401 $ 15 $ 5,706 Equity securities 1 169 54 2,352 Total realized gains 3 70,570 69 8,058 Fixed maturities (39 ) 7,487 (170 ) 1,686 Equity securities (49 ) 1,517 (24 ) 1,130 Total realized losses (88 ) 9,004 (194 ) 2,816 Net realized (losses) gains $ (85 ) $ 79,574 $ (125 ) $ 10,874 2018 2017 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) For the Six Months Ended June 30, Fixed maturities $ 76 $ 233,874 $ 34 $ 8,635 Equity securities 1 169 811 9,565 Total realized gains 77 234,043 845 18,200 Fixed maturities (242 ) 61,325 (174 ) 7,244 Equity securities (147 ) 3,758 (25 ) 657 Total realized losses (389 ) 65,083 (199 ) 7,901 Net realized (losses) gains $ (312 ) $ 299,126 $ 646 $ 26,101 The table below summarizes the Company’s fixed maturities at June 30, 2018 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, 2018 Cost or Amortized Cost Percent of Total Fair Value Percent of Total (In thousands) (In thousands) Due in one year or less $ 41,719 8 % $ 41,643 8 % Due after one year through five years 163,622 31 % 161,028 32 % Due after five years through ten years 134,017 26 % 129,488 25 % Due after ten years 180,517 35 % 176,762 35 % Total $ 519,875 100 % $ 508,921 100 % The following table summarizes the Company’s net investment income by major investment category for the three and six months ended June 30, 2018 and 2017, respectively: For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Fixed maturities $ 2,593 $ 2,650 $ 4,978 $ 5,161 Equity securities 314 482 617 979 Cash, cash equivalents and short-term investments 204 34 1,243 103 Other investments 114 — 183 — Net investment income 3,225 3,166 7,021 6,243 Investment expenses 670 193 1,164 768 Net investment income, less investment expenses $ 2,555 $ 2,973 $ 5,857 $ 5,475 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, 2018 or December 31, 2017. There were no material other-than-temporary impairments or credit losses related to available-for-sale securities in the three months ended June 30, 2018 and 2017. The following tables present an aging of our unrealized investment losses by investment class as of June 30, 2018 and December 31, 2017: 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, 2018 U.S. government and agency securities 49 $ 600 $ 18,067 36 $ 275 $ 8,978 States, municipalities and political subdivisions 53 868 43,028 10 388 12,747 Industrial and miscellaneous 477 3,259 133,621 34 369 5,793 Special revenue 324 3,080 159,263 165 2,017 52,697 Redeemable preferred stocks 6 158 3,548 7 7 71 Total fixed maturities 909 7,965 357,527 252 3,056 80,286 Nonredeemable preferred stocks 177 492 11,098 22 26 315 Equity securities 9 203 801 8 414 1,101 Total equity securities 186 $ 695 $ 11,899 30 $ 440 $ 1,416 Total 1,095 $ 8,660 $ 369,426 282 $ 3,496 $ 81,702 Less Than Twelve Months Twelve Months or More Number Gross Losses Fair Number of Securities Gross Unrealized Losses Fair Value (In thousands) December 31, 2017 U.S. government and agency securities 53 $ 284 $ 20,053 24 $ 289 $ 9,294 States, municipalities and political subdivisions 51 359 49,803 8 210 10,503 Industrial and miscellaneous 284 376 87,898 38 256 11,788 Special revenue 295 777 133,580 183 1,347 69,359 Redeemable preferred stocks 41 66 3,987 17 5 61 Total fixed maturities 724 1,862 295,321 270 2,107 101,005 Nonredeemable preferred stocks 127 188 10,047 6 7 159 Equity securities 11 46 677 12 223 1,095 Total equity securities 138 $ 234 $ 10,724 18 $ 230 $ 1,254 Total 862 $ 2,096 $ 306,045 288 $ 2,337 $ 102,259 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 4. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures equity securities at fair value on a recurring basis such as, redeemable preferred stock, nonredeemable preferred stock and common stock of domestic corporations which are measured using quoted prices in active markets for identical assets and as such, are represented Level 1 inputs. For the Company’s investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, the Company obtains the fair values from its third-party valuation service and we evaluate the relevant inputs, assumptions, methodologies and conclusions associated with such valuations. The valuation service calculates prices for the Company’s investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, then adds final spreads to the U.S. Treasury curve as of quarter end. The inputs the valuation service uses in their calculations are not quoted prices in active markets, but are observable inputs, and therefore represent Level 2 inputs. The following table presents information about the Company’s assets measured at fair value on a recurring basis. The Company assesses the levels for the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognitions of transfers between levels of the fair value hierarchy. At June 30, 2018 and December 31, 2017, there were no transfers in or out of Level 1, 2, and 3. June 30, 2018 Total Level 1 Level 2 Level 3 (in thousands) Fixed maturities investments: U.S. government and agency securities $ 29,670 $ 351 $ 29,319 $ — States, municipalities and political subdivisions 62,090 — 62,090 — Special revenue 269,292 — 269,292 — Industrial and miscellaneous 143,203 — 143,203 — Redeemable preferred stocks 4,666 4,666 — — Total fixed maturities investments $ 508,921 $ 5,017 $ 503,904 $ — Nonredeemable preferred stocks 13,435 13,435 — — Equity securities 2,523 2,523 — — Total equity securities $ 15,958 $ 15,958 $ — $ — Total investments $ 524,879 $ 20,975 $ 503,904 $ — December 31, 2017 Total Level 1 Level 2 Level 3 (in thousands) Fixed maturities investments: U.S. government and agency securities $ 38,880 $ 359 $ 38,521 $ — States, municipalities and political subdivisions 76,411 — 76,411 — Special revenue 267,677 — 267,677 — Industrial and miscellaneous 162,128 — 162,128 — Redeemable preferred stocks 4,700 — 4,700 — Total fixed maturities investments $ 549,796 $ 359 $ 549,437 $ — Nonredeemable preferred stocks 14,324 14,324 — — Equity securities 2,893 2,893 — — Total equity securities $ 17,217 $ 17,217 $ — $ — Total investments $ 567,013 $ 17,576 $ 549,437 $ — |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Comprehensive Income Net Of Tax [Abstract] | |
Other Comprehensive Income | NOTE 5. OTHER COMPREHENSIVE INCOME The following table is a summary of other comprehensive income and discloses the tax impact of each component of other comprehensive income for the three and six months ended June 30, 2018 and 2017: For the Three Months Ended June 30, 2018 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax (in thousands) Other comprehensive income Change in unrealized losses on investments, net $ (545 ) $ (257 ) $ (802 ) $ 3,899 $ (1,523 ) $ 2,376 Reclassification adjustment of realized losses (gains) included in net income 85 18 103 125 (26 ) 99 Effect on other comprehensive income $ (460 ) $ (239 ) $ (699 ) $ 4,024 $ (1,549 ) $ 2,475 For the Six Months Ended June 30, 2018 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax (in thousands) Other comprehensive income Change in unrealized losses on investments, net $ (7,023 ) $ 1,518 $ (5,505 ) $ 7,880 $ (2,921 ) $ 4,959 Reclassification adjustment of realized losses (gains) included in net income $ 312 $ 66 $ 378 (646 ) 136 (510 ) Effect on other comprehensive income $ (6,711 ) $ 1,584 $ (5,127 ) $ 7,234 $ (2,785 ) $ 4,449 |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | NOTE 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 (In thousands) Land $ 2,582 $ 2,582 Building 12,117 12,148 Computer hardware and software 3,869 4,093 Office furniture and equipment 987 759 Tenant and leasehold improvements 4,004 3,660 Vehicle fleet 865 815 Total, at cost 24,424 24,057 Less: accumulated depreciation and amortization 6,095 5,309 Property and equipment, net $ 18,329 $ 18,748 Depreciation and amortization expense for property and equipment was $786 thousand and $341 thousand for the six months ended June 30, 2018 and 2017, respectively. The Company’s real estate consists of 15 acres of land and five buildings with a gross area of 229 thousand square feet including a parking garage. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Intangible Assets At June 30, 2018 and December 31, 2017 goodwill (see Note 2) was $152.5 million and intangible assets were $88.4 million and $101.6 million, respectively. The Company has determined the useful life of the value of the business acquired from the NBIC acquisition 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 $1.3 million relating to insurance licenses and classified as an indefinite lived intangible which is subject to annual impairment testing concurrent with goodwill. Goodwill (in thousands) Balance as of December 31, 2017 $ 152,459 Goodwill acquired — Impairment — Balance as of June 30, 2018 $ 152,459 Other Intangible Assets Our intangible assets resulted primarily from the acquisitions of ZAC and NBIC Holdings, Inc. and consist of brand, agent relationships, renewal rights, customer relations, trade names, non-competes and insurance licenses. Amortization expense of our intangible assets for the three months ended June 30, 2018 and 2017 was $ $6.6 million and $558 thousand and $13.3 million and $3.0 million for the six months ended June 30, 2018 and 2017, respectively. No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the six months ended June 30, 2018 or 2017. Estimated annual pretax amortization of intangible assets for each of the next five years and thereafter is as follows (in thousands): Year Amount 2018 remaining $ 11,520 2019 $ 8,208 2020 $ 6,365 2021 $ 6,351 2022 $ 6,351 2023 $ 6,351 Thereafter $ 41,910 Total $ 87,056 (1) Excludes insurance licenses valued at $1.3 million 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, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 8. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the periods indicated. For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Basic earnings per share: Net income attributable to common stockholders (000's) $ 2,408 $ 6,642 $ 17,238 $ 12,625 Weighted average shares outstanding 25,631,871 28,283,587 25,679,448 28,543,703 Basic earnings per share: $ 0.09 $ 0.23 $ 0.67 $ 0.44 Diluted earnings per share: Net income attributable to common stockholders (000's) $ 2,408 $ 6,642 $ 17,238 $ 12,625 Weighted average shares outstanding 25,631,871 28,283,587 25,679,448 28,543,703 Weighted average dilutive shares 684,726 — 801,259 — Total weighted average dilutive shares 26,316,597 28,283,587 26,480,707 28,543,703 Diluted earnings per share: $ 0.09 $ 0.23 $ 0.65 $ 0.44 The Company excludes shares potentially issuable under the Company’s Omnibus plan that could dilute basic net EPS in the future from the calculation of diluted net earnings (loss) per share, as their effect, if included, would have been anti-dilutive for the periods presented. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | NOTE 9. DEFERRED POLICY ACQUISITION COSTS The Company defers certain costs in connection with written policies, called deferred policy acquisition Costs (“DPAC”), net of corresponding amounts of ceded reinsurance commissions, called deferred reinsurance ceding commissions (“DRCC”). Net DPAC is amortized over the effective period of the related insurance policies. The Company earns ceding commission on its quota share reinsurance contracts. Ceding commission income reduces policy acquisition costs and other general underwriting expenses included in general and administration expense on the income statement. Ceding commission income is deferred and recognized over the quota share contract period. 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 months ended June 30, 2018 and 2017: For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Beginning Balance $ 53,862 $ 41,215 $ 41,678 $ 42,779 Policy acquisition costs deferred 31,572 22,315 55,940 44,193 Amortization (15,786 ) (21,738 ) (27,970 ) (45,180 ) Ending Balance $ 69,648 $ 41,792 $ 69,648 $ 41,792 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. INCOME TAXES During the six months ended June 30, 2018 and 2017, the Company recorded $6.0 million and $7.9 million, respectively, of income tax expense which corresponds to an estimated annual effective tax rate of 26.03% and 38.5%, respectively. Effective tax rates are dependent upon components of pre-tax earnings and the related tax effects. The Tax Cuts and Jobs Act of 2017 (“TCJA”) lowered the federal corporate tax rate from 35% to 21% effective January 1, 2018, causing a decrease in the overall effective tax rate when compared to the prior year. The table below summarizes the significant components of our net deferred tax assets (liabilities): June 30, 2018 December 31, 2017 Deferred tax assets: (In thousands) Unearned premiums $ 9,833 $ 12,488 Unearned commission 10,266 11,987 Net operating loss — 4,727 Tax-related discount on loss reserve 1,427 1,250 Unrealized loss 2,922 — Stock-based compensation 809 — Prepaid expenses 1,582 1,950 Other 519 331 Total deferred tax asset 27,358 32,733 Deferred tax liabilities: Deferred acquisition costs 16,759 9,775 Prepaid expenses 369 27,568 Unrealized gains — 30 Property and equipment 358 — Note discount 2,655 3,818 Basis in purchased investments 200 335 Basis in purchased intangibles 21,114 24,250 Other 1,253 1,290 Total deferred tax liabilities 42,708 67,066 Net deferred tax liability $ (15,350 ) $ (34,333 ) On December 22, 2017, the U.S. government enacted the Tax Act, which makes broad and complex changes to the U.S. Tax code. One of the provisions of the Tax Act reduced the corporate federal income tax rate from 35% to 21% effective January 1, 2018. Pursuant to current accounting guidance, all deferred tax assets and liabilities were re-measured in 2017 to recognize the tax rate that is expected to apply when the tax effects are ultimately recognized in future periods upon the date of enactment. Certain income tax effects of the Tax Act are reflected in the Company’s financial results in accordance with Staff Accounting Bulletin No. 118 (“SAB 118”), which provides SEC staff guidance regarding the application of ASC 740. Our 2017 Form 10-K discusses enactment of the Tax Act on December 22, 2017, and its impact on our financial results for that period. Interpretive guidance of the Tax Act will be received throughout 2018, and we expect to update our estimates and our disclosure on a quarterly basis as interpretative guidance is received within each quarter that it is received. During the period ended June 30, 2018, the U.S. Treasury Department and the Internal Revenue Service have not issued further clarification or guidance for the items for which our accounting for the Tax Act is incomplete. In assessing the net carrying amount of deferred tax assets, we consider whether it is more likely than not that we will not realize some portion or all of the deferred tax assets. The ultimate realization of deferred tax assets depends upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The statute of limitations related to our federal and state income tax returns remains open from our filings for 2014 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. At June 30, 2018 and December 31, 2017, we had no significant uncertain tax positions. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Reinsurance | NOTE 11. REINSURANCE The Company’s reinsurance program is designed, utilizing the Company’s risk management methodology, to address its exposure to catastrophes or large non-catastrophic losses. The Company’s program provides reinsurance protection for catastrophes including hurricanes, tropical storms, tornadoes and winter storms. 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. 2018 – 2019 Reinsurance Program In order to limit our potential exposure to catastrophic events, we purchase significant reinsurance from third party reinsurers and sponsor catastrophe bonds issued by Citrus Re. The catastrophe reinsurance may be on an excess of loss or quota share basis. We also purchase reinsurance for non-catastrophe losses on a quota share, per risk or facultative basis. Purchasing a sufficient amount of reinsurance to consider catastrophic losses from single or multiple events or significant non-catastrophe losses is an important part of our risk strategy, and premiums paid (or ceded) to reinsurers is one of our largest cost components. Reinsurance involves transferring, or “ceding”, a portion of the risk exposure on policies we write to another insurer, known as a reinsurer. To the extent that our reinsurers are unable to meet the obligations they assume under our reinsurance agreements, we remain liable for the entire insured loss. Our reinsurance agreements are, prospective contracts. We record an asset, prepaid reinsurance premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of our new reinsurance agreements. We generally amortize our catastrophe reinsurance premiums over the 12-month contract period on a straight-line basis, which is June 1 through May 31. Our quota share reinsurance is amortized over the 12-month contract period and may be purchased on a calendar or fiscal year basis. In the event that we incur losses and loss adjustment expenses recoverable under our reinsurance program, we record amounts recoverable from our reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of our liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to our estimate of unpaid losses. As a result, a reasonable possibility exists that an estimated recovery may change significantly in the near term from the amounts included in our consolidated financial statements. Our insurance regulators require all insurance companies, like us, to have a certain amount of capital and reinsurance coverage in order to cover losses and loss adjustment expenses upon the occurrence of a catastrophic event. Our 2018-2019 reinsurance program provides reinsurance in excess of our state regulator requirements, which are based on the probable maximum loss that we would incur from an individual catastrophic event estimated to occur once in every 100 years based on our portfolio of insured risks. The nature, severity and location of the event giving rise to such a probable maximum loss differs for each insurer depending on the insurer’s portfolio of insured risks, including, among other things, the geographic concentration of insured value within such portfolio. As a result, a particular catastrophic event could be a one-in-100-year loss event for one insurance company while having a greater or lesser probability of occurrence for another insurance company. We also purchase reinsurance coverage to protect against the potential for multiple catastrophic events occurring in the same year. We share portions of our reinsurance program coverage among our insurance company affiliates. Catastrophe Excess of Loss Reinsurance Effective June 1, 2018, we entered into catastrophe excess of loss reinsurance agreements covering Heritage P&C, Zephyr and NBIC. The catastrophe reinsurance 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”). The FHCF covers Florida risks only and we participate at 45%. Citrus Re, which provides fully collateralized multi-year coverage, covers catastrophe losses incurred by Heritage P&C only through the 2016 Class D and 2017-1 Notes, and covers catastrophe losses incurred by Heritage P&C, Zephyr and NBIC through the 2016 Class E Note. Our third-party reinsurers are either rated “A- “or higher by A.M. Best or S&P or are fully collateralized, to reduce credit risk. The reinsurance program, which is segmented into layers of coverage, protects the Company for excess property catastrophe losses and loss adjustment expenses. The 2018-2019 reinsurance program provides first event coverage up to $1.6 billion for Heritage P&C, first event coverage up to $801 million for Zephyr, and first event coverage up to $1.0 billion for NBIC. Our first event retention for each insurance company subsidiary follows: Heritage P&C - $20.0 million [given small amount did not reduce HPCI net retention for first event by $4.0 million for Osprey portion]; Zephyr - $20.0 million; NBIC – $12.8 million. Our second event retention for each insurance company subsidiary follows: Heritage P&C - $16.0 million; Zephyr - $16 million; NBIC – $8.8 million. Our third and subsequent event retention for each insurance company subsidiary follows: Heritage P&C - $16.0 million; Zephyr - $16.0 million; NBIC – $8.8 million. Our program was placed on a cascading basis which provides greater horizontal protection in a multiple small events scenario and features additional coverage enhancements. This coverage exceeds the requirements established by the Companies’ rating agency, Demotech, Inc., the Florida Office of Insurance Regulation, the Hawaii Insurance Division, and the Rhode Island Department of Business Regulation. For the twelve months ending May 31, 2019, no single uncollateralized private reinsurer represented more than 10% of the overall limit purchased from our total reinsurance coverage. We are responsible for all losses and loss adjustment expenses in excess of our reinsurance program. For second or 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 $3.4 billion of limit purchased in 2018 includes reinstatement through the purchase of reinsurance reinstatement premium. In total, we have purchased $3.5 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. The Company's estimated net cost for the 2018-2019 catastrophe reinsurance programs is approximately $252.0 million. Gross Quota Share Reinsurance NBIC purchased an 8% gross quota share reinsurance treaty effective June 1, 2018 which provides ground up loss recoveries of up to $1.0 billion. Prior to this treaty, NBIC’s gross quota share treaty was 18.75%. Net Quota Share Reinsurance NBIC’s net quota share coverage is proportional reinsurance for which certain of our other reinsurance inures to the quota share (property catastrophe excess of loss and reinstatement premium protection and the second layer of the general excess of loss.) An occurrence limit of $20.0 million for catastrophe losses is in effect on the quota share, subject to certain aggregate loss limits that vary by reinsurer. The amount and rate of reinsurance commissions slide, within a prescribed minimum and maximum, depending on loss performance. NBIC ceded 60% of net premiums and losses during 2017 to the Net Quota Share. The net quota share program was renewed on December 31, 2017 ceding 49.5% of the net premiums and losses and 8% of the prior year quota share will runoff. Aggregate Coverage Heritage P&C and Zephyr $1.1 billion of limit is structured on an aggregate basis (Top and Aggregate, Layer 1, Layer 2, Layer 3, Layer 4, Stub layers, Multi-Zonal, 2017-1 Notes and 2016 Class E 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 The Company paid a reinsurance reinstatement premium for $669.0 million of this coverage, which can be a reinstated one time. Layers (with exception to FHCF and 2016 Class D Notes) are “net” of a $40.0 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. Aggregate Coverage - NBIC For the year ended December 31, 2017, NBIC had 25% of an Aggregate contract, in two sections: • Section 1: $20.0 million excess $21.5 million in the aggregate for all catastrophe losses excluding named tropical storms. • Section 2: $12.0 million excess $8.0 million for named tropical storm losses. NBIC placed 25% of an aggregate contract, which covers all catastrophe losses excluding named storms, on December 31, 2017, expiring May 31, 2018. The limit on the contract is $13.5 million, retention of $18.5 million and franchise deductible of $1.0 million. NBIC placed 42.50% of an aggregate contract, which covers all catastrophe losses excluding named storms, on May 31, 2018, expiring December 31, 2018. The limit on the contract is $20.0 million, retention of $3.0 million and franchise deductible of $1.5 million. NBIC placed 92.00% of an occurrence contract, which covers all catastrophe losses excluding named storms, on May 31, 2018, expiring December 31, 2018. The limit on the contract is $20.0 million with a retention of $20.0 million. Per Risk Coverage The Company also purchased property per risk coverage for losses and loss adjustment expenses in excess of $1.0 million per claim. The limit recovered for an individual loss is $9.0 million and total limit for all losses is $27.0 million. There are two reinstatements available with additional premium due based on the amount of the layer exhausted. In addition, the Company purchased facultative reinsurance in excess of $10.0 million for any commercial properties it insured where the total insured value exceeded $10.0 million. General Excess of Loss NBIC’s general excess of loss reinsurance protects NBIC from single risk losses, both property and casualty. The casualty coverage provided by this contract also responds on a “Clash” basis, meaning that multiple policies involved in a single loss occurrence can be aggregated into one loss and applied to the reinsurance contract. The coverage is in two layers in excess of NBIC’s retention of the first $300,000 of loss. The first layer is $450,000 excess $300,000 and the second layer is $2.75 million excess $750,000 (Casualty second layer is $1.25 million excess $750,000). Both layers are 92% placed with the gross quota share providing the additional 8% coverage. Semi-Automatic Facultative Excess of Loss NBIC’s automatic property facultative reinsurance protects NBIC from single risk losses, for property risks with a total insured value excess of $3.5 million subject to a limit of $3.75 million. 2017 – 2018 Reinsurance Program Heritage P&C and Zephyr 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 $731.0 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. For the twelve months ended May 31, 2018, no single uncollateralized private reinsurer represented more than 10% of the overall limit purchased from our total reinsurance coverage. 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 and 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 $20.0 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: • Heritage P&C’s Retention . If a first catastrophic event strikes a Heritage P&C risk, its primary retention is the first $20.0 million ($15.0 million plus $5.0 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 $16.0 million and the remainder of the losses are ceded to third parties. In a first event exceeding approximately $878.0 million, there is an additional co-participation of 20% subject to a maximum co-participation of $727,000. Assuming a 1-100yr first event, a second event exceeding approximately $420.0 million, results in an additional Company co-participation of 11.5% subject to a maximum co-participation of $36.0 million. Heritage P&C has a $16.0 million (including 20% co-participation) primary retention after a 1-100 yr. first event for events beyond the second catastrophic event. • Shared Layers . Immediately above the retention, the Company has purchased $372.0 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 $352.0 million of this reinsurance one time. There is $20.0 million of shared coverage subject to a seasonal aggregate of $68.0 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 B 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 $5.0 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 $35.0 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. We anticipate this layer will be exhausted due to Hurricane Irma losses. This coverage does not reinstate and any gap in coverage for the 2018 hurricane season will be addressed in our 2018-2019 catastrophe reinsurance program. • 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 seasons 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 $250.0 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 $150.0 million of coverage and the Class E notes provide $100.0 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. We anticipate that a portion of the 2016 Class E notes layer will be exhausted due to Hurricane Irma losses. This coverage does not reinstate and any gap in coverage for the 2018 hurricane season will be addressed in our 2018-2019 catastrophe reinsurance program. • 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 $30.0 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. We anticipate that a portion of the 2015 Class B and C notes layer will be exhausted due to Hurricane Irma losses. We have directed the Trustee to hold the collateral beyond the contract period to provide reimbursements for Hurricane Irma claims. This layer of reinsurance coverage will expire in advance of the 2018 hurricane season and any gap in coverage for the 2018 hurricane season will be addressed in our 2018-2019 catastrophe reinsurance program. 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 $125.0 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 $150.0 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 $254.0 million of reinsurance coverage purchased on this basis, which the Company is able to reinstate one time through the payment of a reinsurance reinstatement premium. • Aggregate Coverage . In addition to what is described above, much of the reinsurance is structured in a way to provide aggregate coverage. $984.0 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 The Company paid a reinsurance reinstatement premium for $606.0 million of this coverage, which can be a reinstated one time. Layers (with exception to FHCF, 2016 Class D & E Notes, and 2015 Class B & C Notes) are “net” of a $40.0 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 $20.0 million ($15.0 million plus $5.0 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 $16.0 million and the remainder of losses are ceded to third parties. In a first event exceeding approximately $386.0 million, there is an additional co-participation of 3.8% subject to a maximum co-participation of $12.0 million. Assuming a 1-100-year event, a second event exceeding approximately $386.0 million results in an additional co-participation of 117.7%, subject to a maximum co-participation of $56 million. Zephyr has a $16.0 million primary retention for events beyond the second catastrophic event. • Shared Layers above retention . Immediately above the retention, the Company has purchased $372.0 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 reinsurance reinstatement premium, Heritage P&C and Zephyr are able to reinstate $352.0 million of this reinsurance one time. There is $20.0 million of shared coverage subject to a seasonal aggregate of $68.0 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 $302.0 million of reinsurance coverage purchased on this basis, of which $254.0 million can be reinstated through the payment of reinsurance restatement premium. The multi-zonal occurrence layer provides first and second event coverage of $254.0 million for Hawaii and second event coverage of $254.0 million for Florida. A Top and Aggregate multi-zonal layer provides first event coverage of $48.0 million for Hawaii and second or subsequent event coverage of $48.0 million for Florida. • Top Hawaii only layer. Zephyr has an additional layer purchased from third party reinsurers which provides $26.0 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 $700.0 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. $632.0 million can be reinstated through the payment of a reinsurance premium. 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 $731.0 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 $632.0 million of limit purchased in 2017 includes reinstatement through the purchase of reinsurance reinstated premium. 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 coverage 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 Alabama, Georgia, 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, $250.0 million of coverage for two-year period and $160.0 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. Per Risk Coverage: The Company also purchased property per risk coverage for losses and loss adjustment expenses in excess of $1.0 million per claim. The limit recovered for an individual loss is $9.0 million and total limit for all losses is $27.0 million. There are two reinstatements available with additional premium due based on the amount of the layer exhausted. In addition, the Company purchased facultative reinsurance in excess of $10.0 million for any commercial properties it insured where the total insured value exceeded $10.0 million. NBIC Program NBIC, our insurance subsidiary located in Rhode Island, provides property insurance coverage in the states of Connecticut, Massachusetts, New Jersey, New York and Rhode Island. NBIC’s catastrophe reinsurance program provides coverage for loss occurrences up to $1.0 billion (1:100-year event) on the first event and includes automatic reinstatement protection. The program includes coverage for catastrophic events such as severe winter storms, hurricanes and tornadoes. During 2017, NBIC’s net retention for a catastrophic event of up to $1.0 billion is $1.3 million. NBIC’s reinsurance program also covers non-catastrophic losses. A summary of NBIC’s combined reinsurance protection follows. The reinsurance program is placed with strong participation from leading reinsurers across global markets with no one reinsurer exceeding 10%. The reinsurance partners are all rated A- to A+ by Standard and Poor’s. Property Catastrophe Excess of Loss NBIC’s property catastrophe program protects NBIC from the aggregation of losses in a single occurrence. Reinstatement provisions (one reinstatement at 100% of premium) on the first three layers and a portion of the fourth layer provides protection for NBIC from a second catastrophic event. The program is 81.25% placed, with the remaining 18.75% of catastrophe protection coming from NBIC’s gross quota share contract. NBIC’s net retention of $20.0 million is further reduced with a net quota share reinsurance contract described below. Reinstatement Premium Protection NBIC’s Reinstatement Premium Protection locks in the cost of a potential reinstatement premium charge that would occur should an event trigger catastrophe reinsurance. NBIC buys reinstatement premium protection for the first three layers and a portion of the fourth catastrophe excess of loss layers. Aggregate Contract For the year ended December 31, 2017, NBIC had 25% of an Aggregate contract, in two sections: • Section 1: $20.0 million excess $21.5 million in the aggregate for all catastrophe losses excluding named tropical storms. • Section 2: $12.0 million excess $8.0 million for named tropical storm losses. NBIC placed 25% of an aggregate contract on December 31, 2017, which expired on May 31, 2018. The limit on the contract is $13.5 million, retention of $18.5 million and franchise deductible of $1.0 million. Gross Quota Share NBIC purchased an 18.75% gross account quota share reinsurance treaty which provides ground up loss recoveries of up to $1.0 billion. Net Lines Quota Share • NBIC’s net lines quot |
Reserve For Unpaid Losses
Reserve For Unpaid Losses | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Reserve for Unpaid Losses | NOTE 12. RESERVE FOR UNPAID LOSSES The Company determines the reserve for unpaid losses on an individual-case basis for all incidents reported. The liability also includes amounts which are commonly referred to as incurred but not reported, or “IBNR”, claims as of the balance sheet date. The table below summarizes the activity related to the Company’s reserve for unpaid losses for the three and six months ended June 30, 2018 and 2017: For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Balance, beginning of period $ 547,736 $ 131,572 $ 470,083 $ 140,137 Less: reinsurance recoverable on unpaid losses 385,397 1,321 315,353 586 Net balance, beginning of period 162,339 130,251 154,730 139,551 Incurred related to: Current year 49,852 46,944 101,214 94,819 Prior years 16,137 (897 ) 17,866 (2,126 ) Total incurred 65,989 46,047 119,080 92,693 Paid related to: Current year 23,068 28,001 21,816 39,238 Prior years 31,958 28,010 78,692 72,719 Total paid 55,026 56,011 100,508 111,957 Net balance, end of period 173,302 120,287 173,302 120,287 Plus: reinsurance recoverable on unpaid losses 315,308 2,498 315,308 2,498 Balance, end of period $ 488,610 $ 122,785 $ 488,610 $ 122,785 As of June 30, 2018, we reported $173.3 million in unpaid losses and loss adjustment expenses, net of reinsurance which included $113.9 million attributable to IBNR net of reinsurance recoverable, or 65.7% of net reserves for unpaid losses and loss adjustment expenses. The Company’s losses incurred for the six months ended June 30, 2018 and 2017 reflect prior year development of $17.8 million and a redundancy of $2.1 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, 2017 was personal lines. Also, most of the unfavorable emergence was from 2015 and 2106 accident years and related to litigated claims. NBIC incurred losses in the first quarter of the year from seven different winter storms in the northeast, three of which were named storms. Gross losses for winter storms during the first quarter were approximately $56.0 million on a gross basis and approximately $9.0 million net of reinsurance. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 13. LONG-TERM DEBT In December 2016, the Company issued $79.5 million of Senior Secured Notes (“Secured Notes”) bearing 8.75% per annum plus the three-month average of LIBOR. Interest is accrued monthly and paid quarterly. At June 30, 2018, we recognized proceeds of $74.0 million on the issuance of the Secured Notes, net of issuance costs which totaled approximately $5.3 million. During the six months ended June 30, 2018 and 2017, the Company made interest payments of approximately $4.3 million and $3.9 million, respectively. Quarterly principal payments will commence on December 15, 2018. In August 2017 and September 2017, the Company issued in aggregate $136.8 million of 5.875% Convertible Senior Notes (“Convertible Notes”) maturing on August 1, 2037, unless earlier repurchased, redeemed or converted. Interest accrues from August 16, 2017 and is payable semi-annually in arrears, on February 1 and August 1 of each year, beginning in 2018. As of June 30, 2018, we recognized proceeds of $90.5 million on the issuance of the Convertible Notes, net of issuance and debt discount costs which totaled approximately, $11.0 million. For the six months ended June 30, 2018, the Company made interest payments of approximately $3.7 million. In November 2017, the Company, through its subsidiary Heritage P&C, reacquired $21.1 million of its outstanding Convertible Notes in the open market at a cost of $25.2 million. In April 2018, the Parent reacquired $10.6 million of its outstanding Convertible Notes in the open market at a cost of $13.4 million. Based on the reacquisitions of the Convertible Notes, the Companies derecognized the related debts and conversion option liabilities. In accordance with the purchase agreement governing the Company’s offer and sale of convertible debt, the Company or its affiliates are prohibited from reselling the notes once acquired. The repurchased Convertible Notes hold no registration rights. In October 2017, the Company and its subsidiary, Skye Lane Properties LLC, jointly obtained a commercial real estate mortgage loan in the amount of $12.7 million, bearing interest of 4.95% per annum. The Company makes monthly principal and interest payments against the loan. For the six months ended June 30, 2018, the Company paid in principal and interest $446 thousand. The following table summarizes the Company’s long-term debt at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 (in thousands) Convertible debt $ 105,024 $ 115,624 Mortgage loan 12,527 12,658 Senior Note payable 79,500 79,500 Total principal amount $ 197,051 $ 207,782 Less: unamortized discount and issuance costs Debt discount and issuance cost on convertible debt 14,506 17,605 Debt issuance cost on senior note payable 5,288 5,772 Total long-term debt $ 177,257 $ 184,405 |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Accounts Payable and Other Liabilities | NOTE 14. ACCOUNTS PAYABLE AND Other liabilities consist of the following at June 30, 2018 and December 31, 2017: Description June 30, 2018 December 31, 2017 (In thousands) Deferred ceding commission $ 42,836 $ 51,109 Outstanding claim checks 45,338 79,666 Accounts payable and other payables 10,713 17,948 Accrued interest and issuance costs 3,148 3,117 Accrued dividends 1,594 — Other liabilities 1,902 5,088 Commission payables 13,759 12,609 Total other liabilities $ 119,290 $ 169,537 |
Statutory Accounting and Regula
Statutory Accounting and Regulations | 6 Months Ended |
Jun. 30, 2018 | |
Text Block [Abstract] | |
Statutory Accounting and Regulations | NOTE 15. 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 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 their respective liabilities. Zephyr is required to maintain a deposit of $750 thousand in a federally insured financial institution. NBIC is required to maintain capital and surplus of $3.0 million. The combined statutory surplus at June 30, 2018 and December 31, 2017 was $342.5 million and $376.2 million, respectively. On a combined basis, the Company’s insurance subsidiaries reported statutory net loss for the six months of June 30, 2018 and 2017 of $61.1 million and $4.5 million, 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 June 30, 2018, 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, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 16. 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, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 17. RELATED PARTY TRANSACTIONS In January 2017, the Company entered into a consulting agreement with Mrs. 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 months ended June 30, 2018, the Company paid consulting fees to Ms. Lucas of approximately $302 thousand. |
Employee Benefit Plan
Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | NOTE 18. EMPLOYEE BENEFIT PLANS Heritage P&C provides a 401(k) plan for substantially all of its employees. Heritage P&C contributes 100% on the first 3% of employees’ contribution and 50% on the next 2% of the employees’ contribution to the plan. The maximum Safe Harbor match is 4%. For the six-month period ended June 30, 2018 and 2017, the Heritage P&C’s contributions to the plan on behalf of the participating employees were approximately $345 thousand and $425 thousand, respectively. Heritage P&C provides for its employees a partially self-insured healthcare plan and benefits. For the six months ended June 30, 2018 and 2017, Heritage P&C incurred medical premium costs in the aggregate of $1.8 million and $1.5 million, respectively. Heritage P&C also recorded approximately $150 thousand as unpaid claims as of June 30, 2018. A stop loss reinsurance policy caps the maximum loss that could be incurred by Heritage P&C under the self-insured plan. Heritage P&C’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 Heritage P&C. The aggregate stop loss commences once our expenses exceed 125% of the annual aggregate expected claims. NBIC provides a 401(k) plan for its employees who elect to participate and matches the contributions up to a maximum of 4%. Employer contributions vest 20% each year until fully vested after 5 years. For the six-month period ended June 30, 2018, NBIC contributions to the plan on behalf of the participating employees were approximately $224 thousand. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Equity | NOTE 19. 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, 2018, the Company had 25,769,804 shares of common stock outstanding, 7,214,797 treasury shares of common stock and 800,000 unvested shares of restricted common stock issued reflecting total paid-in capital of $294.2 million as of such date. As more fully disclosed in our audited consolidated financial statements for the year ended December 31, 2017, there were, as of December 31, 2017, 25,885,004 shares of common stock outstanding, 7,099,597 treasury shares of common stock and 675,000 unvested restricted stock grants, representing $294.8 million of additional paid-in capital. 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. At December 31, 2017, the Company had purchased in aggregate approximately $47 million in Company’s common stock. During the first quarter of 2018, the Company purchased 115,200 shares of its common stock for $2.0 million. The repurchase plan expired on June 30, 2018. On August 1, 2018, the Company announced that its Board of Directors authorized a stock repurchase program authorizing the Company to repurchase up to $50 million of its common stock through December 31, 2020 under our current Rule 10b5-1 trading plan, which allows the Company to repurchase shares below a predetermined price per share. The timing and amount of any repurchases will be determined based on market conditions and other factors and the program may be discontinued or suspended at any time. Dividends On February 26, 2018, the Company’s Board of Directors declared a $0.06 per share quarterly dividend payable on April 3, 2018, to shareholders of record March 15, 2018. On May 7, 2018, the Company’s Board of Directors declared a $0.06 per share quarterly dividend payable on July 6, 2018 to stockholders of record as of June 15, 2018. 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, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 20. STOCK-BASED COMPENSATION Restricted Stock 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. As of December 31, 2017, all unexercised shares have been forfeited. At June 30, 2018 there were 1,231,699 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. During the first quarter of 2018, the Company granted 125,000 shares of restricted stock with a fair value of $16.35. The restricted stock vests in equal annual installments over a five-year period. The Company grants stock options at exercise prices equal to the fair market value of the Company’s stock on the dates the options are granted. The options have a maximum term of ten years from the date of grant and vest primarily in equal annual installments over a range of one to five-year periods following the date of grant for employee options. If a participant’s employment relationship ends, the participant’s vested awards will remain exercisable for the shorter of a period of 30 days or the period ending on the latest date on which such award could have been exercisable. The fair value of each option grant is separately estimated for each grant date. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the award and each vesting date. The Company estimates the fair value of all stock option awards as of the date of the grant by applying the Black-Scholes-Merton multiple-option pricing valuation model. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. The Company has also granted shares of its common stock subject to certain restrictions under the Plan. Restricted stock awards granted to employees vest in equal installments generally over a five-year period from the grant date subject to the recipient’s continued employment. The fair value of restricted stock awards is 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. Restricted stock activity for the quarter ended June 30, 2018 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2017 675,000 $ 21.40 Granted 125,000 $ 16.35 Vested — — Canceled and surrendered — — Non-vested, at June 30, 2018 800,000 $ 20.61 Awards are being amortized to expense over the five-year vesting period. The Company recognized $2.6 million and $2.4 million of compensation expense for the six months ended June 30, 2018 and 2017, respectively. There was approximately $13.1 million of unrecognized compensation expense related to the un-vested restricted stock at June 30, 2018. The Company expects to recognize the remaining compensation expense over a weighted average period of 2.7 years. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 21. SUBSEQUENT EVENTS The Company performed an evaluation of subsequent events through the date the financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the financial statements as of June 30, 2018. On August 1, 2018, the Company announced that its Board of Directors declared a $0.06 per share quarterly dividend payable on October 3, 2018 to stockholders of record as of September 15, 2018. |
Basis of Presentation and Sig30
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and 2017 include Heritage Insurance Holdings, Inc. (“Parent Company”); its property and casualty insurance subsidiaries: Heritage Property & Casualty Insurance Company (“Heritage P&C”), Narragansett Bay Insurance Company (“NBIC”) and Zephyr Insurance Company, Inc. (“Zephyr”); 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 (“BRC”), our provider of restoration, emergency and recovery services; 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. Through our insurance subsidiaries, Heritage P&C, Zephyr and NBIC, we write personal residential insurance for single-family homeowners and condominium owners, and rental property insurance in the states of Alabama, Connecticut, Florida, Georgia, Hawaii, Massachusetts, New Jersey, New York, North Carolina, Rhode Island and South Carolina. We also provide commercial residential insurance for Florida properties and are also licensed in the states of Mississippi and Pennsylvania. We are vertically integrated and control or manage substantially all aspects of insurance underwriting, customer service, actuarial analysis, distribution and claims processing and adjusting. The condensed consolidated financial information included herein as of and for the three and six months ended June 30, 2018 and 2017 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, 2018 and 2017 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, 2017 consolidated balance sheet was derived from the Company’s audited consolidated financial statements as of and for the year ended December 31, 2017. 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, 2017 (the “2017 Form 10-K”). References to “we”, “us”, “our”, or the “Company” refer to Heritage Insurance Holdings, Inc. and its consolidated subsidiaries. |
Reclassification | Reclassification We have reclassified certain amounts in the 2017 statement of operations to conform to our 2018 presentation. Additionally, we reclassified certain amounts in the 2017 consolidated statement of cash flows to conform to the 2018 presentation, relating to the presentation of restricted cash and cash equivalents. This reclassification is a result of our adoption of Accounting Standards Update (ASU) 2016-18, Restricted Cash effective January 1, 2018. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) The Company early adopted the updated guidance effective January 1, 2018 and elected to reclassify the stranded income tax effects relating to the reduction in the federal corporate income tax rate from AOCI”) to retained earnings at the beginning of the period of adoption. The net impact of the accounting change resulted in a $0.4 million decrease in AOCI comprised of income taxes associated with net unrealized losses on investments and a corresponding increase in retained earnings. 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. 2017-01, 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 November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. Technical Corrections and Improvements to Financial Instruments—Overall In May 2014, the FASB issued ASU Topic 2014-09, Revenue from Contracts with Customers Accounting Pronouncements Not Yet Adopted The Company describes below recent pronouncements that may have a significant effect on its consolidated 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 March 2018, the FASB issued ASU 2018-04, Investments-Debt Securities (Topic 320) and Regulated Operations (Topic 980). Investments-Debt Securities Regulated Operations In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Lease Accounting, To date, we have taken an inventory of all our operating leases, which consist primarily of auto, equipment and real estate owned and unowned by the Company, started our review of key lease agreements including contract review for embedded leases, and are currently evaluating lease terms, lease payments and appropriate discount rates to use in calculating the right-to-use asset and lease liability. In addition, we are currently evaluating the transition package of practical expedients permitted within the new standard, which among other things, allows us to use hindsight to determine the reasonably certain lease term for existing leases, and allows for the adoption of the new standard at the effective date without adjusting the comparative prior periods presented. We will be continuously assessing the impact of the new standard and the impact on our systems, processes and controls through January 1, 2019, our planned adoption date. 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, 2018 | |
Business Combinations [Abstract] | |
Summary of Pro Forma Information | The following unaudited pro forma results of operations assume that the NBIC acquisition occurred at the beginning of the periods presented. The pro forma amounts include certain adjustments, including depreciation and amortization expense and income taxes. The unaudited pro forma information assumes the acquisition had taken place January 1, 2017. The unaudited pro forma effects for the three and six months ended June 30, 2017 is as follows: For the Three Months Ended June 30, 2017 For the Six Months Ended June 30, 2017 (in thousands, except per share) Revenue $ 111,252 $ 224,938 Net income $ 10,056 $ 17,394 Basic, earnings per share $ 0.36 $ 0.61 Diluted, earnings per share $ 0.36 $ 0.61 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and December 31, 2017: Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (In thousands) June 30, 2018 U.S. government and agency securities $ 30,537 $ 8 $ 875 $ 29,670 States, municipalities and political subdivisions 63,340 7 1,257 62,090 Special revenue 274,357 32 5,097 269,292 Industrial and miscellaneous 146,817 14 3,628 143,203 Redeemable preferred stocks 4,824 7 165 4,666 Total fixed maturities 519,875 68 11,022 508,921 Nonredeemable preferred stocks 13,922 30 517 13,435 Equity securities 3,098 42 617 2,523 Total equity securities 17,020 72 1,134 15,958 Total investments $ 536,895 $ 140 $ 12,156 $ 524,879 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) December 31, 2017 U.S. government and agency securities $ 39,445 $ 7 $ 572 $ 38,880 States, municipalities and political subdivisions 76,876 104 569 76,411 Special revenue 269,277 524 2,124 267,677 Industrial and miscellaneous 162,093 668 633 162,128 Redeemable preferred stocks 4,767 4 71 4,700 Total fixed maturities 552,458 1,307 3,969 549,796 Nonredeemable preferred stocks 14,450 69 195 14,324 Equity securities 3,098 64 269 2,893 Total equity securities 17,548 133 464 17,217 Total investments $ 570,006 $ 1,440 $ 4,433 $ 567,013 |
Schedule of Net Realized (Losses) Gains 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 (losses) gains by major investment category for the three and six months ended June 30, 2018 and 2017. 2018 2017 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) For the Three Months Ended June 30, Fixed maturities $ 2 $ 70,401 $ 15 $ 5,706 Equity securities 1 169 54 2,352 Total realized gains 3 70,570 69 8,058 Fixed maturities (39 ) 7,487 (170 ) 1,686 Equity securities (49 ) 1,517 (24 ) 1,130 Total realized losses (88 ) 9,004 (194 ) 2,816 Net realized (losses) gains $ (85 ) $ 79,574 $ (125 ) $ 10,874 2018 2017 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) For the Six Months Ended June 30, Fixed maturities $ 76 $ 233,874 $ 34 $ 8,635 Equity securities 1 169 811 9,565 Total realized gains 77 234,043 845 18,200 Fixed maturities (242 ) 61,325 (174 ) 7,244 Equity securities (147 ) 3,758 (25 ) 657 Total realized losses (389 ) 65,083 (199 ) 7,901 Net realized (losses) gains $ (312 ) $ 299,126 $ 646 $ 26,101 |
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, 2018 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, 2018 Cost or Amortized Cost Percent of Total Fair Value Percent of Total (In thousands) (In thousands) Due in one year or less $ 41,719 8 % $ 41,643 8 % Due after one year through five years 163,622 31 % 161,028 32 % Due after five years through ten years 134,017 26 % 129,488 25 % Due after ten years 180,517 35 % 176,762 35 % Total $ 519,875 100 % $ 508,921 100 % |
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, 2018 and 2017, respectively: For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Fixed maturities $ 2,593 $ 2,650 $ 4,978 $ 5,161 Equity securities 314 482 617 979 Cash, cash equivalents and short-term investments 204 34 1,243 103 Other investments 114 — 183 — Net investment income 3,225 3,166 7,021 6,243 Investment expenses 670 193 1,164 768 Net investment income, less investment expenses $ 2,555 $ 2,973 $ 5,857 $ 5,475 |
Aging of Gross Unrealized Investment Losses | The following tables present an aging of our unrealized investment losses by investment class as of June 30, 2018 and December 31, 2017: 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, 2018 U.S. government and agency securities 49 $ 600 $ 18,067 36 $ 275 $ 8,978 States, municipalities and political subdivisions 53 868 43,028 10 388 12,747 Industrial and miscellaneous 477 3,259 133,621 34 369 5,793 Special revenue 324 3,080 159,263 165 2,017 52,697 Redeemable preferred stocks 6 158 3,548 7 7 71 Total fixed maturities 909 7,965 357,527 252 3,056 80,286 Nonredeemable preferred stocks 177 492 11,098 22 26 315 Equity securities 9 203 801 8 414 1,101 Total equity securities 186 $ 695 $ 11,899 30 $ 440 $ 1,416 Total 1,095 $ 8,660 $ 369,426 282 $ 3,496 $ 81,702 Less Than Twelve Months Twelve Months or More Number Gross Losses Fair Number of Securities Gross Unrealized Losses Fair Value (In thousands) December 31, 2017 U.S. government and agency securities 53 $ 284 $ 20,053 24 $ 289 $ 9,294 States, municipalities and political subdivisions 51 359 49,803 8 210 10,503 Industrial and miscellaneous 284 376 87,898 38 256 11,788 Special revenue 295 777 133,580 183 1,347 69,359 Redeemable preferred stocks 41 66 3,987 17 5 61 Total fixed maturities 724 1,862 295,321 270 2,107 101,005 Nonredeemable preferred stocks 127 188 10,047 6 7 159 Equity securities 11 46 677 12 223 1,095 Total equity securities 138 $ 234 $ 10,724 18 $ 230 $ 1,254 Total 862 $ 2,096 $ 306,045 288 $ 2,337 $ 102,259 |
Fair Value of Financial Instr33
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | The following table presents information about the Company’s assets measured at fair value on a recurring basis. The Company assesses the levels for the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognitions of transfers between levels of the fair value hierarchy. At June 30, 2018 and December 31, 2017, there were no transfers in or out of Level 1, 2, and 3. June 30, 2018 Total Level 1 Level 2 Level 3 (in thousands) Fixed maturities investments: U.S. government and agency securities $ 29,670 $ 351 $ 29,319 $ — States, municipalities and political subdivisions 62,090 — 62,090 — Special revenue 269,292 — 269,292 — Industrial and miscellaneous 143,203 — 143,203 — Redeemable preferred stocks 4,666 4,666 — — Total fixed maturities investments $ 508,921 $ 5,017 $ 503,904 $ — Nonredeemable preferred stocks 13,435 13,435 — — Equity securities 2,523 2,523 — — Total equity securities $ 15,958 $ 15,958 $ — $ — Total investments $ 524,879 $ 20,975 $ 503,904 $ — December 31, 2017 Total Level 1 Level 2 Level 3 (in thousands) Fixed maturities investments: U.S. government and agency securities $ 38,880 $ 359 $ 38,521 $ — States, municipalities and political subdivisions 76,411 — 76,411 — Special revenue 267,677 — 267,677 — Industrial and miscellaneous 162,128 — 162,128 — Redeemable preferred stocks 4,700 — 4,700 — Total fixed maturities investments $ 549,796 $ 359 $ 549,437 $ — Nonredeemable preferred stocks 14,324 14,324 — — Equity securities 2,893 2,893 — — Total equity securities $ 17,217 $ 17,217 $ — $ — Total investments $ 567,013 $ 17,576 $ 549,437 $ — |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Comprehensive Income Net Of Tax [Abstract] | |
Summary of Other Comprehensive Income and Tax Impact of Each Component of Other Comprehensive Income | The following table is a summary of other comprehensive income and discloses the tax impact of each component of other comprehensive income for the three and six months ended June 30, 2018 and 2017: For the Three Months Ended June 30, 2018 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax (in thousands) Other comprehensive income Change in unrealized losses on investments, net $ (545 ) $ (257 ) $ (802 ) $ 3,899 $ (1,523 ) $ 2,376 Reclassification adjustment of realized losses (gains) included in net income 85 18 103 125 (26 ) 99 Effect on other comprehensive income $ (460 ) $ (239 ) $ (699 ) $ 4,024 $ (1,549 ) $ 2,475 For the Six Months Ended June 30, 2018 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax (in thousands) Other comprehensive income Change in unrealized losses on investments, net $ (7,023 ) $ 1,518 $ (5,505 ) $ 7,880 $ (2,921 ) $ 4,959 Reclassification adjustment of realized losses (gains) included in net income $ 312 $ 66 $ 378 (646 ) 136 (510 ) Effect on other comprehensive income $ (6,711 ) $ 1,584 $ (5,127 ) $ 7,234 $ (2,785 ) $ 4,449 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 (In thousands) Land $ 2,582 $ 2,582 Building 12,117 12,148 Computer hardware and software 3,869 4,093 Office furniture and equipment 987 759 Tenant and leasehold improvements 4,004 3,660 Vehicle fleet 865 815 Total, at cost 24,424 24,057 Less: accumulated depreciation and amortization 6,095 5,309 Property and equipment, net $ 18,329 $ 18,748 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill (in thousands) Balance as of December 31, 2017 $ 152,459 Goodwill acquired — Impairment — Balance as of June 30, 2018 $ 152,459 |
Schedule of Estimated Amortization of Intangible Assets | Estimated annual pretax amortization of intangible assets for each of the next five years and thereafter is as follows (in thousands): Year Amount 2018 remaining $ 11,520 2019 $ 8,208 2020 $ 6,365 2021 $ 6,351 2022 $ 6,351 2023 $ 6,351 Thereafter $ 41,910 Total $ 87,056 (1) Excludes insurance licenses valued at $1.3 million 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, 2018 | |
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. For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Basic earnings per share: Net income attributable to common stockholders (000's) $ 2,408 $ 6,642 $ 17,238 $ 12,625 Weighted average shares outstanding 25,631,871 28,283,587 25,679,448 28,543,703 Basic earnings per share: $ 0.09 $ 0.23 $ 0.67 $ 0.44 Diluted earnings per share: Net income attributable to common stockholders (000's) $ 2,408 $ 6,642 $ 17,238 $ 12,625 Weighted average shares outstanding 25,631,871 28,283,587 25,679,448 28,543,703 Weighted average dilutive shares 684,726 — 801,259 — Total weighted average dilutive shares 26,316,597 28,283,587 26,480,707 28,543,703 Diluted earnings per share: $ 0.09 $ 0.23 $ 0.65 $ 0.44 |
Deferred Policy Acquisition C38
Deferred Policy Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 months ended June 30, 2018 and 2017: For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Beginning Balance $ 53,862 $ 41,215 $ 41,678 $ 42,779 Policy acquisition costs deferred 31,572 22,315 55,940 44,193 Amortization (15,786 ) (21,738 ) (27,970 ) (45,180 ) Ending Balance $ 69,648 $ 41,792 $ 69,648 $ 41,792 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 December 31, 2017 Deferred tax assets: (In thousands) Unearned premiums $ 9,833 $ 12,488 Unearned commission 10,266 11,987 Net operating loss — 4,727 Tax-related discount on loss reserve 1,427 1,250 Unrealized loss 2,922 — Stock-based compensation 809 — Prepaid expenses 1,582 1,950 Other 519 331 Total deferred tax asset 27,358 32,733 Deferred tax liabilities: Deferred acquisition costs 16,759 9,775 Prepaid expenses 369 27,568 Unrealized gains — 30 Property and equipment 358 — Note discount 2,655 3,818 Basis in purchased investments 200 335 Basis in purchased intangibles 21,114 24,250 Other 1,253 1,290 Total deferred tax liabilities 42,708 67,066 Net deferred tax liability $ (15,350 ) $ (34,333 ) |
Reserve for Unpaid Losses (Tabl
Reserve for Unpaid Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Summary of Reserve for Unpaid Losses | The table below summarizes the activity related to the Company’s reserve for unpaid losses for the three and six months ended June 30, 2018 and 2017: For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Balance, beginning of period $ 547,736 $ 131,572 $ 470,083 $ 140,137 Less: reinsurance recoverable on unpaid losses 385,397 1,321 315,353 586 Net balance, beginning of period 162,339 130,251 154,730 139,551 Incurred related to: Current year 49,852 46,944 101,214 94,819 Prior years 16,137 (897 ) 17,866 (2,126 ) Total incurred 65,989 46,047 119,080 92,693 Paid related to: Current year 23,068 28,001 21,816 39,238 Prior years 31,958 28,010 78,692 72,719 Total paid 55,026 56,011 100,508 111,957 Net balance, end of period 173,302 120,287 173,302 120,287 Plus: reinsurance recoverable on unpaid losses 315,308 2,498 315,308 2,498 Balance, end of period $ 488,610 $ 122,785 $ 488,610 $ 122,785 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Long-Term Debt | The following table summarizes the Company’s long-term debt at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 (in thousands) Convertible debt $ 105,024 $ 115,624 Mortgage loan 12,527 12,658 Senior Note payable 79,500 79,500 Total principal amount $ 197,051 $ 207,782 Less: unamortized discount and issuance costs Debt discount and issuance cost on convertible debt 14,506 17,605 Debt issuance cost on senior note payable 5,288 5,772 Total long-term debt $ 177,257 $ 184,405 |
Accounts Payable and Other Li42
Accounts Payable and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | Other liabilities consist of the following at June 30, 2018 and December 31, 2017: Description June 30, 2018 December 31, 2017 (In thousands) Deferred ceding commission $ 42,836 $ 51,109 Outstanding claim checks 45,338 79,666 Accounts payable and other payables 10,713 17,948 Accrued interest and issuance costs 3,148 3,117 Accrued dividends 1,594 — Other liabilities 1,902 5,088 Commission payables 13,759 12,609 Total other liabilities $ 119,290 $ 169,537 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Restricted Stock Activity | Restricted stock activity for the quarter ended June 30, 2018 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2017 675,000 $ 21.40 Granted 125,000 $ 16.35 Vested — — Canceled and surrendered — — Non-vested, at June 30, 2018 800,000 $ 20.61 |
Basis of Presentation And Sig44
Basis of Presentation And Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Restricted cash | $ 16,884 | $ 20,833 | ||
Recognition of net pre-tax unrealized loss on equity investments | $ 400 | |||
ASU 2016-18 [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Restricted cash | $ 20,800 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) | Nov. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 152,459,000 | $ 152,459,000 | |
NBIC Holdings, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 250,000,000 | ||
Purchase price for the acquisition in cash | $ 210,000,000 | ||
Issuance of common stock for business acquisition, number of restricted common shares | 2,222,215 | ||
Purchase price for the acquisition, common stock aggregate value | $ 40,000,000 | ||
Goodwill | 106,000,000 | ||
Goodwill, expected to be deductible for income tax purposes | $ 0 |
Acquisition - Summary of Pro Fo
Acquisition - Summary of Pro Forma Information (Detail) - NBIC Holdings, Inc [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||
Revenue | $ 111,252 | $ 224,938 |
Net income | $ 10,056 | $ 17,394 |
Basic, earnings per share | $ 0.36 | $ 0.61 |
Diluted, earnings per share | $ 0.36 | $ 0.61 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value of Investment Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | $ 519,875 | $ 552,458 |
Gross Unrealized Gains | 140 | 1,440 |
Gross Unrealized Losses | 12,156 | 4,433 |
Fair Value | 524,879 | 567,013 |
Investments | 536,895 | 570,006 |
Fair Value | 524,879 | 567,013 |
Fixed Maturities Excluding Certificate of Deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 519,875 | 552,458 |
Gross Unrealized Gains | 68 | 1,307 |
Gross Unrealized Losses | 11,022 | 3,969 |
Fair Value | 508,921 | 549,796 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 17,020 | 17,548 |
Gross Unrealized Gains | 72 | 133 |
Gross Unrealized Losses | 1,134 | 464 |
Fair Value | 15,958 | 17,217 |
U.S. government and agency securities [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 30,537 | 39,445 |
Gross Unrealized Gains | 8 | 7 |
Gross Unrealized Losses | 875 | 572 |
Fair Value | 29,670 | 38,880 |
States, Municipalities and Political Subdivisions [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 63,340 | 76,876 |
Gross Unrealized Gains | 7 | 104 |
Gross Unrealized Losses | 1,257 | 569 |
Fair Value | 62,090 | 76,411 |
Special Revenue [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 274,357 | 269,277 |
Gross Unrealized Gains | 32 | 524 |
Gross Unrealized Losses | 5,097 | 2,124 |
Fair Value | 269,292 | 267,677 |
Industrial and Miscellaneous [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 146,817 | 162,093 |
Gross Unrealized Gains | 14 | 668 |
Gross Unrealized Losses | 3,628 | 633 |
Fair Value | 143,203 | 162,128 |
Redeemable Preferred Stocks [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 4,824 | 4,767 |
Gross Unrealized Gains | 7 | 4 |
Gross Unrealized Losses | 165 | 71 |
Fair Value | 4,666 | 4,700 |
Nonredeemable Preferred Stocks [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 13,922 | 14,450 |
Gross Unrealized Gains | 30 | 69 |
Gross Unrealized Losses | 517 | 195 |
Fair Value | 13,435 | 14,324 |
Common Stock [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Adjusted / Amortized Cost | 3,098 | 3,098 |
Gross Unrealized Gains | 42 | 64 |
Gross Unrealized Losses | 617 | 269 |
Fair Value | $ 2,523 | $ 2,893 |
Investments - Schedule of Net R
Investments - Schedule of Net Realized (Losses) Gains by Major Investment Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Total realized gains | $ 3 | $ 69 | $ 77 | $ 845 |
Total realized losses | (88) | (194) | (389) | (199) |
Net realized (losses) gains | (85) | (125) | (312) | 646 |
Total realized gains Fair Value at Sale | 70,570 | 8,058 | 234,043 | 18,200 |
Total realized losses Fair Value at Sale | 9,004 | 2,816 | 65,083 | 7,901 |
Net realized (losses) gains, Fair Value at Sale | 79,574 | 10,874 | 299,126 | 26,101 |
Fixed Maturity [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total realized gains | 2 | 15 | 76 | 34 |
Total realized losses | (39) | (170) | (242) | (174) |
Total realized gains Fair Value at Sale | 70,401 | 5,706 | 233,874 | 8,635 |
Total realized losses Fair Value at Sale | 7,487 | 1,686 | 61,325 | 7,244 |
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total realized gains | 1 | 54 | 1 | 811 |
Total realized losses | (49) | (24) | (147) | (25) |
Total realized gains Fair Value at Sale | 169 | 2,352 | 169 | 9,565 |
Total realized losses Fair Value at Sale | $ 1,517 | $ 1,130 | $ 3,758 | $ 657 |
Investments - Schedule of Amo49
Investments - Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less, Cost or Amortized Cost | $ 41,719 | |
Due after one year through five years, Cost or Amortized Cost | 163,622 | |
Due after five years through ten years, Cost or Amortized Cost | 134,017 | |
Due after ten years, Cost or Amortized Cost | 180,517 | |
Cost or Adjusted / Amortized Cost | $ 519,875 | $ 552,458 |
Due in one year or less, Percentage of Total | 8.00% | |
Due after one year through five years, Percentage of Total | 31.00% | |
Due after five years through ten years, Percentage of Total | 26.00% | |
Due after ten years, Percentage of Total | 35.00% | |
Total, Percentage | 100.00% | |
Due in one year or less, Fair Value | $ 41,643 | |
Due after one year through five years, Fair Value | 161,028 | |
Due after five years through ten years, Fair Value | 129,488 | |
Due after ten years, Fair Value | 176,762 | |
Total, Fair Value | $ 508,921 | $ 549,796 |
Due in one year or less, Percentage of Total | 8.00% | |
Due after one year through five years, Percentage of Total | 32.00% | |
Due after five years through ten years, Percentage of Total | 25.00% | |
Due after ten years, Percentage of Total | 35.00% | |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | $ 3,225 | $ 3,166 | $ 7,021 | $ 6,243 |
Investment expenses | 670 | 193 | 1,164 | 768 |
Net investment income, less investment expenses | 2,555 | 2,973 | 5,857 | 5,475 |
Fixed Maturity [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | 2,593 | 2,650 | 4,978 | 5,161 |
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | 314 | 482 | 617 | 979 |
Cash and Cash Equivalents [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | 204 | $ 34 | 1,243 | $ 103 |
Other Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | $ 114 | $ 183 |
Investments - Aging of Gross Un
Investments - Aging of Gross Unrealized Investment Losses (Detail) $ in Thousands | Jun. 30, 2018USD ($)Security | Dec. 31, 2017USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 1,095 | 862 |
Gross Unrealized Losses, Less Than Twelve Months | $ 8,660 | $ 2,096 |
Fair Value, Less Than Twelve Months | $ 369,426 | $ 306,045 |
Number of Securities, Twelve Months or Greater | Security | 282 | 288 |
Gross Unrealized Losses, Twelve Months or Greater | $ 3,496 | $ 2,337 |
Fair Value, Twelve Months or Greater | $ 81,702 | $ 102,259 |
Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 909 | 724 |
Gross Unrealized Losses, Less Than Twelve Months | $ 7,965 | $ 1,862 |
Fair Value, Less Than Twelve Months | $ 357,527 | $ 295,321 |
Number of Securities, Twelve Months or Greater | Security | 252 | 270 |
Gross Unrealized Losses, Twelve Months or Greater | $ 3,056 | $ 2,107 |
Fair Value, Twelve Months or Greater | $ 80,286 | $ 101,005 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 186 | 138 |
Gross Unrealized Losses, Less Than Twelve Months | $ 695 | $ 234 |
Fair Value, Less Than Twelve Months | $ 11,899 | $ 10,724 |
Number of Securities, Twelve Months or Greater | Security | 30 | 18 |
Gross Unrealized Losses, Twelve Months or Greater | $ 440 | $ 230 |
Fair Value, Twelve Months or Greater | $ 1,416 | $ 1,254 |
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 | 49 | 53 |
Gross Unrealized Losses, Less Than Twelve Months | $ 600 | $ 284 |
Fair Value, Less Than Twelve Months | $ 18,067 | $ 20,053 |
Number of Securities, Twelve Months or Greater | Security | 36 | 24 |
Gross Unrealized Losses, Twelve Months or Greater | $ 275 | $ 289 |
Fair Value, Twelve Months or Greater | $ 8,978 | $ 9,294 |
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 | 53 | 51 |
Gross Unrealized Losses, Less Than Twelve Months | $ 868 | $ 359 |
Fair Value, Less Than Twelve Months | $ 43,028 | $ 49,803 |
Number of Securities, Twelve Months or Greater | Security | 10 | 8 |
Gross Unrealized Losses, Twelve Months or Greater | $ 388 | $ 210 |
Fair Value, Twelve Months or Greater | $ 12,747 | $ 10,503 |
Special Revenue [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 324 | 295 |
Gross Unrealized Losses, Less Than Twelve Months | $ 3,080 | $ 777 |
Fair Value, Less Than Twelve Months | $ 159,263 | $ 133,580 |
Number of Securities, Twelve Months or Greater | Security | 165 | 183 |
Gross Unrealized Losses, Twelve Months or Greater | $ 2,017 | $ 1,347 |
Fair Value, Twelve Months or Greater | $ 52,697 | $ 69,359 |
Industrial and Miscellaneous [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 477 | 284 |
Gross Unrealized Losses, Less Than Twelve Months | $ 3,259 | $ 376 |
Fair Value, Less Than Twelve Months | $ 133,621 | $ 87,898 |
Number of Securities, Twelve Months or Greater | Security | 34 | 38 |
Gross Unrealized Losses, Twelve Months or Greater | $ 369 | $ 256 |
Fair Value, Twelve Months or Greater | $ 5,793 | $ 11,788 |
Redeemable Preferred Stocks [Member] | Fixed Maturity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 6 | 41 |
Gross Unrealized Losses, Less Than Twelve Months | $ 158 | $ 66 |
Fair Value, Less Than Twelve Months | $ 3,548 | $ 3,987 |
Number of Securities, Twelve Months or Greater | Security | 7 | 17 |
Gross Unrealized Losses, Twelve Months or Greater | $ 7 | $ 5 |
Fair Value, Twelve Months or Greater | $ 71 | $ 61 |
Nonredeemable Preferred Stocks [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 177 | 127 |
Gross Unrealized Losses, Less Than Twelve Months | $ 492 | $ 188 |
Fair Value, Less Than Twelve Months | $ 11,098 | $ 10,047 |
Number of Securities, Twelve Months or Greater | Security | 22 | 6 |
Gross Unrealized Losses, Twelve Months or Greater | $ 26 | $ 7 |
Fair Value, Twelve Months or Greater | $ 315 | $ 159 |
Common Shares [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than Twelve Months | Security | 9 | 11 |
Gross Unrealized Losses, Less Than Twelve Months | $ 203 | $ 46 |
Fair Value, Less Than Twelve Months | $ 801 | $ 677 |
Number of Securities, Twelve Months or Greater | Security | 8 | 12 |
Gross Unrealized Losses, Twelve Months or Greater | $ 414 | $ 223 |
Fair Value, Twelve Months or Greater | $ 1,101 | $ 1,095 |
Fair Value of Financial Instr52
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | $ 508,921 | $ 549,796 |
Available for sale equity securities | 15,958 | 17,217 |
Available for sale securities | 524,879 | 567,013 |
Nonredeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 13,435 | 14,324 |
Equity Investment [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 2,523 | 2,893 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 5,017 | 359 |
Available for sale equity securities | 15,958 | 17,217 |
Available for sale securities | 20,975 | 17,576 |
Level 1 [Member] | Nonredeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 13,435 | 14,324 |
Level 1 [Member] | Equity Investment [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 2,523 | 2,893 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 503,904 | 549,437 |
Available for sale securities | 503,904 | 549,437 |
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 | 29,670 | 38,880 |
Available for sale securities | 29,670 | 38,880 |
Fixed Maturity [Member] | States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 62,090 | 76,411 |
Available for sale securities | 62,090 | 76,411 |
Fixed Maturity [Member] | Special Revenue [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 269,292 | 267,677 |
Available for sale securities | 269,292 | 267,677 |
Fixed Maturity [Member] | Industrial and Miscellaneous [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 143,203 | 162,128 |
Available for sale securities | 143,203 | 162,128 |
Fixed Maturity [Member] | Redeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 4,666 | 4,700 |
Available for sale securities | 4,666 | 4,700 |
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 | 351 | 359 |
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 | 4,666 | |
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 | 29,319 | 38,521 |
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 | 62,090 | 76,411 |
Fixed Maturity [Member] | Level 2 [Member] | Special Revenue [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | 269,292 | 267,677 |
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 | $ 143,203 | 162,128 |
Fixed Maturity [Member] | Level 2 [Member] | Redeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale debt securities | $ 4,700 |
Other Comprehensive Income - Su
Other Comprehensive Income - Summary of Other Comprehensive Income and Tax Impact of Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other comprehensive income | ||||
Change in unrealized losses on investments, net, Pre-tax | $ (545) | $ 3,899 | $ (7,023) | $ 7,880 |
Reclassification adjustment of realized losses (gains) included in net income, Pre-tax | 85 | 125 | 312 | (646) |
Effect on other comprehensive income, Pre-tax | (460) | 4,024 | (6,711) | 7,234 |
Change in unrealized losses on investments, net, Tax | (257) | (1,523) | 1,518 | (2,921) |
Reclassification adjustment of realized losses (gains) included in net income, Tax | 18 | (26) | 66 | 136 |
Effect on other comprehensive income, Tax | (239) | (1,549) | 1,584 | (2,785) |
Change in unrealized losses on investments, net, After-tax | (802) | 2,376 | (5,505) | 4,959 |
Reclassification adjustment of realized losses (gains) included in net income, After-tax | 103 | 99 | 378 | (510) |
Effect on other comprehensive income, After-tax | $ (699) | $ 2,475 | $ (5,127) | $ 4,449 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 24,424 | $ 24,057 |
Less: accumulated depreciation and amortization | 6,095 | 5,309 |
Property and equipment, net | 18,329 | 18,748 |
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 | 12,117 | 12,148 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 3,869 | 4,093 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 987 | 759 |
Tenant and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 4,004 | 3,660 |
Vehicle Fleet [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 865 | $ 815 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) ft² in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)aft²Building | Jun. 30, 2017USD ($) | |
Property Plant And Equipment Useful Life And Values [Abstract] | ||
Depreciation and amortization expense | $ | $ 786 | $ 341 |
Number of acres of land purchased | a | 15 | |
Number of buildings | Building | 5 | |
Gross area of acquired property | ft² | 229 |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 152,459,000 | $ 152,459,000 | $ 152,459,000 | ||
Intangibles, net | 88,371,000 | 88,371,000 | $ 101,626,000 | ||
Indefinite lived intangible, insurance licenses | 1,300,000 | 1,300,000 | |||
Amortization of intangible assets | $ 6,600,000 | $ 558,000 | 13,300,000 | $ 3,000,000 | |
Impairment of amortizing intangible assets | 0 | 0 | |||
Impairment of non-amortizing intangible assets | $ 0 | $ 0 | |||
NBIC [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Estimated value of business acquired | 1 year | ||||
Minimum [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Useful life of intangible asset | 2 years 6 months | ||||
Maximum [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Useful life of intangible asset | 15 years |
Goodwill and Other Intangible57
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 152,459 |
Ending balance | $ 152,459 |
Goodwill and Other Intangible58
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2018 remaining | $ 11,520 |
2,019 | 8,208 |
2,020 | 6,365 |
2,021 | 6,351 |
2,022 | 6,351 |
2,023 | 6,351 |
Thereafter | 41,910 |
Total | $ 87,056 |
Goodwill and Other Intangible59
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Parenthetical) (Details) $ in Millions | Jun. 30, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Indefinite lived intangible, insurance licenses | $ 1.3 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic earnings per share: | ||||
Net income attributable to common stockholders (000's) | $ 2,408 | $ 6,642 | $ 17,238 | $ 12,625 |
Weighted average shares outstanding | 25,631,871 | 28,283,587 | 25,679,448 | 28,543,703 |
Basic earnings per share: | $ 0.09 | $ 0.23 | $ 0.67 | $ 0.44 |
Diluted earnings per share: | ||||
Net income attributable to common stockholders (000's) | $ 2,408 | $ 6,642 | $ 17,238 | $ 12,625 |
Weighted average shares outstanding | 25,631,871 | 28,283,587 | 25,679,448 | 28,543,703 |
Weighted average dilutive shares | 684,726 | 801,259 | ||
Total weighted average dilutive shares | 26,316,597 | 28,283,587 | 26,480,707 | 28,543,703 |
Diluted earnings per share: | $ 0.09 | $ 0.23 | $ 0.65 | $ 0.44 |
Deferred Policy Acquisition C61
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Insurance [Abstract] | ||||
Beginning Balance | $ 53,862 | $ 41,215 | $ 41,678 | $ 42,779 |
Policy acquisition costs deferred | 31,572 | 22,315 | 55,940 | 44,193 |
Amortization | (15,786) | (21,738) | (27,970) | (45,180) |
Ending Balance | $ 69,648 | $ 41,792 | $ 69,648 | $ 41,792 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 898,000 | $ 4,189,000 | $ 6,066,000 | $ 7,915,000 | |
Annual effective tax rate | 26.03% | 38.50% | |||
U.S. federal corporate tax rate | 21.00% | 35.00% | |||
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, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Unearned premiums | $ 9,833 | $ 12,488 |
Unearned commission | 10,266 | 11,987 |
Net operating loss | 4,727 | |
Tax-related discount on loss reserve | 1,427 | 1,250 |
Unrealized loss | 2,922 | |
Stock-based compensation | 809 | |
Prepaid expenses | 1,582 | 1,950 |
Other | 519 | 331 |
Total deferred tax asset | 27,358 | 32,733 |
Deferred tax liabilities: | ||
Deferred acquisition costs | 16,759 | 9,775 |
Prepaid expenses | 369 | 27,568 |
Unrealized gains | 30 | |
Property and equipment | 358 | |
Note discount | 2,655 | 3,818 |
Basis in purchased investments | 200 | 335 |
Basis in purchased intangibles | 21,114 | 24,250 |
Other | 1,253 | 1,290 |
Total deferred tax liabilities | 42,708 | 67,066 |
Net deferred tax liability | $ (15,350) | $ (34,333) |
Reinsurance - Additional inform
Reinsurance - Additional information (Detail) | Feb. 29, 2016USD ($) | Jun. 30, 2018USD ($) | May 31, 2017USD ($) | Mar. 31, 2017USD ($) | Apr. 30, 2015USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($)Reinsurer | May 31, 2018 | Jun. 30, 2018USD ($)ReinsurerLayer | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2016USD ($) |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Purchase of reinsurance from third party | $ 119,767,000 | $ 61,902,000 | $ 240,822,000 | $ 124,334,000 | |||||||||
Reinsurance payable | $ 276,507,000 | 276,507,000 | 276,507,000 | $ 17,577,000 | |||||||||
Prepaid reinsurance premiums | 295,924,000 | 295,924,000 | 295,924,000 | 227,764,000 | |||||||||
Reinsurance recoverable on paid and unpaid claims | 467,857,000 | 467,857,000 | 467,857,000 | $ 357,357,000 | |||||||||
Percentage of aggregate contract | 25.00% | ||||||||||||
Unpaid losses and loss adjustment expenses | 488,610,000 | $ 131,572,000 | 488,610,000 | 122,785,000 | $ 488,610,000 | 122,785,000 | $ 470,083,000 | $ 547,736,000 | $ 140,137,000 | ||||
Number of reinstatements available | Reinsurer | 2 | ||||||||||||
Aggregate participation, losses and loss adjustment expenses | 16,137,000 | (897,000) | $ 17,866,000 | $ (2,126,000) | |||||||||
Net of prepaid reinsurance premium as attachment point | 467,857,000 | 467,857,000 | $ 467,857,000 | $ 357,357,000 | |||||||||
Reinsurer Concentration Risk [Member] | Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Concentration risk percentage | 10.00% | ||||||||||||
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 | $ 1,000,000 | ||||||||||
Property Per Risk Coverage [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance payable | 27,000,000 | 27,000,000 | 27,000,000 | ||||||||||
Coverage limit | 9,000,000 | ||||||||||||
NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 1,000,000,000 | ||||||||||||
Hartford Steam Boiler [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage comprising aggregate participation | 100.00% | ||||||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage comprising aggregate participation | 20.00% | ||||||||||||
Primary retention | $ 16,000,000 | ||||||||||||
Primary retention | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||
Primary retention | 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 | |||||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Notes Due March 2020 [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Collateralized by a reinsurance trust | $ 35,000,000 | ||||||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Notes Due February 2019 [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Collateralized by a reinsurance trust | $ 250,000,000 | ||||||||||||
Heritage P&C [Member] | States Other Than Hawaii [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 | ||||||||||||
Heritage P&C [Member] | States Other Than Hawaii [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 | ||||||||||||
Heritage P&C [Member] | States Other Than Hawaii [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] | States Other Than Hawaii [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 | ||||||||||||
Heritage P&C [Member] | States Other Than Hawaii [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 | ||||||||||||
Heritage P&C [Member] | Top and Aggregate Layer [Member] | States Other Than Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 15,000,000 | 15,000,000 | 15,000,000 | ||||||||||
Aggregate participation, losses and loss adjustment expenses | 5,000,000 | ||||||||||||
Heritage P&C [Member] | Maximum [Member] | States Other Than Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Aggregate participation, losses and loss adjustment expenses | 36,000,000 | ||||||||||||
Zephyr [Member] | Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 16,000,000 | ||||||||||||
Primary retention | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||
Primary retention | 16,000,000 | ||||||||||||
Zephyr [Member] | Top and Aggregate Layer [Member] | Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 15,000,000 | 15,000,000 | 15,000,000 | ||||||||||
Aggregate participation, losses and loss adjustment expenses | 5,000,000 | ||||||||||||
Heritage And Zephyr | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 2,600,000,000 | ||||||||||||
Primary retention | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||
Number of reinstatements available | Reinsurer | 2 | ||||||||||||
Heritage And Zephyr | Florida [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 1,750,000,000 | ||||||||||||
Heritage And Zephyr | Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 731,000,000 | ||||||||||||
2018 - 2019 Reinsurance Program [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance purchase limit | 3,400,000,000 | 3,400,000,000 | 3,400,000,000 | ||||||||||
Purchase of reinsurance from third party | 3,500,000,000 | ||||||||||||
Reinsurance payable | $ 252,000,000 | 252,000,000 | $ 252,000,000 | ||||||||||
FHCF [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage comprising aggregate participation | 45.00% | ||||||||||||
Gross Quota Share [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage of gross quota share | 8.00% | 18.75% | 18.75% | ||||||||||
Reinsurance recoveries on paid losses | $ 1,000,000,000 | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||||
Net Quota Share [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Net lines quota share occurrence limit | 20,000,000 | ||||||||||||
Percentage of ceded net premium and losses | 60.00% | 8.00% | |||||||||||
Percentage of renewed ceded net premium and losses | 49.50% | ||||||||||||
25% Aggregate Coverage [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 18,500,000 | ||||||||||||
Percentage of aggregate contract | 25.00% | ||||||||||||
Aggregate contract coverage limit | 13,500,000 | ||||||||||||
Franchise deductible amount | $ 1,000,000 | ||||||||||||
Aggregate contract expiration date | May 31, 2018 | ||||||||||||
42.5% Aggregate Coverage [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 3,000,000 | ||||||||||||
Percentage of aggregate contract | 42.50% | 42.50% | 42.50% | ||||||||||
Aggregate contract coverage limit | $ 20,000,000 | ||||||||||||
Franchise deductible amount | $ 1,500,000 | ||||||||||||
Aggregate contract expiration date | Dec. 31, 2018 | ||||||||||||
92.00% Aggregate Coverage [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 20,000,000 | ||||||||||||
Percentage of aggregate contract | 92.00% | 92.00% | 92.00% | ||||||||||
Aggregate contract coverage limit | $ 20,000,000 | ||||||||||||
Aggregate contract expiration date | Dec. 31, 2018 | ||||||||||||
Facultative Reinsurance [Member] | Minimum [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Facultative reinsurance purchase amount | $ 10,000,000 | ||||||||||||
Facultative Reinsurance [Member] | Maximum [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance payable | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||||||||||
General Excess of Loss 2018-2019 Reinsurance Program [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 300,000 | ||||||||||||
Number of loss applied to reinsurance contract | Reinsurer | 1 | ||||||||||||
Number of layers in excess of rentention loss | Layer | 2 | ||||||||||||
General Excess of Loss 2018-2019 Reinsurance Program [Member] | NBIC [Member] | First Layer Coverage [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 450,000 | ||||||||||||
Primary retention | 300,000 | ||||||||||||
General Excess of Loss 2018-2019 Reinsurance Program [Member] | NBIC [Member] | Second Layer Coverage [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 2,750,000 | ||||||||||||
Primary retention | 750,000 | ||||||||||||
General Excess of Loss 2018-2019 Reinsurance Program [Member] | NBIC [Member] | Casualty Second Layer [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 1,250,000 | ||||||||||||
Primary retention | $ 750,000 | ||||||||||||
General Excess of Loss 2018-2019 Reinsurance Program [Member] | NBIC [Member] | First and Second Layer Coverage [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage of gross quota share | 92.00% | ||||||||||||
Additional coverage percentage of gross quota share | 8.00% | ||||||||||||
Facultative 2018 - 2019 Reinsurance Program [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance loss limit | $ 3,750,000 | ||||||||||||
Facultative 2018 - 2019 Reinsurance Program [Member] | NBIC [Member] | Minimum [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance payable | 3,500,000 | 3,500,000 | 3,500,000 | ||||||||||
FHCF Layer [Member] | Heritage P&C [Member] | Property Per Risk Coverage [Member] | States Other Than Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 414,000,000 | ||||||||||||
Percentage of maximum provisional limit | 45.00% | ||||||||||||
Estimated provisional limit percentage calculation base amount | $ 1,300,000,000 | ||||||||||||
FHCF Layer [Member] | Heritage And Zephyr | Property Per Risk Coverage [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage comprising aggregate participation | 45.00% | ||||||||||||
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] | Hawaii [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] | Heritage And Zephyr | Property Per Risk Coverage [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Purchased reinstatement premium | 352,000,000 | ||||||||||||
Shared Layers [Member] | Heritage And Zephyr | Property Per Risk Coverage [Member] | Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Purchased reinstatement premium | 352,000,000 | ||||||||||||
Layers Above FHCF -Florida Program [Member] | Heritage P&C [Member] | States Other Than Hawaii [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 | ||||||||||||
Layers Above FHCF -Florida Program [Member] | Heritage P&C [Member] | States Other Than Hawaii [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 | ||||||||||||
Agreement of coverage | 3 years | ||||||||||||
Additional maturity period of collateral notes | 2 years | ||||||||||||
Reinsurance agreement | 3 years | ||||||||||||
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] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Number of reinstatements available | Reinsurer | 2 | ||||||||||||
2017 - 2018 Reinsurance Program [Member] | 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 | $ 1,000,000 | ||||||||||
2017 - 2018 Reinsurance Program [Member] | Property Per Risk Coverage [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance payable | $ 27,000,000 | $ 27,000,000 | 27,000,000 | ||||||||||
Coverage limit | 9,000,000 | ||||||||||||
2017 - 2018 Reinsurance Program [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 18,500,000 | ||||||||||||
Percentage of aggregate contract | 25.00% | 25.00% | 25.00% | ||||||||||
Aggregate contract coverage limit | $ 13,500,000 | ||||||||||||
Franchise deductible amount | $ 1,000,000 | ||||||||||||
Aggregate contract expiration date | May 31, 2018 | ||||||||||||
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 | ||||||||||||
General Excess of Loss [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 300,000 | ||||||||||||
Number of loss applied to reinsurance contract | Reinsurer | 1 | ||||||||||||
Number of layers in excess of rentention loss | Layer | 2 | ||||||||||||
General Excess of Loss [Member] | NBIC [Member] | First Layer Coverage [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 450,000 | ||||||||||||
Primary retention | 300,000 | ||||||||||||
General Excess of Loss [Member] | NBIC [Member] | Second Layer Coverage [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 2,750,000 | ||||||||||||
Primary retention | 750,000 | ||||||||||||
General Excess of Loss [Member] | NBIC [Member] | Casualty Second Layer [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 1,250,000 | ||||||||||||
Primary retention | $ 750,000 | ||||||||||||
General Excess of Loss [Member] | NBIC [Member] | First and Second Layer Coverage [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage of gross quota share | 81.25% | ||||||||||||
Additional coverage percentage of gross quota share | 18.75% | ||||||||||||
Facultative 2017 - 2018 Reinsurance Program [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance loss limit | $ 2,500,000 | ||||||||||||
Facultative 2017 - 2018 Reinsurance Program [Member] | NBIC [Member] | Minimum [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance payable | $ 3,500,000 | $ 3,500,000 | $ 3,500,000 | ||||||||||
Umbrella Facultative Reinsurance | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage of quota share | 90.00% | ||||||||||||
Additional percentage of quota share | 100.00% | ||||||||||||
Umbrella Facultative Reinsurance | NBIC [Member] | Maximum [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Limits of liability | 1,000,000 | 1,000,000 | $ 1,000,000 | ||||||||||
Additional limits of liability | 4,000,000 | 4,000,000 | 4,000,000 | ||||||||||
Catastrophe [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance purchase limit | 632,000,000 | 632,000,000 | 632,000,000 | ||||||||||
Catastrophe [Member] | Property Per Risk Coverage [Member] | Florida [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 | 1,750,000,000 | ||||||||||
Catastrophe [Member] | Property Per Risk Coverage [Member] | Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Unpaid losses and loss adjustment expenses | 731,000,000 | 731,000,000 | 731,000,000 | ||||||||||
Catastrophe [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 1,300,000 | 1,300,000 | 1,300,000 | ||||||||||
Catastrophe [Member] | Citrus [Member] | Property Per Risk Coverage [Member] | States Other Than Hawaii [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 | 412,500,000 | ||||||||||
Additional coverage of second catastrophe reinsurance agreement | $ 5,000,000 | ||||||||||||
Catastrophe [Member] | 2018 - 2019 Reinsurance Program [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance premium, amortization period | 12 months | ||||||||||||
Catastrophe [Member] | Aggregate Coverage | Property Per Risk Coverage [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Purchased reinstatement premium | $ 700,000,000 | ||||||||||||
Prepaid reinsurance premiums | 632,000,000 | 632,000,000 | 632,000,000 | ||||||||||
Catastrophe [Member] | Aggregate Coverage | Heritage P&C [Member] | Property Per Risk Coverage [Member] | States Other Than Hawaii [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 | 606,000,000 | ||||||||||
Reinsurance recoverable on paid and unpaid claims | 40,000,000 | 40,000,000 | 40,000,000 | ||||||||||
Net of prepaid reinsurance premium as attachment point | 40,000,000 | 40,000,000 | 40,000,000 | ||||||||||
Catastrophe [Member] | Aggregate Coverage | Heritage And Zephyr | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Purchased reinstatement premium | 1,100,000,000 | ||||||||||||
Prepaid reinsurance premiums | 669,000,000 | 669,000,000 | 669,000,000 | ||||||||||
Reinsurance recoverable on paid and unpaid claims | 40,000,000 | 40,000,000 | 40,000,000 | ||||||||||
Net of prepaid reinsurance premium as attachment point | 40,000,000 | 40,000,000 | 40,000,000 | ||||||||||
Catastrophe [Member] | Multi-Zonal Layers [Member] | Heritage P&C [Member] | Property Per Risk Coverage [Member] | States Other Than Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Coverage of first catastrophe reinsurance agreement | 254,000,000 | ||||||||||||
Catastrophe [Member] | Multi-Zonal Layers [Member] | Zephyr [Member] | Property Per Risk Coverage [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Prepaid reinsurance premiums | 254,000,000 | 254,000,000 | 254,000,000 | ||||||||||
Coverage of first catastrophe reinsurance agreement | 302,000,000 | ||||||||||||
Catastrophe [Member] | Multi-Zonal Layers [Member] | Zephyr [Member] | Property Per Risk Coverage [Member] | Florida [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Purchased reinstatement premium | 254,000,000 | ||||||||||||
Catastrophe [Member] | Multi-Zonal Layers [Member] | Zephyr [Member] | Property Per Risk Coverage [Member] | Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Purchased reinstatement premium | 254,000,000 | ||||||||||||
Catastrophe [Member] | A Top And Aggregate Multi Zonal Layer [Member] | Zephyr [Member] | Property Per Risk Coverage [Member] | Florida [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Purchased reinstatement premium | 48,000,000 | ||||||||||||
Catastrophe [Member] | A Top And Aggregate Multi Zonal Layer [Member] | Zephyr [Member] | Property Per Risk Coverage [Member] | Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Purchased reinstatement premium | 48,000,000 | ||||||||||||
Catastrophe [Member] | 2017 - 2018 Reinsurance Program [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 coverage 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 Alabama, Georgia, North Carolina and South Carolina. | ||||||||||||
Quota Share [Member] | 2018 - 2019 Reinsurance Program [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance premium, amortization period | 12 months | ||||||||||||
First Catastrophic Event [Member] | Heritage P&C [Member] | States Other Than Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage comprising aggregate participation | 20.00% | ||||||||||||
Primary retention | 878,000,000 | 878,000,000 | $ 878,000,000 | ||||||||||
First Catastrophic Event [Member] | Heritage P&C [Member] | Maximum [Member] | States Other Than Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Aggregate participation, losses and loss adjustment expenses | $ 727,000 | ||||||||||||
First Catastrophic Event [Member] | Zephyr [Member] | Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage comprising aggregate participation | 3.80% | ||||||||||||
Primary retention | 386,000,000 | 386,000,000 | $ 386,000,000 | ||||||||||
First Catastrophic Event [Member] | Zephyr [Member] | Maximum [Member] | Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Aggregate participation, losses and loss adjustment expenses | 12,000,000 | ||||||||||||
First Catastrophic Event [Member] | 2018 - 2019 Reinsurance Program [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 1,000,000,000 | ||||||||||||
Primary retention | 12,800,000 | 12,800,000 | 12,800,000 | ||||||||||
First Catastrophic Event [Member] | 2018 - 2019 Reinsurance Program [Member] | Heritage P&C [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 1,600,000,000 | ||||||||||||
Primary retention | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||
First Catastrophic Event [Member] | 2018 - 2019 Reinsurance Program [Member] | Zephyr [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 801,000,000 | ||||||||||||
Primary retention | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||
First Catastrophic Event [Member] | 2018 - 2019 Reinsurance Program [Member] | Osprey | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 4,000,000 | 4,000,000 | $ 4,000,000 | ||||||||||
Second Catastrophic Event [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Number reinsurance reinstatement provisions | Reinsurer | 1 | ||||||||||||
Percentage of reinsurance reinstatement provisions premium | 100.00% | ||||||||||||
Second Catastrophic Event [Member] | Heritage P&C [Member] | States Other Than Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage comprising aggregate participation | 11.50% | ||||||||||||
Primary retention | 420,000,000 | 420,000,000 | $ 420,000,000 | ||||||||||
Second Catastrophic Event [Member] | Zephyr [Member] | Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage comprising aggregate participation | 117.70% | ||||||||||||
Primary retention | 386,000,000 | 386,000,000 | $ 386,000,000 | ||||||||||
Second Catastrophic Event [Member] | Zephyr [Member] | Maximum [Member] | Hawaii [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Aggregate participation, losses and loss adjustment expenses | 56,000,000 | ||||||||||||
Second Catastrophic Event [Member] | 2018 - 2019 Reinsurance Program [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 8,800,000 | ||||||||||||
Second Catastrophic Event [Member] | 2018 - 2019 Reinsurance Program [Member] | Heritage P&C [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 16,000,000 | ||||||||||||
Second Catastrophic Event [Member] | 2018 - 2019 Reinsurance Program [Member] | Zephyr [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | $ 16,000,000 | ||||||||||||
Second Catastrophic Event [Member] | Gross Quota Share [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Percentage of gross quota share | 81.25% | ||||||||||||
Percentage of remaining gross quota share | 18.75% | ||||||||||||
Second Catastrophic Event [Member] | Net Quota Share [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reduction in reinsurance reinstatement net retention amount | $ 20,000,000 | ||||||||||||
Third And Subsequent Catastrophe | 2018 - 2019 Reinsurance Program [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 8,800,000 | ||||||||||||
Third And Subsequent Catastrophe | 2018 - 2019 Reinsurance Program [Member] | Heritage P&C [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 16,000,000 | ||||||||||||
Third And Subsequent Catastrophe | 2018 - 2019 Reinsurance Program [Member] | Zephyr [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Primary retention | 16,000,000 | ||||||||||||
Aggregate Excess For All Catastrophe Losses Excluding Named Tropical Storms | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance payable | $ 20,000,000 | ||||||||||||
Aggregate Excess For All Catastrophe Losses Excluding Named Tropical Storms | Minimum [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Limit of aggregate losses under aggregate contract | 21,500,000 | ||||||||||||
Aggregate Excess For All Catastrophe Losses Excluding Named Tropical Storms | 2017 - 2018 Reinsurance Program [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance payable | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||
Aggregate Excess For All Catastrophe Losses Excluding Named Tropical Storms | 2017 - 2018 Reinsurance Program [Member] | NBIC [Member] | Minimum [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Limit of aggregate losses under aggregate contract | 21,500,000 | ||||||||||||
Named Tropical Storm Losses | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance payable | 12,000,000 | ||||||||||||
Named Tropical Storm Losses | Minimum [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Limit of aggregate losses under aggregate contract | $ 8,000,000 | ||||||||||||
Named Tropical Storm Losses | 2017 - 2018 Reinsurance Program [Member] | NBIC [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance payable | $ 12,000,000 | $ 12,000,000 | 12,000,000 | ||||||||||
Named Tropical Storm Losses | 2017 - 2018 Reinsurance Program [Member] | NBIC [Member] | Minimum [Member] | |||||||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||||||
Reinsurance loss limit | $ 8,000,000 |
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 | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Insurance [Abstract] | ||||
Balance, beginning of period | $ 547,736 | $ 131,572 | $ 470,083 | $ 140,137 |
Less: reinsurance recoverable on unpaid losses | 385,397 | 1,321 | 315,353 | 586 |
Net balance, beginning of period | 162,339 | 130,251 | 154,730 | 139,551 |
Incurred related to: | ||||
Current year | 49,852 | 46,944 | 101,214 | 94,819 |
Prior years | 16,137 | (897) | 17,866 | (2,126) |
Total incurred | 65,989 | 46,047 | 119,080 | 92,693 |
Paid related to: | ||||
Current year | 23,068 | 28,001 | 21,816 | 39,238 |
Prior years | 31,958 | 28,010 | 78,692 | 72,719 |
Total paid | 55,026 | 56,011 | 100,508 | 111,957 |
Net balance, end of period | 173,302 | 120,287 | 173,302 | 120,287 |
Plus: reinsurance recoverable on unpaid losses | 315,308 | 2,498 | 315,308 | 2,498 |
Balance, end of period | $ 488,610 | $ 122,785 | $ 488,610 | $ 122,785 |
Reserve for Unpaid Losses - Add
Reserve for Unpaid Losses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Insurance [Abstract] | ||||||||
Unpaid losses and loss adjustment expenses | $ 173,302 | $ 162,339 | $ 120,287 | $ 173,302 | $ 120,287 | $ 154,730 | $ 130,251 | $ 139,551 |
Unpaid losses and loss adjustment expenses attributable to IBNR net of reinsurance recoverable | $ 113,900 | $ 113,900 | ||||||
Net reserves for unpaid losses and loss adjustment expenses, percentage | 65.70% | 65.70% | ||||||
Aggregate participation, losses and loss adjustment expenses | $ 16,137 | $ (897) | $ 17,866 | $ (2,126) | ||||
Gross losses for winter storms | 56,000 | |||||||
Losses for winter storms net of reinsurance | $ 9,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||||||||
Jun. 30, 2018 | Jun. 30, 2017 | Apr. 30, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Oct. 31, 2017 | Sep. 30, 2017 | Aug. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 197,051 | $ 207,782 | |||||||
Net of issuance costs | $ 177,257 | $ 184,405 | |||||||
Heritage P&C [Member] | Convertible Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase of convertible notes | $ 21,100 | ||||||||
Repurchase of convertible notes, cost | $ 25,200 | ||||||||
'Heritage Insurance Holdings, Inc. [Member] | Convertible Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase of convertible notes | $ 10,600 | ||||||||
Repurchase of convertible notes, cost | $ 13,400 | ||||||||
Senior Secured Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 79,500 | ||||||||
Interest rate | 8.75% | ||||||||
Frequency of periodic interest payments | quarterly | ||||||||
Principal payment commencement date | Dec. 15, 2018 | ||||||||
Net of issuance costs | $ 74,000 | ||||||||
Issuance costs | 5,300 | ||||||||
Interest paid | 4,300 | $ 3,900 | |||||||
Convertible Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 5.875% | 5.875% | |||||||
Net of issuance costs | 90,500 | ||||||||
Interest paid | $ 3,700 | ||||||||
Aggregate principal amount | $ 136,800 | $ 136,800 | |||||||
Notes maturity date | Aug. 1, 2037 | ||||||||
Interest payments term | Interest accrues from August 16, 2017 and is payable semi-annually in arrears, on February 1 and August 1 of each year, beginning in 2018. | ||||||||
Net of issuance and debt discount costs | $ 11,000 | ||||||||
Collateral Financial Arrangement [Member] | Skye Lane Properties LLC [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.95% | ||||||||
Frequency of periodic interest payments | monthly | ||||||||
Aggregate principal amount | $ 12,700 | ||||||||
Payment of principal and interest | $ 446 |
Long-Term Debt - Schedule of Co
Long-Term Debt - Schedule of Company's Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Principal amount | $ 197,051 | $ 207,782 |
Total long-term debt | 177,257 | 184,405 |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 105,024 | 115,624 |
Debt discount and issuance cost on convertible debt | 14,506 | 17,605 |
Senior Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 79,500 | 79,500 |
Debt issuance cost on senior note payable | 5,288 | 5,772 |
Mortgage Loan [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 12,527 | $ 12,658 |
Accounts Payable and Other Li69
Accounts Payable and Other Liabilities - Schedule of Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Deferred ceding commission | $ 42,836 | $ 51,109 |
Outstanding claim checks | 45,338 | 79,666 |
Accounts payable and other payables | 10,713 | 17,948 |
Accrued interest and issuance costs | 3,148 | 3,117 |
Accrued dividends | 1,594 | |
Other liabilities | 1,902 | 5,088 |
Commission payables | 13,759 | 12,609 |
Total other liabilities | $ 119,290 | $ 169,537 |
Statutory Accounting and Regu70
Statutory Accounting and Regulations - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Statutory Accounting Practices [Line Items] | |||||
Net income (loss) | $ 2,408,000 | $ 6,642,000 | $ 17,238,000 | $ 12,625,000 | |
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 | $ 15,000,000 | |||
Statutory capital and surplus requirements, percentage | 10.00% | ||||
Statutory capital and surplus | 342,500,000 | $ 342,500,000 | $ 376,200,000 | ||
Net income (loss) | (61,100,000) | $ (4,500,000) | |||
Zephyr [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Deposits held | 750,000 | 750,000 | |||
NBIC [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Statutory capital and surplus | $ 3,000,000 | $ 3,000,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended |
Jan. 31, 2017 | Jun. 30, 2018 | |
Mrs. Shannon Lucas [Member] | ||
Related Party Transaction [Line Items] | ||
Consulting fees hourly rate | $ 400 | |
Immediate Family Member of Management or Principal Owner [Member] | ||
Related Party Transaction [Line Items] | ||
Consulting fees | $ 302,000 | |
Heritage P&C [Member] | Director [Member] | ||
Related Party Transaction [Line Items] | ||
Director annual compensation | $ 150,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
NBIC [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Plan Name | 401(k) | |
Employer contribution, vesting percentage | 20.00% | |
Employer contribution, vesting period | 5 years | |
Maximum [Member] | NBIC [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of contribution on employee salary | 4.00% | |
Heritage P&C [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Contribution for participating employees | $ 345,000 | $ 425,000 |
Defined Contribution Plan, Plan Name | 401(k) | |
Medical premium cost | $ 1,800,000 | $ 1,500,000 |
Unpaid claims | 150,000 | |
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% | |
Heritage P&C [Member] | Maximum [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, aggregate limit for losses in provided amount | $ 1,000,000 | |
Heritage P&C [Member] | First 3% of Employees [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of contribution on employee salary | 100.00% | |
Heritage P&C [Member] | Next 2% of the Employees [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of contribution on employee salary | 50.00% | |
Heritage P&C [Member] | Safe Harbor [Member] | Maximum [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of contribution on employee salary | 4.00% | |
NBIC [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Contribution for participating employees | $ 224,000 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | Aug. 01, 2018 | May 07, 2018 | Feb. 26, 2018 | May 04, 2016 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Class Of Stock [Line Items] | ||||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | ||||||
Preferred stock, shares authorized | 5,000,000 | |||||||
Common stock, shares outstanding | 25,769,804 | 25,885,004 | ||||||
Treasury stock, shares | 7,214,797 | 7,099,597 | ||||||
Additional paid-in capital | $ 294,183,000 | $ 294,836,000 | ||||||
Common stock voting rights | one vote | |||||||
Stock Repurchase Program, Authorized Amount | $ 70,000,000 | |||||||
Treasury shares repurchased, shares | 115,200 | |||||||
Treasury shares repurchased, value | $ 2,000,000 | $ 2,000,000 | $ 8,607,000 | $ 47,000,000 | ||||
Stock repurchase plan expiration date | Jun. 30, 2018 | |||||||
Cash dividend, declared date | May 7, 2018 | |||||||
Cash dividend per common share | $ 0.06 | $ 0.06 | ||||||
Cash dividend, payable date | Jul. 6, 2018 | Apr. 3, 2018 | ||||||
Dividend payable, record date | Jun. 15, 2018 | Mar. 15, 2018 | ||||||
Subsequent Event [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 50,000,000 | |||||||
Stock repurchase plan expiration date | Dec. 31, 2020 | |||||||
Cash dividend, declared date | Aug. 1, 2018 | |||||||
Cash dividend per common share | $ 0.06 | |||||||
Cash dividend, payable date | Oct. 3, 2018 | |||||||
Dividend payable, record date | Sep. 15, 2018 | |||||||
Restricted Stock [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Unvested shares of restricted common stock issued | 800,000 | 675,000 | ||||||
Unvested restricted stock grants | 125,000 | 125,000 | 675,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | 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 | ||||
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 | ||||
Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock awards granted | 125,000 | 125,000 | 675,000 | ||
Restricted stock fair value | $ 16.35 | $ 16.35 | |||
Stock options, Vesting period | 5 years | 5 years | |||
Stock-based compensation expense | $ 2.6 | $ 2.4 | |||
Unrecognized stock compensation expense | $ 13.1 | ||||
Unrecognized stock compensation expense, weighted average period | 2 years 8 months 12 days | ||||
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 | 1,231,699 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning balance, Number of shares | 675,000 | 675,000 | |
Granted, Number of shares | 125,000 | 125,000 | 675,000 |
Ending balance, Number of shares | 800,000 | 675,000 | |
Beginning balance, Weighted-Average Grant-Date Fair Value per Share | $ 21.40 | $ 21.40 | |
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 16.35 | 16.35 | |
Ending balance, Weighted-Average Grant-Date Fair Value per Share | $ 20.61 | $ 21.40 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Aug. 01, 2018 | May 07, 2018 | Feb. 26, 2018 |
Subsequent Event [Line Items] | |||
Cash dividend, declared date | May 7, 2018 | ||
Cash dividend per common share | $ 0.06 | $ 0.06 | |
Cash dividend, payable date | Jul. 6, 2018 | Apr. 3, 2018 | |
Dividend payable, record date | Jun. 15, 2018 | Mar. 15, 2018 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Cash dividend, declared date | Aug. 1, 2018 | ||
Cash dividend per common share | $ 0.06 | ||
Cash dividend, payable date | Oct. 3, 2018 | ||
Dividend payable, record date | Sep. 15, 2018 |