Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 05, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HRTG | |
Entity Registrant Name | HERITAGE INSURANCE HOLDINGS, INC. | |
Entity Central Index Key | 0001598665 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 30,013,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $528,193 and $518,391) | $ 527,940 | $ 509,649 |
Equity securities, at fair value (cost of $18,249 and $18,698) | 17,375 | 16,456 |
Other investments | 21,693 | 2,488 |
Total investments | 567,008 | 528,593 |
Cash and cash equivalents | 279,720 | 250,117 |
Restricted cash | 12,257 | 12,253 |
Accrued investment income | 4,618 | 4,468 |
Premiums receivable, net | 55,096 | 57,000 |
Reinsurance recoverable on paid and unpaid claims | 263,266 | 317,930 |
Prepaid reinsurance premiums | 161,015 | 233,071 |
Income taxes receivable | 365 | 35,586 |
Deferred policy acquisition costs, net | 69,883 | 73,055 |
Property and equipment, net | 21,317 | 17,998 |
Intangibles, net | 74,757 | 76,850 |
Goodwill | 152,459 | 152,459 |
Other assets | 15,232 | 9,333 |
Total Assets | 1,676,993 | 1,768,713 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Unpaid losses and loss adjustment expenses | 404,484 | 432,359 |
Unearned premiums | 454,225 | 472,357 |
Reinsurance payable | 114,263 | 166,975 |
Long-term debt, net | 132,176 | 148,794 |
Deferred income tax | 5,967 | 7,705 |
Advance premiums | 27,892 | 20,000 |
Accrued compensation | 7,752 | 9,226 |
Accounts payable and other liabilities | 95,147 | 85,964 |
Total Liabilities | 1,241,906 | 1,343,380 |
Commitments and contingencies (Note 17) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value, 50,000,000 shares authorized, 30,013,018 shares issued and 29,432,217 shares outstanding at March 31, 2019 and 30,083,559 shares issued and 29,477,756 shares outstanding at December 31, 2018 | 3 | 3 |
Additional paid-in capital | 328,937 | 325,292 |
Accumulated other comprehensive loss | (564) | (6,527) |
Treasury stock, at cost, 7,562,537 shares at March 31, 2019 and 7,214,797 shares at December 31, 2018 | (94,196) | (89,185) |
Retained earnings | 200,907 | 195,750 |
Total Stockholders' Equity | 435,087 | 425,333 |
Total Liabilities and Stockholders' Equity | $ 1,676,993 | $ 1,768,713 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Fixed maturities, at amortized cost | $ 528,193 | $ 518,391 |
Equity securities, cost | $ 18,249 | $ 18,698 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 30,013,018 | 30,083,559 |
Common stock, shares outstanding | 29,432,217 | 29,477,756 |
Treasury stock, shares | 7,562,537 | 7,214,797 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUES: | ||
Gross premiums written | $ 210,348 | $ 204,366 |
Change in gross unearned premiums | 18,242 | 22,797 |
Gross premiums earned | 228,590 | 227,163 |
Ceded premiums | (118,899) | (121,055) |
Net premiums earned | 109,691 | 106,108 |
Net investment income | 3,672 | 3,302 |
Net realized gains (losses) | 1,024 | (227) |
Other revenue | 3,874 | 2,843 |
Total revenues | 118,261 | 112,026 |
EXPENSES: | ||
Losses and loss adjustment expenses | 62,139 | 53,091 |
Policy acquisition costs, net of ceding commission income of $12.9 million and $14.3 million | 26,020 | 12,187 |
General and administrative expenses, net of ceding commission income of $4.3 million and $4.7 million | 18,604 | 21,931 |
Total expenses | 106,763 | 87,209 |
Operating income | 11,498 | 24,817 |
Interest expense, net | 2,117 | 4,820 |
Other non-operating (income)/loss, net | 48 | |
Income before income taxes | 9,333 | 19,997 |
Provision for income taxes | 2,369 | 5,168 |
Net income | 6,964 | 14,829 |
OTHER COMPREHENSIVE INCOME | ||
Change in net unrealized gains (losses) on investments | 8,036 | (6,478) |
Reclassification adjustment for net realized investment losses | 335 | 227 |
Income tax (expense) benefit related to items of other comprehensive income | (2,408) | 1,823 |
Total comprehensive income | $ 12,927 | $ 10,401 |
Weighted average shares outstanding | ||
Basic | 29,540,514 | 25,727,553 |
Diluted | 29,544,563 | 26,732,019 |
Earnings per share | ||
Basic | $ 0.24 | $ 0.58 |
Diluted | $ 0.24 | $ 0.55 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Ceding commission income | $ 17,169 | $ 18,993 |
Policy Acquisition Costs [Member] | ||
Ceding commission income | 12,900 | 14,300 |
General and Administrative Expenses [Member] | ||
Ceding commission income | $ 4,300 | $ 4,700 |
Condensed Consolidated Statem_3
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] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Dec. 31, 2017 | $ 379,816 | $ 3 | $ 294,836 | $ 175,226 | $ (87,185) | $ (3,064) |
Beginning Balance, Shares at Dec. 31, 2017 | 25,885,006 | |||||
Cumulative effective of change in accounting principle (ASU 2016-01), net of tax at Dec. 31, 2017 | (267) | 267 | ||||
Beginning balance as adjusted at Dec. 31, 2017 | 379,816 | $ 3 | 294,836 | 174,959 | (87,185) | (2,797) |
Net unrealized change in investments, net of tax | (4,428) | (4,428) | ||||
Stock buy-back | $ (1,999) | (1,999) | ||||
Stock buy-back, Shares | (115,200) | (115,200) | ||||
Stock-based compensation | $ 1,306 | 1,306 | ||||
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 | (1,601) | (1,601) | ||||
Net income | 14,829 | 14,829 | ||||
Ending balance at Mar. 31, 2018 | 388,893 | $ 3 | 297,112 | 188,611 | (89,184) | (7,649) |
Ending balance, Shares at Mar. 31, 2018 | 25,769,806 | |||||
Beginning Balance at Dec. 31, 2018 | 425,333 | $ 3 | 325,292 | 195,750 | (89,185) | (6,527) |
Beginning Balance, Shares at Dec. 31, 2018 | 29,477,756 | |||||
Net unrealized change in investments, net of tax | 5,963 | 5,963 | ||||
Restricted stock vested, net of surrendered shares | (118) | (118) | ||||
Restricted stock vested, net of surrendered shares, Shares | 17,000 | |||||
Stock-based compensation on vested restricted stock | 1,345 | 1,345 | ||||
Convertible Option debt extinguishment | (1,840) | (1,840) | ||||
Stock issued on convertible note conversion | 4,210 | 4,210 | ||||
Stock issued on convertible note conversion, Shares | 285,201 | |||||
Stock buy-back | $ (5,011) | (5,011) | ||||
Stock buy-back, Shares | (347,740) | (347,740) | ||||
Dividends declared on common stock | $ (1,807) | (1,807) | ||||
Tax rate change | 48 | 48 | ||||
Net income | 6,964 | 6,964 | ||||
Ending balance at Mar. 31, 2019 | $ 435,087 | $ 3 | $ 328,937 | $ 200,907 | $ (94,196) | $ (564) |
Ending balance, Shares at Mar. 31, 2019 | 29,432,217 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 6,964 | $ 14,829 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Stock-based compensation | 1,345 | 1,306 |
Bond amortization and accretion | 1,229 | 1,792 |
Amortization of original issuance discount on debt | 390 | 871 |
Depreciation and amortization | 2,696 | 7,041 |
Net realized (gains) losses | (1,024) | 227 |
Net loss from repurchase of debt | 48 | |
Deferred income taxes | (4,098) | (13,260) |
Changes in operating assets and liabilities: | ||
Accrued investment income | (150) | 816 |
Premiums receivable, net | 1,904 | 1,023 |
Prepaid reinsurance premiums | 72,056 | 63,703 |
Reinsurance premiums receivable and recoverable | 54,664 | (196,466) |
Income taxes receivable | 35,221 | 19,815 |
Deferred policy acquisition costs, net | 3,171 | (12,184) |
Other assets | (5,898) | (3,019) |
Unpaid losses and loss adjustment expenses | (27,875) | 77,652 |
Unearned premiums | (18,132) | (22,797) |
Reinsurance payable | (52,712) | 38,431 |
Accrued interest | 127 | 3,217 |
Accrued compensation | (1,474) | (9,219) |
Advance premiums | 7,892 | 14,090 |
Income taxes payable | 5,725 | |
Other liabilities | 3,253 | |
Net cash provided by (used in) operating activities | 85,322 | (12,132) |
INVESTING ACTIVITIES | ||
Marketable securities sales | 25,486 | 127,328 |
Marketable securities purchases | (37,203) | (71,498) |
Proceeds from sales of equity securities | 2,291 | |
Purchase of equity securities | (1,617) | |
Limited partnership interest | (19,205) | |
Proceeds from sale of assets | 71 | |
Cost of property and equipment acquired | (3,994) | (83) |
Net cash (used in) provided by investing activities | (34,171) | 55,747 |
FINANCING ACTIVITIES | ||
Repayment of term note | (11,875) | |
Mortgage loan payments | (70) | (68) |
Repurchase of convertible notes | (2,869) | |
Purchase of treasury stock | (5,011) | (1,999) |
Tax withholdings on share-based compensation awards | (118) | |
Dividends paid | (1,601) | (1,601) |
Net cash used in financing activities | (21,544) | (3,668) |
Increase in cash, cash equivalents, and restricted cash | 29,607 | 39,947 |
Cash, cash equivalents and restricted cash, beginning of period | 262,370 | 174,530 |
Cash, cash equivalents and restricted cash, end of period | 291,977 | 214,477 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest paid | 2,977 | $ 5,406 |
Issuance of shares on conversion of convertible notes | $ 4,210 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 279,720 | $ 250,117 | ||
Restricted cash | 12,257 | 12,253 | ||
Total | $ 291,977 | $ 262,370 | $ 214,477 | $ 174,530 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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 include the accounts of the Heritage Insurance Holdings, Inc. (together with its subsidiaries, the “Company”). These 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. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. In the opinion of the Company’s management, all material intercompany transactions and balances have been eliminated and all adjustments consisting of normal recurring accruals which are, necessary for a fair statement of the financial condition and results of operations for the interim periods have been reflected. The accompanying interim consolidated financial statements and related footnotes should be read in conjunction with the Company’s consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “ 2018 Form 10- Significant accounting policies Leases We lease office space as the lessor and tenant and have entered into various other lease agreements in conducting our business. We evaluate each lease agreement to determine whether the lease is an operating or financing lease and effective for the first quarter of 2019, we have established a right-of-use (“ROU”) asset and corresponding lease liability on the balance sheet. As described below under “Recently Adopted Accounting Pronouncements” we adopted the Financial Accounting Standards Update, or ASU, “Leases”, or “FASB 842” as of January 1, 2019. The Company did not recognize an opening adjustment to retained earnings as a result of the adoption of FASB 842. Refer to Note 5-Leases herein for further information. Reclassification We have reclassified certain amounts in the 2018 condensed consolidated balance sheet to confirm to our 2019 presentation. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases We adopted the guidance prospectively during the first quarter of 2019. As part of our adoption, we elected not to reassess historical lease classification, recognize short-term leases on our balance sheet, nor separate lease and non-lease components for our real estate leases. At implementation, we recorded approximately $2.8 million as right-of-use operating and financing Accounting Pronouncements Not Yet Adopted For information regarding accounting standards that the Company has not yet adopted, refer to our Annual Report on Form 10-K, filed on March 12, 2019, the section of Note 1 of the notes to the consolidated financial statements the “Accounting Pronouncement Not Yet Adopted”. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | NOTE 2. INVESTMENTS Securities Available-for-Sale The following table details the difference between cost or adjusted/amortized cost and estimated fair value, by major investment category, at March 31, 2019 and December 31, 2018: March 31, 2019 Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (In thousands) Fixed maturity securities, available-for-sale U.S. government and agency securities (1) $ 49,547 $ 81 $ 451 $ 49,177 States, municipalities and political subdivisions 65,988 440 151 66,277 Special revenue 244,841 1,463 1,479 244,825 Industrial and miscellaneous 163,514 943 951 163,506 Redeemable preferred stocks 4,303 5 153 4,155 $ 528,193 $ 2,932 $ 3,185 $ 527,940 December 31, 2018 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Fixed maturity securities, available-for-sale U.S. government and agency securities (1) $ 48,739 $ 40 $ 738 $ 48,041 States, municipalities and political subdivisions 60,028 46 785 59,289 Special revenue 249,026 210 3,881 245,355 Industrial and miscellaneous 155,678 81 3,302 152,457 Redeemable preferred stocks 4,920 — 413 4,507 $ 518,391 $ 377 $ 9,119 $ 509,649 (1) U.S. government and agency securities include pledged fixed maturity securities with an estimated fair value of $24 million and $31 million under the terms and condition of the advance agreement entered into with a financial institution as of March 31, 2019 and December 31, 2018, respectively. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. The Company calculates the gain or loss realized on the sale of investments by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. The Company determines the cost or adjusted/amortized cost of the security sold using the specific-identification method. The following tables detail the Company’s net realized gains (losses) by major investment category for the three months ended March 31, 2019 and 2018. 2019 2018 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) For the Three Months Ended March 31, Fixed maturity securities $ 5 $ 24,414 $ 87 $ 50,067 Equity securities — — 2 74 Total realized gains 5 24,414 89 50,141 Fixed maturity securities (67 ) 6,141 (218 ) 48,143 Equity securities (273 ) 513 (98 ) 2,167 Total realized losses (340 ) 6,654 (316 ) 50,310 Unrealized gains (losses) on equity securities (1) 1,359 — — — Net realized (losses) gains $ 1,024 $ 31,068 $ (227 ) $ 100,451 (1) For the three months ended March 31, 2018, the Company recognized $868,700 as unrealized losses on equity securities pursuant to ASC 2016-01, at the time of adoption the Company reported changes in the fair value of equity investments in Other revenue. The table below summarizes the Company’s fixed maturities at March 31, 2019 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. For the Three Months Ended March 31, 2019 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Maturity dates: (In thousands) (In thousands) Due in one year or less $ 55,079 10 % $ 54,993 10 % Due after one year through five years 168,231 32 % 168,051 32 % Due after five years through ten years 138,520 26 % 138,978 26 % Due after ten years 166,363 32 % 165,918 32 % Total $ 528,193 100 % $ 527,940 100 % Equity Securities The following tables present realized gains and losses from securities included both sales of securities and unrealized gains losses included in net income as of March 31, 2019 and December 31, 2018 : March 31, 2019 March 31, 2018 (In thousands) Net gains (loss) recognized during the period on equity securities $ 1,086 $ (945 ) Less: Net losses (gains) recognized from equity securities sold 273 76 Unrealized gains (loss) recognized on equity securities still held at reporting date $ 1,359 $ (869 ) The following table summarizes the Company’s net investment income by major investment category for the three months ended March 31, 2019 and 2018, respectively: For the Three Months Ended March 31, 2019 2018 (In thousands) Fixed maturity securities $ 2,724 $ 2,945 Equity securities 309 307 Cash, cash equivalents and short-term investments 817 157 Other investments 342 259 Net investment income 4,192 3,668 Investment expenses 520 366 Net investment income, less investment expenses $ 3,672 $ 3,302 As of March 31, 2019, the Company evaluated its fixed maturity securities for impairment and determined that none of its investments in fixed maturity securities that reflected an unrealized loss position were other-than-temporarily impaired. The issuers of the fixed maturity securities in which the Company invests continue to make interest payments on a timely basis and have not suffered any credit rating reductions. The Company does not intend to sell, nor is it likely that it would be required to sell, the fixed maturity securities before the Company recovers its amortized cost basis. Limited Partnerships The Company has interests in limited partnerships that are not registered or readily tradable on a securities exchange. The investments are private equity funds managed by general partners who make financial policy and operational decisions. The Company is not the primary beneficiary and does not consolidate these partnerships. The Company carries these investments at fair value which is based on the net value of the funds. As of March 31, 2019, the estimated fair value of our investments in the limited partnership interests was $21.7 million. The general partner's objective is to achieve capital appreciation through investments in marketable securities and broad markets, preferred stock, industry-focused and fixed income exchange-traded funds (ETFs). During the first quarter of 2019 and 2018, the Company received total cash distributions of $259,800 and $121,170, respectively, representing return of capital on its investments. The Company incurred no allocated costs in the first quarter of 2019 and $5,000 for the comparable period of 2018. The following tables present an aging of our unrealized investment losses by investment class as of March 31, 2019 and December 31, 2018: Less Than Twelve Months Twelve Months or More March 31, 2019 Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value (In thousands) Fixed maturity securities, available-for-sale U.S. government and agency securities 9 $ 49 $ 2,635 59 $ 402 $ 19,792 States, municipalities and political subdivisions 1 1 523 35 150 29,693 Industrial and miscellaneous 54 109 16,848 235 842 70,928 Special revenue 23 82 13,985 318 1,397 96,391 Redeemable preferred stocks 25 24 1,368 17 129 2,215 Total fixed maturity securities 112 $ 265 $ 35,358 664 $ 2,920 $ 219,019 Less Than Twelve Months Twelve Months or More December 31, 2018 Number Gross Losses Fair Number of Securities Gross Unrealized Losses Fair Value (In thousands) Fixed maturity securities, available-for-sale U.S. government and agency securities 17 $ 129 $ 10,485 66 $ 609 $ 20,488 States, municipalities and political subdivisions 13 103 12,864 42 682 39,979 Industrial and miscellaneous 214 1,479 70,156 232 1,822 70,375 Special revenue 105 1,260 76,335 323 2,621 108,319 Redeemable preferred stocks 55 193 2,541 27 221 1,965 Total fixed maturity securities 404 $ 3,164 $ 172,381 690 $ 5,955 $ 241,126 The Company is required to maintain assets on deposit with various regulatory authorities to support its insurance and reinsurance operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS For the Company’s investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, the Company obtains the fair 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. As of March 31, 2019, and December 31, 2018, there were no transfers in or out of Level 1, 2, and 3. The Company also invests small amounts in equity securities, real estate and private limited partnerships. This investment class has the potential for higher returns but also the potential for higher degrees of risk, including less than stable rates of returns and may provide less liquidity. Investments excluded from the fair value hierarchy Limited partnerships carried at fair value, which do not have readily determinable fair value, use NAV (net asset value) provided by the investees and are excluded from the fair value hierarchy. The Company may, as of the last day of each calendar quarter, upon at least 65 days’ prior written notice, withdrawal all or any portion of the balance in its investment. There is a 3 percent withdrawal fee if made during the first year of investment. March 31, 2019 Total Level 1 Level 2 Level 3 Invested Assets: (In thousands) Fixed maturity securities, available-for-sale: U.S. government and agency securities $ 49,177 $ 359 $ 48,818 $ — States, municipalities and political subdivisions 66,277 — 66,277 — Special revenue 244,825 — 244,825 — Industrial and miscellaneous 163,506 — 163,506 — Redeemable preferred stocks 4,155 4,155 — — Total fixed maturity securities 527,940 4,514 523,426 — Equity securities Common stock 3,825 3,825 — — Non-redeemable preferred stock 13,550 13,550 — — Total equity securities 17,375 17,375 — — Total investments 545,315 21,889 523,426 — Investments reported at NAV 21,693 — — — Total $ 567,008 $ 21,889 $ 523,426 $ — December 31, 2018 Total Level 1 Level 2 Level 3 Invested Assets: (in thousands) Fixed maturity securities, available-for-sale: U.S. government and agency securities $ 48,041 $ 354 $ 47,687 $ — States, municipalities and political subdivisions 59,289 — 59,289 — Special revenue 245,355 — 245,355 — Industrial and miscellaneous 152,457 — 152,457 — Redeemable preferred stocks 4,507 4,507 — — Total fixed maturity securities 509,649 4,861 504,788 — Equity securities Common stock 3,686 3,686 — — Non-redeemable preferred stock 12,770 12,770 — — Total equity securities 16,456 16,456 — — Total investments 526,105 21,317 504,788 — Investments reported at NAV 2,488 — — — Total $ 528,593 $ 21,317 $ 504,788 $ — At December 31, 2018, the Company recorded the $2.4 million of limited partnership investments at net asset value and therefore, excluded from the fair value hierarchy. Non-recurring fair value measurements Assets and liabilities that are measured at fair value on a non-recurring basis include intangible assets and goodwill which are recognized at fair value during the period in which an acquisition is completed, from updated estimates and assumptions during the measurement period, or when they are considered to be impaired. These non-recurring fair value measurements, primarily for intangible assets acquired, were based on Level 3 unobservable inputs. For the three months ended March 31, 2019 and 2018, these non-recurring fair values inputs consisted of brand, agent relationships, renewal rights, customer relations, trade names, value of business acquired, non-compete and goodwill. To evaluate such assets for a potential impairment, we determine the fair value of the goodwill and intangible assets using a combination of a discounted cash flow approach and market approaches, which contain significant unobservable inputs and therefore is considered a Level 3 fair value measurement. The unobservable inputs in the analysis generally include future cash flow projections and a discount rate. There were no non-recurring fair value adjustments to intangible assets and goodwill during the first quarter of 2019 and 2018. We record any measurement period adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill. |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2019 | |
Comprehensive Income Net Of Tax [Abstract] | |
Other Comprehensive Income | NOTE 4. OTHER COMPREHENSIVE INCOME Other comprehensive income (loss) was $6.0 million and $(4.4) million for the three months ended March 31, 2019 and 2018, respectively. The difference between net income as reported and comprehensive income was due to the changes in unrealized gains and losses, net of taxes on fixed maturities securities. For the Three Months Ended March 31, 2019 2018 Pre-tax Tax After-tax Pre-tax Tax After-tax (In thousands) Other comprehensive income Change in unrealized losses on investments, net $ 8,036 $ (2,323 ) $ 5,713 $ (6,478 ) $ 1,871 $ (4,607 ) Reclassification adjustment of realized losses (gains) included in net income 335 (85 ) 250 227 (48 ) 179 Effect on other comprehensive income $ 8,371 $ (2,408 ) $ 5,963 $ (6,251 ) $ 1,823 $ (4,428 ) |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 5. LEASES The Company has entered into operating and financing leases primarily for real estate and vehicles. The Company will determine whether an arrangement is a lease at inception of the agreement. The operating leases have terms of one to ten years, and often include one or more options to renew. These renewal terms can extend the lease term from three to ten years, and are included in the lease term when it is reasonably certain that the Company will exercise the option. The Company considers these options in determining the lease term used in establishing our right-of-use asset and lease obligations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Because the rate implicit in each operating lease in not readily determinable, the Company uses its incremental borrowing rate to determine present value of the lease payments. The Company used the implicit rates within the finance leases. Components of our lease costs for the three months ended March 31, 2019 are as follows (in thousands): March 31, 2019 Amortization of ROU assets - Finance leases $ 23 Interest on lease liabilities - Finance leases 7 Variable lease cost (cost excluded from lease payments) 111 Operating lease cost (cost resulting from lease payments) 176 Total lease cost $ 317 New ROU assets - Operating leases $ 6,955 Supplemental cash flow information and non-cash activity related to our operating and financing leases as of March 31, 2019 are as follows (in thousands): March 31, 2019 Finance lease - Operating cash flows $ 8 Finance lease - Financing cash flows $ 17 Operating lease - Operating cash flows (fixed payments) $ 171 Operating lease - Operating cash flows (liability reduction) $ 141 Supplemental balance sheet information related to our operating and financing leases as of March 31, 2019 are as follows (in thousands): Balance Sheet Classification March 31, 2019 Right-of-use assets (1) Other assets $ 7,129 Lease Liability Accounts payable and other liabilities $ (8,581 ) (1) Right-of-use asset is reduced by $1.3 million in lease incentives received in March 2019, for the new February 1, 2019 lease agreement. Weighted-average remaining lease term and discount rate for our operating and financing leases as of March 31, 2019 are as follows: March 31, 2019 Weighted average lease term - Finance leases 4.12 yrs. Weighted average lease term - Operating leases 8.48 yrs. Weighted average discount rate - Finance leases 8.1 % Weighted average discount rate - Operating leases 5.3 % Maturities of lease liabilities by fiscal year for our operating and financing leases as of March 31, 2019 are as follows (in thousands): March 31, 2019 2019 remaining $ 879 2020 1,437 2021 1,405 2022 1,439 2023 1,254 2024 and thereafter 4,449 Total lease payments 10,863 Less: imputed interest (2,282 ) Present value of lease liabilities $ 8,581 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | NOTE 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following at March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 (In thousands) Land $ 2,582 $ 2,582 Building 11,390 11,390 Computer hardware and software 5,163 4,901 Office furniture and equipment 1,855 1,397 Tenant and leasehold improvements 7,717 4,477 Vehicle fleet 783 854 Total, at cost 29,490 25,601 Less: accumulated depreciation and amortization (8,173 ) (7,603 ) Property and equipment, net $ 21,317 $ 17,998 Depreciation and amortization expense for property and equipment was $571,000 and $414,000 for the three months ended March 31, 2019 and 2018, respectively. The Company’s real estate consists of 15 acres of land and five buildings with a gross area of 229,000 square feet and a parking garage. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Intangible Assets At March 31, 2019 and December 31, 2018 goodwill was $152.5 million and intangible assets were $74.8 million and $76.8 million, respectively. 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, 2018 $ 152,459 Goodwill acquired — Impairment — Balance as of March 31, 2019 $ 152,459 Other Intangible Assets Our intangible assets resulted primarily from the acquisitions of Zephyr Acquisition Company and NBIC Holdings, Inc. and consist of brand, agent relationships, renewal rights, customer relations, trade names, non-competes and insurance licenses. Finite-lived intangibles assets are amortized over their useful lives from one to fifteen years. Amortization expense of our intangible assets was $2.1 million and $6.6 million for the three months ended March 31, 2019 and March 31, 2018, respectively. No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the three months ended March 31, 2019 or 2018. Estimated annual pretax amortization of intangible assets for each of the next five years and thereafter is as follows (in thousands): Year Amount 2019 remaining $ 6,115 2020 $ 6,365 2021 $ 6,351 2022 $ 6,351 2023 $ 6,351 2024 $ 6,351 Thereafter $ 35,558 $ 73,442 (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 | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Basic earnings per share: Net income attributable to common stockholders (000's) $ 6,964 $ 14,829 Weighted average shares outstanding 29,540,514 25,727,553 Basic earnings per share: $ 0.24 $ 0.58 Diluted earnings per share: Net income attributable to common stockholders (000's) $ 6,964 $ 14,829 Weighted average shares outstanding 29,540,514 25,727,553 Weighted average dilutive shares 4,049 1,004,466 Total weighted average dilutive shares 29,544,563 26,732,019 Diluted earnings per share: $ 0.24 $ 0.55 |
Deferred Reinsurance Ceding Com
Deferred Reinsurance Ceding Commission | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
Deferred Reinsurance Ceding Commission | NOTE 9. DEFERRED REINSURANCE CEDING COMMISSION The Company defers reinsurance ceding commission income, which is amortized over the effective period of the related insurance policies. For the three months ended March 31, 2019 and 2018, the Company allocated ceding commission income of $12.9 million and $14.3 million to policy acquisition costs and $4.3 million and $4.7 million to general and administrative expense, respectively. The table below depicts the activity with regard to deferred reinsurance ceding commission during the three-month periods ended March 31, 2019 and 2018. For the Three Months Ended March 31, 2019 2018 (In thousands) Beginning balance of deferred ceding commission income $ 44,996 $ 51,277 Ceding commission deferred 12,647 15,557 Less: ceding commission earned (17,169 ) (18,993 ) Ending balance of deferred ceding commission income $ 40,474 $ 47,841 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | NOTE 10. DEFERRED POLICY ACQUISITION COSTS The Company defers certain costs in connection with written policies, called deferred policy acquisition costs (“DPAC”), which are amortized over the effective period of the related insurance policies. The Company anticipates that its DPAC costs will be fully recoverable in the near term. The table below depicts the activity with regard to DPAC during the three-month periods ended March 31, 2019 and 2018. For the Three Months Ended March 31, 2019 2018 (In thousands) Beginning Balance $ 73,055 $ 41,678 Policy acquisition costs deferred 35,965 24,371 Amortization (39,137 ) (12,187 ) Ending Balance $ 69,883 $ 53,862 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11. INCOME TAXES During the three months ended March 31, 2019 and 2018, the Company recorded $2.4 million and $5.2 million, respectively, of income tax expense which corresponds to an estimated annual effective tax rate of 25.4% and 25.8%, respectively. Effective tax rates are dependent upon components of pre-tax earnings and the related tax effects. The effective tax rate can fluctuate throughout the year as estimates used in the tax provision for the first quarter are updated as more information becomes available throughout the year. The table below summarizes the significant components of our net deferred tax assets (liabilities): March 31, 2019 December 31, 2018 Deferred tax assets: (In thousands) Unearned premiums $ 15,264 $ 12,090 Unearned commission 9,657 10,733 Net operating loss 109 109 Tax-related discount on loss reserve 2,418 2,329 Unrealized loss 431 2,631 Stock-based compensation 528 297 Accrued expenses 2,050 2,321 Other 1,870 1,443 Total deferred tax asset 32,327 31,953 Deferred tax liabilities: Deferred acquisition costs 16,735 17,494 Prepaid expenses 65 112 Property and equipment 533 664 Note discount 536 710 Basis in purchased investments 149 163 Basis in purchased intangibles 18,509 18,982 Other 1,767 1,533 Total deferred tax liabilities 38,294 39,658 Net deferred tax liability $ (5,967 ) $ (7,705 ) In April 2019, the Company was notified by the tax authority that the 2015, 2016 and 2017 tax years federal income tax returns will be examined. The Company does not believe the examination results will have an adverse impact on the condensed consolidated financial statements. At March 31, 2019 and December 31, 2018, we had no significant uncertain tax positions or unrecognized tax benefits that, if recognized, would impact the effective income tax rate. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
Reinsurance | NOTE 12. 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. We purchase significant reinsurance from third party reinsurers, including the Florida Hurricane Catastrophe Fund, and sponsor catastrophe bonds issued by Citrus Re. Our insurance affiliates may also purchase reinsurance from our captive reinsurer, Osprey Re Ltd. 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. The Company’s reinsurance arrangements had the following effect on certain items in the condensed consolidated statement of income for the three months ended March 31, 2019 and 2018: For the Three Months Ended March 31, 2019 2018 (In thousands) Premium written: Direct $ 210,348 $ 204,366 Ceded (46,842 ) (57,350 ) Net $ 163,506 $ 147,016 Premiums earned: Direct 228,590 $ 227,163 Ceded (118,899 ) (121,055 ) Net $ 109,691 $ 106,108 Loss and Loss Adjustment Expenses Direct $ 112,176 $ 335,729 Ceded (50,037 ) (282,638 ) Net $ 62,139 $ 53,091 |
Reserve For Unpaid Losses
Reserve For Unpaid Losses | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
Reserve for Unpaid Losses | NOTE 13. 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 Months Ended March 31, 2019 2018 (In thousands) Balance, beginning of period $ 432,359 $ 470,083 Less: reinsurance recoverable on unpaid losses 250,507 315,353 Net balance, beginning of period 181,852 154,730 Incurred related to: Current year 62,725 51,361 Prior years (586 ) 1,730 Total incurred 62,139 53,091 Paid related to: Current year 8,362 (1,252 ) Prior years 45,616 46,737 Total paid 53,978 45,485 Net balance, end of period 190,013 162,336 Plus: reinsurance recoverable on unpaid losses 214,471 385,399 Balance, end of period $ 404,484 $ 547,735 As of March 31, 2019, we reported $190.0 million in unpaid losses and loss adjustment expenses, net of reinsurance which included $143.1 million attributable to IBNR net of reinsurance recoverable, or 75% of net reserves for unpaid losses and loss adjustment expenses. The Company’s losses incurred for the three months ended March 31, 2019 and 2018 reflect favorable development of $0.6 million and unfavorable development of $1.7 million, respectively, associated with management’s best estimate of the actuarial loss and LAE reserves with consideration given to Company specific historical loss experience. While a portion of the 2018 development includes additional retention for hurricane losses, the majority of the 2018 loss development related to personal lines litigated and AOB claims from 2016 and 2017 accident years. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Convertible Senior Notes In August 2017 and September 2017, we 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 is payable semi-annually in arrears, on February 1, and August 1 of each year, commencing in 2018. As of March 31, 2019, we have $20.8 million Convertible Notes outstanding, net of issuance and debt discount costs in aggregate of approximately, $2.6 million. For the first quarters of 2019 and 2018, the Company made interest payments of approximately $1.5 million and $3.7 million, respectively on the Convertible Notes. Debt Extinguishment On February 19, 2019, the Company reacquired $5.8 million of its outstanding Convertible Notes, payment was made in cash of approximately $2.9 million and issuance of 285,201 shares of the Company’s common stock valued at $4.2 million. The repurchase resulted in a $48,000 non-operating loss. Senior Secured Credit Facility In December 2018, the Company entered in to a five-year, $125 million credit agreement (the “Credit Agreement”) with a syndicate of lenders consisting of $75 million senior secured term loan facility (the “Term Loan Facility”) and a $50.0 million senior secured revolving credit facility (the “Revolving Credit Facility” and together with the Term Loan Facility, the “Credit Facilities”). Term Loan Facility: The principal amount of the Term Loan Facility amortizes in quarterly installments, beginning with the close of the fiscal quarter ending March 31, 2019, in an amount equal to $1.9 million per quarter, with the remaining balance payable at maturity. As of December 31, 2018, there was $75.0 million in aggregate principal outstanding on the Term Loan Facility. As of March 31, 2019, the balance of the term loan was $73.1 million. For the three months ended March 31, 2019, the Company made interest payments of approximately $1.1 million on the term loan. Revolving Credit Facility : The Revolving Credit Facility allows for borrowings of up to $50.0 million inclusive of a $5.0 million sublimit for the issuance of letters of credit and a $10.0 million sublimit for swingline loans. As of March 31, 2019, the Company had $10.0 million of borrowings and no letters of credit outstanding under the Revolving Credit Facility. For the three months ended March 31, 2019, the Company made interest payments of approximately $251,700 under the credit facility. Mortgage Loan 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 and expiring on October 30, 2027. On October 30, 2022, the interest rate shall adjust to an interest rate equal to the annualized interest rate of the United States 5-year Treasury Notes as reported by Federal Reserve on a weekly average basis plus 3.10%. The Company makes monthly principal and interest payments against the loan. For each of the first quarters of 2019 and 2018, the Company made principal and interest payments of approximately $223,200 on the mortgage loan. FHLB Loan Agreements In November 2018, a subsidiary of the Company received a fixed interest rate 3.094% cash loan of $19.2 million from the Federal Home Loan Bank (“FHLB”) Atlanta. In connection with the agreement, the subsidiary became a member of FHLB. Membership in the FHLB required an investment in FHLB’s common stock which was purchased in December 2018 and valued at $1.4 million. Additionally, the transaction required securities be pledged as collateral. As of March 31, 2019, the fair value of the collateralized securities was $24.2 million and the equity investment in FHLB common stock was $1.4 million. As of March 31, 2019, the Company made quarterly interest payments of approximately $148,500 per the terms of the agreement. The following table summarizes the Company’s long-term debt as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 (In thousands) Convertible debt $ 23,413 $ 29,163 Mortgage loan 12,324 12,394 Term loan facility 73,125 75,000 Revolving credit facility 10,000 20,000 FHLB loan agreement 19,200 19,200 Total principal amount $ 138,062 $ 155,757 Less: unamortized discount and issuance costs $ 5,886 $ 6,963 Total long-term debt $ 132,176 $ 148,794 As of the date of this report, we were in compliance with the applicable terms of all our covenants and other requirements under the Revolving agreement, Term Note, Convertible Debt, cash borrowings and other loans. Our ability to secure future debt financing depend, in part, on our ability to remain in such compliance. As long as there is no default or an event of default exist we are allowed to payout dividends in an aggregate amount not to exceed $10.0 million in any fiscal year. The schedule of principal payments on long-term debt is as follows: Year Amount (In thousands) 2019 remaining $ 5,832 2020 7,790 2021 7,806 2022 7,822 2023 74,589 Thereafter 34,223 Total $ 138,062 |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Accounts Payable and Other Liabilities | NOTE 15. ACCOUNTS PAYABLE AND OTHER LIABILITIES Accounts payable and other liabilities consist of the following as of March 31, 2019 and December 31, 2018: Description March 31, 2019 December 31, 2018 (In thousands) Deferred ceding commission $ 40,474 $ 44,996 Outstanding claim checks 15,624 15,360 Accounts payable and other payables 11,051 8,379 Lease obligations 8,581 — Accrued interest and issuance costs 697 1,285 Accrued dividends 1,807 1,589 Premium tax 406 2,241 Current income taxes 5,725 — Other liabilities — 460 Commission payables $ 10,782 11,654 Total other liabilities $ 95,147 $ 85,964 |
Statutory Accounting and Regula
Statutory Accounting and Regulations | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
Statutory Accounting and Regulations | NOTE 16. 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 $750,000 in a federally insured financial institution. NBIC is required to maintain capital and surplus of $3.0 million. The combined statutory surplus for Heritage P&C, Zephyr and NBIC was $366.6 million for the three months ended March 31, 2019. The combined statutory surplus for Heritage P&C, Zephyr and NBIC was $376.3 million at December 31, 2018. 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 March 31, 2019, our insurance subsidiaries met the financial and regulatory requirements of the states in which they do business. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 17. 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 | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 18. RELATED PARTY TRANSACTIONS The Company has been party to various related party transactions involving certain of its officers, directors and significant stockholders as set forth below. The Company has entered into each of these arrangements without obligation to continue its effect in the future and the associated expense was immaterial to its results of operations or financial position as of March 31, 2019 and 2018. • 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 $150,000. For the three months ended March 31, 2019 and 2018 the Company paid consulting fees to Ms. Lucas of approximately $102,800 and $171,000, respectively |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 19. EMPLOYEE BENEFIT PLANS The Company provides a 401(k) plan for substantially all employees. The Company provides a matching contribution of 100% on the first 3% of employees’ contribution and 50% on the next 2% of the employees’ contribution to the plan. The maximum match is 4%. For the three-month periods ended March 31, 2019 and 2018, the contributions made to the plan on behalf of the participating employees were approximately $255,700 and $394,200, respectively. The Company provides for its employees a partially self-insured healthcare plan and benefits. For the three months ended March 31, 2019 and 2018, incurred medical premium costs amounted to an aggregate of $841,400 and $853,000, respectively. An additional liability of approximately $303,000 was recorded for unpaid claims as of March 31, 2019. A stop loss reinsurance policy caps the maximum loss that could be incurred by the Company under the self-insured plan. The Company’s stop loss coverage per employee is $150,000 for which any excess cost would be covered by the reinsurer subject to an aggregate limit for losses in excess of $1.5 million which would provide up to $1.0 million of coverage. Any excess of the $1.5 million retention and the $1 million of aggregate coverage would be borne by the Company. The aggregate stop loss commences once our expenses exceed 125% of the annual aggregate expected claims. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity | NOTE 20. 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 March 31, 2019, the Company had 29,432,217 shares of common stock outstanding, 7,562,537 treasury shares of common stock and 580,801 unvested shares of restricted common stock issued reflecting total paid-in capital of $328.9 million as of such date. As more fully disclosed in our audited consolidated financial statements for the year ended December 31, 2018, there were, as of December 31, 2018, 29,477,756 shares of common stock outstanding, 7,214,797 treasury shares of common stock and 605,801 unvested shares of restricted common stock, representing $325.3 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 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 purchase shares below a predetermined price per share. During the first quarter of 2019, the Company purchased 347,740 shares of its common stock for $5.0 million. At March 31, 2019, the Company has the capacity to repurchase $45.0 million of its common shares until December 2020. During the first quarter of 2018, the Company repurchased 115,200 shares of its common stock for $2.0 million. Dividends On February 25, 2019, the Company’s Board of Directors declared a $0.06 per share quarterly dividend payable on April 3, 2019, to shareholders of record as of March 15, 2019. 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 | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 21. 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, 2018, all unexercised shares have been forfeited. At March 31, 2019 there were 1,321,398 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. In 2018, the Board of Directors granted 155,801 restricted shares vesting over three to five years, to the Company’s executives and other key employees. No restricted stock was granted during quarter ended March 31, 2019. 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 March 31, 2019 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2018 605,801 $ 20.41 Granted — — Vested (17,000 ) 14.72 Canceled and surrendered (8,000 ) 14.72 Non-vested, at March 31, 2019 580,801 $ 20.65 Awards are being amortized to expense over the three to five-year vesting period. The Company recognized $1.3 million and $1.3 million of compensation expense for the three months ended March 31, 2019 and 2018, respectively. There was approximately $9.6 million of unrecognized compensation expense related to the un-vested restricted stock at March 31, 2019. The Company expects to recognize substantially all of remaining compensation expense over approximately over the next 1.9 years. During the quarter ended March 31, 2019, 25,000 restricted shares were vested and released, all of which had been granted to employees. Of the shares released to employees, 8,000 shares were withheld by the Company to cover withholding taxes of $118,000. During the first quarter of 2018, no shares were vested and released. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 22. 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 March 31, 2019. On May 6, 2019, the Company announced that its Board of Directors declared a $0.06 per share quarterly dividend payable on July 3, 2019 to stockholders of record as of June 14, 2019. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of the Heritage Insurance Holdings, Inc. (together with its subsidiaries, the “Company”). These 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. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. In the opinion of the Company’s management, all material intercompany transactions and balances have been eliminated and all adjustments consisting of normal recurring accruals which are, necessary for a fair statement of the financial condition and results of operations for the interim periods have been reflected. The accompanying interim consolidated financial statements and related footnotes should be read in conjunction with the Company’s consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “ 2018 Form 10- |
Leases | Leases We lease office space as the lessor and tenant and have entered into various other lease agreements in conducting our business. We evaluate each lease agreement to determine whether the lease is an operating or financing lease and effective for the first quarter of 2019, we have established a right-of-use (“ROU”) asset and corresponding lease liability on the balance sheet. As described below under “Recently Adopted Accounting Pronouncements” we adopted the Financial Accounting Standards Update, or ASU, “Leases”, or “FASB 842” as of January 1, 2019. The Company did not recognize an opening adjustment to retained earnings as a result of the adoption of FASB 842. Refer to Note 5-Leases herein for further information. |
Reclassification | Reclassification We have reclassified certain amounts in the 2018 condensed consolidated balance sheet to confirm to our 2019 presentation. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases We adopted the guidance prospectively during the first quarter of 2019. As part of our adoption, we elected not to reassess historical lease classification, recognize short-term leases on our balance sheet, nor separate lease and non-lease components for our real estate leases. At implementation, we recorded approximately $2.8 million as right-of-use operating and financing Accounting Pronouncements Not Yet Adopted For information regarding accounting standards that the Company has not yet adopted, refer to our Annual Report on Form 10-K, filed on March 12, 2019, the section of Note 1 of the notes to the consolidated financial statements the “Accounting Pronouncement Not Yet Adopted”. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Difference between Cost or Adjusted/Amortized Cost and Estimated Fair Value, by Major Investment Category | Securities Available-for-Sale The following table details the difference between cost or adjusted/amortized cost and estimated fair value, by major investment category, at March 31, 2019 and December 31, 2018: March 31, 2019 Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (In thousands) Fixed maturity securities, available-for-sale U.S. government and agency securities (1) $ 49,547 $ 81 $ 451 $ 49,177 States, municipalities and political subdivisions 65,988 440 151 66,277 Special revenue 244,841 1,463 1,479 244,825 Industrial and miscellaneous 163,514 943 951 163,506 Redeemable preferred stocks 4,303 5 153 4,155 $ 528,193 $ 2,932 $ 3,185 $ 527,940 December 31, 2018 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Fixed maturity securities, available-for-sale U.S. government and agency securities (1) $ 48,739 $ 40 $ 738 $ 48,041 States, municipalities and political subdivisions 60,028 46 785 59,289 Special revenue 249,026 210 3,881 245,355 Industrial and miscellaneous 155,678 81 3,302 152,457 Redeemable preferred stocks 4,920 — 413 4,507 $ 518,391 $ 377 $ 9,119 $ 509,649 (1) U.S. government and agency securities include pledged fixed maturity securities with an estimated fair value of $24 million and $31 million under the terms and condition of the advance agreement entered into with a financial institution as of March 31, 2019 and December 31, 2018, respectively. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. |
Schedule of Net Realized Gains (Losses) by Major Investment Category | The Company calculates the gain or loss realized on the sale of investments by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. The Company determines the cost or adjusted/amortized cost of the security sold using the specific-identification method. The following tables detail the Company’s net realized gains (losses) by major investment category for the three months ended March 31, 2019 and 2018. 2019 2018 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) For the Three Months Ended March 31, Fixed maturity securities $ 5 $ 24,414 $ 87 $ 50,067 Equity securities — — 2 74 Total realized gains 5 24,414 89 50,141 Fixed maturity securities (67 ) 6,141 (218 ) 48,143 Equity securities (273 ) 513 (98 ) 2,167 Total realized losses (340 ) 6,654 (316 ) 50,310 Unrealized gains (losses) on equity securities (1) 1,359 — — — Net realized (losses) gains $ 1,024 $ 31,068 $ (227 ) $ 100,451 (1) For the three months ended March 31, 2018, the Company recognized $868,700 as unrealized losses on equity securities pursuant to ASC 2016-01, at the time of adoption the Company reported changes in the fair value of equity investments in Other revenue. |
Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity | The table below summarizes the Company’s fixed maturities at March 31, 2019 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. For the Three Months Ended March 31, 2019 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Maturity dates: (In thousands) (In thousands) Due in one year or less $ 55,079 10 % $ 54,993 10 % Due after one year through five years 168,231 32 % 168,051 32 % Due after five years through ten years 138,520 26 % 138,978 26 % Due after ten years 166,363 32 % 165,918 32 % Total $ 528,193 100 % $ 527,940 100 % |
Schedule of Realized Gains and Losses from Securities Include Sales of Securities and Unrealized Gains and Losses | The following tables present realized gains and losses from securities included both sales of securities and unrealized gains losses included in net income as of March 31, 2019 and December 31, 2018 : March 31, 2019 March 31, 2018 (In thousands) Net gains (loss) recognized during the period on equity securities $ 1,086 $ (945 ) Less: Net losses (gains) recognized from equity securities sold 273 76 Unrealized gains (loss) recognized on equity securities still held at reporting date $ 1,359 $ (869 ) |
Summary of Net Investment Income | The following table summarizes the Company’s net investment income by major investment category for the three months ended March 31, 2019 and 2018, respectively: For the Three Months Ended March 31, 2019 2018 (In thousands) Fixed maturity securities $ 2,724 $ 2,945 Equity securities 309 307 Cash, cash equivalents and short-term investments 817 157 Other investments 342 259 Net investment income 4,192 3,668 Investment expenses 520 366 Net investment income, less investment expenses $ 3,672 $ 3,302 |
Aging of Gross Unrealized Investment Losses | The following tables present an aging of our unrealized investment losses by investment class as of March 31, 2019 and December 31, 2018: Less Than Twelve Months Twelve Months or More March 31, 2019 Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value (In thousands) Fixed maturity securities, available-for-sale U.S. government and agency securities 9 $ 49 $ 2,635 59 $ 402 $ 19,792 States, municipalities and political subdivisions 1 1 523 35 150 29,693 Industrial and miscellaneous 54 109 16,848 235 842 70,928 Special revenue 23 82 13,985 318 1,397 96,391 Redeemable preferred stocks 25 24 1,368 17 129 2,215 Total fixed maturity securities 112 $ 265 $ 35,358 664 $ 2,920 $ 219,019 Less Than Twelve Months Twelve Months or More December 31, 2018 Number Gross Losses Fair Number of Securities Gross Unrealized Losses Fair Value (In thousands) Fixed maturity securities, available-for-sale U.S. government and agency securities 17 $ 129 $ 10,485 66 $ 609 $ 20,488 States, municipalities and political subdivisions 13 103 12,864 42 682 39,979 Industrial and miscellaneous 214 1,479 70,156 232 1,822 70,375 Special revenue 105 1,260 76,335 323 2,621 108,319 Redeemable preferred stocks 55 193 2,541 27 221 1,965 Total fixed maturity securities 404 $ 3,164 $ 172,381 690 $ 5,955 $ 241,126 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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. As of March 31, 2019, and December 31, 2018, there were no transfers in or out of Level 1, 2, and 3. March 31, 2019 Total Level 1 Level 2 Level 3 Invested Assets: (In thousands) Fixed maturity securities, available-for-sale: U.S. government and agency securities $ 49,177 $ 359 $ 48,818 $ — States, municipalities and political subdivisions 66,277 — 66,277 — Special revenue 244,825 — 244,825 — Industrial and miscellaneous 163,506 — 163,506 — Redeemable preferred stocks 4,155 4,155 — — Total fixed maturity securities 527,940 4,514 523,426 — Equity securities Common stock 3,825 3,825 — — Non-redeemable preferred stock 13,550 13,550 — — Total equity securities 17,375 17,375 — — Total investments 545,315 21,889 523,426 — Investments reported at NAV 21,693 — — — Total $ 567,008 $ 21,889 $ 523,426 $ — December 31, 2018 Total Level 1 Level 2 Level 3 Invested Assets: (in thousands) Fixed maturity securities, available-for-sale: U.S. government and agency securities $ 48,041 $ 354 $ 47,687 $ — States, municipalities and political subdivisions 59,289 — 59,289 — Special revenue 245,355 — 245,355 — Industrial and miscellaneous 152,457 — 152,457 — Redeemable preferred stocks 4,507 4,507 — — Total fixed maturity securities 509,649 4,861 504,788 — Equity securities Common stock 3,686 3,686 — — Non-redeemable preferred stock 12,770 12,770 — — Total equity securities 16,456 16,456 — — Total investments 526,105 21,317 504,788 — Investments reported at NAV 2,488 — — — Total $ 528,593 $ 21,317 $ 504,788 $ — |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Comprehensive Income Net Of Tax [Abstract] | |
Effect on Other Comprehensive Income due to Changes in Unrealized Gains and Losses, Net of Tax on Available-for-sale Fixed Maturities Securities | The difference between net income as reported and comprehensive income was due to the changes in unrealized gains and losses, net of taxes on fixed maturities securities. For the Three Months Ended March 31, 2019 2018 Pre-tax Tax After-tax Pre-tax Tax After-tax (In thousands) Other comprehensive income Change in unrealized losses on investments, net $ 8,036 $ (2,323 ) $ 5,713 $ (6,478 ) $ 1,871 $ (4,607 ) Reclassification adjustment of realized losses (gains) included in net income 335 (85 ) 250 227 (48 ) 179 Effect on other comprehensive income $ 8,371 $ (2,408 ) $ 5,963 $ (6,251 ) $ 1,823 $ (4,428 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Costs | Components of our lease costs for the three months ended March 31, 2019 are as follows (in thousands): March 31, 2019 Amortization of ROU assets - Finance leases $ 23 Interest on lease liabilities - Finance leases 7 Variable lease cost (cost excluded from lease payments) 111 Operating lease cost (cost resulting from lease payments) 176 Total lease cost $ 317 New ROU assets - Operating leases $ 6,955 |
Supplemental Cash Flow Information and Non-Cash Activity Related to Operating and Financing Leases | Supplemental cash flow information and non-cash activity related to our operating and financing leases as of March 31, 2019 are as follows (in thousands): March 31, 2019 Finance lease - Operating cash flows $ 8 Finance lease - Financing cash flows $ 17 Operating lease - Operating cash flows (fixed payments) $ 171 Operating lease - Operating cash flows (liability reduction) $ 141 |
Supplemental Balance Sheet Information Related to Operating and Financing Leases | Supplemental balance sheet information related to our operating and financing leases as of March 31, 2019 are as follows (in thousands): Balance Sheet Classification March 31, 2019 Right-of-use assets (1) Other assets $ 7,129 Lease Liability Accounts payable and other liabilities $ (8,581 ) (1) Right-of-use asset is reduced by $1.3 million in lease incentives received in March 2019, for the new February 1, 2019 lease agreement. |
Weighted-Average Remaining Lease Term and Discount Rate for Operating and Financing Leases | Weighted-average remaining lease term and discount rate for our operating and financing leases as of March 31, 2019 are as follows: March 31, 2019 Weighted average lease term - Finance leases 4.12 yrs. Weighted average lease term - Operating leases 8.48 yrs. Weighted average discount rate - Finance leases 8.1 % Weighted average discount rate - Operating leases 5.3 % |
Maturities of Lease Liabilities by Fiscal Year for Operating and Financing Leases | Maturities of lease liabilities by fiscal year for our operating and financing leases as of March 31, 2019 are as follows (in thousands): March 31, 2019 2019 remaining $ 879 2020 1,437 2021 1,405 2022 1,439 2023 1,254 2024 and thereafter 4,449 Total lease payments 10,863 Less: imputed interest (2,282 ) Present value of lease liabilities $ 8,581 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following at March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 (In thousands) Land $ 2,582 $ 2,582 Building 11,390 11,390 Computer hardware and software 5,163 4,901 Office furniture and equipment 1,855 1,397 Tenant and leasehold improvements 7,717 4,477 Vehicle fleet 783 854 Total, at cost 29,490 25,601 Less: accumulated depreciation and amortization (8,173 ) (7,603 ) Property and equipment, net $ 21,317 $ 17,998 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill (In thousands) Balance as of December 31, 2018 $ 152,459 Goodwill acquired — Impairment — Balance as of March 31, 2019 $ 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 2019 remaining $ 6,115 2020 $ 6,365 2021 $ 6,351 2022 $ 6,351 2023 $ 6,351 2024 $ 6,351 Thereafter $ 35,558 $ 73,442 (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) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Basic earnings per share: Net income attributable to common stockholders (000's) $ 6,964 $ 14,829 Weighted average shares outstanding 29,540,514 25,727,553 Basic earnings per share: $ 0.24 $ 0.58 Diluted earnings per share: Net income attributable to common stockholders (000's) $ 6,964 $ 14,829 Weighted average shares outstanding 29,540,514 25,727,553 Weighted average dilutive shares 4,049 1,004,466 Total weighted average dilutive shares 29,544,563 26,732,019 Diluted earnings per share: $ 0.24 $ 0.55 |
Deferred Reinsurance Ceding C_2
Deferred Reinsurance Ceding Commission (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
Schedule of Activity with Regard to Deferred Reinsurance Ceding Commission | The table below depicts the activity with regard to deferred reinsurance ceding commission during the three-month periods ended March 31, 2019 and 2018. For the Three Months Ended March 31, 2019 2018 (In thousands) Beginning balance of deferred ceding commission income $ 44,996 $ 51,277 Ceding commission deferred 12,647 15,557 Less: ceding commission earned (17,169 ) (18,993 ) Ending balance of deferred ceding commission income $ 40,474 $ 47,841 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
Summary of Activity in Deferred Policy Acquisition Costs (DPAC) | The table below depicts the activity with regard to DPAC during the three-month periods ended March 31, 2019 and 2018. For the Three Months Ended March 31, 2019 2018 (In thousands) Beginning Balance $ 73,055 $ 41,678 Policy acquisition costs deferred 35,965 24,371 Amortization (39,137 ) (12,187 ) Ending Balance $ 69,883 $ 53,862 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets (Liabilities) | The table below summarizes the significant components of our net deferred tax assets (liabilities): March 31, 2019 December 31, 2018 Deferred tax assets: (In thousands) Unearned premiums $ 15,264 $ 12,090 Unearned commission 9,657 10,733 Net operating loss 109 109 Tax-related discount on loss reserve 2,418 2,329 Unrealized loss 431 2,631 Stock-based compensation 528 297 Accrued expenses 2,050 2,321 Other 1,870 1,443 Total deferred tax asset 32,327 31,953 Deferred tax liabilities: Deferred acquisition costs 16,735 17,494 Prepaid expenses 65 112 Property and equipment 533 664 Note discount 536 710 Basis in purchased investments 149 163 Basis in purchased intangibles 18,509 18,982 Other 1,767 1,533 Total deferred tax liabilities 38,294 39,658 Net deferred tax liability $ (5,967 ) $ (7,705 ) |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
Schedule of Effect of Reinsurance Arrangements in Consolidated Statement of Income | The Company’s reinsurance arrangements had the following effect on certain items in the condensed consolidated statement of income for the three months ended March 31, 2019 and 2018: For the Three Months Ended March 31, 2019 2018 (In thousands) Premium written: Direct $ 210,348 $ 204,366 Ceded (46,842 ) (57,350 ) Net $ 163,506 $ 147,016 Premiums earned: Direct 228,590 $ 227,163 Ceded (118,899 ) (121,055 ) Net $ 109,691 $ 106,108 Loss and Loss Adjustment Expenses Direct $ 112,176 $ 335,729 Ceded (50,037 ) (282,638 ) Net $ 62,139 $ 53,091 |
Reserve for Unpaid Losses (Tabl
Reserve for Unpaid Losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 Months Ended March 31, 2019 2018 (In thousands) Balance, beginning of period $ 432,359 $ 470,083 Less: reinsurance recoverable on unpaid losses 250,507 315,353 Net balance, beginning of period 181,852 154,730 Incurred related to: Current year 62,725 51,361 Prior years (586 ) 1,730 Total incurred 62,139 53,091 Paid related to: Current year 8,362 (1,252 ) Prior years 45,616 46,737 Total paid 53,978 45,485 Net balance, end of period 190,013 162,336 Plus: reinsurance recoverable on unpaid losses 214,471 385,399 Balance, end of period $ 404,484 $ 547,735 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Long-Term Debt | The following table summarizes the Company’s long-term debt as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 (In thousands) Convertible debt $ 23,413 $ 29,163 Mortgage loan 12,324 12,394 Term loan facility 73,125 75,000 Revolving credit facility 10,000 20,000 FHLB loan agreement 19,200 19,200 Total principal amount $ 138,062 $ 155,757 Less: unamortized discount and issuance costs $ 5,886 $ 6,963 Total long-term debt $ 132,176 $ 148,794 |
Schedule of Principal Payments on Long-Term Debt | The schedule of principal payments on long-term debt is as follows: Year Amount (In thousands) 2019 remaining $ 5,832 2020 7,790 2021 7,806 2022 7,822 2023 74,589 Thereafter 34,223 Total $ 138,062 |
Accounts Payable and Other Li_2
Accounts Payable and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accounts Payable and Other Liabilities | Accounts payable and other liabilities consist of the following as of March 31, 2019 and December 31, 2018: Description March 31, 2019 December 31, 2018 (In thousands) Deferred ceding commission $ 40,474 $ 44,996 Outstanding claim checks 15,624 15,360 Accounts payable and other payables 11,051 8,379 Lease obligations 8,581 — Accrued interest and issuance costs 697 1,285 Accrued dividends 1,807 1,589 Premium tax 406 2,241 Current income taxes 5,725 — Other liabilities — 460 Commission payables $ 10,782 11,654 Total other liabilities $ 95,147 $ 85,964 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Restricted Stock Activity | Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2018 605,801 $ 20.41 Granted — — Vested (17,000 ) 14.72 Canceled and surrendered (8,000 ) 14.72 Non-vested, at March 31, 2019 580,801 $ 20.65 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Right-of-use assets | $ 2.8 |
Lease liabilities | $ 2.8 |
Investments - Schedule of Diffe
Investments - Schedule of Difference between Cost or Adjusted/Amortized Cost and Estimated Fair Value, by Major Investment Category (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Cost or Adjusted / Amortized Cost | $ 528,193 | $ 518,391 |
Available-for-sale, Fair Value | 527,940 | 509,649 |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Cost or Adjusted / Amortized Cost | 528,193 | 518,391 |
Available-for-sale, Gross Unrealized Gains | 2,932 | 377 |
Available-for-sale, Gross Unrealized Losses | 3,185 | 9,119 |
Available-for-sale, Fair Value | 527,940 | 509,649 |
U.S. government and agency securities [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Cost or Adjusted / Amortized Cost | 49,547 | 48,739 |
Available-for-sale, Gross Unrealized Gains | 81 | 40 |
Available-for-sale, Gross Unrealized Losses | 451 | 738 |
Available-for-sale, Fair Value | 49,177 | 48,041 |
States, Municipalities and Political Subdivisions [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Cost or Adjusted / Amortized Cost | 65,988 | 60,028 |
Available-for-sale, Gross Unrealized Gains | 440 | 46 |
Available-for-sale, Gross Unrealized Losses | 151 | 785 |
Available-for-sale, Fair Value | 66,277 | 59,289 |
Special Revenue [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Cost or Adjusted / Amortized Cost | 244,841 | 249,026 |
Available-for-sale, Gross Unrealized Gains | 1,463 | 210 |
Available-for-sale, Gross Unrealized Losses | 1,479 | 3,881 |
Available-for-sale, Fair Value | 244,825 | 245,355 |
Industrial and Miscellaneous [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Cost or Adjusted / Amortized Cost | 163,514 | 155,678 |
Available-for-sale, Gross Unrealized Gains | 943 | 81 |
Available-for-sale, Gross Unrealized Losses | 951 | 3,302 |
Available-for-sale, Fair Value | 163,506 | 152,457 |
Redeemable Preferred Stocks [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Cost or Adjusted / Amortized Cost | 4,303 | 4,920 |
Available-for-sale, Gross Unrealized Gains | 5 | |
Available-for-sale, Gross Unrealized Losses | 153 | 413 |
Available-for-sale, Fair Value | $ 4,155 | $ 4,507 |
Investments - Schedule of Dif_2
Investments - Schedule of Difference between Cost or Adjusted/Amortized Cost and Estimated Fair Value, by Major Investment Category (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 527,940 | $ 509,649 |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 527,940 | 509,649 |
U.S. government and agency securities [Member] | Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 49,177 | 48,041 |
U.S. government and agency securities [Member] | Fixed Maturity Securities [Member] | Pledged securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 24,000 | $ 31,000 |
Investments - Schedule of Net R
Investments - Schedule of Net Realized Gains (Losses) by Major Investment Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Total realized gains | $ 5 | $ 89 |
Total realized losses | (340) | (316) |
Unrealized gains (losses) on equity securities | 1,359 | (869) |
Net realized (losses) gains | 1,024 | (227) |
Total realized gains, Fair Value at Sale | 24,414 | 50,141 |
Total realized losses, Fair Value at Sale | 6,654 | 50,310 |
Net realized gain (losses), Fair Value at Sale | 31,068 | 100,451 |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total realized gains | 5 | 87 |
Total realized losses | (67) | (218) |
Total realized gains, Fair Value at Sale | 24,414 | 50,067 |
Total realized losses, Fair Value at Sale | 6,141 | 48,143 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total realized gains | 2 | |
Total realized losses | (273) | (98) |
Total realized gains, Fair Value at Sale | 74 | |
Total realized losses, Fair Value at Sale | $ 513 | $ 2,167 |
Investments - Schedule of Net_2
Investments - Schedule of Net Realized Gains (Losses) by Major Investment Category (Parenthetical) (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses on equity securities | $ (1,359,000) | $ 869,000 |
ASC 2016-01 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses on equity securities | $ 868,700 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | ||
Maturity date Due in one year or less, Cost or Amortized Cost | $ 55,079 | |
Maturity date Due after one year through five years, Cost or Amortized Cost | 168,231 | |
Maturity date Due after five years through ten years, Cost or Amortized Cost | 138,520 | |
Maturity date Due after ten years, Cost or Amortized Cost | 166,363 | |
Available-for-sale, Cost or Adjusted / Amortized Cost | $ 528,193 | $ 518,391 |
Maturity date Due in one year or less, Percentage of Total | 10.00% | |
Maturity date Due after one year through five years, Percentage of Total | 32.00% | |
Maturity date Due after five years through ten years, Percentage of Total | 26.00% | |
Maturity date Due after ten years, Percentage of Total | 32.00% | |
Maturity date Total, Percentage | 100.00% | |
Maturity date Due in one year or less, Fair Value | $ 54,993 | |
Maturity date Due after one year through five years, Fair Value | 168,051 | |
Maturity date Due after five years through ten years, Fair Value | 138,978 | |
Maturity date Due after ten years, Fair Value | 165,918 | |
Maturity date Total, Fair Value | $ 527,940 | $ 509,649 |
Maturity date Due in one year or less, Percentage of Total | 10.00% | |
Maturity date Due after one year through five years, Percentage of Total | 32.00% | |
Maturity date Due after five years through ten years, Percentage of Total | 26.00% | |
Maturity date Due after ten years, Percentage of Total | 32.00% | |
Maturity date Total, Percentage | 100.00% |
Investments - Schedule of Reali
Investments - Schedule of Realized Gains and Losses from Securities Include Sales of Securities and Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | ||
Net gains (loss) recognized during the period on equity securities | $ 1,086 | $ (945) |
Less: Net losses (gains) recognized from equity securities sold | 273 | 76 |
Unrealized gains (loss) recognized on equity securities still held at reporting date | $ 1,359 | $ (869) |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross investment income (loss) | $ 4,192 | $ 3,668 |
Investment expenses | 520 | 366 |
Net investment income, less investment expenses | 3,672 | 3,302 |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross investment income (loss) | 2,724 | 2,945 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross investment income (loss) | 309 | 307 |
Cash and Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross investment income (loss) | 817 | 157 |
Other Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross investment income (loss) | $ 342 | $ 259 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Investments [Line Items] | |||
Other Investments, estimated fair value | $ 21,693,000 | $ 2,488,000 | |
Proceeds from return on preferred stock capital distributions | 259,800 | $ 121,170 | |
Investment allocated cost | 520,000 | 366,000 | |
Limited Partnership [Member] | |||
Investments [Line Items] | |||
Other Investments, estimated fair value | 21,700,000 | ||
Investment allocated cost | $ 0 | $ 5,000 |
Investments - Aging of Gross Un
Investments - Aging of Gross Unrealized Investment Losses (Detail) - Fixed Maturity Securities [Member] $ in Thousands | Mar. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Less Than Twelve Months, Number of Securities | Security | 112 | 404 |
Available-for-sale, Less Than Twelve Months, Gross Unrealized Losses | $ 265 | $ 3,164 |
Available-for-sale, Less Than Twelve Months, Fair Value | $ 35,358 | $ 172,381 |
Available-for-sale, Twelve Months or More, Number of Securities | Security | 664 | 690 |
Available-for-sale, Twelve Months or More, Gross Unrealized Losses | $ 2,920 | $ 5,955 |
Available-for-sale, Twelve Months or More, Fair Value | $ 219,019 | $ 241,126 |
U.S. government and agency securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Less Than Twelve Months, Number of Securities | Security | 9 | 17 |
Available-for-sale, Less Than Twelve Months, Gross Unrealized Losses | $ 49 | $ 129 |
Available-for-sale, Less Than Twelve Months, Fair Value | $ 2,635 | $ 10,485 |
Available-for-sale, Twelve Months or More, Number of Securities | Security | 59 | 66 |
Available-for-sale, Twelve Months or More, Gross Unrealized Losses | $ 402 | $ 609 |
Available-for-sale, Twelve Months or More, Fair Value | $ 19,792 | $ 20,488 |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Less Than Twelve Months, Number of Securities | Security | 1 | 13 |
Available-for-sale, Less Than Twelve Months, Gross Unrealized Losses | $ 1 | $ 103 |
Available-for-sale, Less Than Twelve Months, Fair Value | $ 523 | $ 12,864 |
Available-for-sale, Twelve Months or More, Number of Securities | Security | 35 | 42 |
Available-for-sale, Twelve Months or More, Gross Unrealized Losses | $ 150 | $ 682 |
Available-for-sale, Twelve Months or More, Fair Value | $ 29,693 | $ 39,979 |
Special Revenue [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Less Than Twelve Months, Number of Securities | Security | 23 | 105 |
Available-for-sale, Less Than Twelve Months, Gross Unrealized Losses | $ 82 | $ 1,260 |
Available-for-sale, Less Than Twelve Months, Fair Value | $ 13,985 | $ 76,335 |
Available-for-sale, Twelve Months or More, Number of Securities | Security | 318 | 323 |
Available-for-sale, Twelve Months or More, Gross Unrealized Losses | $ 1,397 | $ 2,621 |
Available-for-sale, Twelve Months or More, Fair Value | $ 96,391 | $ 108,319 |
Industrial and Miscellaneous [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Less Than Twelve Months, Number of Securities | Security | 54 | 214 |
Available-for-sale, Less Than Twelve Months, Gross Unrealized Losses | $ 109 | $ 1,479 |
Available-for-sale, Less Than Twelve Months, Fair Value | $ 16,848 | $ 70,156 |
Available-for-sale, Twelve Months or More, Number of Securities | Security | 235 | 232 |
Available-for-sale, Twelve Months or More, Gross Unrealized Losses | $ 842 | $ 1,822 |
Available-for-sale, Twelve Months or More, Fair Value | $ 70,928 | $ 70,375 |
Redeemable Preferred Stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Less Than Twelve Months, Number of Securities | Security | 25 | 55 |
Available-for-sale, Less Than Twelve Months, Gross Unrealized Losses | $ 24 | $ 193 |
Available-for-sale, Less Than Twelve Months, Fair Value | $ 1,368 | $ 2,541 |
Available-for-sale, Twelve Months or More, Number of Securities | Security | 17 | 27 |
Available-for-sale, Twelve Months or More, Gross Unrealized Losses | $ 129 | $ 221 |
Available-for-sale, Twelve Months or More, Fair Value | $ 2,215 | $ 1,965 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investment exit load percentage within one year | 3.00% | ||
Other investment | $ 2,400,000 | ||
Nonrecurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Non-recurring fair value adjustments | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | $ 527,940 | $ 509,649 |
Available for sale equity securities | 17,375 | 16,456 |
Total investments | 545,315 | 526,105 |
Investments reported at NAV | 21,693 | 2,488 |
Total investments | 567,008 | 528,593 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 21,889 | 21,317 |
Total investments | 21,889 | 21,317 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments | 523,426 | 504,788 |
Total investments | 523,426 | 504,788 |
Fixed Maturity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 527,940 | 509,649 |
Fixed Maturity Securities [Member] | U.S. government and agency securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 49,177 | 48,041 |
Fixed Maturity Securities [Member] | States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 66,277 | 59,289 |
Fixed Maturity Securities [Member] | Special Revenue [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 244,825 | 245,355 |
Fixed Maturity Securities [Member] | Industrial and Miscellaneous [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 163,506 | 152,457 |
Fixed Maturity Securities [Member] | Redeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 4,155 | 4,507 |
Fixed Maturity Securities [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 4,514 | 4,861 |
Fixed Maturity Securities [Member] | Level 1 [Member] | U.S. government and agency securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 359 | 354 |
Fixed Maturity Securities [Member] | Level 1 [Member] | Redeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 4,155 | 4,507 |
Fixed Maturity Securities [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 523,426 | 504,788 |
Fixed Maturity Securities [Member] | Level 2 [Member] | U.S. government and agency securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 48,818 | 47,687 |
Fixed Maturity Securities [Member] | Level 2 [Member] | States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 66,277 | 59,289 |
Fixed Maturity Securities [Member] | Level 2 [Member] | Special Revenue [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 244,825 | 245,355 |
Fixed Maturity Securities [Member] | Level 2 [Member] | Industrial and Miscellaneous [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale, Fair Value | 163,506 | 152,457 |
Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 17,375 | 16,456 |
Equity Securities [Member] | Nonredeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 13,550 | 12,770 |
Equity Securities [Member] | Common Stock [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 3,825 | 3,686 |
Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 17,375 | 16,456 |
Equity Securities [Member] | Level 1 [Member] | Nonredeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | 13,550 | 12,770 |
Equity Securities [Member] | Level 1 [Member] | Common Stock [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale equity securities | $ 3,825 | $ 3,686 |
Other Comprehensive Income - Ad
Other Comprehensive Income - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Comprehensive Income Net Of Tax [Abstract] | ||
Other comprehensive income | $ 5,963 | $ (4,428) |
Other Comprehensive Income - Ef
Other Comprehensive Income - Effect on Other Comprehensive Income due to Changes in Unrealized Gains and Losses, Net of Taxes on Fixed Maturities Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other comprehensive income | ||
Change in unrealized losses on investments, net, Pre-tax | $ 8,036 | $ (6,478) |
Reclassification adjustment of realized losses (gains) included in net income, Pre-tax | 335 | 227 |
Effect on other comprehensive income, Pre-tax | 8,371 | (6,251) |
Change in unrealized losses on investments, net, Tax | (2,323) | 1,871 |
Reclassification adjustment of realized losses (gains) included in net income, Tax | (85) | (48) |
Effect on other comprehensive income, Tax | (2,408) | 1,823 |
Change in unrealized losses on investments, net, After-tax | 5,713 | (4,607) |
Reclassification adjustment of realized losses (gains) included in net income, After-tax | 250 | 179 |
Effect on other comprehensive income, After-tax | $ 5,963 | $ (4,428) |
Leases - Additional Information
Leases - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Lessee Lease Description [Line Items] | |
Lease renewal, Description | one or more options to renew. |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Lease terms | 1 year |
Renewal terms of lease | 3 years |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lease terms | 10 years |
Renewal terms of lease | 10 years |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Amortization of ROU assets - Finance leases | $ 23 |
Interest on lease liabilities - Finance leases | 7 |
Variable lease cost (cost excluded from lease payments) | 111 |
Operating lease cost (cost resulting from lease payments) | 176 |
Total lease cost | 317 |
New ROU assets - Operating leases | $ 6,955 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information and Non-Cash Activity Related to Operating and Financing Leases (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Finance lease - Operating cash flows | $ 8 |
Finance lease - Financing cash flows | 17 |
Operating lease - Operating cash flows (fixed payments) | 171 |
Operating lease - Operating cash flows (liability reduction) | $ 141 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating and Financing Leases (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Lessee Lease Description [Line Items] | |
Right-of-use assets | $ 2,800 |
Lease Liability | (2,800) |
Other Assets [Member] | |
Lessee Lease Description [Line Items] | |
Right-of-use assets | 7,129 |
Accounts Payable and Other Liabilities [Member] | |
Lessee Lease Description [Line Items] | |
Lease Liability | $ (8,581) |
Leases - Supplemental Balance_2
Leases - Supplemental Balance Sheet Information Related to Operating and Financing Leases (Parenthetical) (Detail) $ in Millions | 1 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Lease incentives received | $ 1.3 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate for Operating and Financing Leases (Detail) | Mar. 31, 2019 |
Leases [Abstract] | |
Weighted average lease term - Finance leases | 4 years 1 month 13 days |
Weighted average lease term - Operating leases | 8 years 5 months 23 days |
Weighted average discount rate - Finance leases | 8.10% |
Weighted average discount rate - Operating leases | 5.30% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities by Fiscal Year for Operating and Financing Leases (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 remaining | $ 879 |
2020 | 1,437 |
2021 | 1,405 |
2022 | 1,439 |
2023 | 1,254 |
2024 and thereafter | 4,449 |
Total lease payments | 10,863 |
Less: imputed interest | (2,282) |
Present value of lease liabilities | $ 8,581 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 29,490 | $ 25,601 |
Less: accumulated depreciation and amortization | (8,173) | (7,603) |
Property and equipment, net | 21,317 | 17,998 |
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 | 11,390 | 11,390 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 5,163 | 4,901 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 1,855 | 1,397 |
Tenant and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 7,717 | 4,477 |
Vehicle Fleet [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 783 | $ 854 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)aft²Building | Mar. 31, 2018USD ($) | |
Property Plant And Equipment Useful Life And Values [Abstract] | ||
Depreciation and amortization expense | $ | $ 571,000 | $ 414,000 |
Number of acres of land purchased | a | 15 | |
Number of buildings | Building | 5 | |
Gross area of acquired property | ft² | 229,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | |||
Goodwill | $ 152,459,000 | $ 152,459,000 | |
Intangibles, net | 74,757,000 | $ 76,850,000 | |
Indefinite lived intangible, insurance licenses | 1,300,000 | ||
Amortization of intangible assets | 2,100,000 | $ 6,600,000 | |
Impairment of amortizing intangible assets | 0 | 0 | |
Impairment of non-amortizing intangible assets | $ 0 | $ 0 | |
Minimum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Useful life of intangible asset | 2 years 6 months | ||
Finite-lived intangible assets useful lives | 1 year | ||
Maximum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Useful life of intangible asset | 15 years | ||
Finite-lived intangible assets useful lives | 15 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 152,459 |
Ending balance | $ 152,459 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2019 remaining | $ 6,115 |
2020 | 6,365 |
2021 | 6,351 |
2022 | 6,351 |
2023 | 6,351 |
2024 | 6,351 |
Thereafter | 35,558 |
Intangible Assets, net | $ 73,442 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Parenthetical) (Details) $ in Millions | Mar. 31, 2019USD ($) |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic earnings per share: | ||
Net income attributable to common stockholders (000's) | $ 6,964 | $ 14,829 |
Weighted average shares outstanding | 29,540,514 | 25,727,553 |
Basic earnings per share: | $ 0.24 | $ 0.58 |
Diluted earnings per share: | ||
Net income attributable to common stockholders (000's) | $ 6,964 | $ 14,829 |
Weighted average shares outstanding | 29,540,514 | 25,727,553 |
Weighted average dilutive shares | 4,049 | 1,004,466 |
Total weighted average dilutive shares | 29,544,563 | 26,732,019 |
Diluted earnings per share: | $ 0.24 | $ 0.55 |
Deferred Reinsurance Ceding C_3
Deferred Reinsurance Ceding Commission - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Policy Acquisition Costs [Member] | ||
Deferred Reinsurance Ceding Commission [Line Items] | ||
Ceding commission income | $ 12.9 | $ 14.3 |
General and Administrative Expenses [Member] | ||
Deferred Reinsurance Ceding Commission [Line Items] | ||
Ceding commission income | $ 4.3 | $ 4.7 |
Deferred Reinsurance Ceding C_4
Deferred Reinsurance Ceding Commission - Schedule of Activity with Regard to Deferred Reinsurance Ceding Commission (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Insurance [Abstract] | ||
Beginning balance of deferred ceding commission income | $ 44,996 | $ 51,277 |
Ceding commission deferred | 12,647 | 15,557 |
Less: ceding commission earned | (17,169) | (18,993) |
Ending balance of deferred ceding commission income | $ 40,474 | $ 47,841 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Summary of Activity in Deferred Policy Acquisition Costs (DPAC) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Insurance [Abstract] | ||
Beginning Balance | $ 73,055 | $ 41,678 |
Policy acquisition costs deferred | 35,965 | 24,371 |
Amortization | (39,137) | (12,187) |
Ending Balance | $ 69,883 | $ 53,862 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 2,369,000 | $ 5,168,000 | |
Annual effective tax rate | 25.40% | 25.80% | |
Uncertain tax positions | $ 0 | $ 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Unearned premiums | $ 15,264 | $ 12,090 |
Unearned commission | 9,657 | 10,733 |
Net operating loss | 109 | 109 |
Tax-related discount on loss reserve | 2,418 | 2,329 |
Unrealized loss | 431 | 2,631 |
Stock-based compensation | 528 | 297 |
Accrued expenses | 2,050 | 2,321 |
Other | 1,870 | 1,443 |
Total deferred tax asset | 32,327 | 31,953 |
Deferred tax liabilities: | ||
Deferred acquisition costs | 16,735 | 17,494 |
Prepaid expenses | 65 | 112 |
Property and equipment | 533 | 664 |
Note discount | 536 | 710 |
Basis in purchased investments | 149 | 163 |
Basis in purchased intangibles | 18,509 | 18,982 |
Other | 1,767 | 1,533 |
Total deferred tax liabilities | 38,294 | 39,658 |
Net deferred tax liability | $ (5,967) | $ (7,705) |
Reinsurance - Additional inform
Reinsurance - Additional information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Catastrophe [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsurance premium, amortization period | 12 months |
Quota Share [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsurance premium, amortization period | 12 months |
Reinsurance - Schedule of Effec
Reinsurance - Schedule of Effect of Reinsurance Arrangements in Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Premiums Written | ||
Premiums Written, Direct | $ 210,348 | $ 204,366 |
Premiums Written, Ceded | (46,842) | (57,350) |
Premiums Written, Net | 163,506 | 147,016 |
Premiums Earned | ||
Premiums Earned, Direct | 228,590 | 227,163 |
Premiums Earned, Ceded | (118,899) | (121,055) |
Net premiums earned | 109,691 | 106,108 |
Losses and Loss Adjustment Expenses | ||
Losses and Loss Adjustment Expenses, Direct | 112,176 | 335,729 |
Losses and Loss Adjustment Expenses, Ceded | (50,037) | (282,638) |
Losses and Loss Adjustment Expenses, Net | $ 62,139 | $ 53,091 |
Reserve for Unpaid Losses - Sum
Reserve for Unpaid Losses - Summary of Reserve for Unpaid Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Insurance [Abstract] | ||
Balance, beginning of period | $ 432,359 | $ 470,083 |
Less: reinsurance recoverable on unpaid losses | 250,507 | 315,353 |
Net balance, beginning of period | 181,852 | 154,730 |
Incurred related to: | ||
Current year | 62,725 | 51,361 |
Prior years | (586) | 1,730 |
Total incurred | 62,139 | 53,091 |
Paid related to: | ||
Current year | 8,362 | (1,252) |
Prior years | 45,616 | 46,737 |
Total paid | 53,978 | 45,485 |
Net balance, end of period | 190,013 | 162,336 |
Plus: reinsurance recoverable on unpaid losses | 214,471 | 385,399 |
Balance, end of period | $ 404,484 | $ 547,735 |
Reserve for Unpaid Losses - Add
Reserve for Unpaid Losses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Unpaid losses and loss adjustment expenses | $ 190,013 | $ 162,336 | $ 181,852 | $ 154,730 |
Unpaid losses and loss adjustment expenses attributable to IBNR net of reinsurance recoverables | $ 143,100 | |||
Net reserves for unpaid losses and loss adjustment expenses, percentage | 75.00% | |||
Losses incurred favorable and unfavorable development | $ (586) | 1,730 | ||
Hurricane Claims [Member] | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Losses incurred favorable and unfavorable development | $ (600) | $ 1,700 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Feb. 19, 2019 | Dec. 31, 2018 | Oct. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Nov. 30, 2018 | Sep. 30, 2017 | Aug. 31, 2017 |
Debt Instrument [Line Items] | ||||||||
Long-term debt, net | $ 148,794,000 | $ 132,176,000 | ||||||
Issuance and debt discount costs | 6,963,000 | 5,886,000 | ||||||
Convertible notes converted into common stock | 4,210,000 | |||||||
Payout dividends, aggregate amount | 1,601,000 | $ 1,601,000 | ||||||
Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Payout dividends, aggregate amount | 10,000,000 | |||||||
Federal Home Loan Bank Of Atlanta [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest paid | 148,500 | |||||||
FHLB advance Interest rate | 3.094% | |||||||
Cash loan received under advance from FHLB | $ 19,200,000 | |||||||
Required fair value of reinvestment in FHLB common stock. | $ 1,400,000 | 1,400,000 | ||||||
Estimated fair value of collateral with FHLB | $ 24,200,000 | |||||||
Convertible Note [Member] | Heritage Insurance Holdings, Inc. [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Repurchase of convertible notes | $ 5,800,000 | |||||||
Cash consideration paid for repurchase of debt | $ 2,900,000 | |||||||
Shares issued for consideration of repurchase debt | 285,201 | |||||||
Convertible notes converted into common stock | $ 4,200,000 | |||||||
Non-operating loss extinguishment of debt | $ (48,000) | |||||||
Convertible Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 136,800,000 | $ 136,800,000 | ||||||
Interest rate | 5.875% | 5.875% | ||||||
Notes maturity date | Aug. 1, 2037 | |||||||
Interest payments term | Interest is payable semi-annually in arrears, on February 1, and August 1 of each year, commencing in 2018. | |||||||
Long-term debt, net | $ 20,800,000 | |||||||
Issuance and debt discount costs | 2,600,000 | |||||||
Interest paid | 1,500,000 | 3,700,000 | ||||||
Senior Secured Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes maturity period | 5 years | |||||||
Maximum borrowing capacity | $ 125,000,000 | |||||||
Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | 75,000,000 | 1,900,000 | ||||||
Interest paid | 1,100,000 | |||||||
Maximum borrowing capacity | 75,000,000 | |||||||
Aggregate principal amount | 73,100,000 | |||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest paid | 251,700 | |||||||
Maximum borrowing capacity | $ 50,000,000 | 50,000,000 | ||||||
Outstanding borrowing capacity amount | 10,000,000 | |||||||
Letters of credit outstanding amount | 0 | |||||||
Senior Secured Credit Facility [Member] | Standby Letters of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 5,000,000 | |||||||
Senior Secured Credit Facility [Member] | Swingline Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 10,000,000 | |||||||
Collateral Financial Arrangement [Member] | Skye Lane Properties LLC [Member] | Mortgage Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 12,700,000 | |||||||
Interest rate | 4.95% | |||||||
Notes maturity date | Oct. 30, 2027 | |||||||
Frequency of periodic principal and interest payments | monthly | |||||||
Payment of principal and interest | $ 223,200 | $ 223,200 | ||||||
Collateral Financial Arrangement [Member] | Skye Lane Properties LLC [Member] | Mortgage Loan [Member] | 5-year Treasury Security [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 3.10% |
Long-Term Debt - Schedule of Co
Long-Term Debt - Schedule of Company's Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Principal amount | $ 138,062 | $ 155,757 |
Less: unamortized discount and issuance costs | 5,886 | 6,963 |
Total long-term debt | 132,176 | 148,794 |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 73,125 | 75,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 10,000 | 20,000 |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 23,413 | 29,163 |
FHLB Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 19,200 | 19,200 |
Mortgage Loan [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 12,324 | $ 12,394 |
Long-Term Debt - Schedule of Pr
Long-Term Debt - Schedule of Principal Payments on Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 132,176 | $ 148,794 |
Long-term Debt Agreements [Member] | ||
Debt Instrument [Line Items] | ||
2019 remaining | 5,832 | |
2020 | 7,790 | |
2021 | 7,806 | |
2022 | 7,822 | |
2023 | 74,589 | |
Thereafter | 34,223 | |
Total long-term debt | $ 138,062 |
Accounts Payable and Other Li_3
Accounts Payable and Other Liabilities - Schedule of Accounts Payable and Other Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Deferred ceding commission | $ 40,474 | $ 44,996 |
Outstanding claim checks | 15,624 | 15,360 |
Accounts payable and other payables | 11,051 | 8,379 |
Lease obligations | 8,581 | |
Accrued interest and issuance costs | 697 | 1,285 |
Accrued dividends | 1,807 | 1,589 |
Premium tax | 406 | 2,241 |
Current income taxes | 5,725 | |
Other liabilities | 460 | |
Commission payables | 10,782 | 11,654 |
Total other liabilities | $ 95,147 | $ 85,964 |
Statutory Accounting and Regu_2
Statutory Accounting and Regulations - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Heritage P&C [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory accounting practices, capital and surplus requirements of insurance subsidiary | Greater of $15 million or 10% of their respective liabilities. | |
Minimum required amount of capital and surplus maintained by the insurance subsidiary | $ 15,000,000 | |
Statutory capital and surplus requirements, percentage | 10.00% | |
Zephyr [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Deposits held | $ 750,000 | |
NBIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | 3,000,000 | |
Heritage P&C, Zephyr, and NBIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | $ 366,600,000 | $ 376,300,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2017 | Mar. 31, 2019 | Mar. 31, 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 | $ 102,800 | $ 171,000 | |
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 ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Contribution for participating employees | $ 255,700 | $ 394,200 |
Defined Contribution Plan, Plan Name | 401(k) | |
Medical premium cost | $ 841,400 | $ 853,000 |
Additional liability for unpaid claims | 303,000 | |
Stop loss coverage per employee | 150,000 | |
Defined contribution plan, aggregate limit for losses | $ 1,500,000 | |
Defined contribution plan, aggregate stop loss commences threshold percentage | 125.00% | |
Maximum [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of contribution on employee salary | 4.00% | |
Defined contribution plan, aggregate limit for losses in provided amount | $ 1,000,000 | |
First 3% of Employees [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of contribution on employee salary | 100.00% | |
Next 2% of the Employees [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of contribution on employee salary | 50.00% |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | May 06, 2019 | Feb. 25, 2019 | Aug. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
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 | 29,432,217 | 29,477,756 | ||||
Treasury stock, shares | 7,562,537 | 7,214,797 | ||||
Additional paid-in capital | $ 328,937,000 | $ 325,292,000 | ||||
Common stock voting rights | one vote | |||||
Stock repurchase program, authorized amount | $ 50,000,000 | $ 45,000,000 | ||||
Stock repurchase program, expiration date | Dec. 31, 2020 | Dec. 31, 2020 | ||||
Treasury shares repurchased, shares | 347,740 | 115,200 | ||||
Treasury shares repurchased, value | $ 5,011,000 | $ 1,999,000 | ||||
Cash dividend per common share | $ 0.06 | $ 0.06 | ||||
Cash dividend, payable date | Jul. 3, 2019 | Apr. 3, 2019 | ||||
Dividend payable, record date | Jun. 14, 2019 | Mar. 15, 2019 | ||||
Restricted Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Unvested restricted common stock issued | 580,801 | 605,801 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | 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 | 0 | ||
Stock-based compensation expense | $ 1,300,000 | $ 1,300,000 | |
Unrecognized stock compensation expense | $ 9,600,000 | ||
Unrecognized stock compensation expense, weighted average period | 1 year 10 months 24 days | ||
Restricted stock vested and released | 25,000 | 0 | |
Shares withheld to cover withholding taxes | 8,000 | ||
Shares withheld to cover withholding taxes, value | $ 118,000 | ||
Restricted Stock [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options, vesting period | 3 years | ||
Restricted Stock [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options, vesting period | 5 years | ||
Restricted Stock [Member] | Employee [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock awards granted | 155,801 | ||
Restricted Stock [Member] | Employee [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options, vesting period | 3 years | ||
Restricted Stock [Member] | Employee [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options, vesting period | 5 years | ||
Omnibus Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for issuance | 2,981,737 | ||
Shares available for grant | 1,321,398 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) - Restricted Stock [Member] | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning balance, Number of shares | 605,801 |
Granted, Number of shares | 0 |
Vested, Number of shares | (17,000) |
Canceled and surrendered, Number of shares | (8,000) |
Ending balance, Number of shares | 580,801 |
Beginning balance, Weighted-Average Grant-Date Fair Value per Share | $ / shares | $ 20.41 |
Vested, Weighted-Average Grant-Date Fair Value per Share | $ / shares | 14.72 |
Canceled and surrendered, Weighted-Average Grant-Date Fair Value per Share | $ / shares | 14.72 |
Ending balance, Weighted-Average Grant-Date Fair Value per Share | $ / shares | $ 20.65 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | May 06, 2019 | Feb. 25, 2019 |
Subsequent Events [Abstract] | ||
Cash dividend, declared date | May 6, 2019 | |
Cash dividend per common share | $ 0.06 | $ 0.06 |
Cash dividend, payable date | Jul. 3, 2019 | Apr. 3, 2019 |
Dividend payable, record date | Jun. 14, 2019 | Mar. 15, 2019 |