Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 09, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Heritage Insurance Holdings, Inc. | ||
Entity Central Index Key | 0001598665 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 398,540,308 | ||
Entity Common Stock, Shares Outstanding | 28,926,048 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of each class | Common Stock, par value $0.0001 per share | ||
Trading Symbol(s) | HRTG | ||
Name of each exchange on which registered | NYSE | ||
Entity File Number | 001-36462 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-5338504 | ||
Entity Address, Address Line One | 2600 McCormick Drive | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | Clearwater | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33759 | ||
City Area Code | 727 | ||
Local Phone Number | 362-7200 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s Proxy Statement for its Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K, provided that if such Proxy Statement is not filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K, an amendment to this Form 10-K shall be filed no later than the end of such 120-day period. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $577,789 and $518,391) | $ 587,256 | $ 509,649 |
Equity securities, at fair value, (cost $1,618 and $18,698) | 1,618 | 16,456 |
Other investments | 6,375 | 2,488 |
Total investments | 595,249 | 528,593 |
Cash and cash equivalents | 268,351 | 250,117 |
Restricted cash | 14,657 | 12,253 |
Accrued investment income | 4,377 | 4,468 |
Premiums receivable, net | 63,685 | 57,000 |
Reinsurance recoverable on paid and unpaid claims | 428,903 | 317,930 |
Prepaid reinsurance premiums | 224,102 | 233,071 |
Income taxes receivable | 3,171 | 35,586 |
Deferred policy acquisition costs, net | 77,211 | 73,055 |
Property and equipment, net | 20,753 | 17,998 |
Intangibles, net | 68,642 | 76,850 |
Goodwill | 152,459 | 152,459 |
Other assets | 18,110 | 9,333 |
Total Assets | 1,939,670 | 1,768,713 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Unpaid losses and loss adjustment expenses | 613,533 | 432,359 |
Unearned premiums | 486,220 | 472,357 |
Reinsurance payable | 156,351 | 166,975 |
Long-term debt, net | 129,248 | 148,794 |
Deferred income tax | 12,623 | 7,705 |
Advance premiums | 16,504 | 20,000 |
Accrued compensation | 5,347 | 9,226 |
Accounts payable and other liabilities | 71,045 | 85,964 |
Total Liabilities | 1,490,871 | 1,343,380 |
Commitments and contingencies (Note 17) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value, 50,000,000 shares authorized, 28,996,452 shares issued and 28,650,918 outstanding at December 31, 2019 and 30,083,559 shares issued and 29,477,756 outstanding at December 31, 2018 | 3 | 3 |
Additional paid-in capital | 329,568 | 325,292 |
Accumulated other comprehensive income (loss) | 7,330 | (6,527) |
Treasury stock, at cost, 8,349,483 shares and 7,214,797 shares | (105,368) | (89,185) |
Retained earnings | 217,266 | 195,750 |
Total Stockholders' Equity | 448,799 | 425,333 |
Total Liabilities and Stockholders' Equity | $ 1,939,670 | $ 1,768,713 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Fixed maturities, at amortized cost | $ 577,789 | $ 518,391 |
Equity securities, cost | $ 1,618 | $ 18,698 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 28,996,452 | 30,083,559 |
Common stock, shares outstanding | 28,650,918 | 29,477,756 |
Treasury stock, shares | 8,349,483 | 7,214,797 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
REVENUES: | ||||
Gross premiums written | $ 937,937 | $ 923,349 | $ 625,565 | |
Change in gross unearned premiums | (13,690) | 2,977 | 17,739 | |
Gross premiums earned | 924,247 | 926,326 | 643,304 | |
Ceded premiums | (445,534) | (472,144) | (263,740) | |
Net premiums earned | 478,713 | 454,182 | 379,564 | |
Net investment income | 14,432 | 13,280 | 11,332 | |
Net realized and unrealized gains (losses) | 4,163 | (2,477) | 564 | |
Other revenue | 13,997 | 15,186 | 15,163 | |
Total revenues | 511,305 | 480,171 | 406,623 | |
EXPENSES: | ||||
Losses and loss adjustment expenses | 273,288 | 237,425 | 201,482 | |
Policy acquisition costs, net of ceding commission income of $47, $54.9, and $8.6 | [1] | 107,906 | 84,666 | 83,892 |
General and administrative expenses, net of ceding commission income of $15.4, $18.1, and $0 | [1] | 80,544 | 88,544 | 71,714 |
Total expenses | 461,738 | 410,635 | 357,088 | |
Operating income | 49,567 | 69,536 | 49,535 | |
Interest expense, net | 8,523 | 20,015 | 13,210 | |
Other non-operating loss, net | 48 | 10,527 | 42,217 | |
Income (loss) before income taxes (benefit) | 40,996 | 38,994 | (5,892) | |
Provision for income taxes (benefit) | 12,360 | 11,839 | (4,773) | |
Net income (loss) | 28,636 | 27,155 | (1,119) | |
OTHER COMPREHENSIVE INCOME | ||||
Change in net unrealized gains (losses) on investments | 19,765 | (5,700) | 5,688 | |
Reclassification adjustment for net realized investment gains (losses) | (1,734) | 163 | (564) | |
Income tax (expense) benefit related to items of other comprehensive income | (4,174) | 2,232 | (3,170) | |
Total comprehensive income | $ 42,493 | $ 23,850 | $ 835 | |
Weighted average shares outstanding | ||||
Basic | 29,213,910 | 25,941,253 | 26,798,465 | |
Diluted | 29,232,981 | 26,095,874 | 26,798,465 | |
Earnings (loss) per share | ||||
Basic | $ 0.98 | $ 1.05 | $ (0.04) | |
Diluted | $ 0.98 | $ 1.04 | $ (0.04) | |
[1] | Parenthetical values are presented in millions. |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ceding commission income | $ 62,450 | $ 74,157 | $ 8,600 |
Policy Acquisition Costs [Member] | |||
Ceding commission income | 47,000 | 54,900 | 8,600 |
General and Administrative Expenses [Member] | |||
Ceding commission income | $ 15,400 | $ 18,100 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Shares [Member] | Additional Paid-In-Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Deficit) [Member] |
Beginning Balance at Dec. 31, 2016 | $ 357,959 | $ 3 | $ 205,727 | $ 182,809 | $ (25,562) | $ (5,018) |
Beginning Balance, Shares at Dec. 31, 2016 | 28,840,443 | |||||
Net unrealized change in investments, net of tax | 1,954 | 1,954 | ||||
Repurchase of common stock | (61,623) | (61,623) | ||||
Repurchase of common stock, Shares | (5,340,267) | |||||
Shares tendered for income tax withholding | (1,599) | (1,599) | ||||
Shares tendered for income tax withholding on share-based compensation awards, Shares | (87,067) | |||||
Restricted stock award withholdings | 4,815 | 4,815 | ||||
Restricted stock award withholdings, Shares | 225,000 | |||||
Stock issued in connection with acquisition of business | 40,000 | 40,000 | ||||
Stock issued in connection with acquisition of business, Shares | 2,222,215 | |||||
Reclassification of derivative liability to equity | 51,641 | 51,641 | ||||
Deferred tax on convertible debt | (6,165) | (6,165) | ||||
Cash dividends declared | (6,464) | (6,464) | ||||
Exercise of stock options | 417 | 417 | ||||
Exercise of stock options, Shares | 24,680 | |||||
Net (loss) income | (1,119) | (1,119) | ||||
Ending balance at Dec. 31, 2017 | 379,816 | $ 3 | 294,836 | 175,226 | (87,185) | (3,064) |
Ending balance, Shares at Dec. 31, 2017 | 25,885,004 | |||||
Cumulative effect of change in accounting principle (ASU 2016-01), net of tax at Dec. 31, 2017 | (267) | 267 | ||||
Ending 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 | (3,306) | (3,306) | ||||
Repurchase of common stock | (2,000) | (2,000) | ||||
Repurchase of common stock, Shares | (115,200) | |||||
Restricted stock award withholdings | (1,839) | (1,839) | ||||
Restricted stock award withholdings, Shares | 112,500 | |||||
Stock-based compensation on restricted stock | 5,273 | 5,273 | ||||
Convertible Option debt extinguishment, net of tax | (26,011) | (26,011) | ||||
Convertible notes converted into common stock | 53,044 | 53,044 | ||||
Convertible notes converted into common stock, Shares | 3,595,452 | |||||
Reclassification of income taxes upon early adoption of ASU 2018-02 | 424 | (424) | ||||
Deferred tax change rate | (419) | (11) | (408) | |||
Cash dividends declared | (6,380) | (6,380) | ||||
Net (loss) income | 27,155 | 27,155 | ||||
Ending balance at Dec. 31, 2018 | 425,333 | $ 3 | 325,292 | 195,750 | (89,185) | (6,527) |
Ending balance, Shares at Dec. 31, 2018 | 29,477,756 | |||||
Net unrealized change in investments, net of tax | 13,857 | 13,857 | ||||
Repurchase of common stock | (16,183) | (16,183) | ||||
Repurchase of common stock, Shares | (1,134,686) | |||||
Restricted stock award withholdings | (3,521) | (3,521) | ||||
Restricted stock award withholdings, Shares | 22,647 | |||||
Stock-based compensation on restricted stock | 5,379 | 5,379 | ||||
Convertible Option debt extinguishment, net of tax | (1,792) | (1,792) | ||||
Convertible notes converted into common stock | 4,210 | 4,210 | ||||
Convertible notes converted into common stock, Shares | 285,201 | |||||
Cash dividends declared | (7,120) | (7,120) | ||||
Net (loss) income | 28,636 | 28,636 | ||||
Ending balance at Dec. 31, 2019 | $ 448,799 | $ 3 | $ 329,568 | $ 217,266 | $ (105,368) | $ 7,330 |
Ending balance, Shares at Dec. 31, 2019 | 28,650,918 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity - Parenthetical - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Common stock, dividends, per share, declared | $ 0.30 | $ 0.24 | $ 0.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ 28,636,000 | $ 27,155,000 | $ (1,119,000) |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 5,379,000 | 5,273,000 | 4,815,000 |
Bond amortization and accretion | 5,087,000 | 6,247,000 | 8,810,000 |
Amortization of original issuance discount on debt | 1,419,000 | 3,885,000 | 2,314,000 |
Depreciation and amortization | 10,436,000 | 27,070,000 | 7,742,000 |
Allowance for bad debt | 290,300 | 0 | 0 |
Net realized loss (gain) | (1,734,000) | 399,000 | (564,000) |
Net change in unrealized losses of equity securities | (2,429,000) | 2,078,000 | |
Change in fair value of option feature | 41,013,000 | ||
Net loss on property held for sale | 737,000 | ||
Net loss (gain) on repurchase of debt | 48,000 | 9,790,000 | 1,203,000 |
Deferred income taxes, net of acquired | (898,000) | (21,563,000) | 19,619,000 |
Changes in operating assets and liabilities: | |||
Accrued investment income | 91,000 | 589,000 | 303,000 |
Premiums receivable, net | (6,685,000) | 10,757,000 | (910,000) |
Prepaid reinsurance premiums | 8,969,000 | (5,307,000) | 16,223,000 |
Reinsurance premiums receivable and recoverable | (110,973,000) | 39,427,000 | (284,284,000) |
Income taxes receivable | 32,415,000 | 1,752,000 | (28,598,000) |
Deferred policy acquisition costs, net | (4,156,000) | (31,377,000) | 1,101,000 |
Operating lease right-of-use assets | (6,645,000) | ||
Other assets | (1,728,000) | 8,972,000 | (4,907,000) |
Unpaid losses and loss adjustment expenses | 181,174,000 | (37,724,000) | 236,142,000 |
Unearned premiums | 13,863,000 | (2,977,000) | (17,740,000) |
Reinsurance payable | (10,624,000) | 149,398,000 | (79,106,000) |
Accrued interest | 175,000 | (1,993,000) | 3,217,000 |
Income taxes payable | 12,624,000 | ||
Advance premiums | (3,496,000) | (7,251,000) | 3,355,000 |
Accrued compensation | (3,879,000) | (3,648,000) | 3,155,000 |
Operating lease liabilities | 8,369,000 | ||
Other liabilities | (36,071,000) | (85,351,000) | 75,705,000 |
Net cash provided by operating activities | 119,657,000 | 96,338,000 | 7,489,000 |
INVESTING ACTIVITIES | |||
Fixed maturity securities sales, maturities and paydowns | 161,160,000 | 241,497,000 | 338,180,000 |
Fixed maturity securities purchases | (228,047,000) | (211,963,000) | (210,070,000) |
Equity securities sales | 26,766,000 | 4,820,000 | 11,726,000 |
Equity securities purchases | (4,583,000) | (5,992,000) | (5,774,000) |
Other investment purchases | (24,250,000) | (1,716,000) | |
Proceeds from other investments sold | 19,995,000 | ||
Acquisition of a business, net of cash acquired | (140,919,000) | ||
Collection of (issued) promissory note receivable | 358,000 | (910,000) | |
Cost of property and equipment acquired | (4,984,000) | (2,281,000) | (385,000) |
Net cash provided by (used in) investing activities | (53,585,000) | 23,455,000 | (7,242,000) |
FINANCING ACTIVITIES | |||
Proceeds from convertible notes | 136,750,000 | ||
Proceeds from long-term debt | 114,200,000 | ||
Repurchase of convertible notes | (2,869,000) | (52,739,000) | (25,189,000) |
Debt acquisition costs | (3,431,000) | (5,609,000) | |
Proceeds from mortgage loan | 12,658,000 | ||
Proceeds from exercise of stock options | 417,000 | ||
Mortgage loan payments | (277,000) | (264,000) | |
Repayments of long-term debt | (15,625,000) | (79,500,000) | |
Tax withholding on share-based compensation awards | (3,521,000) | (1,839,000) | (1,599,000) |
Purchase of treasury stock | (16,183,000) | (2,000,000) | (61,623,000) |
Dividends | (6,959,000) | (6,380,000) | (8,249,000) |
Net cash (used in) provided by financing activities | (45,434,000) | (31,953,000) | 47,556,000 |
Increase in cash, cash equivalents, and restricted cash | 20,638,000 | 87,840,000 | 47,803,000 |
Cash, cash equivalents and restricted cash, beginning of period | 262,370,000 | 174,530,000 | 126,727,000 |
Cash, cash equivalents and restricted cash, end of period | 283,008,000 | 262,370,000 | 174,530,000 |
Supplemental Cash Flows Information: | |||
Income taxes paid, net | 14,165,000 | 31,289,000 | 4,500,000 |
Interest paid | $ 7,298,000 | $ 17,573,000 | 4,054,000 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||
Original issue discount on convertible notes | 16,838,000 | ||
Issuance of shares on conversion of convertible notes | 53,044 | ||
Issuance of shares for consideration in the acquisition of a business | $ 40,000,000 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 268,351 | $ 250,117 | ||
Restricted cash | 14,657 | 12,253 | ||
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ 283,008 | $ 262,370 | $ 174,530 | $ 126,727 |
Basis of Presentation, Nature o
Basis of Presentation, Nature of Business and Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation, Nature of Business and Significant Accounting Policies and Practices | Note 1. Basis of Presentation, Nature of Business and Significant Accounting Policies and Practices Business Description Heritage Insurance Holdings, Inc. is an insurance holding company. Our insurance subsidiaries are Heritage Property & Casualty Insurance Company (“Heritage P&C”), Zephyr Insurance Company (“Zephyr”), Narragansett Bay Insurance Company (“NBIC”) and Pawtucket Insurance Company (“PIC”). PIC is currently inactive and has no policies in force or outstanding claims. Our other subsidiaries include: Heritage MGA, LLC (“MGA”), the managing general agent that manages substantially all aspects of our insurance subsidiaries’ business; Contractors’ Alliance Network, LLC, our vendor network manager; Skye Lane Properties, LLC, our property management subsidiary; First Access Insurance Group, LLC, our retail agency; Osprey Re Ltd., our reinsurance subsidiary that may provide a portion of the reinsurance protection purchased by our insurance subsidiaries; Heritage Insurance Claims, LLC, an inactive subsidiary reserved for future development; Zephyr Acquisition Company (“ZAC”); NBIC Holdings, Inc., NBIC Service Company which provides services to NBIC and Westwind Underwriters, Inc., an inactive subsidiary of NBIC Holdings, Inc. Our primary products are personal and commercial residential insurance, which we currently offer in Alabama, Connecticut, Florida, Georgia, Hawaii, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia. We conduct our operations under a single reporting segment. Basis of Presentation The consolidated financial statements include the accounts of Heritage Insurance Holdings, Inc. and its wholly-owned subsidiaries. The accompanying consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest (none of which are variable interest entities). All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with United States Generally Accepted Accounting Principles (“U.S. GAAP”) requires us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and accompanying notes. We evaluate our estimates on an ongoing basis when updated information related to such estimates becomes available. We base our estimates on historical experience and information available to us at the time these estimates are made. Actual results could differ materially from these estimates. Cash and Cash Equivalents The Company’s cash and cash equivalents include demand deposits with financial institutions and short-term, highly-liquid financial instruments with original maturities of three months or less when purchased. The carrying amounts reported in the consolidated balance sheets for interest bearing deposits approximate their fair value because of the short maturity of these financial instruments. The Company excludes from cash and cash equivalents negative cash balances that the Company has with an individual financial institution. The liability presents outstanding checks not yet presented to the financial institution and is reported in accounts payable and other liabilities. Restricted Cash As of December 31, 2019, and 2018, restricted cash was $14.7 million and $12.3 million, respectively. For the years ended December 31, 2019 and 2018, Heritage P&C held approximately $9.0 million and $9.0 million relating to a reinsurance agreement with an entity that issued catastrophe (“CAT”) bonds, as Heritage P&C is contractually required to deposit certain installments of reinsurance premiums into a trust account and $5.7 million and $3.2 million in restricted cash relating to individual regulatory state deposits, respectively. The Company earned interest income of $28,969 and $36,532 on its restricted cash deposits. Investments The Company classifies all of its investments in debt securities as available-for-sale and reports them at fair value. Subsequent to its acquisition of debt securities available-for-sale, the Company records changes in value through the date of disposition as unrealized holding gains and losses, net of tax effects, and includes them as a component of other comprehensive income. Equity securities are recorded at fair value with changes in fair value reflected in net income and presented with realized gains and losses. The Company includes realized gains and losses, which it calculates using the specific-identification method for determining the cost of securities sold, in net income. The Company amortizes any premium or discount on fixed maturities over the remaining maturity period of the related securities using the effective interest method and reports the amortization in net investment income. The Company recognizes dividends and interest income when earned. Quarterly, the Company performs an assessment of its debt securities available-for-sale to determine if any are “other-than-temporarily” impaired. An investment is impaired when the fair value of the investment declines to an amount less than the cost or amortized cost of that investment. As part of the assessment process, the Company determines whether the impairment is temporary or “other-than-temporary”. The Company bases its assessment on both quantitative criteria and qualitative information, considering a number of factors including, but not limited to: how long the security has been impaired; the amount of the impairment; the Company intends to sell the investment or it is more likely than not that the Company will have to sell the investment before it recovers the amortized cost or cost; the financial condition and near-term prospects of the issuer; whether the issuer is current on contractually-obligated interest and principal payments; key corporate events pertaining to the issuer and whether the market decline was affected by macroeconomic conditions. If the Company were to determine that a debt security or participation in a commercial mortgage loan was impaired and the Company either intends to sell the investment or it is more likely than not that the Company will have to sell the investment before it is able to recover the amortized cost or cost, then the Company would record the full amount of the impairment in its consolidated statement of operations and other comprehensive income. A large portion of the Company’s investment portfolio consists of debt securities available-for-sale, which may be adversely affected by changes in interest rates as a result of governmental monetary policies, domestic and international economic and political conditions and other factors beyond its control. A rise in interest rates would decrease the net unrealized holding gains of our investment portfolio, offset by the Company’s ability to earn higher rates of return on funds reinvested. Conversely, a decline in interest rates would increase the net unrealized holding gains of our investment portfolio, offset by lower rates of return on funds reinvested. Accumulated other comprehensive income consists solely of unrealized gains and losses on debt securities available-for-sale, net of income tax. Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (an exit price). When reporting the fair values of the Company’s financial instruments, the Company prioritizes those fair value measurements into one of three levels based on the nature of the inputs, as follows: • Level 1—Assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company is able to access. • Level 2—Asset and liabilities with values based on quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; or valuation models with inputs that are observable, directly or indirectly for substantially the term of the asset or liability. • Level 3—certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date based on the best information available in the circumstances. The Company estimates the fair value of its investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE and NASDAQ. For securities for which quoted prices in active markets are unavailable, the Company uses observable inputs such as quoted prices in inactive markets, quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs. The Company does not have any investments in its portfolio which require the use of unobservable inputs. The Company’s estimate of fair value reflects the interest rate environment that existed as of the close of business on December 31, 2019. Changes in interest rates after December 31, 2019 may affect the fair value of the Company’s investments. The Company believes the carrying amounts of its cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and other current liabilities approximate their fair values at December 31, 2019 and 2018, due to the immediate or short-term maturity of these instruments. The Company’s non-financial assets, such as goodwill and property, plant and equipment are carried at cost until there are indicators of impairment and are recorded at fair value only when an impairment charge is recognized. Long term debt is recorded at carrying value, see Note 14 – Long-Term Debt Premiums The Company records direct and assumed premiums written as revenue net of ceded amounts on a daily pro rata basis over the contract period of the related in force policies or reinsurance contract. For any portion of premiums not earned at the end of the reporting period, the Company records an unearned premium liability. Premiums receivable represents amounts due from our policyholders for billed premiums and related policy fees. We perform a policy-level evaluation to determine the extent to which the balance of premiums receivable exceeds the balance of unearned premiums. We then age any resulting exposure based on the last date the policy was billed to the policyholder, and we establish an allowance for credit losses for any amounts outstanding for more than 90 days. When we receive payments on amounts previously charged off, we reduce bad debt expense in the period we receive the payment. Balances in premiums receivable and the associated allowance account are removed upon cancellation of the policy due to non-payment. We recorded $290,300 allowance for the year ended December 31, 2019. We recorded no allowance for the years ended December 31, 2018 and 2017, respectively. Bad debt expense related to uncollectible premiums was $290,300, $0 and $0 for the years ended December 31, 2019, 2018 and 2017, respectively. When the Company receives premium payments from policyholders prior to the effective date of the related policy, the Company records an advance premiums liability. On the policy effective date, the Company reduces the advance premium liability and records the premiums as described above. Policy Acquisition Costs The Company incurs policy acquisition costs that vary with, and are directly related to, the production of new business. Policy acquisition costs consist of the following four items: (i) commissions paid to outside agents at the time of policy issuance; (ii) policy administration fees paid to a third-party administrator at the time of policy issuance; (iii) premium taxes; and (iv) inspection fees. The Company capitalizes policy acquisition costs to the extent recoverable, then the Company amortizes those costs over the contract period of the related policy. At each reporting date, the Company determines whether it has a premium deficiency. A premium deficiency would result if the sum of the Company’s expected losses, deferred policy acquisition costs, and policy maintenance costs (such as costs to store records and costs incurred to collect premiums and pay commissions) exceeded the Company’s related unearned premiums plus investment income. Should the Company determine that a premium deficiency exists, the Company would write off the unrecoverable portion of deferred policy acquisition cost. We earn ceding commission on its gross and net quota share reinsurance contracts. Our accounting policy is to allocate ceding commission between policy acquisition costs and general and administrative expenses for financial reporting purposes. Ceding commission is allocated between policy acquisition costs and general and administrative expenses based upon the proportion these costs bear to production of new business. For the years ended December 31, 2019 and 2018, we earned ceding commission income of $62.4 million and $73.0 million of which $47.0 million and $54.9 million was allocable to policy acquisition costs. Ceding commission income is deferred and recognized over the quota share contract period. The amount and rate of ceding reinsurance commissions earned on the net quota share contract can slide within a prescribed minimum and maximum, depending on loss performance and how future losses develop. Reinsurance The Company follows industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or “ceding”, all or a portion of the risk exposure on policies the Company writes to another insurer, known as a reinsurer. To the extent that the Company’s reinsurers are unable to meet the obligations they assume under the Company’s reinsurance agreements, the Company remains liable for the entire insured loss. The Company’s reinsurance agreements are generally short-term, prospective contracts. The Company records an asset, prepaid reinsurance premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of new reinsurance agreements. The Company amortizes its prepaid reinsurance premiums over the 12-month contract period. When the Company incurs losses recoverable under its reinsurance program, the Company records amounts recoverable from its reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of the Company’s liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to the estimate of unpaid losses. Given that an estimate of amounts recoverable from reinsurers on unpaid losses may change at any point in the future because of its relation to the Company’s reserves for unpaid losses, a reasonable possibility exists that an estimated recovery may change significantly from initial estimates. The Company estimates uncollectible amounts receivable from reinsurers based on an assessment of factors including the creditworthiness of the reinsurers and the adequacy of collateral obtained, where applicable. The Company recorded no uncollectible amounts under its reinsurance program or bad debt expense related to reinsurance for the years ended December 31, 2019, 2018 and 2017. The Company remains liable for claims payments if any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from similar geographic regions, activities or economics characteristics of the reinsurers to minimize its exposure to significant loses from reinsurers insolvencies. The Company contracts with several reinsurers to secure its annual reinsurance coverage, which the excess of loss treaties generally becomes effective June 1st each year. The Company purchases reinsurance each year taking into consideration probable maximum losses and reinsurance market condition. Long-Lived Assets—Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: building—40 years; computer hardware and software 3—years; office and furniture equipment—3 to 7 years. Leasehold improvements are amortized over the shorter of the lease term or the asset’s useful life. Expenditures for improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. Leases We lease office space under operating leases with expiration dates through 2023. We determine whether an arrangement constitutes a lease and record lease liabilities and right-of-use assets on our consolidated balance sheets at lease commencement. We primarily use our incremental borrowing rates for our operating leases (rates are not readily determinable) and implicit rates for our financing leases in determining the present value of lease payments. For short-term leases, we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. Business Acquisition The application of the purchase method of accounting for business combinations requires the use of significant estimates and assumptions in determining the fair value of assets acquired and liabilities assumed in order to properly allocate the fair value of the acquired business. The estimates of the fair value of the assets acquired and liabilities assumed are based upon assumptions believed to be reasonable using established valuation techniques that consider a number of factors and when appropriate, valuations performed by independent third-party appraisers. Assets acquired, and liabilities assumed in connection with business combinations are recorded based on their respective fair values at the date of acquisition. Goodwill and Intangible Assets Goodwill represents the excess of costs over the fair value of net assets acquired. Goodwill is subject to evaluation for impairment using a fair value-based test. This evaluation is performed annually, during the fourth quarter or more frequently if facts and circumstances warrant. The Company uses a qualitative approach to test goodwill for impairment by first assessing qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The Company applies this qualitative approach as of October 1 annually to any and all reporting units. If required following the qualitative assessment, the first step in the goodwill impairment test involves comparing the fair value of each of a reporting unit to the carrying value of a reporting unit. If the carrying value of a reporting unit exceeds the fair value of the reporting unit, the Company is required to proceed to the second step. In the second step, the fair value of the reporting unit would be allocated to the assets (including unrecognized intangibles) and liabilities of the reporting unit, with any residual representing the implied fair value of goodwill. An impairment loss would be recognized if, and to the extent that, the carrying value of goodwill exceeded the implied value. The Company reviews amortizable intangible assets for impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. If the Company concludes that impairment exists, the carrying amount is reduced to fair value. No impairment was recognized in any period presented. Impairment of Long-Lived Assets Including Intangible Assets Subject to Amortization The Company assesses the recoverability of long-lived assets when events or circumstances indicate that the assets might have become impaired. The Company determines whether the assets can be recovered from undiscounted future cash flows and, if not recoverable, the Company recognizes impairment to reduce the carrying value to fair value. Recoverability of long-lived assets is dependent upon, among other things, the Company’s ability to maintain profitability, so as to be able to meet its obligations when they become due. No impairment was recognized in any period presented. Unpaid Losses and Loss Adjustment Expenses The Company’s reserves for unpaid losses and loss adjustment expenses represent the estimated ultimate cost of settling all reported claims plus all claims we incurred related to insured events that have occurred as of the reporting date, but that policyholders have not yet reported to the Company (incurred but not reported, or “IBNR”). The Company estimates its reserves for unpaid losses and loss adjustment expenses using individual case-based estimates for reported claims and actuarial estimates for IBNR losses. The Company continually reviews and adjusts its estimated losses as necessary based on industry development trends, the Company’s evolving claims experience and new information obtained. If the Company’s unpaid losses and loss adjustment expenses are considered to be deficient or redundant, the Company increases or decreases the liability in the period in which it identifies the difference and reflects the change in its current period results of operations. Though the Company’s estimate of the ultimate cost of settling all reported and unreported claims may change at any point in the future, a reasonable possibility exists that its estimate may vary significantly in the near term from the estimated amounts included in the Company’s consolidated financial statements. The Company reports its reserves for unpaid losses and loss adjustment expenses gross of the amounts related to unpaid losses recoverable from reinsurers and reports loss and loss adjustment expenses net of amounts ceded to reinsurers. The Company does not discount its loss reserves for financial statement purposes. Other revenue Our insurance affiliates may charge policyholders a policy fee on each policy written; to the extent these fees are not subject to refund, and the Company recognizes the income immediately when collected. The Company also charges pay-plan fees to policyholders that pay its premiums in more than one installment and records the fees as income when collected. Other income also includes rental income due under non-cancelable leases for space at the Company’s commercial property. Assessment Guaranty fund and other insurance-related assessments imposed upon the Company’s insurance company affiliates are recorded as policy acquisition costs in the period the regulatory agency imposes the assessment. To recover guaranty or other insurance-related assessments, the Company in turn submits a plan for recoupment to the Insurance Commissioner for approval and upon approval, begins collecting a policy surcharge that will allow it to collect the prior year’s assessments. There were no assessments during the periods presented. The Company collects other assessments imposed upon policyholders as a policy surcharge and records the amounts collected as a liability until the Company remits the amounts to the regulatory agency that imposed the assessment. Convertible Notes In August 2017 and September 2017, the Company issued collectively $136.8 million of 5.875% Convertible Senior Notes (the “Convertible Notes”) due August 1, 2037. The Convertible notes are accounted for in accordance with ASC 470-20. At the time of issuance and until December 1, 2017, the Company recorded the fair value of the derivatives on its balance sheet at fair value with changes in the values of these derivatives reflected in the consolidated statement of operations. As of December 31, 2019, the Company has $23.4 million of the Convertible Notes outstanding. Beginning December 1, 2017, the conversion option of the Convertibles Notes qualifies for the equity classification and will no longer be accounted for as a separate derivative instrument liability in accordance with applicable U.S. GAAP guidance. The Company separately accounts for the liability and equity components of Convertible Notes that can be settled in cash by allocating the proceeds from issuance between the liability component and the embedded conversion option, or equity component, in accordance with accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The value of the equity component is calculated by first measuring the fair value of the liability component, using the interest rate of a similar liability that does not have a conversion feature, as of the issuance date. The difference between the proceeds from the convertible debt issuance and the amount measured as the liability component is recorded as the equity component with a corresponding discount recorded on the debt. The Company recognizes the accretion of the resulting discount using the effective interest method as part of interest expense in its consolidated statements of operations. Debt Extinguishment The Company has reacquired convertible senior notes over a series of transactions. In accordance with ASC 470 “ Debt Debt Issuance and Discount Costs In connection with the issuance of debt, any debt issuance and discount costs are reflected on the balance sheet as an offset to long-term debt and amortized using the effective interest method over the life of the underlying debt instrument. Stock-Based Compensation The Company measures stock-based compensation at the grant date based on the fair value of the award and recognizes stock-based compensation expense over the requisite vesting period. Determining the fair value of stock option awards requires judgment, including estimating stock price volatility, forfeiture rates and expected option life. Restricted stock awards are valued based on the fair value of the stock on the grant date and the related compensation expense is recognized over the vesting period. Earnings Per Share The Company reports both basic earnings per share and diluted earnings per share. To calculate basic earnings per share, the Company divides net income attributable to common shareholders by the weighted-average number of shares outstanding during the period, including vested restricted shares. The Company calculates diluted earnings per share by dividing net income attributable to common shareholders by the weighted-average number of shares, and the effect of share equivalents, vested and unvested restricted shares and convertible notes outstanding during the period using the treasury stock method to calculate common stock equivalents. Income tax Income taxes are accounted for under the asset and liability method, that recognizes the amount of income taxes payable or refundable for the current year and recognizes deferred tax assets and liabilities based on the tax rates expected to be in effect during the periods in which the temporary differences reverse. Temporary differences arise when income or expenses are recognized in different periods in the consolidated financial statements than on the tax returns. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. Income taxes includes both, estimated federal and state income taxes. Concentrations of Risk The Company’s current operations subject us to the following concentrations of risk: • Revenue—The Company writes residential property and liability policies exclusively. • Geographic—The Company writes its premium in coastal states in the southeastern and northeastern United States and Hawaii • Group concentration of credit risk—All of the Company’s reinsurers engage in similar activities and have similar economic characteristics that could cause their ability to repay us to be similarly affected by changes in economic or other conditions. • Credit risk—The Company chooses to deposit all its cash at twelve financial institutions. The Company mitigates its geographic and group concentrations of risk by entering into reinsurance contracts with highly rated, financially-stable reinsurers, and by securing irrevocable letters of credit from reinsurers when necessary. With regard to cash, the Company had $267.4 million and $244.6 million in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits at December 31, 2019 and 2018, respectively. Deposits held in non- interest-bearing transaction accounts are combined with interest-bearing accounts and are insured up to $250,000. Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. Recently Adopted Accounting Pronouncements In February 2016, the FASB updated guidance on the accounting for leases that requires lessees to recognize a right-to-use asset and a lease liability for leases with terms of more than 12 months and retains the two classifications of a lease as either an operating or finance lease. The updated guidance was effective for reporting periods after December 31, 2018 and required that the earliest comparative period presented include the measurement and recognition of exiting leases with an adjustment to equity as if the updated guidance had always been applied. Alternatively, an entity may elect to recognize a cumulative effect adjustment to the opening balance of retained earnings in the year adopted. Early adoption was permitted. We adopted the guidance prospectively during the first quarter of 2019. As part of our adoption, we elected not to reassess historical lease classification or recognize short-term leases on our balance sheet. At implementation, we recorded approximately $2.5 million as right-of-use operating and financing We did not recognize an opening adjustment to retained earnings. Note 8 Accounting Pronouncements Not Yet Adopted The Company describes below recent pronouncements that may have a significant effect on its consolidated financial statements or on its disclosures upon future adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on, or are unrelated to, its financial condition, results of operations, or related disclosures. In December 2019, The FASB issued ASU 2019-12— Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, Topic 740 . In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments-Overall Recognition and Measurement of Financial Assets and Financial Liabilities In August 2018, the FASB issued ASU 2018-12 , Financial Services – Insurance (Topic 944) Targeted Improvements to the Accounting for Long-Duration Contracts In March 2018, the FASB issued ASU 2018-04, Investments-Debt Securities (Topic 320) and Regulated Operations (Topic 980). Investments-Debt Securities Regulated Operations In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other FASB ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to the credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized costs basis and its fair value. Any adjustments identified will be recorded in net realized and unrealized gains (losses) on the Company’s Consolidated Statement of Operations and Other Comprehensive Income. In addition, the Company will no longer use as a measurement the length of time a security has been in an unrealized loss position in determining i |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | Note 2. Business Acquisitions Acquisition of NBIC On November 30, 2017, the Company completed the acquisition of all the outstanding capital stock of NBIC Holdings, Inc., the parent company of Narragansett Bay Insurance Company, a leading specialty underwriter of personal residential insurance products and services in several states in the northeastern United States for $250.0 million, including $210.0 million in cash, plus 2,222,215 shares of the Company’s common stock with an aggregate fair value of $40.0 million. The completion of the NBIC acquisition represents a significant advancement in executing the Company’s geographic diversification strategy by leveraging our combined platform to accelerate growth along the Eastern region. The transaction was accounted for using the acquisition method of accounting, which requires, assets acquired, and liability assumed be recognized at their fair values as of the acquisition date. The Company recognized goodwill of $106 million, attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | Note 3. Investments The amortized cost, gross unrealized gains and losses, and fair value of the Company’s debt securities available-for-sale are as follows: December 31, 2019 Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities (1) $ 53,836 $ 383 $ 28 $ 54,191 States, municipalities and political subdivisions 74,755 1,641 41 76,355 Special revenue 246,791 3,689 254 250,226 Hybrid securities 100 1 — 101 Industrial and miscellaneous 202,307 4,097 21 206,383 Total $ 577,789 $ 9,811 $ 344 $ 587,256 (1) U.S. government and agency securities include pledged debt securities with an estimated fair value of $20.2 million under the terms and condition of the advance agreement entered into with a financial institution in 2018. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. December 31, 2018 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities $ 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 Total $ 518,391 $ 377 $ 9,119 $ 509,649 The following table presents debt securities available-for-sale by contractual maturity for the periods presented: December 31, 2019 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Debt Securities Available-for-sale (in thousands) (in thousands) Due in one year or less $ 63,989 11 % $ 64,197 11 % Due after one year through five years 206,657 36 % 209,211 35 % Due after five years through ten years 117,266 20 % 121,378 21 % Due after ten years 189,877 33 % 192,470 33 % Total $ 577,789 100 % $ 587,256 100 % December 31, 2018 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Debt Securities Available-for-sale (in thousands) (in thousands) Due in one year or less $ 41,529 8 % $ 41,382 8 % Due after one year through five years 177,298 34 % 175,227 34 % Due after five years through ten years 134,057 26 % 130,921 26 % Due after ten years 165,507 32 % 162,119 32 % Total $ 518,391 100 % $ 509,649 100 % The following table presents realized gains (losses) on the Company’s debt securities available-for-sale as of December 31, 2019, 2018 and 2017, respectively: 2019 2018 2017 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale For the years ended December 31, (in thousands) Debt Securities Available-for-sale Realized gains $ 2,119 $ 157,125 $ 85 $ 25,647 $ 2,732 $ 705,138 Realized losses (211 ) 14,580 (249 ) 58,971 (363 ) 56,354 Net realized gain (losses) $ 1,908 $ 171,705 $ (164 ) $ 84,618 $ 2,369 $ 761,492 Equity Investments The components of realized gains (losses) on equity investment and other non-marketable equity securities for the periods presented below: 2019 2018 2017 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale For the years ended December 31, (in thousands) Equity securities $ 2,703 $ 21,386 $ 1 $ 169 $ 2,131 $ 31,231 Other investments 1,050 — — — — — Total realized gains 3,753 21,386 1 169 2,131 31,231 Equity securities (1,441 ) 3,613 (236 ) 4,840 (3,936 ) 11,806 Other investments (57 ) — — — — — Total realized losses (1,498 ) 3,613 (236 ) 4,840 (3,936 ) 11,806 Unrealized losses on equity securities (1) — — (2,078 ) — — — Net realized gain (losses) $ 2,255 $ 24,999 $ (2,313 ) $ 5,009 $ (1,805 ) $ 43,037 (1) Represents unrealized loss on securities held pursuant to ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities, effective January 1, 2018 The following table summarizes the Company’s net investment income by major investment category for the years ended December 31, 2019, 2018 and 2017, respectively: Net Investment Income For the Year Ended December 31, 2019 2018 2017 (in thousands) Debt securities available-for-sale $ 13,761 $ 9,591 $ 10,368 Equity securities 1,436 1,333 1,922 Cash and cash equivalents 1,470 1,703 960 Other investments 505 2,767 197 Net investment income 17,172 15,394 13,447 Investment expenses 2,740 2,114 2,115 Net investment income, less investment expenses $ 14,432 $ 13,280 $ 11,332 The following tables present, for all debt securities available-for-sale in an unrealized loss position (including securities pledged), the aggregate fair value and gross unrealized by length of time the security has continuously been in an unrealized loss position: Less Than Twelve Months Twelve Months or More December 31, 2019 Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities 9 $ 10 $ 1,476 23 $ 18 $ 4,288 States, municipalities and political subdivisions 6 38 7,613 3 3 1,440 Special revenue 62 145 24,862 95 109 13,159 Industrial and miscellaneous 25 13 12,601 16 8 3,202 Total 102 $ 206 $ 46,552 137 $ 138 $ 22,089 Less Than Twelve Months Twelve Months or More December 31, 2018 Number Securities Gross Unrealized Losses Fair Number of Securities Gross Unrealized Losses Fair Value (in thousands) Debt 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 Special revenue 105 1,260 76,335 323 2,621 108,319 Industrial and miscellaneous 214 1,479 70,156 232 1,822 70,375 Redeemable preferred stock 55 193 2,541 27 221 1,965 Total 404 $ 3,164 $ 172,381 690 $ 5,955 $ 241,126 The Company is required to maintain assets on deposits with various regulatory authorities to support its insurance and reinsurance operations. As of December 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, REIT’s and Limited Liability Company Investments The Company has interest in limited partnerships (LPs), Partnership Real Estate Investment Trust (REITs) and Limited Liability Companies (“LLCs”) totaling $6.4 million and $2.5 million at December 31, 2019 and 2018, respectively that are not registered or readily tradable on a securities exchange. The Company is not the primary beneficiary and does not consolidate these investments. These investments are carried at net asset value, which approximates fair value with changes in fair value recorded in net unrealized gains (losses) on the Company’s consolidated statement of income and comprehensive income. Realized gains (losses) on sales of these investments are reported within net realized and unrealized gains (losses) on the Company’s consolidated statement of income and comprehensive income. During 2019 the Company invested in a LP fund in the amount of $20.0 million. In November 2019, the Company was notified the Fund was terminating and in December received 95%, net of allocated costs of $275,900 of its total distribution. Upon completion of the funds audit the Company would receive the remaining 5% or $1.1 million. In January 2020, the Company received the $1.1 million representing the full holdback from the investment. The Company recorded the 5% hold back to other assets and the original unrealized gains from the fund in the amount of $1.1 million to realized gains, there was no change in the consolidated statement of operations and comprehensive income from this transaction. During the fourth quarter of 2019, Company invested in aggregate $4.0 million at $10 per share in a newly formed LP that conducts its business through an umbrella REIT. The REIT is a self-managed and self-administered company focusing on the purchase development and leasing of specialized agricultural, industrial and retail properties. The portfolio was 100% leased and had lease expirations through October 2029. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 4. Goodwill and Other Intangible Assets For both years ended December 31, 2019 and 2018 goodwill was $152.5 million and intangible assets were $68.6 million and $76.9 million, respectively. The Company has recorded $1.3 million relating to insurance licenses classified as an indefinite lived intangible. Goodwill Goodwill (in thousands) Balance as of December 31, 2017 $ 152,459 Goodwill acquired — Impairment — Balance as of December 31, 2018 $ 152,459 Goodwill acquired — Impairment — Balance as of December 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. The tables below detail the finite-lived intangible assets, net as of December 31, 2019 and 2018, respectively (amounts in thousands): December 31, 2019 Weighted -average Amortization (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, net (1) Amortizing intangible assets Brand 8 $ 17,810 $ (4,506 ) $ 13,304 Agent relationships 8 15,500 (3,729 ) 11,771 Renewal rights 13 40,600 (5,639 ) 34,961 Customer relations 5 870 (384 ) 486 Trade names 6 9,000 (2,208 ) 6,792 Value of business acquired 1 25,400 (25,400 ) — Non-compete 1 4,790 (4,776 ) 14 Total intangible assets $ 113,970 $ (46,642 ) $ 67,328 (1) Excludes insurance license valued at $1.3 million and classified as an indefinite lived intangible which is subject to annual impairment testing and not amortized. December 31, 2018 Weighted -average Amortization (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, net (1) Amortizing intangible assets Brand 8 $ 17,810 $ (3,319 ) $ 14,491 Agent relationships 9 15,500 (2,259 ) 13,241 Renewal rights 14 40,600 (2,932 ) 37,668 Customer relations 7 870 (297 ) 573 Trade names 8 9,000 (1,308 ) 7,692 Value of business acquired 1 25,400 (25,400 ) — Non-compete 1 4,790 (2,920 ) 1,870 Total intangible assets $ 113,970 $ (38,435 ) $ 75,535 (1) Excludes insurance license valued at $1.3 million and classified as an indefinite lived intangible which is subject to annual impairment testing and not amortized. Estimated annual pretax amortization of intangible assets for each of the next five years and thereafter is as follows (in thousands): Year Amount 2020 $ 6,375 2021 $ 6,365 2022 $ 6,351 2023 $ 6,351 2024 $ 6,351 Thereafter $ 35,535 $ 67,328 Amortization expense of intangible assets was $8.2 million, $24.8 million and $6.2 million for the years ended December 31, 2019, 2018 and 2017 respectively. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 5. Earnings (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated: For the Year Ended December 31, 2019 2018 2017 Basic earnings (loss) per share: Net income (loss) attributable to common stockholders (000's) $ 28,636 $ 27,155 $ (1,119 ) Weighted average shares outstanding 29,213,910 25,941,253 26,798,465 Basic earnings (loss) per share: $ 0.98 $ 1.05 $ (0.04 ) Diluted earnings (loss) per share: Net income (loss) attributable to common stockholders (000's) $ 28,636 $ 27,155 $ (1,119 ) Weighted average shares outstanding 29,213,910 25,941,253 26,798,465 Weighted average dilutive shares 19,071 154,621 — Total weighted average dilutive shares 29,232,981 26,095,874 26,798,465 Diluted earnings (loss) per share: $ 0.98 $ 1.04 $ (0.04 ) Due to the net loss for 2017, dilutive loss per share is the same as basic due to the antidilutive impact of the convertible debt and restricted stock under the if-converted method. The Company had 1,914,770, 2,563,777 and 8,424,598 of antidilutive shares for the three years ended December 31, 2019, 2018 and 2017, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 6. Fair Value Measurements The Company performs fair value measurements in accordance with FASB Accounting Standards Codification (ASC) 820, Fair Value Measurement 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 evaluates the relevant inputs, assumptions, methodologies and conclusions associated with such valuations. The valuation service calculates prices for the Company’s investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, then adds final spreads to the U.S. Treasury curve as of quarter end. The inputs the valuation service uses in their calculations are not quoted prices in active markets, but are observable inputs, and therefore represent Level 2 inputs. The following table presents information about the Company’s assets measured at fair value on a recurring basis. The Company assesses the levels for the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognitions of transfers between levels of the fair value hierarchy. For the years ended December 31, 2019 and 2018, there were no transfers in or out of Level 1, 2, and 3. Investments excluded from the fair value hierarchy The Company also invests in LPs, REITs and LLCs. This investment categorization 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. These investments are carried at net asset value, as reported by the managers of the funds, and are excluded from the fair value hierarchy. December 31, 2019 Total Level 1 Level 2 Level 3 Invested Assets: (in thousands) Debt Securities Available-for-sale U.S. government and agency securities $ 54,191 $ 366 $ 53,825 $ — States, municipalities and political subdivisions 76,355 — 76,355 — Special revenue 250,226 — 250,226 — Hybrid securities 101 — 101 — Industrial and miscellaneous 206,383 — 206,383 — Total debt securities 587,256 366 586,890 — Investment reported at NAV 7,993 — — — Total investments $ 595,249 $ 366 $ 586,890 $ — December 31, 2018 Total Level 1 Level 2 Level 3 Invested Assets: (in thousands) Debt 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 stock 4,507 4,507 — — Total debt 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 — — Investment reported at NAV 2,488 — — — Total investments $ 528,593 $ 21,317 $ 504,788 $ — 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 years ended December 31, 2019 and 2018, these non-recurring fair values inputs consisted of brand, agent relationships, renewal rights, customer relations, trade names, 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 are 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 2019, 2018 and 2017. The measurement period may be up to one year from the acquisition date. We record any measurement period adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Comprehensive Income Net Of Tax [Abstract] | |
Other Comprehensive Income | Note 7. Other Comprehensive Income The following table is a summary of other comprehensive income (loss) and discloses the tax impact of each component of other comprehensive income for the years ended December 31, 2019, 2018 and 2017, respectively: For the Year Ended December 31, 2019 2018 2017 Pre-tax Tax After- tax Pre- tax Tax After- tax Pre-tax Tax After- tax (in thousands) Other comprehensive income Change in unrealized losses on investments, net $ 19,765 (4,575 ) $ 15,190 $ (5,700 ) $ 2,281 $ (3,419 ) $ 5,688 $ (2,713 ) $ 2,975 Reclassification adjustment of realized losses (gains) included in net income (1,734 ) 401 (1,333 ) 163 (49 ) $ 114 (564 ) (457 ) $ (1,021 ) Effect on other comprehensive income $ 18,031 $ (4,174 ) $ 13,857 $ (5,537 ) $ 2,232 $ (3,305 ) $ 5,124 $ (3,170 ) $ 1,954 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 8. 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 two 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 assets 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 is 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. The components of lease costs were as follows: For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 Amortization of ROU assets - Finance leases $ 21 $ 79 Interest on lease liabilities - Finance leases 6 23 Variable lease cost (cost excluded from lease payments) 114 451 Operating lease cost (cost resulting from lease payments) 332 1,250 Total lease cost $ 473 $ 1,803 Supplemental balance sheet information related to leases was as follows: Balance Sheet Classification December 31, 2019 Right-of-use assets - operating Other assets $ 6,342 Right-of-use assets - finance Other assets $ 303 Lease Liability (1) Accounts payable and other liabilities $ (8,045 ) Lease Liability - finance Accounts payable and other liabilities $ (324 ) 1. Includes $1.3 million in lease incentives received in the first quarter of 2019 Weighted-average remaining lease term and discount rate for our operating and financing leases was as follows: December 31, 2019 Weighted average lease term - Finance leases 3.66 yrs. Weighted average lease term - Operating leases 8.01 yrs. Weighted average discount rate - Finance leases 7.09 % Weighted average discount rate - Operating leases 5.33 % Supplemental disclosure of cash flow information related to leases were as follows: For the Year Ended December 31, 2019 Finance lease - Operating cash flows $ 27 Finance lease - Financing cash flows $ 83 Operating lease - Operating cash flows (fixed payments) $ 970 Operating lease - Operating cash flows (liability reduction) $ 713 Maturities of lease liabilities were as follows as of December 31, 2019: December 31, 2019 2020 $ 1,442 2021 1,401 2022 1,425 2023 1,371 2024 1,010 2025 and thereafter 3,685 Total lease payments 10,334 Less: imputed interest (1,965 ) Present value of lease liabilities $ 8,369 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 9 . Property and Equipment Property and equipment, net consists of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 December 31, 2018 (in thousands) Land $ 2,582 $ 2,582 Building 11,390 11,390 Computer hardware and software 5,712 4,901 Office furniture and equipment 2,007 1,397 Tenant and leasehold improvements 8,105 4,477 Vehicle fleet 789 854 Total, at cost 30,585 25,601 Less: accumulated depreciation and amortization (9,832 ) (7,603 ) Property and equipment, net $ 20,753 $ 17,998 Depreciation expense for the years ended December 31, 2019, 2018 and 2017 was $2.2 million, $2.3 million, $1.6 million, respectively. The Company’s real estate consists of 15 acres of land, five buildings with a gross area of 229,000 square feet and a parking garage. Expected annual rental income due under non-cancellable operating leases for our real estate properties is as follows (in thousands): Year Amount January 1 to December 31, 2020 $ 2,883 January 1 to December 31, 2021 2,954 January 1 to December 31, 2022 3,021 January 1 to December 31, 2023 3,144 January 1 to December 31, 2024 2,250 Thereafter 14,254 Total $ 28,506 |
Deferred Reinsurance Ceding Com
Deferred Reinsurance Ceding Commission | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Deferred Reinsurance Ceding Commission | Note 10 . Deferred Reinsurance Ceding Commission The Company defers certain income in connection with its quota share treaties, the ceded reinsurance commissions income, called deferred reinsurance ceding commissions (“DRCC”), which are deferred and earned over the terms of the reinsurance agreements. Ceding commission on quota share agreements call for provisional ceding rate, subject sliding scale adjustments based on the loss experience of the reinsurers. Adjustments are reflected in current operations. The Company allocates 75% of total ceding commission income to policy acquisition costs and 25% of total ceding commission income to general and administrative expense. The Company defers reinsurance ceding commission income, which is amortized over the effective period of the related insurance policies. For the year ended December 31, 2019, 2018 and 2017 the Company allocated ceding commission income of $47.0 million and $54.9 million and $8.6 million to policy acquisition costs and $15.4 million and $18.1 million and $0 to general and administrative expense, respectively. The table below depicts the activity with regard to deferred reinsurance ceding commission during the years ended December 31, 2019, 2018 and 2017. For the Year Ended December 2019 2018 2017 (in thousands) Beginning balance of deferred ceding commission income $ 44,819 $ 51,109 $ 57,808 Ceding commission deferred 55,095 67,867 1,901 Less: ceding commission earned (62,450 ) (74,157 ) (8,600 ) Ending balance of deferred ceding commission income $ 37,464 $ 44,819 $ 51,109 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | Note 11. 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 for the years ended December 31, 2019, 2018 and 2017: For the Year Ended December 2019 2018 2017 (in thousands) Beginning Balance $ 73,055 $ 41,678 $ 42,779 Policy acquisition costs deferred 149,095 171,007 82,791 Amortization (144,939 ) (139,630 ) (83,892 ) Ending Balance $ 77,211 $ 73,055 $ 41,678 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Reinsurance | Note 1 2 . Reinsurance 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 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. Significant Reinsurance Contracts 2019-2020 Reinsurance Programs Catastrophe Excess of Loss Reinsurance Effective June 1, 2019, we entered into catastrophe excess of loss reinsurance agreements covering Heritage Property & Casualty Insurance Company (“Heritage P&C”), Zephyr Insurance Company (“Zephyr”) and Narragansett Bay Insurance Company (“NBIC”). The catastrophe reinsurance programs are allocated amongst traditional reinsurers, catastrophe bonds issued by Citrus Re Ltd., a Bermuda special purpose insurer formed in 2014 (“Citrus Re”), the Florida Hurricane Catastrophe Fund (“FHCF”) and Osprey Re Ltd, our captive reinsurer. The FHCF covers Florida risks only and we participate at 90%. Our third-party reinsurers are either rated “A-” or higher by A.M. Best or S&P or are fully collateralized, to reduce credit risk. The reinsurance program, which is segmented into layers of coverage, protects the Company for excess property catastrophe losses and loss adjustment expenses. The 2019-2020 reinsurance program provides first event coverage up to $1.5 billion for Heritage P&C, first event coverage up to $708.0 million for Zephyr, and first event coverage up to $936.0 million for NBIC. Our first event retention for each insurance company subsidiary follows: Heritage P&C - $20.0 million; Zephyr - $20.0 million; NBIC – $13.8 million. Our program was placed on a cascading basis which provides greater horizontal protection in a multiple small events scenario and features additional coverage enhancements. This coverage exceeds the requirements established by the ratings agency of our insurance company affiliates, Demotech, Inc., the Florida Office of Insurance Regulation, the Hawaii Insurance Division, and the Rhode Island Department of Business Regulation. We are responsible for all losses and loss adjustment expenses in excess of our reinsurance program. For second or subsequent catastrophic events, our total available coverage depends on the magnitude of the first event, as we may have coverage remaining from layers that were not previously fully exhausted. An aggregate of $2.6 billion of limit purchased in 2019 includes reinstatement through the purchase of reinstatement premium protection. In total, we have purchased $2.6 billion of potential reinsurance coverage, including our retention, for multiple catastrophic events. Our ability to access this coverage, however, will be subject to the severity and frequency of such events. The Company's estimated net cost for the 2019-2020 catastrophe reinsurance programs is approximately $249.2 million. Gross Quota Share Reinsurance NBIC did not enter into a gross quota share reinsurance program for its fiscal year beginning June 1, 2019. For its previous fiscal year, NBIC purchased an 8% gross quota share reinsurance treaty effective June 1, 2018 which provided ground up loss recoveries of up to $1.0 billion. Net Quota Share Reinsurance NBIC’s Net Quota Share coverage is proportional reinsurance for which certain of our other reinsurance inures to the quota share (property catastrophe excess of loss and reinstatement premium protection and the second layer of the general excess of loss). An occurrence limit of $20.0 million for catastrophe losses is in effect on the quota share, subject to certain aggregate loss limits that vary by reinsurer. The amount and rate of reinsurance commissions slide, within a prescribed minimum and maximum, depending on loss performance. The Net Quota Share program was renewed on December 31, 2019 ceding 56% of the net premiums and losses and 5% of the prior year quota share will run off. Aggregate Coverage A $931.0 million of limit is structured on an aggregate basis (Top and Aggregate, Layer 1, Layer 2, Layer 3, Layer 4, Layer 5, Stub layers, Multi-Zonal and 2017-1 Notes). To the extent that this coverage is not fully exhausted in the first catastrophic event, it provides coverage commencing at its reduced retention for second and subsequent events where underlying coverage has been previously exhausted. The Company purchased reinstatement premium protection for $627.0 million of this coverage, which can be reinstated one time. Layers (with exception to FHCF) are “net” of a $40.0 million attachment point. Layers inure to the subsequent layers if the aggregate limit of the preceding layer(s) is exhausted, and the subsequent layer cascades down in its place. NBIC placed 42.5% of an aggregate contract, which covers all catastrophe losses excluding named storms, on December 1, 2019, expiring March 31, 2020. The limit on the contract is $20.0 million, with a retention of $20.0 million and franchise deductible of $1.0 million. NBIC placed 100% of an occurrence contract, which covers all catastrophe losses excluding named storms, on December 31, 2019, expiring December 31, 2020. The limit on the contract is $20.0 million with a retention of $20.0 million and has one reinstatement available. Per Risk Coverage For southeast losses and northeast commercial residential losses, excluding losses from named storms, the Company purchased property per risk coverage for losses and loss adjustment expenses in excess of $1.0 million per claim. The limit recovered for an individual loss is $9.0 million and total limit for all losses is $27.0 million. There are two reinstatements available with additional premium due based on the amount of the layer exhausted. For Northeast personal residential losses only, the Company purchased property per risk coverage for losses and loss adjustments expenses in excess of $750,000 per claim. The limit recovered for an individual loss is $250,000 and total limit for all losses is $750,000. There are two reinstatements available with additional premium due based on the amount of the layer exhausted. In addition, the Company purchased facultative reinsurance for losses in excess of $10.0 million for any properties it insured where the total insured value exceeded $10.0 million. This coverage applies to Southeast losses and Northeast commercial residential losses, excluding losses from named storms. General Excess of Loss NBIC’s general excess of loss reinsurance protects NBIC from single risk losses, both property and casualty. The casualty coverage provided by this reinsurance contract also responds on a “Clash” basis, meaning that multiple policies involved in a single loss occurrence can be aggregated into one loss and applied to the reinsurance contract. The coverage is in two layers in excess of NBIC’s retention of the first $400,000 of loss. The first layer is $350,000 excess $400,000 and the second layer is $2.75 million excess $750,000 (Casualty second layer is $1.25 million excess $750,000). Both layers are 100% placed. Semi-Automatic Facultative Excess of Loss NBIC’s automatic property facultative reinsurance protects NBIC from single risk losses, for property risks with a total insured value excess of $3.5 million subject to a limit of $3.75 million, subject to special acceptance. 2018 – 2019 Reinsurance Programs Catastrophe Excess of Loss Reinsurance Effective June 1, 2018, we entered into catastrophe excess of loss reinsurance agreements covering Heritage P&C, Zephyr and NBIC. The catastrophe reinsurance programs are allocated amongst traditional reinsurers, catastrophe bonds issued by Citrus Re and FHCF. The FHCF covers Florida risks only and we participate at 45%. Citrus Re, which provides fully collateralized multi-year coverage, covers catastrophe losses incurred by Heritage P&C only through the 2016 Class D and 2017-1 Notes, and covers catastrophe losses incurred by Heritage P&C, Zephyr and NBIC through the 2016 Class E Note. Our third-party reinsurers are either rated “A-” or higher by A.M. Best or S&P or are fully collateralized, to reduce credit risk. The reinsurance program, which is segmented into layers of coverage, protects the Company for excess property catastrophe losses and loss adjustment expenses. The 2018-2019 reinsurance program provides first event coverage up to $1.6 billion for Heritage P&C, first event coverage up to $801.0 million for Zephyr, and first event coverage up to $1.0 billion for NBIC. Our first event retention for each insurance company subsidiary follows: Heritage P&C - $20.0 million; Zephyr - $20.0 million; NBIC – $12.8 million. Our second and third event retentions for each insurance company subsidiary follows: Heritage P&C - $16.0 million; Zephyr - $16.0 million; NBIC – $8.8 million. Our program was placed on a cascading basis which provides greater horizontal protection in a multiple small events scenario and features additional coverage enhancements. This coverage exceeds the requirements established by the Companies’ rating agency, Demotech, Inc., the Florida Office of Insurance Regulation, the Hawaii Insurance Division, and the Rhode Island Department of Business Regulation. For the twelve months ending May 31, 2019, no single uncollateralized private reinsurer represented more than 10% of the overall limit purchased from our total reinsurance coverage. We are responsible for all losses and loss adjustment expenses in excess of our reinsurance program. For second or subsequent catastrophic events, our total available coverage depends on the magnitude of the first event, as we may have coverage remaining from layers that were not previously fully exhausted. An aggregate of $3.4 billion of limit purchased in 2018 includes reinstatement through the purchase of reinstatement premium protection. In total, we have purchased $3.5 billion of potential reinsurance coverage, including our retention, for multiple catastrophic events. Our ability to access this coverage, however, will be subject to the severity and frequency of such events. The Company's estimated net cost for the 2018-2019 catastrophe reinsurance programs is approximately $252.0 million. Gross Quota Share Reinsurance NBIC purchased an 8% gross quota share reinsurance treaty effective June 1, 2018 which provides ground up loss recoveries of up to $1.0 billion. Prior to this treaty, NBIC’s gross quota share treaty was 18.75%. Net Quota Share Reinsurance NBIC’s Net Quota Share coverage is proportional reinsurance for which certain of our other reinsurance inures to the quota share (property catastrophe excess of loss and reinstatement premium protection and the second layer of the general excess of loss). An occurrence limit of $20.0 million for catastrophe losses is in effect on the quota share, subject to certain aggregate loss limits that vary by reinsurer. The amount and rate of reinsurance commissions slide, within a prescribed minimum and maximum, depending on loss performance. NBIC ceded 49.5% of net premiums and losses during 2018 to the Net Quota Share and 8% of the 2017 Net Quota Share was in runoff. The Net Quota Share program was renewed on December 31, 2018 ceding 52% of the net premiums and losses and 10% of the prior year quota share will run off. Aggregate Coverage A $1.1 billion of limit is structured on an aggregate basis (Top and Aggregate, Layer 1, Layer 2, Layer 3, Layer 4, Stub layers, Multi-Zonal, 2017-1 Notes and 2016 Class E Notes). To the extent that this coverage is not fully exhausted in the first catastrophic event, it provides coverage commencing at its reduced retention for second and subsequent events where underlying coverage has been previously exhausted. The Company purchased reinstatement premium protection for $669.0 million of this coverage, which can be reinstated one time. Layers (with exception to FHCF and 2016 Class D Notes) are “net” of a $40.0 million attachment point. Layers inure to the subsequent layers if the aggregate limit of the preceding layer(s) is exhausted, and the subsequent layer cascades down in its place. NBIC placed 42.5% of an aggregate contract, which covers all catastrophe losses excluding named storms, on May 31, 2018, expiring December 31, 2018. The limit on the contract is $20.0 million, with a retention of $3.0 million and franchise deductible of $1.5 million. NBIC placed 92% of an occurrence contract, which covers all catastrophe losses excluding named storms, on May 31, 2018, expiring December 31, 2018. The limit on the contract is $20.0 million with a retention of $20.0 million. NBIC placed 40% of an aggregate contract, which covers all catastrophe losses excluding named storms, on December 31, 2018, expiring May 31, 2019. The limit on the contract is $20.0 million, with a retention of $20.0 million and franchise deductible of $1.0 million. NBIC placed 100% of an occurrence contract, which covers all catastrophe losses excluding named storms, on December 31, 2018, expiring December 31, 2019. The limit on the contract is $20.0 million with a retention of $20.0 million and has one reinstatement available. Per Risk Coverage For southeast losses and northeast commercial residential losses, excluding losses from named storms, the Company purchased property per risk coverage for losses and loss adjustment expenses in excess of $1.0 million per claim. The limit recovered for an individual loss is $9.0 million and total limit for all losses is $27.0 million. There are two reinstatements available with additional premium due based on the amount of the layer exhausted. In addition, the Company purchased facultative reinsurance in excess of $10.0 million for any properties it insured where the total insured value exceeded $10.0 million. This coverage applied to Southeast losses and Northeast commercial residential losses, excluding losses from name storms. General Excess of Loss NBIC’s general excess of loss reinsurance protects NBIC from single risk losses, both property and casualty. The casualty coverage provided by this contract also responds on a “Clash” basis, meaning that multiple policies involved in a single loss occurrence can be aggregated into one loss and applied to the reinsurance contract. The coverage is in two layers in excess of NBIC’s retention of the first $300,000 of loss. The first layer is $450,000 excess $300,000 and the second layer is $2.75 million excess $750,000 (Casualty second layer is $1.25 million excess $750,000). Both layers are 92% placed with the gross quota share providing the additional 8% coverage. Semi-Automatic Facultative Excess of Loss NBIC’s automatic property facultative reinsurance protects NBIC from single risk losses, for property risks with a total insured value excess of $3.5 million subject to a limit. 2017 – 2018 Reinsurance Programs Heritage P&C and Zephyr Program The Company placed its reinsurance program for the period from June 1, 2017 through May 31, 2018 during the second quarter of 2017. This reinsurance program incorporated the catastrophe risk of our two insurance subsidiaries, Heritage P&C, a Florida based insurer writing property insurance in multiple states, and Zephyr, a Hawaii based insurer. The programs are allocated amongst traditional reinsurers, catastrophe bonds issued by Citrus Re Ltd., a Bermuda special purpose insurer formed in 2014 (“Citrus Re”), and the Florida Hurricane Catastrophe Fund (“FHCF”). Coverage is specific to each insurer unless otherwise noted. The 2017-2018 reinsurance program provides, including retention, first event coverage up to $1.75 billion in Florida, first event coverage up to $731 million in Hawaii, and multiple event coverage up to $2.6 billion. This coverage exceeds the requirements established by the Company’s rating agency, Demotech, Inc., the Florida Office of Insurance Regulation, and the Hawaii Insurance Division. For the twelve months ending May 31, 2018, no single uncollateralized private reinsurer represented more than 10% of the overall limit purchased from our total reinsurance coverage. The reinsurance program, which was segmented into layers of coverage, protects the Company for excess property catastrophe losses and loss adjustment expenses. The Company’s 2017-2018 reinsurance program incorporates the mandatory coverage required by law to be placed with FHCF, which was available only for Florida catastrophe risk. For the 2017 hurricane season, the Company maintained the prior year selected participation percentage in the FHCF at 45%. The Company also purchased private reinsurance below and alongside the FHCF layer, as well as aggregate reinsurance coverage. The Company did not utilize its captive, Osprey, for any catastrophe risk for the 2017 hurricane season. The Company had a primary retention of the first $20 million of losses and loss adjustment expenses. Additionally, the December 1, 2016 treaty between Heritage P&C and Osprey was commuted effective June 1, 2017. Heritage P&C provided property insurance coverage for states other than Hawaii. The following describes the various layers of its June 1, 2017 to May 31, 2018 reinsurance program: • Heritage P&C’s Retention . If a first catastrophic event strikes a Heritage P&C risk, its primary retention is the first $20 million ($15 million plus $5 million co-participation on the Top and Aggregate layer described below) of losses and loss adjustment expenses. If a second catastrophic event strikes a Heritage P&C risk, its primary retention decreases to $16 million and the remainder of the losses are ceded to third parties. In a first event exceeding approximately $878 million, there was an additional co-participation of 20% subject to a maximum co-participation of $727,000. Assuming a 1-100yr 1 st st • Shared Layers . Immediately above the retention, the Company had purchased $372 million of reinsurance from third party reinsurers . This coverage included the following layers: Top and Aggregate layer, Underlying layer, Layer 1, Layer 2 and a private sliver alongside those layers. Through the payment of a reinstatement premium, Heritage P&C and Zephyr was able to reinstate $352 million of this reinsurance one time. There was $20 million of shared coverage subject to a seasonal aggregate of $68 million. • FHCF Layer • Layers alongside the FHCF. • 2017-2 Notes: • 2016 Class D and E Notes: • 2015 Class B and C Notes : During April 2015, Heritage P&C entered into catastrophe reinsurance agreements with Citrus Re. Layers above the FHCF - Florida program • 2017-1 Notes: • 2015 Class A Notes: • Multi-Zonal Layers. • Aggregate Coverage Zephyr provides property insurance coverage for Hawaii. The various layers of its 2017-2018 reinsurance program area as follows: • Zephyr’s Retention . If a first catastrophic event strikes Hawaii, Zephyr has a primary retention of the first $20 million ($15 million plus $5 million co-participation on the Top and Aggregate layer) of losses and loss adjustment expenses. If a second event strikes Hawaii, Zephyr’s primary retention decreases to $16 million and the remainder of losses are ceded to third parties. In a first event exceeding approximately $386 million, there is an additional co-participation of 3.8% subject to a maximum co-participation of $12 million. Assuming a 1-100-year event, a second event exceeding approximately $386 million results in an additional co-participation of 117.7%, subject to a maximum co-participation of $56 million. Zephyr has a $16 million primary retention for events beyond the second catastrophic event. • Shared Layers above retention . Immediately above the retention, the Company has purchased $372 million of reinsurance from third party reinsurers. This coverage includes the following layers: Top and Aggregate layer, Underlying layer, Layer 1, Layer 2 and a private sliver alongside those layers. Through the payment of a reinsurance reinstatement premium, Heritage P&C and Zephyr are able to reinstate $352 million of this reinsurance one time. There is $20 million of shared coverage subject to a seasonal aggregate of $68 million. • Multi-Zonal Layers. • Top Hawaii only layer. • Aggregate Coverage For a first catastrophic event striking Florida, our reinsurance program provided coverage up to $1.75 billion of losses and loss adjustment expenses, including our retention, and we are responsible for all losses and loss adjustment expenses in excess of such amount. For a first catastrophic event striking Hawaii, our reinsurance program provided coverage up to $731 million of losses and loss adjustment expenses, including our retention, and we are responsible for all losses and loss adjustment expenses in excess of such amount. For subsequent catastrophic events, our total available coverage depends on the magnitude of the first event, as we may have coverage remaining from layers that were not previously fully exhausted. An aggregate of $632 million of limit purchased in 2017 includes reinstatement through the purchase of reinsurance reinstated premium. In total, we have purchased $2.6 billion of potential reinsurance coverage, including our retention, for multiple catastrophic events. Our ability to access this coverage, however, will be subject to the severity and frequency of such events. Hurricane losses in states other than Hawaii would be covered under the Heritage P&C program with the exception of the FHCF coverage and the series 2015, 2016 and 2017 catastrophe bonds. Management deemed this reinsurance protection to be sufficient given the level of catastrophe exposure in 2017 for Alabama, Georgia, North Carolina and South Carolina. In placing our 2017-2018 reinsurance program, we sought to capitalize on favorable reinsurance pricing and mitigate uncertainty surrounding the future cost of our reinsurance by negotiating multi-year arrangements. The $687.5 million of aggregate coverage we have purchased from Citrus Re Ltd, which includes the 2015 Class A, B, and C notes, the 2016 Class D & E notes, and the 2017 Series notes extends $277.5 million of coverage until May 2018, $250 million of coverage for two-year period and $160 million of coverage for a three-year period. To the extent coverage was all or partially exhausted before the end of three years, it cannot be reinstated. In the aggregate, multi-year coverage from Citrus Re Ltd accounts for approximately 26% of our purchases of private reinsurance for the 2017 hurricane season. The terms of each of the multi-year coverage arrangements described above are subject to adjustment depending on, among other things, the size and composition of our portfolio of insured risks in future periods. Per Risk Coverage: The Company also purchased property per risk coverage for losses and loss adjustment expenses in excess of $1 million per claim. The limit recovered for an individual loss is $9 million and total limit for all losses is $27 million. There are two reinstatements available with additional premium due based on the amount of the layer exhausted. In addition, the Company purchased facultative reinsurance in excess of $10 million for any commercial properties it insured where the total insured value exceeded $10 million. NBIC Program NBIC, our insurance subsidiary located in Rhode Island, provides property insurance coverage in the states of Connecticut, Massachusetts, New Jersey, New York and Rhode Island. NBIC’s catastrophe reinsurance program provides coverage for loss occurrences up to $1 billion (1:100-year event) on the first event and includes automatic reinstatement protection. The program includes coverage for catastrophic events such as severe winter storms, hurricanes and tornadoes. During 2017, NBIC’s net retention for a catastrophic event of up to $1.0 billion is $1.3 million. NBIC’s reinsurance program also covers non-catastrophic losses. A summary of NBIC’s combined reinsurance protection follows. The reinsurance program is placed with strong participation from leading reinsurers across global markets with no one reinsurer exceeding 10%. The reinsurance partners are all rated A- to A+ by Standard and Poor’s. Property Catastrophe Excess of Loss NBIC’s property catastrophe program protects NBIC from the aggregation of losses in a single occurrence. Reinstatement provisions (one reinstatement at 100% of premium) on the first three layers and a portion of the fourth layer provides protection for NBIC from a second catastrophic event. The program is 81.25% placed, with the remaining 18.75% of catastrophe protection coming from NBIC’s gross quota share contract. NBIC’s net retention of $20 million is further reduced with a net quota share reinsurance contract described below. Reinstatement Premium Protection NBIC’s Reinstatement Premium Protection locks in the cost of a potential reinstatement premium charge that would occur should an event trigger catastrophe reinsurance. NBIC buys reinstatement premium protection for the first three layers and a portion of the fourth catastrophe excess of loss layers. Aggregate Contract For the year ended December 31, 2017, NBIC had 25% of an Aggregate contract, in two sections: • Section 1: $20 million excess $21.5 million in the aggregate for all catastrophe losses excluding named tropical storms. • Section 2: $12 million excess $8 million for named tropical storm losses. NBIC placed 25% of an aggregate contract on December 31, 2017, expiring May 31, 2018. The limit on the contract is $13.5 million, retention of $18.5 million and franchise deductible of $1.0 million. Gross Quota Share NBIC purchased an 18.75% gross account quota share reinsurance treaty which provides ground up loss recoveries of up to $1 billion. Net Lines Quota Share NBIC’s net lines quota share is proportional reinsurance for which certain of our other reinsurance inures to the quota share (property catastrophe excess of loss and reinstatement premium protection and the second layer of the general excess of loss.) An occurrence limit of $20 million for catastrophe losses is in effect on the quota share, subject to certain aggregate loss limits that vary by reinsurer. The amount and rate of reinsurance commissions slide, within a prescribed minimum and maximum, depending on loss performance. NBIC ceded 60% of net premiums and losses during 2017 to the Net Quota Share. The net quota share program was renewed on December 31, 2017 ceding 49.5% of the net premiums and losses and 8% of the prior year quota share will runoff. General Excess of Loss NBIC’s general excess of loss reinsurance protects NBIC from single risk losses, both property and casualty. The casualty coverage provided by this contract also responds on a “Clash” basis, meaning that multiple policies involved in a single loss occurrence can be aggregated into one loss and applied to the reinsurance contract. The coverage is in two layers in excess of NBIC’s retention of the first $300,000 of loss. The first layer is $450,000 excess $300,000 and the second layer is $2.75 million excess $750,000 (Casualty second layer is $1.25 million excess $750,000). Both layers are 81.25% placed with the gross quota share providing the additional 18.75% coverage. Semi-Automatic Facultative Excess of Loss NBIC’s automatic property facultative reinsurance protects NBIC from single risk losses, for property risks with a total insured value excess of $3.5 million subject to a limit of $2.5 million. Product specific reinsurance for Umbrella and Home Systems Protection NBIC’s umbrella facultative program protects NBIC’s Umbrella Liability business through the quota share reinsurance contract. NBIC has limits of liability of up to $1 million with 90% quota share, subject to an additional limit of liability of up to $4 million with 100% quota share. The home system protection (HSP) product is designed to protect customers from sudden and accidental mechanical breakdowns to furnaces, boilers, HVAC systems, home entertainment systems, pool heating and filtering equipment, and other mechanical systems that are not covered by standard homeowners’ insurance policies. The coverage is included in NBIC’s base policy and is 100% reinsured through Hartford Steam Boiler. Property Per Risk Coverage The Company also purchased property per risk coverage for losses and loss adjustment expenses in excess of $1 million per claim. The limit recovered for an individual loss is $9 million and total limit for all losses is $27 million. There are two reinstatements available with additional premium due based on the amount of the layer exhausted. In addition, the Company purchased facultative reinsurance in excess of $10 million for any commercial properties it insured that the total insured value exceeded $10 million. Effect of Reinsurance The Company’s reinsurance arrangements had the following effect on certain items in the Consolidated Statement of Income for the year ended December 31, 2019 and 2018: For the Year Ended December 31, 2019 Premiums Written Premiums Earned Losses and Loss Adjustment Expenses (in thousands) Direct $ 937,937 $ 924,247 $ 696,289 Ceded (436,564 ) (445,534 ) (423,001 ) Net $ 501,373 $ 478,713 $ 273,288 For the Year Ended December 31, 2018 Premiums Written Premiums Earned Losses and Loss Adjustment Expenses (in thousands) Direct $ 923,349 $ 926,326 $ 855,780 Ceded (477,451 ) (472,144 ) (618,355 ) Net $ 445,898 $ 454,182 $ 237,425 |
Reserve For Unpaid Losses
Reserve For Unpaid Losses | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Reserve for Unpaid Losses | Note 1 3 . 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. We estimate our IBNR reserves by projecting our ultimate losses using industry accepted actuarial methods and then deducting actual loss payments and case reserves from the projected ultimate losses. The table below summarizes the activity related to the Company’s reserve for unpaid losses: For the Year Ended December 31, 2019 2018 2017 (in thousands) Balance, beginning of period $ 432,359 $ 470,083 $ 140,137 Less: reinsurance recoverable on unpaid losses 250,507 315,353 589 Net balance, beginning of period 181,852 154,730 139,548 Incurred related to: Current year 276,985 224,080 188,914 Prior years (3,696 ) 13,345 12,567 Total incurred 273,289 237,425 201,481 Paid related to: Current year 137,764 104,368 114,344 Prior years 97,474 105,935 107,479 Total paid 235,238 210,303 221,823 Total unpaid claims assumed from acquisitions — — 35,524 Net balance, end of period 219,903 181,852 154,730 Plus: reinsurance recoverable on unpaid losses 393,630 250,507 315,353 Balance, end of period $ 613,533 $ 432,359 $ 470,083 The Company writes insurance in the coastal states of Alabama, Connecticut, Florida, Georgia, Hawaii, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia, which could be exposed to hurricanes or other natural catastrophes. Although the occurrence of a major catastrophe could have a significant effect on our monthly or quarterly results, such an event is unlikely to be so material as to disrupt our overall normal operations. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter. The Company believes that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date. The reserve for unpaid losses is the estimate of amounts necessary to settle all reported and unreported incurred claims for the ultimate cost of insured losses, based upon the facts of each case and the Company’s experience with similar cases. Estimated amounts of salvage and subrogation are deducted from the reserve for claims and claims expense. The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process. Reserve estimates are primarily derived using an actuarial estimation process in which historical loss patterns are applied to actual paid losses and reported losses (paid losses plus individual case reserves established by claim adjusters) for an accident or report year to create an estimate of how losses are likely to develop over time. Development factors are calculated quarterly and periodically throughout the year for data elements such as claims reported and settled, paid losses, and paid losses combined with case reserves. The historical development patterns for these data elements are used as the assumptions to calculate reserve estimates, including the reserves for reported and unreported claims. Reserve estimates are regularly reviewed and updated, using the most current information available. Any resulting re-estimates are reflected in current results of operations. The Company’s losses incurred for the years ended December 31, 2019, 2018 and 2017 reflect prior year favorable development of $3.7 million and unfavorable development of $13.3 million and $12.6 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. Development in 2017 included $6.5 million for hurricane claims and strengthening of reserves for personal lines non-hurricane losses. The following is information about incurred and paid claims development as of December 31, 2019, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts. Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance (in thousands, except number of claims) Unaudited Accident year 2012 & prior 2013 2014 2015 2016 2017 2018 2019 Net IBNR Reserves Reported Claims 2012 & prior $ 102,723 $ 105,765 $ 107,842 $ 106,493 $ 106,331 $ 106,654 $ 106,446 $ 106,628 $ 74 53,353 2013 61,157 61,483 62,969 62,166 62,354 62,378 62,564 359 13,095 2014 118,991 114,899 113,847 114,984 115,838 115,234 975 18,477 2015 179,255 197,744 203,792 205,164 206,011 4,106 26,054 2016 237,207 242,611 250,990 250,235 7,105 27,495 2017 189,163 195,240 192,749 8,374 69,967 2018 199,565 193,672 30,125 33,482 2019 258,876 110,019 23,098 Total $ 1,385,969 $ 161,137 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Unaudited Accident year 2012 & prior 2013 2014 2015 2016 2017 2018 2019 2012 & prior $ 92,909 $ 101,323 $ 102,750 $ 104,093 $ 104,362 $ 105,053 $ 105,875 $ 106,475 2013 35,771 50,716 55,589 57,647 59,395 60,581 61,191 2014 68,732 95,076 101,456 108,509 112,518 113,609 2015 103,918 162,654 181,672 192,967 197,524 2016 132,679 211,512 233,540 238,868 2017 103,148 169,743 178,622 2018 84,552 152,592 2019 124,664 Total $ 1,173,545 Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Adjustment Expenses Unpaid Loss and Allocated Loss Adjustment Expense, Net of Reinsurance $ 212,424 Ceded Unpaid Loss and Allocated Loss Adjustment Expense 393,630 Unpaid Unallocated Loss Adjustment Expense 7,479 Unpaid losses and loss adjustment expenses $ 613,533 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance as of December 31, 2019 (Unaudited) Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Thereafter Percentage 55% 30% 7% 3% 2% 3% |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 1 4 . Long-Term Debt Convertible Senior Notes In August 2017 and September 2017, the Company issued in aggregate $136.8 million of 5.875% Convertible Senior Notes (“Convertible Notes”) maturing on August 1, 2037, unless earlier repurchased, redeemed or converted. The Convertible Notes were issued in a private placement transaction pursuant to Rule 144A under the Securities Act, as amended. The Convertible Notes are senior unsecured obligations of the Company that will rank senior in right of payment to the Company’s future indebtedness that is expressly subordinated in right of payment to the Convertible Notes; equal in right of payment to the Company’s unsecured indebtedness that is not so subordinated; effectively junior to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness or other liabilities by the Company’s subsidiaries other than the Guarantor, which will fully and unconditionally guarantee the Convertible Notes on a senior unsecured basis. Holders may convert their Convertible Notes at any time prior to the close of business on the business day immediately preceding February 1, 2037. On or after August 5, 2022 but prior to February 1, 2037, the Company may redeem for cash all or any portion of the Convertible Notes, at the Company’s option, at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to , but excluding, the redemption date. Holders of the Convertible Notes will be able to cause the Company to repurchase their Convertible Notes for cash on any of August 1, 2022, August 1, 2027 and August 1, 2032, in each case at 100% of their principal amount, plus accrued unpaid interest to, but excluding, the relevant repurchase date. Interest accrues from August 16, 2017 and is payable semi-annually in arrears, on February 1 and August 1 of each year, beginning in 2018. At December 31, 2019, the Company had $21.3 million of the Convertible Notes outstanding, net of issuance and debt discount costs in aggregate of approximately, $2.1 million. For the year ended December 31, 2019, the Company made interest payments, net of affiliated Convertible Notes of approximately $1.5 million, on the outstanding Convertible Notes. As of December 31, 2018, the Company had $25.6 million of the Convertible Notes outstanding, net of debt issuance and debt discount costs which totaled approximately, $3.6 million. For the year ended December 31, 2018, the Company made interest payments of approximately $8.1 million on the Convertible Notes. During the fourth quarter of 2018, the Company exchanged Convertible Notes in the aggregate principal amount of $75.8 million for a combination of cash and the issuance of an aggregate of 3,595,452 shares of the Company’s common stock. Debt Extinguishment The Company has reacquired convertible senior notes over a series of transactions in 2019, 2018 and 2017. In accordance with ASC 470 “ Debt 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. In October 2018, the Company reacquired $3.1 million of its outstanding Convertible Notes in the open market at a cost of $3.6 million. The repurchase resulted in a $73,000 non-operating loss. In December 2018, the Company repurchased in aggregate $72.7 million of its outstanding Convertible Notes. As consideration for the repurchase, the Company paid in cash $35.9 million and converted $53.0 million into 3,595,452 shares of the Company’s common stock. The Company recorded a $572,000 non-operating loss on the extinguishment and a reduction in debt discount liability of $6.2 million. In January 2019, in connection with the October 2018 settlement, the Company retired the repurchased $3.1 million Convertible Notes. In April 2018, the Company reacquired $10.6 million of its outstanding Convertible Notes in the open market at a cost of $13.4 million. The Company recognized a non-operating loss of $383,000 on extinguishment. In August 2018, in connection with the April 2018 settlement of the open market repurchase, the Company retired the repurchased $10.6 million Convertible Notes. The impact of the purchase of convertible notes during 2018 resulted in a net increase to additional paid-in capital from issuance of common stock on conversion of the Convertible Notes valued at $53.0 million reduced by the impact from the extinguishment of the allocated portion of the convertible option of $26.0 million. For 2019 and 2018 debt repurchases, the Company removed the respective net debt amount and the related portion of the derivative that was included in shareholders’ equity. The extinguishment of debt was measured at the then-current fair value at the time of purchase, with any difference recorded as a gain or loss on the extinguishment. In accordance with the purchase agreement governing the Company’s offer and sale of convertible debt, the Company or its affiliates are prohibited from reselling the notes once acquired. The repurchased Convertible Notes hold no registration rights. In December 2017, the conversion option of the Convertible Notes for equity classification no longer accounted for a separate derivative instruments’ liability in accordance with U.S. GAAP. The Company valued the embedded derivative and recorded additional paid-in-capital of $51.6 million. In connection with the change in the fair value, the Company recognized a fair value change in the year ended December 31, 2017 of $41.0 million as non-operating expenses in the consolidated statements of operations and comprehensive income (loss). On December 1, 2017, the Company held a Special Meeting of Stockholders, at which the Company’s stockholders approved, as required by Rule 312 of the New York Stock Exchange Listed Company Manual, the issuance of the Company’s common stock upon conversion of the Convertible Notes. Pursuant to the approval, the Company has the ability to settle the conversion option in shares of common stock, cash or a combination thereof. Upon conversion of the Convertible Notes, the Company intends to pay cash in respect of only the principal amount of the Convertible Notes being converted or (if lower) the conversion value thereof, and to settle any amounts in excess thereof in cash, shares of common stock or a combination thereof, at the Company’s election. In October and November 2017, the Company, through our subsidiary Heritage P&C, reacquired $21.1 million of its outstanding Convertible Notes in the open market at a cost of $25.2 million. The Company recognized a non-operating loss of $1.2 million on extinguishment. In connection with the repurchase, the Company removed the net debt of $17.7 million and liability derivative at the carrying amount of $6.2 million 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 maturing 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 respective years ended December 31, 2019 and 2018, the Company made principal and interest payments of $892,850 on the mortgage loan. Senior Secured Credit Facility In December 2018, the Company entered into a five-year, $125.0 million credit agreement (the “Credit Agreement”) with a syndicate of lenders consisting of $75.0 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 December 31, 2019, the balance of the term loan was $69.4 million. For the year ended December 31, 2019, the Company made interest payments of approximately $4.0 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 December 31, 2018, there was $20.0 million in aggregate principal outstanding under the Revolving Credit Facility. As of December 31, 2019, the Company had $10.0 million of borrowings and no letters of credit outstanding under the Revolving Credit Facility. For the year ended December 31, 2019, the Company made interest payments of $564,600 under the credit facility, respectively At December 31, 2019, the Company’s effective interest rate for the Term Loan Facility was 5.0625% and 5.0625% for the Revolving Credit Facility. The Company monitors the rates prior to the reset date which allows it to establish if the payment is monthly or quarterly payment based on the most beneficial rate used to calculate the interest payment. FHLB Loan Agreements In December 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, with a maturity date of December 13, 2023. 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 December 31, 2019, the fair value of the collateralized securities was $20.2 million and the equity investment in FHLB common stock was $1.4 million. As of December 31, 2019, the Company made quarterly interest payments of approximately $602,300 per the terms of the agreement. The following table summarizes the Company’s long-term debt: December 31, 2019 December 31, 2018 (in thousands) Convertible debt $ 23,413 $ 29,163 Mortgage loan 12,117 12,394 Term loan facility 69,375 75,000 Revolving credit facility 10,000 20,000 FHLB loan agreement 19,200 19,200 Total principal amount $ 134,105 $ 155,757 Deferred finance costs $ 4,857 $ 6,963 Total long-term debt $ 129,248 $ 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 covenants and other requirements under the revolving agreement represent the most restrictive provisions that we are subject to with respect to our long-term debt. The schedule of principal payments on long-term debt is as follows: Amount December 31, (in thousands) 2020 $ 9,665 2021 7,806 2022 7,822 2023 74,539 2024 354 Thereafter 33,919 Total principal payments $ 134,105 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 1 5 . Income Taxes The following table summarizes the provision for income taxes: For the Year Ended December 31, 2019 2018 2017 (in thousands) Federal: Current $ 9,674 $ 28,891 $ (24,380 ) Deferred 584 (20,636 ) 18,383 Provision for Federal income tax expense (benefit) 10,258 8,255 (5,997 ) State: Current 1,785 4,162 (20 ) Deferred 317 (578 ) 1,244 Provision for State income tax expense 2,102 3,584 1,224 Provision for income taxes expense (benefit) $ 12,360 $ 11,839 $ (4,773 ) The income tax (benefit) expense differs from the amounts computed by applying the U.S. federal income tax rate of as indicated below to pretax income as a result of the following (in thousands): For the Year Ended December 31, 2019 2018 2017 Expected income tax expense at federal rate 21.0 % 21.0 % 35.0 % State tax expense 3.6 % 5.5 % (22.8 )% Permanent items 0.9 % 0.7 % (2.3 )% Non-deductible conversion option liability — — (255.0 )% Non-deductible stock compensation (0.4 )% 2.1 % (26.0 )% Tax exempt interest (1.6 )% (1.6 )% 27.0 % Non-deductible acquisition costs 0.0 % 0.4 % (15.2 )% Executive compensation 162(m) 6.1 % 4.3 % (11.5 )% Political contributions 0.3 % 0.5 % (7.8 )% Tax rate change 0.6 % (2.3 )% 362.3 % Other (0.4 )% (0.2 )% (2.7 )% Reported income tax expense 30.1 % 30.4 % 81.0 % The effective tax rate for 2019 and 2018 was affected by various permanent tax differences, predominately disallowed executive compensation deductions which were further limited in 2018 and future years upon the enactment of H.R.1, commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). The 2017 effective tax rate was affected by the valuation change for the conversion option liability (refer to Note 14 - Long Term Debt) The Tax Act was signed into law on December 22, 2017 and contains several key provisions that impact the Company's business, including the reduction of the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018, the reduction in the amount of executive compensation that could qualify as a tax deduction, and a change in how property and casualty taxpayers discount loss reserves. Under current accounting guidance, the effects of changes in tax rates and laws are recognized in the period in which the new legislation is enacted. However, due to the timing of the enactment of the Tax Act and its proximity to December 31, 2017, the SEC issued SAB 118 which provides a framework for companies to account for uncertainties in applying the provisions of the Tax Act. SAB 118 allows companies to record a provisional amount in situations where a company does not have the necessary information available but can make a reasonable estimate. In situations where companies cannot make a reasonable estimate due to various factors, including lack of information, a provisional amount is not recorded. Instead, companies will continue to apply current accounting guidance based on the provision of the tax laws that were in effect immediately prior to the Tax Act being enacted. The measurement period, as defined in SAB 118 for the Tax Act, begins on the enactment date of the Tax Act and ends when a company has obtained, prepared and analyzed the information that was needed in order to complete the accounting requirements under current accounting guidance. However, under no circumstances will the measurement period extend beyond one year from the enactment date of the Tax Act. The Company’s accounting for all elements of the Tax Act is now complete, consistent with the closing of the SAB 118 measurement period on December 22, 2018. As a result of guidance released by the IRS, namely Revenue Procedures 2019-06, the Company recorded the following adjustments to the accounting for the Tax Act during 2018: Property and Casualty Reserves: The Act changes the discount rate and payment patterns utilized to discount certain lines of business when computing the allowable tax reserve deduction. In July 2019, the IRS issued Revenue Procedure 2019-31 to finalize the revised unpaid loss discount factors. As a result of this additional guidance, the Company recorded an increase to its gross deferred tax asset for lo and an increase to its gross deferred tax liabilities for reserv during 2018. The recorded adjustment had no impact on the Company’s effective tax rate. The significant components of deferred tax assets and liabilities included in the consolidated balance sheets as December 31 were as follows: For the Year Ended December 31, 2019 2018 Deferred tax assets: (in thousands) Unearned premiums $ 12,585 $ 12,090 Unearned commission 8,671 10,733 Net operating loss — 109 Tax-related discount on loss reserve 2,716 2,329 Unrealized loss — 2,631 Stock-based compensation 297 297 Accrued expenses 757 2,321 Leases 331 — Other 1,890 1,443 Total deferred tax asset 27,247 31,953 Deferred tax liabilities: Deferred acquisition costs 17,871 17,494 Prepaid expenses 153 112 Unrealized gain 2,195 — Property and equipment 1,029 664 Note discount 478 710 Basis in purchased investments 100 163 Basis in purchased intangibles 16,977 18,982 Other 1,067 1,533 Total deferred tax liabilities 39,870 39,658 Net deferred tax liability $ (12,623 ) $ (7,705 ) As of December 31, 2019, the Company has net operating loss carryforwards for federal and state income tax purposes of $450,000 and $0, respectively. The losses will expire in 2031. In addition, the Company had a $400,000 capital loss carryforward which will expire in 2023. In assessing the net carrying The statute of limitations related to our federal and state income tax returns remains open from our filings for 2016 through 2018. For the 2014 tax year, the federal income tax return was examined by the tax authority resulting in no material adjustments. In April 2019, the Company was notified by the tax authority that the federal income tax returns for the years 2015, 2016 and 2017 will be examined. The Company does not believe the examination will have an adverse impact on our consolidated financial statements. Our reinsurance affiliate, Osprey Re, Ltd., which is based in Bermuda, made an irrevocable election under section 953(d) of the U.S. Internal Revenue Code of 1986, as amended, to be treated as a domestic insurance company for U.S. Federal income tax purposes. As a result of this election, our reinsurance subsidiary is subject to United States income tax as if it were a U.S. corporation. As of December 31, 2019, the Company had no uncertain tax positions or unrecognized tax benefits that, if recognized, would impact the effective income tax rate. |
Statutory Accounting and Regula
Statutory Accounting and Regulations | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Statutory Accounting and Regulations | Note 1 6 . Statutory Accounting and Regulations State laws and regulations, as well as national regulatory agency requirements, govern the operations of all insurers such as our insurance subsidiaries. The various laws and regulations require that insurers maintain minimum amounts of statutory surplus and risk-based capital; restrict insurers’ ability to pay dividends; restrict the allowable investment types and investment mixes and subject the Company’s insurers to assessments. The Company’s insurance subsidiaries are required to file with state insurance regulatory authorities an “Annual Statement” which reports, among other items, net income and surplus as regards policyholders, which is called stockholder’s equity under GAAP. Combined results of the Company’s insurance subsidiaries reported statutory net loss of $16.3 million and $64.5 for the years ended December 31, 2019 and 2018, respectively. The Company’s insurance subsidiaries must maintain capital and surplus ratios or balances as determined by the regulatory authority of the states in which they are domiciled. Heritage P&C is required to maintain capital and surplus equal to the greater of $15 million or 10% of 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, NBIC, and Zephyr was $351.8 million at December 31, 2019. The combined statutory surplus for Heritage P&C, NBIC, and Zephyr was $375.1 million at December 31, 2018. State laws also require the Company’s insurance subsidiaries to adhere to prescribed premium-to-capital surplus ratios, with which the Company’s insurance affiliates are complying. At December 31, 2019, our insurance subsidiaries met the financial and regulatory requirements of the states in which they do business. The legislatures of the states of domicile of our insurance affiliates have adopted the National Association of Insurance Commissioners (“NAIC”) recommendations with regard to expansion of the regulation of insurers to include non-insurance entity affiliates. Specifically, the new law permits the state insurance regulators to examine affiliated entities within an insurance holding company system in order to ascertain the financial condition of the insurer. The law also provides for certain disclosures regarding enterprise risk, which are satisfied by the provision of related information filed with the SEC. The NAIC published risk-based capital guidelines for insurance companies that are designed to assess capital adequacy and to raise the level of protection that statutory surplus provides for policy holders. Most states, including Florida, Hawaii, and Rhode Island, have enacted the NAIC guidelines as statutory requirements, and insurers having less statutory surplus than required will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. State insurance regulatory authorities could require an insurer to cease operations in the event the insurer fails to maintain the required statutory capital. The level of required risk-based capital (“RBC”) is calculated and reported annually. There are five outcomes to the RBC calculation set forth by the NAIC which are as follows: 1. No Action Level—If RBC is greater than 200%, no further action is required. 2. Company Action Level—If RBC is between 150%-200%, the insurer must prepare a report to the regulator outlining a comprehensive financial plan that identifies conditions that contributed to the insurer’s financial condition and proposes corrective actions. 3. Regulatory Action Level—If RBC is between 100%-150%, the state insurance commissioner is required to perform any examinations or analyses to the insurer’s business and operations that he or she deems necessary as well as issuing appropriate corrective orders. 4. Authorized Control Level—If RBC is between 70%-100%, this is the first point that the regulator may take control of the insurer even if the insurer is still technically solvent and is in addition to all the remedies available at the higher action levels. 5. Mandatory Control Level—If RBC is less than 70%, the regulator is required to take steps to place the insurer under its control regardless of the level of capital and surplus. At December 31, 2019, the ratio of adjusted capital to authorized control level risk based capital for each of our insurance company subsidiaries was above 300%. State laws for Florida, Hawaii, and Rhode Island permit an insurer to pay dividends or make distributions out of that part of statutory surplus derived from net operating profit and net realized capital gains. The applicable laws pertain to the state of domicile of each insurance company affiliate and provide calculations to determine the amount of dividends or distributions that can be made without the prior approval of the insurance regulatory authority and the amount of dividends or distributions that would require prior approval of the insurance regulatory authority. In the state of Florida, a dividend may be taken without regulatory approval if the dividend is equal to or less than the greater of 10% of the insurer’s surplus or the insurer’s net income. In the state of Rhode Island, a dividend may be taken without regulatory approval if the dividend is equal to or less than the lesser of 10% of the insurer’s surplus or the insurer’s net income excluding realized capital gains. The state of Hawaii restricts dividends without regulatory approval to the smaller of prior years’ net income or 10% of prior year’s surplus. Heritage P&C and NBIC have not paid dividends in any of the last three years. Zephyr paid dividends of $6.9 million and $7.6 million for the years ended December 31, 2019 and 2018. Statutory risk-based capital requirements may further restrict our insurance subsidiaries ability to pay dividends or make distributions if the amount of the intended dividend or distribution would cause statutory surplus to fall below minimum risk-based capital requirements. However, the consent order authorizing commencement of operations for Heritage P&C precluded payment of dividends without the prior approval of FLOIR until July 31, 2017. State insurance laws limits an insurer’s investment in equity instruments and also restricts investments in medium to low quality debt instruments. The Company’s insurance affiliates were in compliance with all investment restrictions at December 31, 2019 and 2018. Governmental agencies or certain quasi-governmental entities can levy assessments upon the Company in the states in which the Company writes policies. See Note 1 Basis of Presentation, Nature of Business and Significant Accounting Policies and Practices” The Company reported its insurance subsidiaries’ assets, liabilities and results of operations in accordance with GAAP, which varies from statutory accounting principles prescribed or permitted by state laws and regulations, as well as by general industry practices. The following items are principal differences between statutory accounting and GAAP: • Statutory accounting requires that the Company excluded certain assets, called non-admitted assets, from the balance sheet. • Statutory accounting requires the Company to expense policy acquisition costs when incurred, while GAAP allows the Company to defer and amortize policy acquisition costs over the estimated life of the policies. • Statutory accounting dictates how much of a deferred income tax asset the Company can admit on a statutory balance sheet. • Statutory accounting requires that the Company record certain investments at cost or amortized cost, while the Company records other investments at fair value; however, GAAP requires that we record all available for sale investments at fair value. • Statutory accounting requires that surplus notes, also known as surplus debentures, be recorded in statutory surplus, while GAAP requires the Company to record surplus notes as a liability. • Statutory accounting allows bonds to be carried at amortized cost or fair value based on the rating received from the Securities Valuation Office of the NAIC, while they are recorded at fair value for GAAP if designated as available for sale. • Statutory accounting requires unrealized gains and losses from equity securities to be reported as direct adjustments to surplus, but under GAAP ASU 2016-01 the reporting of unrealized gains and losses on equity securities are reported in net income • Statutory accounting allows ceding commission income to be recognized when written if the cost of acquiring and renewing the associated business exceeds the ceding commissions, but under GAAP such income is deferred and recognized over the coverage period. • Statutory accounting requires that unearned premiums and loss reserves be presented net of related reinsurance rather than on a gross basis under GAAP. • Statutory accounting requires a provision for reinsurance liability be established for reinsurance recoverable on paid losses aged over ninety days and for unsecured amounts recoverable from unauthorized reinsurers. Under GAAP there is no charge for uncollateralized amounts ceded to a company not licensed in the insurance affiliate’s domiciliary state and a reserve for uncollectable reinsurance is charged through earnings rather than surplus or equity. • Statutory accounting requires an additional admissibility test outlined in Statements on Statutory Accounting Principles, No. 101 and the change in deferred income tax is reported directly in capital and surplus, rather than being reported as a component of income tax expense under GAAP. The table below reconciles the Company’s consolidated GAAP net (loss) income to statutory net income of its insurance subsidiaries (in thousands): For the Year Ended December 31, 2019 2018 2017 Consolidated GAAP net income (loss) $ 28,636 $ 27,155 $ (1,119 ) (Decrease) increase due to: Deferred income taxes (339 ) (16,868 ) 32,644 Deferred acquisition costs (4,156 ) (31,377 ) 1,101 Surplus note interest — — (4 ) Non-statutory subsidiaries (37,005 ) (31,158 ) 5,410 Investment basis difference 247 335 446 Pre-acquisition income — — 20,839 Equity compensation (1,265 ) (2,408 ) (2,408 ) Convertible notes (1,613 ) (1,570 ) 1,051 Commission revenue 1,394 (6,289 ) (6,700 ) Change in fair value income statement (2,429 ) 2,078 — Lease accounting standard 137 — — Other 94 (4,372 ) (709 ) Statutory net (loss) income of insurance subsidiaries $ (16,299 ) $ (64,474 ) $ 50,553 The Company’s reinsurance subsidiary, Osprey, which was incorporated on April 23, 2013, is licensed as a Class 3a Insurer under The Bermuda Insurance Act 1978 and related regulations. Osprey is required to maintain statutory capital and surplus of at least $1.0 million and maintain liquid resources or have access to liquid resources equal to its maximum obligation for which it is responsible under the terms of any reinsurance arrangement to which it is a party. Osprey maintains sufficient collateral to comply with regulatory requirements as of December 31, 2019. Bermuda’s standard for financial statement reporting is U.S. GAAP. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 1 7 . 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. |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Accounts Payable and Other Liabilities | Note 1 8 . Accounts Payable and Other Liabilities Other liabilities consist of the following as of December 31, 2019 and 2018: Description December 31, 2019 December 31, 2018 (in thousands) Deferred ceding commission 37,464 $ 44,819 Outstanding claim checks — 15,360 Accounts payable and other payables 7,225 8,556 Accrued dividends 1,750 1,589 Accrued interest and issuance costs 1,052 1,285 Lease obligations 8,369 — Premium tax — 2,241 Other liabilities 387 460 Commission payables 14,798 11,654 Total other liabilities $ 71,045 $ 85,964 |
Accrued Bonus Compensation
Accrued Bonus Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |
Accrued Bonus Compensation | Note 1 9 . Accrued Bonus Compensation At December 31, 2019, the Company recognized employee bonus compensation expense in aggregate of $7.6 million, which the Company paid out in cash approximately $6.0 million during 2019, the remainder is expected to be paid in 2020. At December 31, 2018, the Company recognized employee bonus compensation expense of approximately $8.2 million, which the Company paid out in cash of approximately $2.2 million for 2018, the remainder was paid in 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 20 . Related Party Transactions In January 2017, the Company entered into a consulting agreement with Mrs. Shannon Lucas, the wife of the Chairman and CEO, in which she agreed to provide consulting services related to the Company’s catastrophe reinsurance and risk management program at a rate of $400 per hour. The consulting agreement has no specific term and either party may terminate the agreement upon providing written notice. Additionally, she serves as a director of Heritage P&C and NBIC with an annual compensation of $150,000. For the years ended December 31, 2019 and 2018, the Company paid consulting fees to Ms. Lucas of approximately $344,400 and $628,800, respectively. In July 2019, the Board of Directors appointed Mark Berset to the Board of Directors of the Company. Mr. Berset will be entitled to an annual compensation of $150,000. Mr. Berset is also the Chief Executive Officer of Comegys Insurance Agency, Inc. (“Comegys”), an independent insurance agency that writes policies for Company. The Company pays commission to Comegys based upon standard industry rates consistent with those provided to the Company’s other insurance agencies. There are no arrangements or understandings between Mr. Berset and any other persons with respect to his appointment as a director. For the years ended December 31, 2019 and 2018, the Company paid agency commission to Comegy of approximately $589,800 and $509,900, respectively. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Note 21 . Employee Benefit Plan . 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 years ended December 31, 2019 and 2018, the contributions made to the plan on behalf of the participating employees were approximately $1.0 and $1.1 million, respectively. The Company provides for its employees a partially self-insured healthcare plan and benefits. For years ended December 31, 2019 and 2018, incurred medical premium and related costs amounted to an aggregate of $3.8 million and $3.2 million, respectively. An additional liability of approximately $418,000 and $368,000 was recorded for unpaid claims as of December 31, 2019 and 2018, respectively. 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 | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | Note 2 2 . 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 December 31, 2019, the Company had 28,650,918 shares of common stock outstanding, 8,349,483, treasury shares of common stock and 345,534 unvested restricted common stock issued reflecting total paid-in capital of $329.6 million as of such date. Common Stock Holders of common stock are entitled to one vote for each share held on all matters subject to a vote of stockholders, subject to the rights of holders of any outstanding preferred stock. Accordingly, holders of a majority of the shares of common stock entitled to vote in any election of directors may elect all of the directors standing for election, subject to the rights of holders of any outstanding preferred stock. Holders of common stock will be entitled to receive ratably any dividends that the board of directors may declare out of funds legally available therefor, subject to any preferential dividend rights of outstanding preferred stock. Upon the Company’s liquidation, dissolution or winding up, the holders of common stock will be entitled to receive ratably its net assets available after the payment of all debts and other liabilities and subject to the prior rights of holders of any outstanding preferred stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights. There is no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of the Company’s capital stock (excluding restricted stock) are fully paid and nonassessable. 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 $50.0 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. At December 31, 2019, the Company has the capacity to repurchase $33.8 million of its common shares until December 31, 2020. In addition, the Company acquired 237,620 shares for approximately $3.5million for the year ended December 31, 2019, that were not part of the publicly announced share repurchase authorization. These shares consisted of shares retained to cover payroll withholding taxes in connection with the vesting of restricted stock awards Dividends 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. Dividends For the year ended December 31, 2019, we recorded quarterly cash dividends of approximately $7.1 million as follows: Quarter Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Cash dividend per common share $ 0.06 $ 0.06 $ 0.06 $ 0.06 Total cash dividends paid $ 1,806,944 $ 1,791,323 $ 1,772,063 $ 1,749,800 Record date March 15, 2019 June 14, 2019 September 16, 2019 December 16, 2019 Payment date April 3, 2019 July 3, 2019 October 3, 2019 January 6, 2020 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 23 . Stock-Based Compensation Common 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. At December 31, 2019 there were 1,551,018 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 Company 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 the year ended December 31, 2019. The Plan authorizes the Company to grant stock options at exercise prices equal to the fair market value of the Company’s stock on the dates the options are granted. Any options granted would typically 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 would 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 not granted any stock options since 2015 and all unexercised stock options have since been forfeited. Restricted Stock The Company has also granted shares of its common stock subject to certain restrictions under the Plan. Restricted stock awards granted to employee’s 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 three years ended December 31, 2019, 2018 and 2017 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2016 900,000 $ 18.42 Granted — — Vested (137,935 ) 16.53 Canceled and surrendered (87,065 ) 17.41 Non-vested, at December 31, 2017 675,000 $ 21.40 Granted 155,801 16.10 Vested (112,500 ) 16.35 Canceled and surrendered (112,500 ) 16.35 Non-vested, at December 31, 2018 605,801 $ 20.41 Granted — — Vested (22,647 ) 14.28 Canceled and surrendered (237,620 ) 14.82 Non-vested, at December 31, 2019 345,534 $ 19.56 Awards are being amortized to expense over the three to five year vesting period. Relating to the restricted stock the Company recognized $5.4 million, $5.3 million and $4.8 million of compensation expense for the years ended December 31, 2019, 2018 and 2017, respectively. At December 31, 2019, there was approximately $5.6 million, representing unrecognized compensation expense related to the non-vested restricted stock, substantially all of which is expected to be recognized over the next one-year period. During the year ended December 31, 2019, restricted shares were vested and released, of which 260,267 shares had been granted to employees. Of the shares released to employees, 237,620 shares were withheld by the Company to cover withholding taxes of $3.5 million. During 2018 and 2017, 112,500 and 87,065 shares, respectively, were withheld to cover withholding taxes of $1.8 million and $1.6 million respectively, arising from the vesting of restricted shares. We recognized no tax benefit from the restricted stock awards and related paid dividends for the years 2019, 2018 and 2017, respectively. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Note 24. Quarterly Results for The following table provides a summary of unaudited quarterly results for the periods presented (in thousands, except per share data): For the year ended December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 109,691 $ 114,083 $ 123,862 $ 131,077 Investment income $ 3,672 $ 3,830 $ 3,655 $ 3,275 Total revenues $ 118,261 $ 122,843 $ 131,699 $ 138,502 Total operating expenses $ 106,763 $ 119,770 $ 118,215 $ 116,990 Operating income $ 11,498 $ 3,073 $ 13,484 $ 21,512 Income (loss) from continuing operations $ 6,964 $ 721 $ 8,133 $ 12,818 Basic net income (loss) per share $ 0.24 $ 0.02 $ 0.28 $ 0.44 Diluted net income (loss) per share $ 0.24 $ 0.02 $ 0.28 $ 0.44 For the year ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 106,108 $ 111,204 $ 118,238 $ 118,632 Investment income $ 3,075 $ 2,470 $ 3,852 $ 1,407 Total revenues $ 112,026 $ 117,972 $ 125,295 $ 124,878 Total operating expenses $ 87,209 $ 109,822 $ 111,079 $ 102,525 Operating income $ 24,817 $ 8,150 $ 14,216 $ 22,353 Income (loss) from continuing operations $ 14,829 $ 2,408 $ 5,989 $ 3,929 Basic net income (loss) per share $ 0.58 $ 0.09 $ 0.23 $ 0.15 Diluted net income (loss) per share $ 0.55 $ 0.09 $ 0.23 $ 0.15 The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. |
Condensed Financial Information
Condensed Financial Information Heritage Insurance Holdings, Inc. | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Financial Information of Registrant | Note 25. Condensed Financial Information Heritage Insurance Holdings, Inc. The following summarizes the major categories of Heritage Insurance Holdings, Inc.’s financial statements for the year ended December 31, 2017. Refer to Schedule II of the Condensed Financial Information of Registrant for the years ended December 31, 2019 and 2018. For the Year Ended December 31, 2017 (In thousands) Revenue: Other revenue $ 1,949 Total revenue 1,949 Expenses: General and administrative expense 17,792 Amortization of debt issuance cost 2,314 Interest expense, net 11,158 Other non-operating expense, net 41,013 Total expenses $ 72,277 Loss before income taxes and equity in net income of subsidiaries (70,328 ) Benefit from income taxes (6,120 ) Loss before equity in net income of subsidiaries (64,208 ) Equity in net income of subsidiaries — Net loss $ (64,208 ) Statement of Cash Flows For the Year Ended December 31, 2017 (in thousands) Net loss $ (64,208 ) Net cash provided by (used in) operating activities 27,154 Investing Activities Purchases of investment available for sale 78,213 Dividends received from subsidiaries 57,575 Acquisition of a business (210,000 ) Net cash provided by investing activities (74,212 ) Financing Activities Proceeds from exercise of stock options and warrants 417 Proceeds from issuance of note payable, net of issuance costs 114,335 Proceeds from mortgage loan 12,658 Shares tendered for income tax withholdings (1,599 ) Purchase of treasury stock (61,623 ) Dividends paid (8,249 ) Net cash used in financing activities 55,939 Decrease in cash and cash equivalents 8,881 Cash and cash equivalents, beginning of period 7,368 Cash and cash equivalents, end of year $ 16,249 |
Geographical Information (unaud
Geographical Information (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Geographical Information (unaudited) | Note 26. Geographical Information (unaudited) Our primary products are personal and commercial residential property insurance, which at December 31, 2018 was offered in Alabama, Connecticut, Florida, Georgia, Hawaii, Massachusetts, New York, New Jersey, North Carolina, Rhode Island, South Carolina and Virginia. Our Florida domiciled insurance company, Heritage P&C, is authorized by each of the respective state insurance departments in Alabama, Georgia, Florida, Mississippi, North Carolina and South Carolina. Our Hawaii domiciled insurance company, Zephyr, writes business only in Hawaii and is authorized by the Hawaii Insurance Division. Our Rhode Island domiciled insurance company, NBIC, is authorized by each of the respective state insurance departments in Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, and Virginia. Our other operating subsidiaries include: Heritage MGA, LLC, our managing general agent; Pawtucket Insurance Company (PIC), which is a property insurance company no longer writing insurance policies; Osprey Re Ltd. (“Osprey”), our reinsurance subsidiary that may provide a portion of the reinsurance protection purchased by our insurance subsidiaries; Contractors’ Alliance Network, LLC (“CAN”), our vendor network manager for Florida claims and our provider of restoration, emergency and recovery services; Skye Lane Properties, LLC, our property management subsidiary; First Access Insurance Group, LLC, our retail agency; Westwind Underwriters, Inc., and Heritage Insurance Claims, LLC, both inactive subsidiaries reserved for future development. The Company is a single reportable segment. None of the individual subsidiaries meet the quantitative thresholds to qualify as reportable segment. The following table depicts the distribution of our in-force premium as of December 31, 2019 and 2018, respectively. At December 31, 2019 At December 31, 2018 State In Force Premiums Policies In Force In Force Premiums Policies In Force (in thousands) (in thousands) Florida $ 486,520 220,154 $ 505,992 230,937 New York 184,924 92,057 179,650 92,431 New Jersey 71,492 50,013 70,322 51,576 Massachusetts 62,810 32,464 59,592 32,629 Hawaii 53,493 65,008 53,480 67,181 Rhode Island 24,106 14,826 20,784 13,189 North Carolina 20,422 22,948 14,685 14,280 South Carolina 13,804 9,926 9,502 6,411 Connecticut 12,461 7,537 6,864 4,370 Alabama 7,041 7,044 1,571 1,543 Georgia 3,050 2,753 1,238 1,139 Virginia 473 245 — — Total $ 940,594 524,975 $ 923,680 515,686 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 2 7 . Subsequent Events On February 26, 2020, the Company announced that its Board of Directors declared a $0.06 per share quarterly dividend payable on April 3, 2020 to stockholders of record as of March 16, 2020. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information of Registrant | Note 25. Condensed Financial Information Heritage Insurance Holdings, Inc. The following summarizes the major categories of Heritage Insurance Holdings, Inc.’s financial statements for the year ended December 31, 2017. Refer to Schedule II of the Condensed Financial Information of Registrant for the years ended December 31, 2019 and 2018. For the Year Ended December 31, 2017 (In thousands) Revenue: Other revenue $ 1,949 Total revenue 1,949 Expenses: General and administrative expense 17,792 Amortization of debt issuance cost 2,314 Interest expense, net 11,158 Other non-operating expense, net 41,013 Total expenses $ 72,277 Loss before income taxes and equity in net income of subsidiaries (70,328 ) Benefit from income taxes (6,120 ) Loss before equity in net income of subsidiaries (64,208 ) Equity in net income of subsidiaries — Net loss $ (64,208 ) Statement of Cash Flows For the Year Ended December 31, 2017 (in thousands) Net loss $ (64,208 ) Net cash provided by (used in) operating activities 27,154 Investing Activities Purchases of investment available for sale 78,213 Dividends received from subsidiaries 57,575 Acquisition of a business (210,000 ) Net cash provided by investing activities (74,212 ) Financing Activities Proceeds from exercise of stock options and warrants 417 Proceeds from issuance of note payable, net of issuance costs 114,335 Proceeds from mortgage loan 12,658 Shares tendered for income tax withholdings (1,599 ) Purchase of treasury stock (61,623 ) Dividends paid (8,249 ) Net cash used in financing activities 55,939 Decrease in cash and cash equivalents 8,881 Cash and cash equivalents, beginning of period 7,368 Cash and cash equivalents, end of year $ 16,249 |
Heritage Insurance Holdings, Inc. [Member] | |
Condensed Financial Information of Registrant | Condensed Balance Sheet The following summarizes the major categorizes of Heritage Insurance Holdings, Inc.’s financial statements (in thousands, except per share data): As of December 31, 2019 2018 (in thousands) ASSETS Fixed maturity securities, available for sale, at fair value $ — $ — Cash and cash equivalents 12,671 13,892 Investment in and advances to subsidiaries 594,141 598,525 Other assets 2,813 3,324 Total Assets $ 609,625 $ 615,741 LIABILITIES AND STOCKHOLDERS' EQUITY Other liabilities 160,826 190,408 Total Liabilities $ 160,826 $ 190,408 Common stock $ 3 $ 3 Paid-in-capital 329,568 325,292 Treasury (105,368 ) (89,185 ) Accumulated other comprehensive income 7,330 (6,527 ) Retained earnings 217,266 195,750 Total Stockholders' Equity $ 448,799 $ 425,333 Total Liabilities and Stockholders' Equity $ 609,625 $ 615,741 For the Years Ended December 31, 2019 2018 (In thousands, except share and per share amounts) Revenue: Other revenue $ 6,180 $ 1,858 Total revenue 6,180 1,858 Expenses: General and administrative expense 11,699 19,005 Amortization of debt issuance cost 2,190 4,623 Interest expense, net 7,609 17,277 Other non-operating expense, net 48 9,791 Total expenses $ 21,546 $ 50,696 Loss before income taxes and equity in net income of subsidiaries (15,366 ) (48,838 ) Benefit from income taxes (511 ) (9,545 ) Loss before equity in net income of subsidiaries (14,855 ) (39,293 ) Equity in net income of subsidiaries — — Net loss $ (14,855 ) $ (39,293 ) The accompanying note is an integral part of condensed financial statements SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT Condensed Statement of Cash Flows For the Years Ended December 31, 2019 2018 (in thousands) Net loss $ (14,855 ) $ (39,293 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Stock-based compensation 5,379 5,273 Net realized gains 49 9,790 Valuation on conversion feature — 3,252 Amortization of debt issuance cost — 4,623 Deferred income taxes 334 (1,325 ) Changes in operating assets and liabilities Prepaid (659 ) 121 Income taxes payable 351 (5,080 ) Dividends payable — 1,589 Accrued interest on debt 444 (3,771 ) Other assets 2,182 (3,521 ) Other liabilities (4,094 ) 7,338 Net cash used in operating activities (10,869 ) (20,094 ) Investing Activities Dividends received from subsidiaries 70,590 92,800 Collection (issue) of principle note receivable 358 (910 ) Investments and advances to subsidiaries (15,865 ) (42,200 ) Net cash provided by investing activities 55,083 49,690 Financing Activities Proceeds from issuance of note payable, net of issuance costs — 110,769 Repayment of secured senior notes — (79,500 ) Mortgage loan payments (277 ) (264 ) Repurchase of convertible notes (2,869 ) (52,739 ) Repayment of long-term debt (15,625 ) — Shares tendered for income tax withholdings (3,521 ) (1,839 ) Purchase of treasury stock (16,183 ) (2,000 ) Dividends paid (6,959 ) (6,380 ) Net cash used in financing activities (45,434 ) (31,953 ) Decrease in cash and cash equivalents (1,221 ) (2,357 ) Cash and cash equivalents, beginning of period 13,892 16,249 Cash and cash equivalents, end of year $ 12,671 $ 13,892 The accompanying note is an integral part of condensed financial statements SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT Notes to Condensed Financial Statements (1) Organization and Basis of Presentation Heritage Insurance Holdings, Inc., (“we”, “our”, “us” and “Heritage Insurance”), established in 2012 and incorporated in the state of Delaware in 2014, is a property and casualty insurance holding company that provides personal and commercial residential property insurance. We are headquartered in Clearwater, Florida and, through our insurance company subsidiaries, Heritage Property & Casualty Insurance Company (“Heritage P&C”), Narragansett Bay Insurance Company (“NBIC”) and Zephyr Insurance Company (“Zephyr”), we write personal residential property insurance for single-family homeowners and condominium owners, and rental property insurance in the states of Alabama, Connecticut, Florida, Georgia, Hawaii, Massachusetts, New Jersey, New York, North Carolina, Rhode Island and South Carolina. We also provide commercial residential insurance for Florida properties and are also licensed in the states of Delaware, Maryland, Mississippi, Pennsylvania, and Virginia. In order to limit our potential exposure to catastrophic events, we purchase significant reinsurance from third party reinsurers and sponsor catastrophe bonds issued by Citrus Re. The accompanying condensed financial statements included the activity of the Parent Company and the equity basis of its consolidated subsidiaries. Accordingly, these condensed financial statements have been presented for the parent company only. These condensed financial statements should be read in conjunction with the consolidated financial statements and related notes of HIH and subsidiaries set forth in Part II, Item 8 Financial Statements and Supplemental Data of this Annual Report. In applying the equity method to our consolidated subsidiaries, we record the investment at cost and subsequently adjust for additional capital contributions, distributions and proportionate share of earnings or losses. |
Schedule V - Valuation Allowanc
Schedule V - Valuation Allowances and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation Allowances and Qualifying Accounts | The following table summarizes activity in the Company’s allowance for doubtful accounts for the year ended December 31, 2019. Description Beginning balance Charges in earnings Charges to other accounts Deductions Ending balance (in thousands) Year ended December 31, 2019 Allowance for doubtful accounts $ — 290 — — $ 290 Year ended December 31, 2018 Allowance for doubtful accounts $ — — — — $ — |
Schedule VI - Supplemental Info
Schedule VI - Supplemental Information Concerning Consolidated Property and Causality Insurance Operations | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |
Supplemental Information Concerning Consolidated Property and Causality Insurance Operations | The following table provides certain information related to the Company’s property and casualty operations as of, and for the periods presented (in thousands): As of December 31, For the Year Ended December 31, Year Reserves for Unpaid Losses and LAE Incurred Losses and LAE Current Year Incurred Losses and LAE Prior Years Paid losses and LAE Net Investment Income 2019 $ 613,533 $ 276,985 $ (3,696 ) $ 235,238 $ 14,432 2018 $ 432,359 $ 224,080 $ 13,345 $ 210,303 $ 13,280 As of December 31, For the Year Ended December 31, Year Deferred Policy Acquisition Costs ("DPAC") Amortization of DPAC, Net Net Premiums Written Net Premiums Earned Unearned Premiums (in thousands) 2019 $ 77,211 $ 144,939 $ 501,373 $ 478,713 $ 486,220 2018 $ 73,055 $ 139,630 $ 445,898 $ 454,182 $ 472,357 |
Basis of Presentation, Nature_2
Basis of Presentation, Nature of Business and Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Heritage Insurance Holdings, Inc. and its wholly-owned subsidiaries. The accompanying consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest (none of which are variable interest entities). All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with United States Generally Accepted Accounting Principles (“U.S. GAAP”) requires us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and accompanying notes. We evaluate our estimates on an ongoing basis when updated information related to such estimates becomes available. We base our estimates on historical experience and information available to us at the time these estimates are made. Actual results could differ materially from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company’s cash and cash equivalents include demand deposits with financial institutions and short-term, highly-liquid financial instruments with original maturities of three months or less when purchased. The carrying amounts reported in the consolidated balance sheets for interest bearing deposits approximate their fair value because of the short maturity of these financial instruments. The Company excludes from cash and cash equivalents negative cash balances that the Company has with an individual financial institution. The liability presents outstanding checks not yet presented to the financial institution and is reported in accounts payable and other liabilities. |
Restricted Cash | Restricted Cash As of December 31, 2019, and 2018, restricted cash was $14.7 million and $12.3 million, respectively. For the years ended December 31, 2019 and 2018, Heritage P&C held approximately $9.0 million and $9.0 million relating to a reinsurance agreement with an entity that issued catastrophe (“CAT”) bonds, as Heritage P&C is contractually required to deposit certain installments of reinsurance premiums into a trust account and $5.7 million and $3.2 million in restricted cash relating to individual regulatory state deposits, respectively. The Company earned interest income of $28,969 and $36,532 on its restricted cash deposits. |
Investments | Investments The Company classifies all of its investments in debt securities as available-for-sale and reports them at fair value. Subsequent to its acquisition of debt securities available-for-sale, the Company records changes in value through the date of disposition as unrealized holding gains and losses, net of tax effects, and includes them as a component of other comprehensive income. Equity securities are recorded at fair value with changes in fair value reflected in net income and presented with realized gains and losses. The Company includes realized gains and losses, which it calculates using the specific-identification method for determining the cost of securities sold, in net income. The Company amortizes any premium or discount on fixed maturities over the remaining maturity period of the related securities using the effective interest method and reports the amortization in net investment income. The Company recognizes dividends and interest income when earned. Quarterly, the Company performs an assessment of its debt securities available-for-sale to determine if any are “other-than-temporarily” impaired. An investment is impaired when the fair value of the investment declines to an amount less than the cost or amortized cost of that investment. As part of the assessment process, the Company determines whether the impairment is temporary or “other-than-temporary”. The Company bases its assessment on both quantitative criteria and qualitative information, considering a number of factors including, but not limited to: how long the security has been impaired; the amount of the impairment; the Company intends to sell the investment or it is more likely than not that the Company will have to sell the investment before it recovers the amortized cost or cost; the financial condition and near-term prospects of the issuer; whether the issuer is current on contractually-obligated interest and principal payments; key corporate events pertaining to the issuer and whether the market decline was affected by macroeconomic conditions. If the Company were to determine that a debt security or participation in a commercial mortgage loan was impaired and the Company either intends to sell the investment or it is more likely than not that the Company will have to sell the investment before it is able to recover the amortized cost or cost, then the Company would record the full amount of the impairment in its consolidated statement of operations and other comprehensive income. A large portion of the Company’s investment portfolio consists of debt securities available-for-sale, which may be adversely affected by changes in interest rates as a result of governmental monetary policies, domestic and international economic and political conditions and other factors beyond its control. A rise in interest rates would decrease the net unrealized holding gains of our investment portfolio, offset by the Company’s ability to earn higher rates of return on funds reinvested. Conversely, a decline in interest rates would increase the net unrealized holding gains of our investment portfolio, offset by lower rates of return on funds reinvested. Accumulated other comprehensive income consists solely of unrealized gains and losses on debt securities available-for-sale, net of income tax. |
Fair Value | Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (an exit price). When reporting the fair values of the Company’s financial instruments, the Company prioritizes those fair value measurements into one of three levels based on the nature of the inputs, as follows: • Level 1—Assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company is able to access. • Level 2—Asset and liabilities with values based on quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; or valuation models with inputs that are observable, directly or indirectly for substantially the term of the asset or liability. • Level 3—certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date based on the best information available in the circumstances. The Company estimates the fair value of its investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE and NASDAQ. For securities for which quoted prices in active markets are unavailable, the Company uses observable inputs such as quoted prices in inactive markets, quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs. The Company does not have any investments in its portfolio which require the use of unobservable inputs. The Company’s estimate of fair value reflects the interest rate environment that existed as of the close of business on December 31, 2019. Changes in interest rates after December 31, 2019 may affect the fair value of the Company’s investments. The Company believes the carrying amounts of its cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and other current liabilities approximate their fair values at December 31, 2019 and 2018, due to the immediate or short-term maturity of these instruments. The Company’s non-financial assets, such as goodwill and property, plant and equipment are carried at cost until there are indicators of impairment and are recorded at fair value only when an impairment charge is recognized. Long term debt is recorded at carrying value, see Note 14 – Long-Term Debt |
Premiums | Premiums The Company records direct and assumed premiums written as revenue net of ceded amounts on a daily pro rata basis over the contract period of the related in force policies or reinsurance contract. For any portion of premiums not earned at the end of the reporting period, the Company records an unearned premium liability. Premiums receivable represents amounts due from our policyholders for billed premiums and related policy fees. We perform a policy-level evaluation to determine the extent to which the balance of premiums receivable exceeds the balance of unearned premiums. We then age any resulting exposure based on the last date the policy was billed to the policyholder, and we establish an allowance for credit losses for any amounts outstanding for more than 90 days. When we receive payments on amounts previously charged off, we reduce bad debt expense in the period we receive the payment. Balances in premiums receivable and the associated allowance account are removed upon cancellation of the policy due to non-payment. We recorded $290,300 allowance for the year ended December 31, 2019. We recorded no allowance for the years ended December 31, 2018 and 2017, respectively. Bad debt expense related to uncollectible premiums was $290,300, $0 and $0 for the years ended December 31, 2019, 2018 and 2017, respectively. When the Company receives premium payments from policyholders prior to the effective date of the related policy, the Company records an advance premiums liability. On the policy effective date, the Company reduces the advance premium liability and records the premiums as described above. |
Policy Acquisition Costs | Policy Acquisition Costs The Company incurs policy acquisition costs that vary with, and are directly related to, the production of new business. Policy acquisition costs consist of the following four items: (i) commissions paid to outside agents at the time of policy issuance; (ii) policy administration fees paid to a third-party administrator at the time of policy issuance; (iii) premium taxes; and (iv) inspection fees. The Company capitalizes policy acquisition costs to the extent recoverable, then the Company amortizes those costs over the contract period of the related policy. At each reporting date, the Company determines whether it has a premium deficiency. A premium deficiency would result if the sum of the Company’s expected losses, deferred policy acquisition costs, and policy maintenance costs (such as costs to store records and costs incurred to collect premiums and pay commissions) exceeded the Company’s related unearned premiums plus investment income. Should the Company determine that a premium deficiency exists, the Company would write off the unrecoverable portion of deferred policy acquisition cost. We earn ceding commission on its gross and net quota share reinsurance contracts. Our accounting policy is to allocate ceding commission between policy acquisition costs and general and administrative expenses for financial reporting purposes. Ceding commission is allocated between policy acquisition costs and general and administrative expenses based upon the proportion these costs bear to production of new business. For the years ended December 31, 2019 and 2018, we earned ceding commission income of $62.4 million and $73.0 million of which $47.0 million and $54.9 million was allocable to policy acquisition costs. Ceding commission income is deferred and recognized over the quota share contract period. The amount and rate of ceding reinsurance commissions earned on the net quota share contract can slide within a prescribed minimum and maximum, depending on loss performance and how future losses develop. |
Reinsurance | Reinsurance The Company follows industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or “ceding”, all or a portion of the risk exposure on policies the Company writes to another insurer, known as a reinsurer. To the extent that the Company’s reinsurers are unable to meet the obligations they assume under the Company’s reinsurance agreements, the Company remains liable for the entire insured loss. The Company’s reinsurance agreements are generally short-term, prospective contracts. The Company records an asset, prepaid reinsurance premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of new reinsurance agreements. The Company amortizes its prepaid reinsurance premiums over the 12-month contract period. When the Company incurs losses recoverable under its reinsurance program, the Company records amounts recoverable from its reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of the Company’s liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to the estimate of unpaid losses. Given that an estimate of amounts recoverable from reinsurers on unpaid losses may change at any point in the future because of its relation to the Company’s reserves for unpaid losses, a reasonable possibility exists that an estimated recovery may change significantly from initial estimates. The Company estimates uncollectible amounts receivable from reinsurers based on an assessment of factors including the creditworthiness of the reinsurers and the adequacy of collateral obtained, where applicable. The Company recorded no uncollectible amounts under its reinsurance program or bad debt expense related to reinsurance for the years ended December 31, 2019, 2018 and 2017. The Company remains liable for claims payments if any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from similar geographic regions, activities or economics characteristics of the reinsurers to minimize its exposure to significant loses from reinsurers insolvencies. The Company contracts with several reinsurers to secure its annual reinsurance coverage, which the excess of loss treaties generally becomes effective June 1st each year. The Company purchases reinsurance each year taking into consideration probable maximum losses and reinsurance market condition. |
Long-Lived Assets-Property and Equipment | Long-Lived Assets—Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: building—40 years; computer hardware and software 3—years; office and furniture equipment—3 to 7 years. Leasehold improvements are amortized over the shorter of the lease term or the asset’s useful life. Expenditures for improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. |
Leases | Leases We lease office space under operating leases with expiration dates through 2023. We determine whether an arrangement constitutes a lease and record lease liabilities and right-of-use assets on our consolidated balance sheets at lease commencement. We primarily use our incremental borrowing rates for our operating leases (rates are not readily determinable) and implicit rates for our financing leases in determining the present value of lease payments. For short-term leases, we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. |
Business Acquisition | Business Acquisition The application of the purchase method of accounting for business combinations requires the use of significant estimates and assumptions in determining the fair value of assets acquired and liabilities assumed in order to properly allocate the fair value of the acquired business. The estimates of the fair value of the assets acquired and liabilities assumed are based upon assumptions believed to be reasonable using established valuation techniques that consider a number of factors and when appropriate, valuations performed by independent third-party appraisers. Assets acquired, and liabilities assumed in connection with business combinations are recorded based on their respective fair values at the date of acquisition. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of costs over the fair value of net assets acquired. Goodwill is subject to evaluation for impairment using a fair value-based test. This evaluation is performed annually, during the fourth quarter or more frequently if facts and circumstances warrant. The Company uses a qualitative approach to test goodwill for impairment by first assessing qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The Company applies this qualitative approach as of October 1 annually to any and all reporting units. If required following the qualitative assessment, the first step in the goodwill impairment test involves comparing the fair value of each of a reporting unit to the carrying value of a reporting unit. If the carrying value of a reporting unit exceeds the fair value of the reporting unit, the Company is required to proceed to the second step. In the second step, the fair value of the reporting unit would be allocated to the assets (including unrecognized intangibles) and liabilities of the reporting unit, with any residual representing the implied fair value of goodwill. An impairment loss would be recognized if, and to the extent that, the carrying value of goodwill exceeded the implied value. The Company reviews amortizable intangible assets for impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. If the Company concludes that impairment exists, the carrying amount is reduced to fair value. No impairment was recognized in any period presented. |
Impairment of Long-Lived Assets Including Intangible Assets Subject to Amortization | Impairment of Long-Lived Assets Including Intangible Assets Subject to Amortization The Company assesses the recoverability of long-lived assets when events or circumstances indicate that the assets might have become impaired. The Company determines whether the assets can be recovered from undiscounted future cash flows and, if not recoverable, the Company recognizes impairment to reduce the carrying value to fair value. Recoverability of long-lived assets is dependent upon, among other things, the Company’s ability to maintain profitability, so as to be able to meet its obligations when they become due. No impairment was recognized in any period presented. |
Unpaid Losses and Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses The Company’s reserves for unpaid losses and loss adjustment expenses represent the estimated ultimate cost of settling all reported claims plus all claims we incurred related to insured events that have occurred as of the reporting date, but that policyholders have not yet reported to the Company (incurred but not reported, or “IBNR”). The Company estimates its reserves for unpaid losses and loss adjustment expenses using individual case-based estimates for reported claims and actuarial estimates for IBNR losses. The Company continually reviews and adjusts its estimated losses as necessary based on industry development trends, the Company’s evolving claims experience and new information obtained. If the Company’s unpaid losses and loss adjustment expenses are considered to be deficient or redundant, the Company increases or decreases the liability in the period in which it identifies the difference and reflects the change in its current period results of operations. Though the Company’s estimate of the ultimate cost of settling all reported and unreported claims may change at any point in the future, a reasonable possibility exists that its estimate may vary significantly in the near term from the estimated amounts included in the Company’s consolidated financial statements. The Company reports its reserves for unpaid losses and loss adjustment expenses gross of the amounts related to unpaid losses recoverable from reinsurers and reports loss and loss adjustment expenses net of amounts ceded to reinsurers. The Company does not discount its loss reserves for financial statement purposes. |
Other Revenue | Other revenue Our insurance affiliates may charge policyholders a policy fee on each policy written; to the extent these fees are not subject to refund, and the Company recognizes the income immediately when collected. The Company also charges pay-plan fees to policyholders that pay its premiums in more than one installment and records the fees as income when collected. Other income also includes rental income due under non-cancelable leases for space at the Company’s commercial property. |
Assessment | Assessment Guaranty fund and other insurance-related assessments imposed upon the Company’s insurance company affiliates are recorded as policy acquisition costs in the period the regulatory agency imposes the assessment. To recover guaranty or other insurance-related assessments, the Company in turn submits a plan for recoupment to the Insurance Commissioner for approval and upon approval, begins collecting a policy surcharge that will allow it to collect the prior year’s assessments. There were no assessments during the periods presented. The Company collects other assessments imposed upon policyholders as a policy surcharge and records the amounts collected as a liability until the Company remits the amounts to the regulatory agency that imposed the assessment. |
Convertible Notes | Convertible Notes In August 2017 and September 2017, the Company issued collectively $136.8 million of 5.875% Convertible Senior Notes (the “Convertible Notes”) due August 1, 2037. The Convertible notes are accounted for in accordance with ASC 470-20. At the time of issuance and until December 1, 2017, the Company recorded the fair value of the derivatives on its balance sheet at fair value with changes in the values of these derivatives reflected in the consolidated statement of operations. As of December 31, 2019, the Company has $23.4 million of the Convertible Notes outstanding. Beginning December 1, 2017, the conversion option of the Convertibles Notes qualifies for the equity classification and will no longer be accounted for as a separate derivative instrument liability in accordance with applicable U.S. GAAP guidance. The Company separately accounts for the liability and equity components of Convertible Notes that can be settled in cash by allocating the proceeds from issuance between the liability component and the embedded conversion option, or equity component, in accordance with accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The value of the equity component is calculated by first measuring the fair value of the liability component, using the interest rate of a similar liability that does not have a conversion feature, as of the issuance date. The difference between the proceeds from the convertible debt issuance and the amount measured as the liability component is recorded as the equity component with a corresponding discount recorded on the debt. The Company recognizes the accretion of the resulting discount using the effective interest method as part of interest expense in its consolidated statements of operations. |
Debt Extinguishment | Debt Extinguishment The Company has reacquired convertible senior notes over a series of transactions. In accordance with ASC 470 “ Debt |
Debt Issuance and Discount Costs | Debt Issuance and Discount Costs In connection with the issuance of debt, any debt issuance and discount costs are reflected on the balance sheet as an offset to long-term debt and amortized using the effective interest method over the life of the underlying debt instrument. |
Stock-Based Compensation | Stock-Based Compensation The Company measures stock-based compensation at the grant date based on the fair value of the award and recognizes stock-based compensation expense over the requisite vesting period. Determining the fair value of stock option awards requires judgment, including estimating stock price volatility, forfeiture rates and expected option life. Restricted stock awards are valued based on the fair value of the stock on the grant date and the related compensation expense is recognized over the vesting period. |
Earnings Per Share | Earnings Per Share The Company reports both basic earnings per share and diluted earnings per share. To calculate basic earnings per share, the Company divides net income attributable to common shareholders by the weighted-average number of shares outstanding during the period, including vested restricted shares. The Company calculates diluted earnings per share by dividing net income attributable to common shareholders by the weighted-average number of shares, and the effect of share equivalents, vested and unvested restricted shares and convertible notes outstanding during the period using the treasury stock method to calculate common stock equivalents. |
Income Tax | Income tax Income taxes are accounted for under the asset and liability method, that recognizes the amount of income taxes payable or refundable for the current year and recognizes deferred tax assets and liabilities based on the tax rates expected to be in effect during the periods in which the temporary differences reverse. Temporary differences arise when income or expenses are recognized in different periods in the consolidated financial statements than on the tax returns. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. Income taxes includes both, estimated federal and state income taxes. |
Concentrations of Risk | Concentrations of Risk The Company’s current operations subject us to the following concentrations of risk: • Revenue—The Company writes residential property and liability policies exclusively. • Geographic—The Company writes its premium in coastal states in the southeastern and northeastern United States and Hawaii • Group concentration of credit risk—All of the Company’s reinsurers engage in similar activities and have similar economic characteristics that could cause their ability to repay us to be similarly affected by changes in economic or other conditions. • Credit risk—The Company chooses to deposit all its cash at twelve financial institutions. The Company mitigates its geographic and group concentrations of risk by entering into reinsurance contracts with highly rated, financially-stable reinsurers, and by securing irrevocable letters of credit from reinsurers when necessary. With regard to cash, the Company had $267.4 million and $244.6 million in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits at December 31, 2019 and 2018, respectively. Deposits held in non- interest-bearing transaction accounts are combined with interest-bearing accounts and are insured up to $250,000. |
Reclassifications | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB updated guidance on the accounting for leases that requires lessees to recognize a right-to-use asset and a lease liability for leases with terms of more than 12 months and retains the two classifications of a lease as either an operating or finance lease. The updated guidance was effective for reporting periods after December 31, 2018 and required that the earliest comparative period presented include the measurement and recognition of exiting leases with an adjustment to equity as if the updated guidance had always been applied. Alternatively, an entity may elect to recognize a cumulative effect adjustment to the opening balance of retained earnings in the year adopted. Early adoption was permitted. We adopted the guidance prospectively during the first quarter of 2019. As part of our adoption, we elected not to reassess historical lease classification or recognize short-term leases on our balance sheet. At implementation, we recorded approximately $2.5 million as right-of-use operating and financing We did not recognize an opening adjustment to retained earnings. Note 8 Accounting Pronouncements Not Yet Adopted The Company describes below recent pronouncements that may have a significant effect on its consolidated financial statements or on its disclosures upon future adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on, or are unrelated to, its financial condition, results of operations, or related disclosures. In December 2019, The FASB issued ASU 2019-12— Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, Topic 740 . In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments-Overall Recognition and Measurement of Financial Assets and Financial Liabilities In August 2018, the FASB issued ASU 2018-12 , Financial Services – Insurance (Topic 944) Targeted Improvements to the Accounting for Long-Duration Contracts In March 2018, the FASB issued ASU 2018-04, Investments-Debt Securities (Topic 320) and Regulated Operations (Topic 980). Investments-Debt Securities Regulated Operations In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other FASB ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to the credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized costs basis and its fair value. Any adjustments identified will be recorded in net realized and unrealized gains (losses) on the Company’s Consolidated Statement of Operations and Other Comprehensive Income. In addition, the Company will no longer use as a measurement the length of time a security has been in an unrealized loss position in determining if a credit loss exists. The updated guidance is effective for the quarter ended March 31, 2020. The implementation primarily impacts the Company’s debt securities and reinsurance recoverable. The cumulative effect adjustment, if any will be recognized to the Company’s retained earnings. The adoption of this standard is not expected to be material to our financial position, results of operations or cash flows. No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our consolidated financial statements or disclosures. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost, Gross unrealized Gains and Losses, and Fair Value of Debt Securities Available-for-Sale | The amortized cost, gross unrealized gains and losses, and fair value of the Company’s debt securities available-for-sale are as follows: December 31, 2019 Cost or Adjusted / Amortized Cost Gross Gains Gross Losses Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities (1) $ 53,836 $ 383 $ 28 $ 54,191 States, municipalities and political subdivisions 74,755 1,641 41 76,355 Special revenue 246,791 3,689 254 250,226 Hybrid securities 100 1 — 101 Industrial and miscellaneous 202,307 4,097 21 206,383 Total $ 577,789 $ 9,811 $ 344 $ 587,256 (1) U.S. government and agency securities include pledged debt securities with an estimated fair value of $20.2 million under the terms and condition of the advance agreement entered into with a financial institution in 2018. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. December 31, 2018 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities $ 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 Total $ 518,391 $ 377 $ 9,119 $ 509,649 |
Schedule of Debt Securities Available-for-Sale by Contractual Maturity | The following table presents debt securities available-for-sale by contractual maturity for the periods presented: December 31, 2019 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Debt Securities Available-for-sale (in thousands) (in thousands) Due in one year or less $ 63,989 11 % $ 64,197 11 % Due after one year through five years 206,657 36 % 209,211 35 % Due after five years through ten years 117,266 20 % 121,378 21 % Due after ten years 189,877 33 % 192,470 33 % Total $ 577,789 100 % $ 587,256 100 % December 31, 2018 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Debt Securities Available-for-sale (in thousands) (in thousands) Due in one year or less $ 41,529 8 % $ 41,382 8 % Due after one year through five years 177,298 34 % 175,227 34 % Due after five years through ten years 134,057 26 % 130,921 26 % Due after ten years 165,507 32 % 162,119 32 % Total $ 518,391 100 % $ 509,649 100 % |
Schedule of Realized Gains (Losses) on Debt Securities Available-for-sale | The following table presents realized gains (losses) on the Company’s debt securities available-for-sale as of December 31, 2019, 2018 and 2017, respectively: 2019 2018 2017 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale For the years ended December 31, (in thousands) Debt Securities Available-for-sale Realized gains $ 2,119 $ 157,125 $ 85 $ 25,647 $ 2,732 $ 705,138 Realized losses (211 ) 14,580 (249 ) 58,971 (363 ) 56,354 Net realized gain (losses) $ 1,908 $ 171,705 $ (164 ) $ 84,618 $ 2,369 $ 761,492 |
Schedule of Components of Realized Gains (Losses) on Equity Investment and Other Non-Marketable Equity Securities | The components of realized gains (losses) on equity investment and other non-marketable equity securities for the periods presented below: 2019 2018 2017 Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale For the years ended December 31, (in thousands) Equity securities $ 2,703 $ 21,386 $ 1 $ 169 $ 2,131 $ 31,231 Other investments 1,050 — — — — — Total realized gains 3,753 21,386 1 169 2,131 31,231 Equity securities (1,441 ) 3,613 (236 ) 4,840 (3,936 ) 11,806 Other investments (57 ) — — — — — Total realized losses (1,498 ) 3,613 (236 ) 4,840 (3,936 ) 11,806 Unrealized losses on equity securities (1) — — (2,078 ) — — — Net realized gain (losses) $ 2,255 $ 24,999 $ (2,313 ) $ 5,009 $ (1,805 ) $ 43,037 (1) Represents unrealized loss on securities held pursuant to ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities, effective January 1, 2018 |
Summary of Net Investment Income | The following table summarizes the Company’s net investment income by major investment category for the years ended December 31, 2019, 2018 and 2017, respectively: Net Investment Income For the Year Ended December 31, 2019 2018 2017 (in thousands) Debt securities available-for-sale $ 13,761 $ 9,591 $ 10,368 Equity securities 1,436 1,333 1,922 Cash and cash equivalents 1,470 1,703 960 Other investments 505 2,767 197 Net investment income 17,172 15,394 13,447 Investment expenses 2,740 2,114 2,115 Net investment income, less investment expenses $ 14,432 $ 13,280 $ 11,332 |
Schedule of Debt Securities Available-for-Sale in an Unrealized Loss Position, Aggregate Fair Value | The following tables present, for all debt securities available-for-sale in an unrealized loss position (including securities pledged), the aggregate fair value and gross unrealized by length of time the security has continuously been in an unrealized loss position: Less Than Twelve Months Twelve Months or More December 31, 2019 Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities 9 $ 10 $ 1,476 23 $ 18 $ 4,288 States, municipalities and political subdivisions 6 38 7,613 3 3 1,440 Special revenue 62 145 24,862 95 109 13,159 Industrial and miscellaneous 25 13 12,601 16 8 3,202 Total 102 $ 206 $ 46,552 137 $ 138 $ 22,089 Less Than Twelve Months Twelve Months or More December 31, 2018 Number Securities Gross Unrealized Losses Fair Number of Securities Gross Unrealized Losses Fair Value (in thousands) Debt 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 Special revenue 105 1,260 76,335 323 2,621 108,319 Industrial and miscellaneous 214 1,479 70,156 232 1,822 70,375 Redeemable preferred stock 55 193 2,541 27 221 1,965 Total 404 $ 3,164 $ 172,381 690 $ 5,955 $ 241,126 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill (in thousands) Balance as of December 31, 2017 $ 152,459 Goodwill acquired — Impairment — Balance as of December 31, 2018 $ 152,459 Goodwill acquired — Impairment — Balance as of December 31, 2019 $ 152,459 |
Schedule of Amortizing and Non-amortizing Intangible Assets | The tables below detail the finite-lived intangible assets, net as of December 31, 2019 and 2018, respectively (amounts in thousands): December 31, 2019 Weighted -average Amortization (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, net (1) Amortizing intangible assets Brand 8 $ 17,810 $ (4,506 ) $ 13,304 Agent relationships 8 15,500 (3,729 ) 11,771 Renewal rights 13 40,600 (5,639 ) 34,961 Customer relations 5 870 (384 ) 486 Trade names 6 9,000 (2,208 ) 6,792 Value of business acquired 1 25,400 (25,400 ) — Non-compete 1 4,790 (4,776 ) 14 Total intangible assets $ 113,970 $ (46,642 ) $ 67,328 (1) Excludes insurance license valued at $1.3 million and classified as an indefinite lived intangible which is subject to annual impairment testing and not amortized. December 31, 2018 Weighted -average Amortization (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, net (1) Amortizing intangible assets Brand 8 $ 17,810 $ (3,319 ) $ 14,491 Agent relationships 9 15,500 (2,259 ) 13,241 Renewal rights 14 40,600 (2,932 ) 37,668 Customer relations 7 870 (297 ) 573 Trade names 8 9,000 (1,308 ) 7,692 Value of business acquired 1 25,400 (25,400 ) — Non-compete 1 4,790 (2,920 ) 1,870 Total intangible assets $ 113,970 $ (38,435 ) $ 75,535 (1) Excludes insurance license valued at $1.3 million and classified as an indefinite lived intangible which is subject to annual impairment testing and not amortized. |
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 2020 $ 6,375 2021 $ 6,365 2022 $ 6,351 2023 $ 6,351 2024 $ 6,351 Thereafter $ 35,535 $ 67,328 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated: For the Year Ended December 31, 2019 2018 2017 Basic earnings (loss) per share: Net income (loss) attributable to common stockholders (000's) $ 28,636 $ 27,155 $ (1,119 ) Weighted average shares outstanding 29,213,910 25,941,253 26,798,465 Basic earnings (loss) per share: $ 0.98 $ 1.05 $ (0.04 ) Diluted earnings (loss) per share: Net income (loss) attributable to common stockholders (000's) $ 28,636 $ 27,155 $ (1,119 ) Weighted average shares outstanding 29,213,910 25,941,253 26,798,465 Weighted average dilutive shares 19,071 154,621 — Total weighted average dilutive shares 29,232,981 26,095,874 26,798,465 Diluted earnings (loss) per share: $ 0.98 $ 1.04 $ (0.04 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | 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. December 31, 2019 Total Level 1 Level 2 Level 3 Invested Assets: (in thousands) Debt Securities Available-for-sale U.S. government and agency securities $ 54,191 $ 366 $ 53,825 $ — States, municipalities and political subdivisions 76,355 — 76,355 — Special revenue 250,226 — 250,226 — Hybrid securities 101 — 101 — Industrial and miscellaneous 206,383 — 206,383 — Total debt securities 587,256 366 586,890 — Investment reported at NAV 7,993 — — — Total investments $ 595,249 $ 366 $ 586,890 $ — December 31, 2018 Total Level 1 Level 2 Level 3 Invested Assets: (in thousands) Debt 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 stock 4,507 4,507 — — Total debt 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 — — Investment reported at NAV 2,488 — — — Total investments $ 528,593 $ 21,317 $ 504,788 $ — |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Comprehensive Income Net Of Tax [Abstract] | |
Summary of Other Comprehensive Income (Loss) and Tax Impact of Each Component of Other Comprehensive Income | The following table is a summary of other comprehensive income (loss) and discloses the tax impact of each component of other comprehensive income for the years ended December 31, 2019, 2018 and 2017, respectively: For the Year Ended December 31, 2019 2018 2017 Pre-tax Tax After- tax Pre- tax Tax After- tax Pre-tax Tax After- tax (in thousands) Other comprehensive income Change in unrealized losses on investments, net $ 19,765 (4,575 ) $ 15,190 $ (5,700 ) $ 2,281 $ (3,419 ) $ 5,688 $ (2,713 ) $ 2,975 Reclassification adjustment of realized losses (gains) included in net income (1,734 ) 401 (1,333 ) 163 (49 ) $ 114 (564 ) (457 ) $ (1,021 ) Effect on other comprehensive income $ 18,031 $ (4,174 ) $ 13,857 $ (5,537 ) $ 2,232 $ (3,305 ) $ 5,124 $ (3,170 ) $ 1,954 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Costs | The components of lease costs were as follows: For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 Amortization of ROU assets - Finance leases $ 21 $ 79 Interest on lease liabilities - Finance leases 6 23 Variable lease cost (cost excluded from lease payments) 114 451 Operating lease cost (cost resulting from lease payments) 332 1,250 Total lease cost $ 473 $ 1,803 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: Balance Sheet Classification December 31, 2019 Right-of-use assets - operating Other assets $ 6,342 Right-of-use assets - finance Other assets $ 303 Lease Liability (1) Accounts payable and other liabilities $ (8,045 ) Lease Liability - finance Accounts payable and other liabilities $ (324 ) 1. Includes $1.3 million in lease incentives received in the first quarter of 2019 |
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 was as follows: December 31, 2019 Weighted average lease term - Finance leases 3.66 yrs. Weighted average lease term - Operating leases 8.01 yrs. Weighted average discount rate - Finance leases 7.09 % Weighted average discount rate - Operating leases 5.33 % |
Supplemental Cash Flow Information Related to Leases | Supplemental disclosure of cash flow information related to leases were as follows: For the Year Ended December 31, 2019 Finance lease - Operating cash flows $ 27 Finance lease - Financing cash flows $ 83 Operating lease - Operating cash flows (fixed payments) $ 970 Operating lease - Operating cash flows (liability reduction) $ 713 |
Maturities of Lease Liabilities | Maturities of lease liabilities were as follows as of December 31, 2019: December 31, 2019 2020 $ 1,442 2021 1,401 2022 1,425 2023 1,371 2024 1,010 2025 and thereafter 3,685 Total lease payments 10,334 Less: imputed interest (1,965 ) Present value of lease liabilities $ 8,369 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 December 31, 2018 (in thousands) Land $ 2,582 $ 2,582 Building 11,390 11,390 Computer hardware and software 5,712 4,901 Office furniture and equipment 2,007 1,397 Tenant and leasehold improvements 8,105 4,477 Vehicle fleet 789 854 Total, at cost 30,585 25,601 Less: accumulated depreciation and amortization (9,832 ) (7,603 ) Property and equipment, net $ 20,753 $ 17,998 |
Schedule of Expected Annual Rental Income Due Under Non-Cancellable Operating Leases for Real Estate Properties | Expected annual rental income due under non-cancellable operating leases for our real estate properties is as follows (in thousands): Year Amount January 1 to December 31, 2020 $ 2,883 January 1 to December 31, 2021 2,954 January 1 to December 31, 2022 3,021 January 1 to December 31, 2023 3,144 January 1 to December 31, 2024 2,250 Thereafter 14,254 Total $ 28,506 |
Deferred Reinsurance Ceding C_2
Deferred Reinsurance Ceding Commission (Tables) | 12 Months Ended |
Dec. 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 years ended December 31, 2019, 2018 and 2017. For the Year Ended December 2019 2018 2017 (in thousands) Beginning balance of deferred ceding commission income $ 44,819 $ 51,109 $ 57,808 Ceding commission deferred 55,095 67,867 1,901 Less: ceding commission earned (62,450 ) (74,157 ) (8,600 ) Ending balance of deferred ceding commission income $ 37,464 $ 44,819 $ 51,109 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Summary of Activity in Deferred Policy Acquisition Costs (DPAC) | The Company anticipates that its DPAC costs will be fully recoverable in the near term. The table below depicts the activity with regard to DPAC for the years ended December 31, 2019, 2018 and 2017: For the Year Ended December 2019 2018 2017 (in thousands) Beginning Balance $ 73,055 $ 41,678 $ 42,779 Policy acquisition costs deferred 149,095 171,007 82,791 Amortization (144,939 ) (139,630 ) (83,892 ) Ending Balance $ 77,211 $ 73,055 $ 41,678 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 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 Consolidated Statement of Income for the year ended December 31, 2019 and 2018: For the Year Ended December 31, 2019 Premiums Written Premiums Earned Losses and Loss Adjustment Expenses (in thousands) Direct $ 937,937 $ 924,247 $ 696,289 Ceded (436,564 ) (445,534 ) (423,001 ) Net $ 501,373 $ 478,713 $ 273,288 For the Year Ended December 31, 2018 Premiums Written Premiums Earned Losses and Loss Adjustment Expenses (in thousands) Direct $ 923,349 $ 926,326 $ 855,780 Ceded (477,451 ) (472,144 ) (618,355 ) Net $ 445,898 $ 454,182 $ 237,425 |
Reserve for Unpaid Losses (Tabl
Reserve for Unpaid Losses (Tables) | 12 Months Ended |
Dec. 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 Year Ended December 31, 2019 2018 2017 (in thousands) Balance, beginning of period $ 432,359 $ 470,083 $ 140,137 Less: reinsurance recoverable on unpaid losses 250,507 315,353 589 Net balance, beginning of period 181,852 154,730 139,548 Incurred related to: Current year 276,985 224,080 188,914 Prior years (3,696 ) 13,345 12,567 Total incurred 273,289 237,425 201,481 Paid related to: Current year 137,764 104,368 114,344 Prior years 97,474 105,935 107,479 Total paid 235,238 210,303 221,823 Total unpaid claims assumed from acquisitions — — 35,524 Net balance, end of period 219,903 181,852 154,730 Plus: reinsurance recoverable on unpaid losses 393,630 250,507 315,353 Balance, end of period $ 613,533 $ 432,359 $ 470,083 |
Summary of Incurred, Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | The following is information about incurred and paid claims development as of December 31, 2019, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts. Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance (in thousands, except number of claims) Unaudited Accident year 2012 & prior 2013 2014 2015 2016 2017 2018 2019 Net IBNR Reserves Reported Claims 2012 & prior $ 102,723 $ 105,765 $ 107,842 $ 106,493 $ 106,331 $ 106,654 $ 106,446 $ 106,628 $ 74 53,353 2013 61,157 61,483 62,969 62,166 62,354 62,378 62,564 359 13,095 2014 118,991 114,899 113,847 114,984 115,838 115,234 975 18,477 2015 179,255 197,744 203,792 205,164 206,011 4,106 26,054 2016 237,207 242,611 250,990 250,235 7,105 27,495 2017 189,163 195,240 192,749 8,374 69,967 2018 199,565 193,672 30,125 33,482 2019 258,876 110,019 23,098 Total $ 1,385,969 $ 161,137 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Unaudited Accident year 2012 & prior 2013 2014 2015 2016 2017 2018 2019 2012 & prior $ 92,909 $ 101,323 $ 102,750 $ 104,093 $ 104,362 $ 105,053 $ 105,875 $ 106,475 2013 35,771 50,716 55,589 57,647 59,395 60,581 61,191 2014 68,732 95,076 101,456 108,509 112,518 113,609 2015 103,918 162,654 181,672 192,967 197,524 2016 132,679 211,512 233,540 238,868 2017 103,148 169,743 178,622 2018 84,552 152,592 2019 124,664 Total $ 1,173,545 |
Summary of Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Adjustment Expenses | Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Adjustment Expenses Unpaid Loss and Allocated Loss Adjustment Expense, Net of Reinsurance $ 212,424 Ceded Unpaid Loss and Allocated Loss Adjustment Expense 393,630 Unpaid Unallocated Loss Adjustment Expense 7,479 Unpaid losses and loss adjustment expenses $ 613,533 |
Summary of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance as of December 31, 2019 (Unaudited) Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Thereafter Percentage 55% 30% 7% 3% 2% 3% |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Long-Term Debt | The following table summarizes the Company’s long-term debt: December 31, 2019 December 31, 2018 (in thousands) Convertible debt $ 23,413 $ 29,163 Mortgage loan 12,117 12,394 Term loan facility 69,375 75,000 Revolving credit facility 10,000 20,000 FHLB loan agreement 19,200 19,200 Total principal amount $ 134,105 $ 155,757 Deferred finance costs $ 4,857 $ 6,963 Total long-term debt $ 129,248 $ 148,794 |
Schedule of Principal Payments on Long-Term Debt | The schedule of principal payments on long-term debt is as follows: Amount December 31, (in thousands) 2020 $ 9,665 2021 7,806 2022 7,822 2023 74,539 2024 354 Thereafter 33,919 Total principal payments $ 134,105 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Taxes | The following table summarizes the provision for income taxes: For the Year Ended December 31, 2019 2018 2017 (in thousands) Federal: Current $ 9,674 $ 28,891 $ (24,380 ) Deferred 584 (20,636 ) 18,383 Provision for Federal income tax expense (benefit) 10,258 8,255 (5,997 ) State: Current 1,785 4,162 (20 ) Deferred 317 (578 ) 1,244 Provision for State income tax expense 2,102 3,584 1,224 Provision for income taxes expense (benefit) $ 12,360 $ 11,839 $ (4,773 ) |
Summary of U.S. Federal Income Tax Rate to Pretax Income | The income tax (benefit) expense differs from the amounts computed by applying the U.S. federal income tax rate of as indicated below to pretax income as a result of the following (in thousands): For the Year Ended December 31, 2019 2018 2017 Expected income tax expense at federal rate 21.0 % 21.0 % 35.0 % State tax expense 3.6 % 5.5 % (22.8 )% Permanent items 0.9 % 0.7 % (2.3 )% Non-deductible conversion option liability — — (255.0 )% Non-deductible stock compensation (0.4 )% 2.1 % (26.0 )% Tax exempt interest (1.6 )% (1.6 )% 27.0 % Non-deductible acquisition costs 0.0 % 0.4 % (15.2 )% Executive compensation 162(m) 6.1 % 4.3 % (11.5 )% Political contributions 0.3 % 0.5 % (7.8 )% Tax rate change 0.6 % (2.3 )% 362.3 % Other (0.4 )% (0.2 )% (2.7 )% Reported income tax expense 30.1 % 30.4 % 81.0 % |
Components of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities included in the consolidated balance sheets as December 31 were as follows: For the Year Ended December 31, 2019 2018 Deferred tax assets: (in thousands) Unearned premiums $ 12,585 $ 12,090 Unearned commission 8,671 10,733 Net operating loss — 109 Tax-related discount on loss reserve 2,716 2,329 Unrealized loss — 2,631 Stock-based compensation 297 297 Accrued expenses 757 2,321 Leases 331 — Other 1,890 1,443 Total deferred tax asset 27,247 31,953 Deferred tax liabilities: Deferred acquisition costs 17,871 17,494 Prepaid expenses 153 112 Unrealized gain 2,195 — Property and equipment 1,029 664 Note discount 478 710 Basis in purchased investments 100 163 Basis in purchased intangibles 16,977 18,982 Other 1,067 1,533 Total deferred tax liabilities 39,870 39,658 Net deferred tax liability $ (12,623 ) $ (7,705 ) |
Statutory Accounting and Regu_2
Statutory Accounting and Regulations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Statement [Member] | |
Consolidated GAAP Net (Loss) Income to Statutory Net Income of Insurance Subsidiaries | The table below reconciles the Company’s consolidated GAAP net (loss) income to statutory net income of its insurance subsidiaries (in thousands): For the Year Ended December 31, 2019 2018 2017 Consolidated GAAP net income (loss) $ 28,636 $ 27,155 $ (1,119 ) (Decrease) increase due to: Deferred income taxes (339 ) (16,868 ) 32,644 Deferred acquisition costs (4,156 ) (31,377 ) 1,101 Surplus note interest — — (4 ) Non-statutory subsidiaries (37,005 ) (31,158 ) 5,410 Investment basis difference 247 335 446 Pre-acquisition income — — 20,839 Equity compensation (1,265 ) (2,408 ) (2,408 ) Convertible notes (1,613 ) (1,570 ) 1,051 Commission revenue 1,394 (6,289 ) (6,700 ) Change in fair value income statement (2,429 ) 2,078 — Lease accounting standard 137 — — Other 94 (4,372 ) (709 ) Statutory net (loss) income of insurance subsidiaries $ (16,299 ) $ (64,474 ) $ 50,553 |
Accounts Payable and Other Li_2
Accounts Payable and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | Other liabilities consist of the following as of December 31, 2019 and 2018: Description December 31, 2019 December 31, 2018 (in thousands) Deferred ceding commission 37,464 $ 44,819 Outstanding claim checks — 15,360 Accounts payable and other payables 7,225 8,556 Accrued dividends 1,750 1,589 Accrued interest and issuance costs 1,052 1,285 Lease obligations 8,369 — Premium tax — 2,241 Other liabilities 387 460 Commission payables 14,798 11,654 Total other liabilities $ 71,045 $ 85,964 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Cash Dividends | For the year ended December 31, 2019, we recorded quarterly cash dividends of approximately $7.1 million as follows: Quarter Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Cash dividend per common share $ 0.06 $ 0.06 $ 0.06 $ 0.06 Total cash dividends paid $ 1,806,944 $ 1,791,323 $ 1,772,063 $ 1,749,800 Record date March 15, 2019 June 14, 2019 September 16, 2019 December 16, 2019 Payment date April 3, 2019 July 3, 2019 October 3, 2019 January 6, 2020 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Restricted Stock Activity | Restricted stock activity for the three years ended December 31, 2019, 2018 and 2017 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2016 900,000 $ 18.42 Granted — — Vested (137,935 ) 16.53 Canceled and surrendered (87,065 ) 17.41 Non-vested, at December 31, 2017 675,000 $ 21.40 Granted 155,801 16.10 Vested (112,500 ) 16.35 Canceled and surrendered (112,500 ) 16.35 Non-vested, at December 31, 2018 605,801 $ 20.41 Granted — — Vested (22,647 ) 14.28 Canceled and surrendered (237,620 ) 14.82 Non-vested, at December 31, 2019 345,534 $ 19.56 |
Summary of Quarterly Results (T
Summary of Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Results | The following table provides a summary of unaudited quarterly results for the periods presented (in thousands, except per share data): For the year ended December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 109,691 $ 114,083 $ 123,862 $ 131,077 Investment income $ 3,672 $ 3,830 $ 3,655 $ 3,275 Total revenues $ 118,261 $ 122,843 $ 131,699 $ 138,502 Total operating expenses $ 106,763 $ 119,770 $ 118,215 $ 116,990 Operating income $ 11,498 $ 3,073 $ 13,484 $ 21,512 Income (loss) from continuing operations $ 6,964 $ 721 $ 8,133 $ 12,818 Basic net income (loss) per share $ 0.24 $ 0.02 $ 0.28 $ 0.44 Diluted net income (loss) per share $ 0.24 $ 0.02 $ 0.28 $ 0.44 For the year ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 106,108 $ 111,204 $ 118,238 $ 118,632 Investment income $ 3,075 $ 2,470 $ 3,852 $ 1,407 Total revenues $ 112,026 $ 117,972 $ 125,295 $ 124,878 Total operating expenses $ 87,209 $ 109,822 $ 111,079 $ 102,525 Operating income $ 24,817 $ 8,150 $ 14,216 $ 22,353 Income (loss) from continuing operations $ 14,829 $ 2,408 $ 5,989 $ 3,929 Basic net income (loss) per share $ 0.58 $ 0.09 $ 0.23 $ 0.15 Diluted net income (loss) per share $ 0.55 $ 0.09 $ 0.23 $ 0.15 |
Condensed Financial Informati_2
Condensed Financial Information Heritage Insurance Holdings, Inc. (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Condensed Statements of Operations | The following summarizes the major categories of Heritage Insurance Holdings, Inc.’s financial statements for the year ended December 31, 2017. Refer to Schedule II of the Condensed Financial Information of Registrant for the years ended December 31, 2019 and 2018. For the Year Ended December 31, 2017 (In thousands) Revenue: Other revenue $ 1,949 Total revenue 1,949 Expenses: General and administrative expense 17,792 Amortization of debt issuance cost 2,314 Interest expense, net 11,158 Other non-operating expense, net 41,013 Total expenses $ 72,277 Loss before income taxes and equity in net income of subsidiaries (70,328 ) Benefit from income taxes (6,120 ) Loss before equity in net income of subsidiaries (64,208 ) Equity in net income of subsidiaries — Net loss $ (64,208 ) |
Schedule of Condensed Statements of Cash Flows | Statement of Cash Flows For the Year Ended December 31, 2017 (in thousands) Net loss $ (64,208 ) Net cash provided by (used in) operating activities 27,154 Investing Activities Purchases of investment available for sale 78,213 Dividends received from subsidiaries 57,575 Acquisition of a business (210,000 ) Net cash provided by investing activities (74,212 ) Financing Activities Proceeds from exercise of stock options and warrants 417 Proceeds from issuance of note payable, net of issuance costs 114,335 Proceeds from mortgage loan 12,658 Shares tendered for income tax withholdings (1,599 ) Purchase of treasury stock (61,623 ) Dividends paid (8,249 ) Net cash used in financing activities 55,939 Decrease in cash and cash equivalents 8,881 Cash and cash equivalents, beginning of period 7,368 Cash and cash equivalents, end of year $ 16,249 |
Geographical Information (una_2
Geographical Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Distribution of In-force Premium | The following table depicts the distribution of our in-force premium as of December 31, 2019 and 2018, respectively. At December 31, 2019 At December 31, 2018 State In Force Premiums Policies In Force In Force Premiums Policies In Force (in thousands) (in thousands) Florida $ 486,520 220,154 $ 505,992 230,937 New York 184,924 92,057 179,650 92,431 New Jersey 71,492 50,013 70,322 51,576 Massachusetts 62,810 32,464 59,592 32,629 Hawaii 53,493 65,008 53,480 67,181 Rhode Island 24,106 14,826 20,784 13,189 North Carolina 20,422 22,948 14,685 14,280 South Carolina 13,804 9,926 9,502 6,411 Connecticut 12,461 7,537 6,864 4,370 Alabama 7,041 7,044 1,571 1,543 Georgia 3,050 2,753 1,238 1,139 Virginia 473 245 — — Total $ 940,594 524,975 $ 923,680 515,686 |
Basis of Presentation, Nature_3
Basis of Presentation, Nature of Business and Significant Accounting Policies and Practices - Additional Information (Detail) | 12 Months Ended | |||||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2017USD ($) | Aug. 31, 2017 | |
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Number of reporting Segment | Segment | 1 | |||||
Highly liquid investments with original maturity | 3 months | |||||
Restricted cash | $ 14,657,000 | $ 12,253,000 | ||||
Interest income on restricted cash deposits | 28,969 | 36,532 | ||||
Allowance for uncollectible premiums | 290,300 | 0 | $ 0 | |||
Bad debt expense, uncollectible premiums | 290,300 | 0 | 0 | |||
Ceding commission income | 62,450,000 | 74,157,000 | 8,600,000 | |||
Amounts recoverable under reinsurance program | $ 0 | 0 | 0 | |||
Operating lease expiration year | 2023 | |||||
Goodwill and intangible assets impairment | $ 0 | 0 | 0 | |||
Impairment of long-lived assets | 0 | 0 | 0 | |||
Cash deposits in excess of FDIC insurance limits | 267,400,000 | 244,600,000 | ||||
Deposits held | $ 250,000 | |||||
Right-of-use assets | $ 2,500,000 | |||||
Lease liabilities | $ 2,600,000 | |||||
Convertible Senior Notes [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Aggregate principal amount | 75,800,000 | $ 136,800,000 | ||||
Interest rate | 5.875% | 5.875% | ||||
Notes maturity date | Aug. 1, 2037 | |||||
Convertible Notes outstanding | $ 23,400,000 | |||||
Building [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Property plant and equipment useful life | 40 years | |||||
Computer Hardware and Software [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Property plant and equipment useful life | 3 years | |||||
NBIC [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Ceding commission income | $ 62,400,000 | 73,000,000 | ||||
Policy Acquisition Costs [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Ceding commission income | $ 47,000,000 | 54,900,000 | $ 8,600,000 | |||
Minimum [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Allowance for credit losses for amounts outstanding, term | 90 days | |||||
Minimum [Member] | Office and Furniture Equipment [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Property plant and equipment useful life | 3 years | |||||
Maximum [Member] | Office and Furniture Equipment [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Property plant and equipment useful life | 7 years | |||||
Regulatory State Deposit [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Restricted cash | $ 5,700,000 | 3,200,000 | ||||
Heritage Property and Casualty Insurance Company [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Restricted cash | $ 9,000,000 | $ 9,000,000 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Detail) - USD ($) | Nov. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 152,459,000 | $ 152,459,000 | $ 152,459,000 | |
Goodwill, expected to be deductible for income tax purposes | $ 6,000,000 | $ 6,000,000 | ||
NBIC Holdings, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 250,000,000 | |||
Purchase price for the acquisition in cash | $ 210,000,000 | |||
Issuance of common stock for business acquisition, number of restricted common shares | 2,222,215 | |||
Purchase price for the acquisition, common stock aggregate value | $ 40,000,000 | |||
Goodwill | 106,000,000 | |||
Goodwill, expected to be deductible for income tax purposes | $ 0 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost, Gross unrealized Gains and Losses, and Fair Value of Debt Securities Available-for-Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | $ 577,789 | $ 518,391 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 9,811 | 377 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 344 | 9,119 |
Debt Securities Available-for-sale, Fair Value | 587,256 | 509,649 |
U.S. government and agency securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 53,836 | 48,739 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 383 | 40 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 28 | 738 |
Debt Securities Available-for-sale, Fair Value | 54,191 | 48,041 |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 74,755 | 60,028 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 1,641 | 46 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 41 | 785 |
Debt Securities Available-for-sale, Fair Value | 76,355 | 59,289 |
Special Revenue [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 246,791 | 249,026 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 3,689 | 210 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 254 | 3,881 |
Debt Securities Available-for-sale, Fair Value | 250,226 | 245,355 |
Hybrid Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 100 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 1 | |
Debt Securities Available-for-sale, Fair Value | 101 | |
Industrial and Miscellaneous [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 202,307 | 155,678 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 4,097 | 81 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 21 | 3,302 |
Debt Securities Available-for-sale, Fair Value | $ 206,383 | 152,457 |
Redeemable Preferred Stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 4,920 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | 413 | |
Debt Securities Available-for-sale, Fair Value | $ 4,507 |
Investments - Schedule of Amo_2
Investments - Schedule of Amortized Cost, Gross unrealized Gains and Losses, and Fair Value of Debt Securities Available-for-Sale (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 587,256 | $ 509,649 |
U.S. government and agency securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 54,191 | 48,041 |
U.S. government and agency securities [Member] | Pledged securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 20,200 |
Investments - Schedule of Debt
Investments - Schedule of Debt Securities Available-for-Sale by Contractual Maturity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | ||
Debt Securities Available-for-sale Due in one year or less, Cost or Amortized Cost | $ 63,989 | $ 41,529 |
Debt Securities Available-for-sale Due after one year through five years, Cost or Amortized Cost | 206,657 | 177,298 |
Debt Securities Available-for-sale Due after five years through ten years, Cost or Amortized Cost | 117,266 | 134,057 |
Debt Securities Available-for-sale Due after ten years, Cost or Amortized Cost | 189,877 | 165,507 |
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | $ 577,789 | $ 518,391 |
Debt Securities Available-for-sale Due in one year or less, Percentage of Total | 11.00% | 8.00% |
Debt Securities Available-for-sale Due after one year through five years, Percentage of Total | 36.00% | 34.00% |
Debt Securities Available-for-sale Due after five years through ten years, Percentage of Total | 20.00% | 26.00% |
Debt Securities Available-for-sale Due after ten years, Percentage of Total | 33.00% | 32.00% |
Debt Securities Available-for-sale Total, Percentage | 100.00% | 100.00% |
Debt Securities Available-for-sale Due in one year or less, Fair Value | $ 64,197 | $ 41,382 |
Debt Securities Available-for-sale Due after one year through five years, Fair Value | 209,211 | 175,227 |
Debt Securities Available-for-sale Due after five years through ten years, Fair Value | 121,378 | 130,921 |
Debt Securities Available-for-sale Due after ten years, Fair Value | 192,470 | 162,119 |
Debt Securities Available-for-sale Total, Fair Value | $ 587,256 | $ 509,649 |
Debt Securities Available-for-sale Due in one year or less, Percentage of Total | 11.00% | 8.00% |
Debt Securities Available-for-sale Due after one year through five years, Percentage of Total | 35.00% | 34.00% |
Debt Securities Available-for-sale Due after five years through ten years, Percentage of Total | 21.00% | 26.00% |
Debt Securities Available-for-sale Due after ten years, Percentage of Total | 33.00% | 32.00% |
Debt Securities Available-for-sale Total, Percentage | 100.00% | 100.00% |
Investments - Schedule of Reali
Investments - Schedule of Realized Gains (Losses) on Debt Securities Available-for-sale (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities Available-for-sale | |||
Realized gains | $ 2,119 | $ 85 | $ 2,732 |
Realized losses | (211) | (249) | (363) |
Net realized gain (losses) | 1,908 | (164) | 2,369 |
Debt Securities Available-for-sale, Fair Value at Sale | |||
Realized gains, Fair Value at Sale | 157,125 | 25,647 | 705,138 |
Realized losses, Fair Value at Sale | 14,580 | 58,971 | 56,354 |
Net realized gain (losses), Fair Value at Sale | $ 171,705 | $ 84,618 | $ 761,492 |
Investments - Schedule of Compo
Investments - Schedule of Components of Realized Gains (Losses) on Equity Investment and Other Non-Marketable Equity Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Total realized gains | $ 3,753 | $ 1 | $ 2,131 |
Total realized losses | (1,498) | (236) | (3,936) |
Unrealized losses on equity securities | (2,078) | ||
Net realized gain (losses) | 2,255 | (2,313) | (1,805) |
Total realized gains, Fair Value at Sale | 21,386 | 169 | 31,231 |
Total realized gains, Fair Value at Sale | 3,613 | 4,840 | 11,806 |
Net realized gain (losses), Fair Value at Sale | 24,999 | 5,009 | 43,037 |
Equity Securities [Member] | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Total realized gains | 2,703 | 1 | 2,131 |
Total realized losses | (1,441) | (236) | (3,936) |
Total realized gains, Fair Value at Sale | 21,386 | 169 | 31,231 |
Total realized gains, Fair Value at Sale | 3,613 | $ 4,840 | $ 11,806 |
Other Investments [member] | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Total realized gains | 1,050 | ||
Total realized losses | $ (57) |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income (loss) | $ 17,172 | $ 15,394 | $ 13,447 |
Investment expenses | 2,740 | 2,114 | 2,115 |
Net investment income, less investment expenses | 14,432 | 13,280 | 11,332 |
Debt Securities Available-for-Sale [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income (loss) | 13,761 | 9,591 | 10,368 |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income (loss) | 1,436 | 1,333 | 1,922 |
Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income (loss) | 1,470 | 1,703 | 960 |
Other Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income (loss) | $ 505 | $ 2,767 | $ 197 |
Investments - Schedule of Deb_2
Investments - Schedule of Debt Securities Available-for-Sale in an Unrealized Loss Position, Aggregate Fair Value (Detail) $ in Thousands | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 102 | 404 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 206 | $ 3,164 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 46,552 | $ 172,381 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 137 | 690 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 138 | $ 5,955 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 22,089 | $ 241,126 |
U.S. government and agency securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 9 | 17 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 10 | $ 129 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 1,476 | $ 10,485 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 23 | 66 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 18 | $ 609 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 4,288 | $ 20,488 |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 6 | 13 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 38 | $ 103 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 7,613 | $ 12,864 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 3 | 42 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 3 | $ 682 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 1,440 | $ 39,979 |
Industrial and Miscellaneous [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 25 | 214 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 13 | $ 1,479 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 12,601 | $ 70,156 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 16 | 232 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 8 | $ 1,822 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 3,202 | $ 70,375 |
Special Revenue [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 62 | 105 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 145 | $ 1,260 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 24,862 | $ 76,335 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 95 | 323 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 109 | $ 2,621 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 13,159 | $ 108,319 |
Redeemable Preferred Stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 55 | |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 193 | |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 2,541 | |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 27 | |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 221 | |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 1,965 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments [Line Items] | |||||
Other Investments, estimated fair value | $ 6,375,000 | $ 6,375,000 | $ 6,375,000 | $ 2,488,000 | |
Investments | 595,249,000 | 595,249,000 | 595,249,000 | 528,593,000 | |
Newly-formed LP [Member] | |||||
Investments [Line Items] | |||||
Investments | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | ||
Investment price per share | $ 10 | $ 10 | $ 10 | ||
Real estate portfolio leased percentage | 100.00% | ||||
Lease expiration month and year | 2029-10 | ||||
Limited Partnerships, REIT’s and Limited Liability Company Investments [Member] | |||||
Investments [Line Items] | |||||
Other Investments, estimated fair value | $ 6,400,000 | $ 6,400,000 | $ 6,400,000 | $ 2,500,000 | |
LPs [Member] | |||||
Investments [Line Items] | |||||
Investments | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | ||
Percentage of net of allocated costs received upon termination | 95.00% | ||||
Net of allocated costs received of total distribution upon termination | $ 275,900 | ||||
Percentage of allocated cost received upon completion of the fund audit | 5.00% | ||||
Net of allocated costs received upon completion of fund audit | $ 1,100,000 | ||||
LPs [Member] | Subsequent Event [Member] | |||||
Investments [Line Items] | |||||
Percentage of hold back to other assets and unrealized gains from fund | 5.00% | ||||
Amount received full holdback from investment | $ 1,100,000 | ||||
Amount of unrealized gains from fund to realized gains | $ 1,100,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | |||
Goodwill | $ 152,459 | $ 152,459 | $ 152,459 |
Intangibles, net | 68,642 | 76,850 | |
Indefinite lived intangible, insurance licenses | 1,300 | 1,300 | |
Amortization of intangible assets | $ 8,200 | $ 24,800 | $ 6,200 |
Minimum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets useful lives | 1 year | ||
Maximum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets useful lives | 15 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 152,459 | $ 152,459 |
Ending balance | $ 152,459 | $ 152,459 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Amortizing and Non-amortizing Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Amortizing intangible assets, Gross Carrying Amount | $ 113,970 | $ 113,970 | |
Amortizing intangible assets, Accumulated Amortization | (46,642) | (38,435) | |
Intangible Assets, net | [1] | $ 67,328 | $ 75,535 |
Brand [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Amortizing intangible assets, Weighted - average Amortization (years) | 8 years | 8 years | |
Amortizing intangible assets, Gross Carrying Amount | $ 17,810 | $ 17,810 | |
Amortizing intangible assets, Accumulated Amortization | (4,506) | (3,319) | |
Intangible Assets, net | [1] | $ 13,304 | $ 14,491 |
Agent Relationships [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Amortizing intangible assets, Weighted - average Amortization (years) | 8 years | 9 years | |
Amortizing intangible assets, Gross Carrying Amount | $ 15,500 | $ 15,500 | |
Amortizing intangible assets, Accumulated Amortization | (3,729) | (2,259) | |
Intangible Assets, net | [1] | $ 11,771 | $ 13,241 |
Renewal Rights [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Amortizing intangible assets, Weighted - average Amortization (years) | 13 years | 14 years | |
Amortizing intangible assets, Gross Carrying Amount | $ 40,600 | $ 40,600 | |
Amortizing intangible assets, Accumulated Amortization | (5,639) | (2,932) | |
Intangible Assets, net | [1] | $ 34,961 | $ 37,668 |
Customer Relations [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Amortizing intangible assets, Weighted - average Amortization (years) | 5 years | 7 years | |
Amortizing intangible assets, Gross Carrying Amount | $ 870 | $ 870 | |
Amortizing intangible assets, Accumulated Amortization | (384) | (297) | |
Intangible Assets, net | [1] | $ 486 | $ 573 |
Trade Names [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Amortizing intangible assets, Weighted - average Amortization (years) | 6 years | 8 years | |
Amortizing intangible assets, Gross Carrying Amount | $ 9,000 | $ 9,000 | |
Amortizing intangible assets, Accumulated Amortization | (2,208) | (1,308) | |
Intangible Assets, net | [1] | $ 6,792 | $ 7,692 |
Value of Business Acquired [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Amortizing intangible assets, Weighted - average Amortization (years) | 1 year | 1 year | |
Amortizing intangible assets, Gross Carrying Amount | $ 25,400 | $ 25,400 | |
Amortizing intangible assets, Accumulated Amortization | $ (25,400) | $ (25,400) | |
Non-compete [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Amortizing intangible assets, Weighted - average Amortization (years) | 1 year | 1 year | |
Amortizing intangible assets, Gross Carrying Amount | $ 4,790 | $ 4,790 | |
Amortizing intangible assets, Accumulated Amortization | (4,776) | (2,920) | |
Intangible Assets, net | [1] | $ 14 | $ 1,870 |
[1] | Excludes insurance license valued at $1.3 million and classified as an indefinite lived intangible which is subject to annual impairment testing and not amortized. |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Finite-lived Intangible Assets (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Indefinite lived intangible, insurance license | $ 1.3 | $ 1.3 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
2020 | $ 6,375 | ||
2021 | 6,365 | ||
2022 | 6,351 | ||
2023 | 6,351 | ||
2024 | 6,351 | ||
Thereafter | 35,535 | ||
Intangible Assets, net | [1] | $ 67,328 | $ 75,535 |
[1] | Excludes insurance license valued at $1.3 million and classified as an indefinite lived intangible which is subject to annual impairment testing and not amortized. |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Computation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic earnings (loss) per share: | |||||||||||
Net income (loss) attributable to common stockholders (000's) | $ 28,636 | $ 27,155 | $ (1,119) | ||||||||
Weighted average shares outstanding | 29,213,910 | 25,941,253 | 26,798,465 | ||||||||
Basic earnings (loss) per share: | $ 0.44 | $ 0.28 | $ 0.02 | $ 0.24 | $ 0.15 | $ 0.23 | $ 0.09 | $ 0.58 | $ 0.98 | $ 1.05 | $ (0.04) |
Diluted earnings (loss) per share: | |||||||||||
Net income (loss) attributable to common stockholders (000's) | $ 28,636 | $ 27,155 | $ (1,119) | ||||||||
Weighted average shares outstanding | 29,213,910 | 25,941,253 | 26,798,465 | ||||||||
Weighted average dilutive shares | 19,071 | 154,621 | |||||||||
Total weighted average dilutive shares | 29,232,981 | 26,095,874 | 26,798,465 | ||||||||
Diluted earnings (loss) per share: | $ 0.44 | $ 0.28 | $ 0.02 | $ 0.24 | $ 0.15 | $ 0.23 | $ 0.09 | $ 0.55 | $ 0.98 | $ 1.04 | $ (0.04) |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Number of antidilutive shares | 1,914,770 | 2,563,777 | 8,424,598 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | $ 587,256 | $ 509,649 |
Equity securities | 1,618 | 16,456 |
Investments reported at NAV | 7,993 | 2,488 |
Total investments | 595,249 | 528,593 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 366 | 4,861 |
Equity securities | 16,456 | |
Total investments | 366 | 21,317 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 586,890 | 504,788 |
Total investments | 586,890 | 504,788 |
U.S. government and agency securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 54,191 | 48,041 |
U.S. government and agency securities [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 366 | 354 |
U.S. government and agency securities [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 53,825 | 47,687 |
States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 76,355 | 59,289 |
States, Municipalities and Political Subdivisions [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 76,355 | 59,289 |
Hybrid Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 101 | |
Hybrid Securities [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 101 | |
Special Revenue [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 250,226 | 245,355 |
Special Revenue [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 250,226 | 245,355 |
Industrial and Miscellaneous [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 206,383 | 152,457 |
Industrial and Miscellaneous [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | $ 206,383 | 152,457 |
Redeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 4,507 | |
Redeemable Preferred Stocks [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 4,507 | |
Common Shares [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 3,686 | |
Common Shares [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 3,686 | |
Nonredeemable Preferred Stocks [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 12,770 | |
Nonredeemable Preferred Stocks [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | $ 12,770 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value measurement period | 1 year | ||
Nonrecurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Non-recurring fair value adjustments | $ 0 | $ 0 | $ 0 |
Other Comprehensive Income - Su
Other Comprehensive Income - Summary of Other Comprehensive Income (Loss) and Tax Impact of Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other comprehensive income | |||
Change in unrealized losses on investments, net, Pre-tax | $ 19,765 | $ (5,700) | $ 5,688 |
Reclassification adjustment of realized losses (gains) included in net income, Pre-tax | (1,734) | 163 | (564) |
Effect on other comprehensive income, Pre-tax | 18,031 | (5,537) | 5,124 |
Change in unrealized losses on investments, net, Tax | (4,575) | 2,281 | (2,713) |
Reclassification adjustment of realized losses (gains) included in net income, Tax | 401 | (49) | (457) |
Effect on other comprehensive income, Tax | (4,174) | 2,232 | (3,170) |
Change in unrealized losses on investments, net, After-tax | 15,190 | (3,419) | 2,975 |
Reclassification adjustment of realized losses (gains) included in net income, After-tax | (1,333) | 114 | (1,021) |
Effect on other comprehensive income, After-tax | $ 13,857 | $ (3,305) | $ 1,954 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 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 | 2 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) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Amortization of ROU assets - Finance leases | $ 21 | $ 79 |
Interest on lease liabilities - Finance leases | 6 | 23 |
Variable lease cost (cost excluded from lease payments) | 114 | 451 |
Operating lease cost (cost resulting from lease payments) | 332 | 1,250 |
Total lease cost | $ 473 | $ 1,803 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Right-of-use assets - operating | $ 6,342 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets |
Right-of-use assets - finance | $ 303 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets |
Lease Liability - operating | $ (8,045) |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities |
Lease Liability - finance | $ (324) |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities |
Leases - Supplemental Balance_2
Leases - Supplemental Balance Sheet Information Related to Leases (Parenthetical) (Detail) $ in Millions | 3 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) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted average lease term - Finance leases | 3 years 7 months 28 days |
Weighted average lease term - Operating leases | 8 years 3 days |
Weighted average discount rate - Finance leases | 7.09% |
Weighted average discount rate - Operating leases | 5.33% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Finance lease - Operating cash flows | $ 27 |
Finance lease - Financing cash flows | 83 |
Operating lease - Operating cash flows (fixed payments) | 970 |
Operating lease - Operating cash flows (liability reduction) | $ 713 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 1,442 |
2021 | 1,401 |
2022 | 1,425 |
2023 | 1,371 |
2024 | 1,010 |
2025 and thereafter | 3,685 |
Total lease payments | 10,334 |
Less: imputed interest | (1,965) |
Present value of lease liabilities | $ 8,369 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 30,585 | $ 25,601 |
Less: accumulated depreciation and amortization | (9,832) | (7,603) |
Property and equipment, net | 20,753 | 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 | 5,712 | 4,901 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 2,007 | 1,397 |
Tenant and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 8,105 | 4,477 |
Vehicle Fleet [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 789 | $ 854 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)aft²Building | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Property Plant And Equipment Useful Life And Values [Abstract] | |||
Depreciation and amortization expense | $ | $ 2.2 | $ 2.3 | $ 1.6 |
Number of acres of land purchased | a | 15 | ||
Number of buildings | Building | 5 | ||
Gross area of acquired property | ft² | 229,000 |
Property and Equipment - Sche_2
Property and Equipment - Schedule of Expected Annual Rental Income Due Under Non-Cancellable Operating Leases for Real Estate Properties (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Property Plant And Equipment [Abstract] | |
January 1 to December 31, 2020 | $ 2,883 |
January 1 to December 31, 2021 | 2,954 |
January 1 to December 31, 2022 | 3,021 |
January 1 to December 31, 2023 | 3,144 |
January 1 to December 31, 2024 | 2,250 |
Thereafter | 14,254 |
Total | $ 28,506 |
Deferred Reinsurance Ceding C_3
Deferred Reinsurance Ceding Commission - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Policy Acquisition Costs [Member] | |||
Deferred Reinsurance Ceding Commission [Line Items] | |||
Deferred reinsurance ceding commissions, percentage | 75.00% | ||
Ceding commission income | $ 47,000,000 | $ 54,900,000 | $ 8,600,000 |
General and Administrative Expenses [Member] | |||
Deferred Reinsurance Ceding Commission [Line Items] | |||
Deferred reinsurance ceding commissions, percentage | 25.00% | ||
Ceding commission income | $ 15,400,000 | $ 18,100,000 | $ 0 |
Deferred Reinsurance Ceding C_4
Deferred Reinsurance Ceding Commission - Schedule of Activity with Regard to Deferred Reinsurance Ceding Commission (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Beginning balance of deferred ceding commission income | $ 44,819 | $ 51,109 | $ 57,808 |
Ceding commission deferred | 55,095 | 67,867 | 1,901 |
Less: ceding commission earned | (62,450) | (74,157) | (8,600) |
Ending balance of deferred ceding commission income | $ 37,464 | $ 44,819 | $ 51,109 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Summary of Activity in Deferred Policy Acquisition Costs (DPAC) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Beginning Balance | $ 73,055 | $ 41,678 | $ 42,779 |
Policy acquisition costs deferred | 149,095 | 171,007 | 82,791 |
Amortization | (144,939) | (139,630) | (83,892) |
Ending Balance | $ 77,211 | $ 73,055 | $ 41,678 |
Reinsurance - 2019-2020 Reinsur
Reinsurance - 2019-2020 Reinsurance Programs - Catastrophe Excess of Loss Reinsurance - Additional information - (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Purchase of reinsurance from third party | $ 445,534,000 | $ 472,144,000 | $ 263,740,000 |
Reinsurance payable | 156,351,000 | $ 166,975,000 | |
NBIC [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | $ 1,000,000,000 | ||
FHCF [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Percentage comprising aggregate participation | 90.00% | 45.00% | |
2019-2020 Excess of Loss Reinsurance Programs [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Reinsurance purchase limit | $ 2,600,000,000 | ||
Purchase of reinsurance from third party | 2,600,000,000 | ||
Reinsurance payable | 249,200,000 | ||
2019-2020 Excess of Loss Reinsurance Programs [Member] | NBIC [Member] | First Catastrophic Event [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
First event retention for insurance company subsidiary | 13,800,000 | ||
2019-2020 Excess of Loss Reinsurance Programs [Member] | NBIC [Member] | First Catastrophic Event [Member] | Maximum [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | 936,000,000 | ||
2019-2020 Excess of Loss Reinsurance Programs [Member] | Heritage P&C [Member] | First Catastrophic Event [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
First event retention for insurance company subsidiary | 20,000,000 | ||
2019-2020 Excess of Loss Reinsurance Programs [Member] | Heritage P&C [Member] | First Catastrophic Event [Member] | Maximum [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | 1,500,000,000 | ||
2019-2020 Excess of Loss Reinsurance Programs [Member] | Zephyr [Member] | First Catastrophic Event [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
First event retention for insurance company subsidiary | 20,000,000 | ||
2019-2020 Excess of Loss Reinsurance Programs [Member] | Zephyr [Member] | First Catastrophic Event [Member] | Maximum [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | $ 708,000,000 |
Reinsurance - 2019-2020 Reins_2
Reinsurance - 2019-2020 Reinsurance Programs - Gross Quota and Net Quota Share Reinsurance - Additional information - (Detail) - NBIC [Member] - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | |
Gross Quota Share [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Percentage of gross quota share | 18.75% | 8.00% | 18.75% |
Reinsurance recoveries on paid losses | $ 1,000 | $ 1,000 | |
2019-2020 Net Quota Share Reinsurance [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Net lines quota share occurrence limit | $ 20 | ||
Percentage of renewed ceded net premium and losses | 5.00% | 56.00% |
Reinsurance - 2019-2020 Reins_3
Reinsurance - 2019-2020 Reinsurance Programs - Aggregate Coverage - Additional information - (Detail) $ in Thousands | Dec. 31, 2019USD ($)Reinsurer | Dec. 01, 2019USD ($) | Dec. 31, 2018USD ($)Reinsurer | May 31, 2018USD ($) | Dec. 31, 2019USD ($)Reinsurer | Dec. 31, 2018USD ($)Reinsurer |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Prepaid reinsurance premiums | $ 224,102 | $ 233,071 | $ 224,102 | $ 233,071 | ||
Number of reinstatements available | Reinsurer | 2 | 2 | ||||
NBIC [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Aggregate contract coverage limit | $ 13,500 | |||||
Primary retention | 18,500 | |||||
Franchise deductible amount | $ 1,000 | |||||
Aggregate contract expiration date | May 31, 2018 | |||||
Percentage of aggregate contract | 25.00% | 25.00% | ||||
Aggregate Coverage [Member] | Catastrophe [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Purchased aggregate reinstatement premium | $ 931,000 | $ 1,100,000 | ||||
Prepaid reinsurance premiums | $ 627,000 | 669,000 | 627,000 | 669,000 | ||
Net of prepaid reinsurance premium as attachment point | 40,000 | 40,000 | $ 40,000 | $ 40,000 | ||
42.5% Aggregate Coverage [Member] | NBIC [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Aggregate contract coverage limit | $ 20,000 | $ 20,000 | ||||
Primary retention | 20,000 | 3,000 | ||||
Franchise deductible amount | $ 1,000 | $ 1,500 | ||||
Aggregate contract expiration date | Mar. 31, 2020 | Dec. 31, 2018 | ||||
Percentage of aggregate contract | 42.50% | 42.50% | ||||
100.00% Aggregate Coverage [Member] | NBIC [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Aggregate contract coverage limit | 20,000 | 20,000 | ||||
Primary retention | $ 20,000 | $ 20,000 | ||||
Aggregate contract expiration date | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Percentage of aggregate contract | 100.00% | 100.00% | 100.00% | 100.00% | ||
Number of reinstatements available | Reinsurer | 1 | 1 |
Reinsurance - 2019-2020 Reins_4
Reinsurance - 2019-2020 Reinsurance Programs - Additional information - (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($)ReinsurerLayer | Dec. 31, 2018USD ($)Reinsurer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Unpaid losses and loss adjustment expenses | $ 613,533,000 | $ 432,359,000 | $ 470,083,000 | $ 140,137,000 |
Reinsurance payable | $ 156,351,000 | $ 166,975,000 | ||
Number of reinstatements available | Reinsurer | 2 | 2 | ||
NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Retention under program to provide reinsurance coverage | $ 1,000,000,000 | |||
Primary retention | 18,500,000 | |||
Facultative Reinsurance [Member] | NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Reinsurance loss limit | 2,500,000 | |||
Facultative Reinsurance [Member] | Maximum [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Reinsurance payable | 10,000,000 | $ 10,000,000 | ||
Facultative Reinsurance [Member] | Minimum [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Facultative reinsurance purchase amount | 10,000,000 | 10,000,000 | ||
Facultative Reinsurance [Member] | Minimum [Member] | NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Reinsurance payable | $ 3,500,000 | |||
General Excess of Loss 2019-2020 Reinsurance Program [Member] | NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Number of loss applied to reinsurance contract | Reinsurer | 1 | |||
Number of layers in excess of rentention loss | Layer | 2 | |||
Retention under program to provide reinsurance coverage | $ 400,000 | |||
General Excess of Loss 2019-2020 Reinsurance Program [Member] | NBIC [Member] | First Layer Coverage [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Retention under program to provide reinsurance coverage | 350,000 | |||
Primary retention | 400,000 | |||
General Excess of Loss 2019-2020 Reinsurance Program [Member] | NBIC [Member] | Second Layer Coverage | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Retention under program to provide reinsurance coverage | 2,750,000 | |||
Primary retention | 750,000 | |||
General Excess of Loss 2019-2020 Reinsurance Program [Member] | NBIC [Member] | Casualty Second Layer [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Retention under program to provide reinsurance coverage | 1,250,000 | |||
Primary retention | $ 750,000 | |||
General Excess of Loss 2019-2020 Reinsurance Program [Member] | NBIC [Member] | First and Second Layer Coverage [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Percentage of gross quota share | 100.00% | |||
Facultative 2019 - 2020 Excess of Loss Reinsurance Program [Member] | NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Reinsurance loss limit | $ 3,750,000 | |||
Facultative 2019 - 2020 Excess of Loss Reinsurance Program [Member] | Minimum [Member] | NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Reinsurance payable | $ 3,500,000 | |||
Northeast Commercial Residential Losses [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Number of reinstatements available | Reinsurer | 2 | |||
Insurance Claims [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Unpaid losses and loss adjustment expenses | $ 1,000,000 | 1,000,000 | ||
Insurance Claims [Member] | Northeast Commercial Residential Losses [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Unpaid losses and loss adjustment expenses | 750,000 | |||
Property Per Risk Coverage [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Coverage limit | 9,000,000 | 9,000,000 | ||
Reinsurance payable | 27,000,000 | $ 27,000,000 | ||
Property Per Risk Coverage [Member] | Northeast Commercial Residential Losses [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Coverage limit | 250,000 | |||
Reinsurance payable | $ 750,000 |
Reinsurance - 2018-2019 Reinsur
Reinsurance - 2018-2019 Reinsurance Programs - Catastrophe Excess of Loss Reinsurance - Additional information - (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Purchase of reinsurance from third party | $ 445,534 | $ 472,144 | $ 263,740 |
Reinsurance payable | 156,351 | $ 166,975 | |
NBIC [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | $ 1,000,000 | ||
FHCF [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Percentage comprising aggregate participation | 90.00% | 45.00% | |
2018 - 2019 Reinsurance Program [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Reinsurance purchase limit | $ 3,400,000 | ||
Purchase of reinsurance from third party | 3,500,000 | ||
Reinsurance payable | 252,000 | ||
2018 - 2019 Reinsurance Program [Member] | NBIC [Member] | First Catastrophic Event [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
First event retention for insurance company subsidiary | 12,800 | ||
2018 - 2019 Reinsurance Program [Member] | NBIC [Member] | First Catastrophic Event [Member] | Maximum [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | 1,000,000 | ||
2018 - 2019 Reinsurance Program [Member] | NBIC [Member] | Second Catastrophic Event [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | 8,800 | ||
2018 - 2019 Reinsurance Program [Member] | Heritage P&C [Member] | First Catastrophic Event [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
First event retention for insurance company subsidiary | 20,000 | ||
2018 - 2019 Reinsurance Program [Member] | Heritage P&C [Member] | First Catastrophic Event [Member] | Maximum [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | 1,600,000 | ||
2018 - 2019 Reinsurance Program [Member] | Heritage P&C [Member] | Second Catastrophic Event [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | 16,000 | ||
2018 - 2019 Reinsurance Program [Member] | Zephyr [Member] | First Catastrophic Event [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
First event retention for insurance company subsidiary | 20,000 | ||
2018 - 2019 Reinsurance Program [Member] | Zephyr [Member] | First Catastrophic Event [Member] | Maximum [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | 801,000 | ||
2018 - 2019 Reinsurance Program [Member] | Zephyr [Member] | Second Catastrophic Event [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | $ 16,000 |
Reinsurance - 2018-2019 Reins_2
Reinsurance - 2018-2019 Reinsurance Programs - Gross Quota and Net Quota Share Reinsurance - Additional information - (Detail) - NBIC [Member] - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
May 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gross Quota Share [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Percentage of gross quota share | 18.75% | 8.00% | 18.75% | ||
Reinsurance recoveries on paid losses | $ 1,000 | $ 1,000 | $ 1,000 | ||
2018- 2019 Net Quota Share Reinsurance [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Net lines quota share occurrence limit | $ 20 | ||||
Percentage of ceded net premium and losses | 49.50% | 49.50% | 8.00% | ||
Percentage of renewed ceded net premium and losses | 52.00% | 52.00% | 10.00% |
Reinsurance - 2018-2019 Reins_3
Reinsurance - 2018-2019 Reinsurance Programs - Aggregate Coverage - Additional information - (Detail) $ in Thousands | Dec. 31, 2019USD ($)Reinsurer | Dec. 01, 2019USD ($) | Dec. 31, 2018USD ($)Reinsurer | May 31, 2018USD ($) | Dec. 31, 2019USD ($)Reinsurer | Dec. 31, 2018USD ($)Reinsurer |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Prepaid reinsurance premiums | $ 224,102 | $ 233,071 | $ 224,102 | $ 233,071 | ||
Number of reinstatements available | Reinsurer | 2 | 2 | ||||
NBIC [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Aggregate contract coverage limit | $ 13,500 | |||||
Primary retention | 18,500 | |||||
Franchise deductible amount | $ 1,000 | |||||
Aggregate contract expiration date | May 31, 2018 | |||||
Percentage of aggregate contract | 25.00% | 25.00% | ||||
Aggregate Coverage [Member] | Catastrophe [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Purchased aggregate reinstatement premium | $ 931,000 | $ 1,100,000 | ||||
Prepaid reinsurance premiums | $ 627,000 | 669,000 | 627,000 | 669,000 | ||
Net of prepaid reinsurance premium as attachment point | 40,000 | 40,000 | $ 40,000 | $ 40,000 | ||
42.5% Aggregate Coverage [Member] | NBIC [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Aggregate contract coverage limit | $ 20,000 | $ 20,000 | ||||
Primary retention | 20,000 | 3,000 | ||||
Franchise deductible amount | $ 1,000 | $ 1,500 | ||||
Aggregate contract expiration date | Mar. 31, 2020 | Dec. 31, 2018 | ||||
Percentage of aggregate contract | 42.50% | 42.50% | ||||
92.00% Aggregate Coverage [Member] | NBIC [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Aggregate contract coverage limit | $ 20,000 | |||||
Primary retention | $ 20,000 | |||||
Aggregate contract expiration date | Dec. 31, 2018 | |||||
Percentage of aggregate contract | 92.00% | |||||
40.00% Aggregate Coverage [Member] | NBIC [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Aggregate contract coverage limit | 20,000 | |||||
Primary retention | 20,000 | |||||
Franchise deductible amount | $ 1,000 | |||||
Aggregate contract expiration date | May 31, 2019 | |||||
Percentage of aggregate contract | 40.00% | 40.00% | ||||
100.00% Aggregate Coverage [Member] | NBIC [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Aggregate contract coverage limit | 20,000 | $ 20,000 | ||||
Primary retention | $ 20,000 | $ 20,000 | ||||
Number of reinstatements available | Reinsurer | 1 | 1 | ||||
Aggregate contract expiration date | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Percentage of aggregate contract | 100.00% | 100.00% | 100.00% | 100.00% |
Reinsurance - 2018-2019 Reins_4
Reinsurance - 2018-2019 Reinsurance Programs - Additional information - (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($)Reinsurer | Dec. 31, 2018USD ($)ReinsurerLayer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Unpaid losses and loss adjustment expenses | $ 613,533,000 | $ 432,359,000 | $ 470,083,000 | $ 140,137,000 |
Reinsurance payable | $ 156,351,000 | $ 166,975,000 | ||
Number of reinstatements available | Reinsurer | 2 | 2 | ||
NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Retention under program to provide reinsurance coverage | $ 1,000,000,000 | |||
Primary retention | 18,500,000 | |||
Facultative Reinsurance [Member] | Maximum [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Reinsurance payable | 10,000,000 | $ 10,000,000 | ||
Facultative Reinsurance [Member] | Minimum [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Facultative reinsurance purchase amount | 10,000,000 | $ 10,000,000 | ||
Facultative Reinsurance [Member] | Minimum [Member] | NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Reinsurance payable | 3,500,000 | |||
General Excess of Loss 2018-2019 Reinsurance Program [Member] | NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Number of loss applied to reinsurance contract | Reinsurer | 1 | |||
Number of layers in excess of retention loss | Layer | 2 | |||
Retention under program to provide reinsurance coverage | $ 300,000 | |||
General Excess of Loss 2018-2019 Reinsurance Program [Member] | NBIC [Member] | First Layer Coverage [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Retention under program to provide reinsurance coverage | 450,000 | |||
Primary retention | 300,000 | |||
General Excess of Loss 2018-2019 Reinsurance Program [Member] | NBIC [Member] | Second Layer Coverage | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Retention under program to provide reinsurance coverage | 2,750,000 | |||
Primary retention | 750,000 | |||
General Excess of Loss 2018-2019 Reinsurance Program [Member] | NBIC [Member] | Casualty Second Layer [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Retention under program to provide reinsurance coverage | 1,250,000 | |||
Primary retention | $ 750,000 | |||
General Excess of Loss 2018-2019 Reinsurance Program [Member] | NBIC [Member] | First and Second Layer Coverage [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Percentage of gross quota share | 92.00% | |||
Additional coverage percentage of gross quota share | 8.00% | |||
Facultative 2018 - 2019 Reinsurance Program [Member] | Minimum [Member] | NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Reinsurance payable | $ 3,500,000 | |||
Insurance Claims [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Unpaid losses and loss adjustment expenses | 1,000,000 | 1,000,000 | ||
Property Per Risk Coverage [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Coverage limit | 9,000,000 | 9,000,000 | ||
Reinsurance payable | $ 27,000,000 | $ 27,000,000 |
Reinsurance - 2017-2018 Reinsur
Reinsurance - 2017-2018 Reinsurance Programs - Heritage P&C and Zephyr Program - Additional information - (Detail) | Feb. 29, 2016USD ($) | May 31, 2017USD ($) | Mar. 31, 2017USD ($) | Apr. 30, 2015USD ($) | Jun. 30, 2017USD ($)Reinsurer | Dec. 31, 2019USD ($)Reinsurer | Dec. 31, 2018USD ($)Reinsurer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Number of reinstatements available | Reinsurer | 2 | 2 | |||||||
Aggregate participation, losses and loss adjustment expenses | $ (3,696,000) | $ 13,345,000 | $ 12,567,000 | ||||||
Purchase of reinsurance from third party | 445,534,000 | 472,144,000 | 263,740,000 | ||||||
Prepaid reinsurance premiums | 224,102,000 | 233,071,000 | |||||||
Unpaid losses and loss adjustment expenses | 613,533,000 | 432,359,000 | $ 470,083,000 | $ 140,137,000 | |||||
Reinsurance payable | 156,351,000 | 166,975,000 | |||||||
Insurance Claims [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Unpaid losses and loss adjustment expenses | 1,000,000 | 1,000,000 | |||||||
Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Reinsurance purchase limit | $ 632,000,000 | ||||||||
Minimum [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Notes maturity period | 90 days | ||||||||
Property Per Risk Coverage [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Coverage limit | $ 9,000,000 | 9,000,000 | |||||||
Reinsurance payable | 27,000,000 | 27,000,000 | |||||||
Shared Layers [Member] | Property Per Risk Coverage [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchase of reinsurance from third party | 372,000,000 | ||||||||
Shared coverage amount available subject to seasonal aggregate | 20,000,000 | ||||||||
Seasonal aggregate amount | 68,000,000 | ||||||||
Aggregate Coverage [Member] | Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchased aggregate reinstatement premium | 931,000,000 | 1,100,000,000 | |||||||
Prepaid reinsurance premiums | 627,000,000 | 669,000,000 | |||||||
Net of prepaid reinsurance premium as attachment point | 40,000,000 | 40,000,000 | |||||||
Aggregate Coverage [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchased aggregate reinstatement premium | 700,000,000 | ||||||||
Prepaid reinsurance premiums | 632,000,000 | ||||||||
Top Hawaii Only Layer [Member] | Property Per Risk Coverage [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchase of reinsurance from third party | $ 26,000,000 | ||||||||
2017 - 2018 Reinsurance Program [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Number of reinstatements available | Reinsurer | 2 | ||||||||
2017 - 2018 Reinsurance Program [Member] | Insurance Claims [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Unpaid losses and loss adjustment expenses | $ 1,000,000 | ||||||||
2017 - 2018 Reinsurance Program [Member] | Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchase of reinsurance from third party | $ 2,600,000,000 | ||||||||
Description of hurricane losses coverage and protection | Hurricane losses in states other than Hawaii would be covered under the Heritage P&C program with the exception of the FHCF coverage and the series 2015, 2016 and 2017 catastrophe bonds. Management deemed this reinsurance protection to be sufficient given the level of catastrophe exposure in 2017 for Alabama, Georgia, North Carolina and South Carolina. | ||||||||
2017 - 2018 Reinsurance Program [Member] | Property Per Risk Coverage [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Coverage limit | $ 9,000,000 | ||||||||
Reinsurance payable | 27,000,000 | ||||||||
Facultative Reinsurance [Member] | Maximum [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Reinsurance payable | 10,000,000 | 10,000,000 | |||||||
Facultative Reinsurance [Member] | Minimum [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Facultative reinsurance purchase amount | 10,000,000 | $ 10,000,000 | |||||||
Florida [Member] | 2017 - 2018 Reinsurance Program [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Unpaid losses and loss adjustment expenses | 1,750,000,000 | ||||||||
Hawaii [Member] | Shared Layers [Member] | Property Per Risk Coverage [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchase of reinsurance from third party | 372,000,000 | ||||||||
Shared coverage amount available subject to seasonal aggregate | 20,000,000 | ||||||||
Seasonal aggregate amount | 68,000,000 | ||||||||
Hawaii [Member] | 2017 - 2018 Reinsurance Program [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Unpaid losses and loss adjustment expenses | 731,000,000 | ||||||||
Heritage P&C and Zephyr [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Number of reinstatements available | Reinsurer | 2 | ||||||||
Retention under program to provide reinsurance coverage | $ 2,600,000,000 | ||||||||
First event retention for insurance company subsidiary | $ 20,000,000 | ||||||||
Heritage P&C and Zephyr [Member] | FHCF Layer [Member] | Property Per Risk Coverage [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Percentage comprising aggregate participation | 45.00% | ||||||||
Heritage P&C and Zephyr [Member] | Shared Layers [Member] | Property Per Risk Coverage [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchased aggregate reinstatement premium | $ 352,000,000 | ||||||||
Heritage P&C and Zephyr [Member] | Florida [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Retention under program to provide reinsurance coverage | 1,750,000,000 | ||||||||
Heritage P&C and Zephyr [Member] | Hawaii [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Retention under program to provide reinsurance coverage | $ 731,000,000 | ||||||||
Heritage P&C and Zephyr [Member] | Hawaii [Member] | Shared Layers [Member] | Property Per Risk Coverage [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchased aggregate reinstatement premium | 352,000,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Retention under program to provide reinsurance coverage | $ 16,000,000 | ||||||||
Percentage comprising aggregate participation | 20.00% | ||||||||
First event retention for insurance company subsidiary | $ 20,000,000 | ||||||||
Primary retention | $ 16,000,000 | ||||||||
Agreement of coverage | 3 years | 3 years | |||||||
Additional maturity period of collateral notes | 2 years | 2 years | |||||||
Reinsurance agreement | 3 years | 3 years | |||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Notes Due March 2019 [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Collateralized by a reinsurance trust | $ 35,000,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Notes Due February 2019 [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Collateralized by a reinsurance trust | $ 250,000,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Class D Notes Due February 2019 [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Collateralized by a reinsurance trust | 150,000,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Class E Notes Due February 2019 [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Collateralized by a reinsurance trust | $ 100,000,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Two Thousand Fifteen Class B And C Notes [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Agreement of coverage | 3 years | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Class B Notes Due April 2017 [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Collateralized by a reinsurance trust | $ 97,500,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Class C Notes Due April 2017 [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Collateralized by a reinsurance trust | 30,000,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | First Catastrophic Event [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Percentage comprising aggregate participation | 20.00% | ||||||||
First event retention for insurance company subsidiary | $ 878,000,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Second Catastrophic Event [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Percentage comprising aggregate participation | 11.50% | ||||||||
First event retention for insurance company subsidiary | $ 420,000,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Top and Aggregate Layer [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
First event retention for insurance company subsidiary | 15,000,000 | ||||||||
Aggregate participation, losses and loss adjustment expenses | 5,000,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Maximum [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Aggregate participation, losses and loss adjustment expenses | 36,000,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Maximum [Member] | First Catastrophic Event [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Aggregate participation, losses and loss adjustment expenses | 727,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | FHCF Layer [Member] | Property Per Risk Coverage [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Primary retention | $ 414,000,000 | ||||||||
Percentage of maximum provisional limit | 45.00% | ||||||||
Estimated provisional limit percentage calculation base amount | $ 1,300,000,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Layers Above FHCF -Florida Program [Member] | 2017-1 Notes [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Collateralized by a reinsurance trust | $ 125,000,000 | ||||||||
Agreement of coverage | 3 years | ||||||||
Additional maturity period of collateral notes | 2 years | ||||||||
Reinsurance agreement | 3 years | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Layers Above FHCF -Florida Program [Member] | Class A Notes Due April Two Thousand Seventeen [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Collateralized by a reinsurance trust | $ 150,000,000 | ||||||||
Agreement of coverage | 3 years | ||||||||
Additional maturity period of collateral notes | 2 years | ||||||||
Reinsurance agreement | 3 years | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Multi-Zonal Layers [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Coverage of first catastrophe reinsurance agreement | 254,000,000 | ||||||||
Heritage P&C [Member] | States Other Than Hawaii [Member] | Aggregate Coverage [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchased aggregate reinstatement premium | 984,000,000 | ||||||||
Prepaid reinsurance premiums | 606,000,000 | ||||||||
Net of prepaid reinsurance premium as attachment point | 40,000,000 | ||||||||
Citrus [Member] | States Other Than Hawaii [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | Two Thousand Fifteen C And C Series Bond And Two Thousand Sixteen D and E Bond And Two Thousand Seventeen Two Bond [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Collateralized by a reinsurance trust | 412,500,000 | ||||||||
Additional coverage of second catastrophe reinsurance agreement | 5,000,000 | ||||||||
Zephyr [Member] | Multi-Zonal Layers [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Coverage of first catastrophe reinsurance agreement | 302,000,000 | ||||||||
Prepaid reinsurance premiums | 254,000,000 | ||||||||
Zephyr [Member] | Florida [Member] | Multi-Zonal Layers [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchased aggregate reinstatement premium | 254,000,000 | ||||||||
Zephyr [Member] | Florida [Member] | A Top And Aggregate Multi Zonal Layer [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchased aggregate reinstatement premium | 48,000,000 | ||||||||
Zephyr [Member] | Hawaii [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Retention under program to provide reinsurance coverage | 16,000,000 | ||||||||
First event retention for insurance company subsidiary | 20,000,000 | ||||||||
Primary retention | $ 16,000,000 | ||||||||
Zephyr [Member] | Hawaii [Member] | First Catastrophic Event [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Percentage comprising aggregate participation | 3.80% | ||||||||
First event retention for insurance company subsidiary | $ 386,000,000 | ||||||||
Zephyr [Member] | Hawaii [Member] | Second Catastrophic Event [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Percentage comprising aggregate participation | 117.70% | ||||||||
First event retention for insurance company subsidiary | $ 386,000,000 | ||||||||
Zephyr [Member] | Hawaii [Member] | Top and Aggregate Layer [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
First event retention for insurance company subsidiary | 15,000,000 | ||||||||
Aggregate participation, losses and loss adjustment expenses | 5,000,000 | ||||||||
Zephyr [Member] | Hawaii [Member] | Maximum [Member] | First Catastrophic Event [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Aggregate participation, losses and loss adjustment expenses | 12,000,000 | ||||||||
Zephyr [Member] | Hawaii [Member] | Maximum [Member] | Second Catastrophic Event [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Aggregate participation, losses and loss adjustment expenses | 56,000,000 | ||||||||
Zephyr [Member] | Hawaii [Member] | Multi-Zonal Layers [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchased aggregate reinstatement premium | 254,000,000 | ||||||||
Zephyr [Member] | Hawaii [Member] | A Top And Aggregate Multi Zonal Layer [Member] | Property Per Risk Coverage [Member] | Catastrophe [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchased aggregate reinstatement premium | $ 48,000,000 | ||||||||
Citrus Re Ltd [Member] | 2017 - 2018 Reinsurance Program [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Percentage comprising aggregate participation | 26.00% | ||||||||
Purchase of reinsurance from third party | $ 687,500,000 | ||||||||
Coverage arrangements, period | multi-year | ||||||||
Citrus Re Ltd [Member] | 2017 - 2018 Reinsurance Program [Member] | Class A and B and C Due in May 2018 [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchase of reinsurance from third party | $ 277,500,000 | ||||||||
Notes maturity date | May 31, 2018 | ||||||||
Citrus Re Ltd [Member] | 2017 - 2018 Reinsurance Program [Member] | Class D and E Due in Two-year Period [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchase of reinsurance from third party | $ 250,000,000 | ||||||||
Additional maturity period of collateral notes | 2 years | ||||||||
Citrus Re Ltd [Member] | 2017 - 2018 Reinsurance Program [Member] | Notes Due in Three-year Period [Member] | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Purchase of reinsurance from third party | $ 160,000,000 | ||||||||
Notes maturity period | 3 years |
Reinsurance - 2017-2018 Reins_2
Reinsurance - 2017-2018 Reinsurance Programs - NBIC Program - Additional information - (Detail) | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
May 31, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)ReinsurerLayer | Dec. 31, 2018USD ($) | Dec. 31, 2017 | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Reduction in reinsurance reinstatement net retention amount | $ 423,001,000 | $ 618,355,000 | |||
Reinsurance payable | $ 166,975,000 | 156,351,000 | 166,975,000 | ||
Facultative Reinsurance [Member] | Maximum [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Reinsurance payable | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||
Reinsurer Concentration Risk [Member] | Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Concentration risk percentage | 10.00% | ||||
NBIC [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Retention under program to provide reinsurance coverage | $ 1,000,000,000 | ||||
Percentage of aggregate contract | 25.00% | ||||
Aggregate contract expiration date | May 31, 2018 | ||||
Aggregate contract coverage limit | $ 13,500,000 | ||||
Primary retention | 18,500,000 | ||||
Franchise deductible amount | $ 1,000,000 | ||||
NBIC [Member] | Gross Quota Share [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Percentage of gross quota share | 18.75% | 8.00% | 18.75% | ||
Reinsurance recoveries on paid losses | $ 1,000,000,000 | $ 1,000,000,000 | $ 1,000,000,000 | ||
NBIC [Member] | Net Quota Share [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Net lines quota share occurrence limit | $ 20,000,000 | ||||
Percentage of ceded net premium and losses | 60.00% | ||||
Percentage of renewed ceded net premium and losses | 49.50% | 8.00% | |||
NBIC [Member] | General Excess of Loss [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Retention under program to provide reinsurance coverage | $ 300,000 | ||||
Number of loss applied to reinsurance contract | Reinsurer | 1 | ||||
Number of layers in excess of rentention loss | Layer | 2 | ||||
NBIC [Member] | General Excess of Loss [Member] | First Layer Coverage [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Retention under program to provide reinsurance coverage | $ 450,000 | ||||
Primary retention | 300,000 | ||||
NBIC [Member] | General Excess of Loss [Member] | Second Layer Coverage | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Retention under program to provide reinsurance coverage | 2,750,000 | ||||
Primary retention | 750,000 | ||||
NBIC [Member] | General Excess of Loss [Member] | Casualty Second Layer [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Retention under program to provide reinsurance coverage | 1,250,000 | ||||
Primary retention | $ 750,000 | ||||
NBIC [Member] | General Excess of Loss [Member] | First and Second Layer Coverage [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Percentage of gross quota share | 81.25% | ||||
Additional coverage percentage of gross quota share | 18.75% | ||||
NBIC [Member] | Facultative Reinsurance [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Reinsurance loss limit | $ 2,500,000 | ||||
NBIC [Member] | Facultative Reinsurance [Member] | Minimum [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Reinsurance payable | $ 3,500,000 | ||||
NBIC [Member] | Umbrella Facultative Reinsurance [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Percentage of quota share | 90.00% | ||||
Additional percentage of quota share | 100.00% | ||||
NBIC [Member] | Umbrella Facultative Reinsurance [Member] | Maximum [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Limits of liability | $ 1,000,000 | ||||
Additional limits of liability | 4,000,000 | ||||
NBIC [Member] | Catastrophe [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
First event retention for insurance company subsidiary | $ 1,300,000 | ||||
NBIC [Member] | Second Catastrophic Event [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Number reinsurance reinstatement provisions | Reinsurer | 1 | ||||
Percentage of reinsurance reinstatement provisions premium | 100.00% | ||||
NBIC [Member] | Second Catastrophic Event [Member] | Gross Quota Share [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Percentage of gross quota share | 81.25% | ||||
Percentage of remaining gross quota share | 18.75% | ||||
NBIC [Member] | Second Catastrophic Event [Member] | Net Quota Share [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Reduction in reinsurance reinstatement net retention amount | $ 20,000,000 | ||||
NBIC [Member] | Aggregate Excess For All Catastrophe Losses Excluding Named Tropical Storms [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Reinsurance payable | 20,000,000 | ||||
NBIC [Member] | Aggregate Excess For All Catastrophe Losses Excluding Named Tropical Storms [Member] | Minimum [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Limit of aggregate losses under aggregate contract | 21,500,000 | ||||
NBIC [Member] | Named Tropical Storm Losses [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Reinsurance payable | 12,000,000 | ||||
NBIC [Member] | Named Tropical Storm Losses [Member] | Minimum [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Reinsurance loss limit | $ 8,000,000 | ||||
Hartford Steam Boiler [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Percentage comprising aggregate participation | 100.00% |
Reinsurance - 2017-2018 Reins_3
Reinsurance - 2017-2018 Reinsurance Programs - Property Per Risk Coverage - Additional information - (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($)Reinsurer | Dec. 31, 2018USD ($)Reinsurer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Unpaid losses and loss adjustment expenses | $ 613,533,000 | $ 432,359,000 | $ 470,083,000 | $ 140,137,000 |
Reinsurance payable | $ 156,351,000 | $ 166,975,000 | ||
Number of reinstatements available | Reinsurer | 2 | 2 | ||
Insurance Claims [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Unpaid losses and loss adjustment expenses | $ 1,000,000 | $ 1,000,000 | ||
Facultative Reinsurance [Member] | Maximum [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Reinsurance payable | 10,000,000 | 10,000,000 | ||
Facultative Reinsurance [Member] | Minimum [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Facultative reinsurance purchase amount | 10,000,000 | 10,000,000 | ||
Property Per Risk Coverage [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Coverage limit | 9,000,000 | 9,000,000 | ||
Reinsurance payable | $ 27,000,000 | $ 27,000,000 |
Reinsurance - Schedule of Effec
Reinsurance - Schedule of Effect of Reinsurance Arrangements in Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premiums Written | |||||||||||
Premiums Written, Direct | $ 937,937 | $ 923,349 | |||||||||
Premiums Written, Ceded | (436,564) | (477,451) | |||||||||
Premiums Written, Net | 501,373 | 445,898 | |||||||||
Premiums Earned | |||||||||||
Premiums Earned, Direct | 924,247 | 926,326 | |||||||||
Premiums Earned, Ceded | (445,534) | (472,144) | $ (263,740) | ||||||||
Net premiums earned | $ 131,077 | $ 123,862 | $ 114,083 | $ 109,691 | $ 118,632 | $ 118,238 | $ 111,204 | $ 106,108 | 478,713 | 454,182 | 379,564 |
Losses and Loss Adjustment Expenses | |||||||||||
Losses and Loss Adjustment Expenses, Direct | 696,289 | 855,780 | |||||||||
Losses and Loss Adjustment Expenses, Ceded | (423,001) | (618,355) | |||||||||
Losses and Loss Adjustment Expenses, Net | $ 273,288 | $ 237,425 | $ 201,482 |
Reserve for Unpaid Losses - Sum
Reserve for Unpaid Losses - Summary of Reserve for Unpaid Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Balance, beginning of period | $ 432,359 | $ 470,083 | $ 140,137 |
Less: reinsurance recoverable on unpaid losses | 250,507 | 315,353 | 589 |
Net balance, beginning of period | 181,852 | 154,730 | 139,548 |
Incurred related to: | |||
Current year | 276,985 | 224,080 | 188,914 |
Prior years | (3,696) | 13,345 | 12,567 |
Total incurred | 273,289 | 237,425 | 201,481 |
Paid related to: | |||
Current year | 137,764 | 104,368 | 114,344 |
Prior years | 97,474 | 105,935 | 107,479 |
Total paid | 235,238 | 210,303 | 221,823 |
Total unpaid claims assumed from acquisitions | 35,524 | ||
Net balance, end of period | 219,903 | 181,852 | 154,730 |
Plus: reinsurance recoverable on unpaid losses | 393,630 | 250,507 | 315,353 |
Balance, end of period | $ 613,533 | $ 432,359 | $ 470,083 |
Reserve for Unpaid Losses - Add
Reserve for Unpaid Losses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability For Claims And Claims Adjustment Expense [Line Items] | |||
Losses incurred favorable and unfavorable development | $ (3,696) | $ 13,345 | $ 12,567 |
Hurricane Claims [Member] | |||
Liability For Claims And Claims Adjustment Expense [Line Items] | |||
Losses incurred favorable and unfavorable development | $ 6,500 |
Reserve for Unpaid Losses - S_2
Reserve for Unpaid Losses - Summary of Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance (Detail) $ in Thousands | Dec. 31, 2019USD ($)Claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Claims Development [Line Items] | ||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,385,969 | |||||||
Net IBNR Reserves | 161,137 | |||||||
Accident Year 2012 And Prior [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | 106,628 | $ 106,446 | $ 106,654 | $ 106,331 | $ 106,493 | $ 107,842 | $ 105,765 | $ 102,723 |
Net IBNR Reserves | $ 74 | |||||||
Reported Claims | Claim | 53,353 | |||||||
Accident Year 2013 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 62,564 | 62,378 | 62,354 | 62,166 | 62,969 | 61,483 | $ 61,157 | |
Net IBNR Reserves | $ 359 | |||||||
Reported Claims | Claim | 13,095 | |||||||
Accident Year 2014 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 115,234 | 115,838 | 114,984 | 113,847 | 114,899 | $ 118,991 | ||
Net IBNR Reserves | $ 975 | |||||||
Reported Claims | Claim | 18,477 | |||||||
Accident Year 2015 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 206,011 | 205,164 | 203,792 | 197,744 | $ 179,255 | |||
Net IBNR Reserves | $ 4,106 | |||||||
Reported Claims | Claim | 26,054 | |||||||
Accident Year 2016 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 250,235 | 250,990 | 242,611 | $ 237,207 | ||||
Net IBNR Reserves | $ 7,105 | |||||||
Reported Claims | Claim | 27,495 | |||||||
Accident Year 2017 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 192,749 | 195,240 | $ 189,163 | |||||
Net IBNR Reserves | $ 8,374 | |||||||
Reported Claims | Claim | 69,967 | |||||||
Accident Year 2018 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 193,672 | $ 199,565 | ||||||
Net IBNR Reserves | $ 30,125 | |||||||
Reported Claims | Claim | 33,482 | |||||||
Accident Year 2019 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 258,876 | |||||||
Net IBNR Reserves | $ 110,019 | |||||||
Reported Claims | Claim | 23,098 |
Reserve for Unpaid Losses - S_3
Reserve for Unpaid Losses - Summary of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,173,545 | |||||||
Accident Year 2012 And Prior [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 106,475 | $ 105,875 | $ 105,053 | $ 104,362 | $ 104,093 | $ 102,750 | $ 101,323 | $ 92,909 |
Accident Year 2013 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 61,191 | 60,581 | 59,395 | 57,647 | 55,589 | 50,716 | $ 35,771 | |
Accident Year 2014 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 113,609 | 112,518 | 108,509 | 101,456 | 95,076 | $ 68,732 | ||
Accident Year 2015 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 197,524 | 192,967 | 181,672 | 162,654 | $ 103,918 | |||
Accident Year 2016 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 238,868 | 233,540 | 211,512 | $ 132,679 | ||||
Accident Year 2017 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 178,622 | 169,743 | $ 103,148 | |||||
Accident Year 2018 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 152,592 | $ 84,552 | ||||||
Accident Year 2019 [Member] | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 124,664 |
Reserve for Unpaid Losses - S_4
Reserve for Unpaid Losses - Summary of Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Insurance [Abstract] | ||||
Unpaid Loss and Allocated Loss Adjustment Expense, Net of Reinsurance | $ 212,424 | |||
Ceded Unpaid Loss and Allocated Loss Adjustment Expense | 393,630 | $ 250,507 | $ 315,353 | $ 589 |
Unpaid Unallocated Loss Adjustment Expense | 7,479 | |||
Unpaid losses and loss adjustment expenses | $ 613,533 | $ 432,359 | $ 470,083 | $ 140,137 |
Reserve for Unpaid Losses - S_5
Reserve for Unpaid Losses - Summary of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Detail) | Dec. 31, 2019 |
Insurance [Abstract] | |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year - 1 | 55.00% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year - 2 | 30.00% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year - 3 | 7.00% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year - 4 | 3.00% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year - 5 | 2.00% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Thereafter | 3.00% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Feb. 19, 2019 | Dec. 31, 2018 | Oct. 31, 2018 | Apr. 30, 2018 | Nov. 30, 2017 | Oct. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2019 | Aug. 31, 2018 | Sep. 30, 2017 | Aug. 31, 2017 |
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt, net | $ 148,794,000 | $ 148,794,000 | $ 129,248,000 | $ 148,794,000 | |||||||||||
Convertible notes converted into common stock | 4,210,000 | 53,044,000 | |||||||||||||
Loss on repurchase of convertible notes | (48,000) | (9,790,000) | $ (1,203,000) | ||||||||||||
Payout dividends, aggregate amount | 6,959,000 | 6,380,000 | 8,249,000 | ||||||||||||
Maximum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Payout dividends, aggregate amount | $ 10,000,000 | ||||||||||||||
Minimum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes maturity period | 90 days | ||||||||||||||
Federal Home Loan Bank Of Atlanta [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes maturity date | Dec. 13, 2023 | ||||||||||||||
Interest paid | $ 602,300 | ||||||||||||||
Estimated fair value of collateral with FHLB | 20,200,000 | ||||||||||||||
Cash loan received under advance from FHLB | $ 19,200,000 | $ 19,200,000 | $ 19,200,000 | ||||||||||||
FHLB advance Interest rate | 3.094% | 3.094% | 3.094% | ||||||||||||
Required fair value of reinvestment in FHLB common stock. | $ 1,400,000 | $ 1,400,000 | 1,400,000 | $ 1,400,000 | |||||||||||
Heritage Insurance Holdings, Inc. [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Payout dividends, aggregate amount | $ 6,959,000 | 6,380,000 | 8,249,000 | ||||||||||||
Convertible Note [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repurchase of convertible notes | $ 3,100,000 | $ 10,600,000 | |||||||||||||
Non-operating loss extinguishment of debt | 383,000 | $ 1,200,000 | |||||||||||||
Repurchase of convertible notes, cost | 3,600,000 | $ 13,400,000 | |||||||||||||
Repurchase of convertible notes, retired | $ 3,100,000 | $ 10,600,000 | |||||||||||||
Additional paid-in capital adjustment for conversion of convertible debt | 53,000,000 | ||||||||||||||
Embedded derivative converted to equity, liability | $ 6,200,000 | 6,200,000 | |||||||||||||
Reduction of debt | 17,700,000 | ||||||||||||||
Convertible Note [Member] | Non-Operating Loss [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loss on repurchase of convertible notes | $ (73,000) | ||||||||||||||
Convertible Note [Member] | Heritage Insurance Holdings, Inc. [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Shares issued for consideration of repurchase debt | 285,201 | 3,595,452 | |||||||||||||
Repurchase of convertible notes | $ 5,800,000 | $ 72,700,000 | $ 72,700,000 | 72,700,000 | |||||||||||
Cash consideration paid for repurchase of debt | 2,900,000 | 35,900,000 | |||||||||||||
Convertible notes converted into common stock | 4,200,000 | ||||||||||||||
Non-operating loss extinguishment of debt | $ 48,000 | ||||||||||||||
Debt conversion, as part of repurchase | 53,000,000 | ||||||||||||||
Reduction in debt discount liability | 6,200,000 | ||||||||||||||
Convertible Note [Member] | Heritage Insurance Holdings, Inc. [Member] | Non-Operating Loss [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loss on repurchase of convertible notes | (572,000) | ||||||||||||||
Convertible Note [Member] | Heritage P&C [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repurchase of convertible notes | 21,100,000 | 21,100,000 | |||||||||||||
Repurchase of convertible notes, cost | $ 25,200,000 | $ 25,200,000 | |||||||||||||
Convertible Option [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Extinguishment of allocated portion of convertible debt | $ 26,000,000 | ||||||||||||||
Common Stock [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Shares issued for consideration of repurchase debt | 3,595,452 | 285,201 | 3,595,452 | ||||||||||||
Additional Paid-In-Capital [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Convertible notes converted into common stock | $ 4,210,000 | $ 53,044,000 | |||||||||||||
Convertible Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | 75,800,000 | $ 75,800,000 | 75,800,000 | $ 136,800,000 | |||||||||||
Interest rate | 5.875% | 5.875% | |||||||||||||
Notes maturity date | Aug. 1, 2037 | ||||||||||||||
Interest payments term | Interest accrues from August 16, 2017 and is payable semi-annually in arrears, on February 1 and August 1 of each year, beginning in 2018 | ||||||||||||||
Long-term debt, net | 25,600,000 | 25,600,000 | $ 21,300,000 | 25,600,000 | |||||||||||
Issuance and debt discount costs | $ 3,600,000 | 3,600,000 | 2,100,000 | 3,600,000 | |||||||||||
Interest paid | $ 1,500,000 | 8,100,000 | |||||||||||||
Debt Instrument redemption price, percentage | 100.00% | ||||||||||||||
Change in fair value of long-term debt conversion feature | 41,000,000 | ||||||||||||||
Convertible Senior Notes [Member] | Additional Paid-In-Capital [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Embedded derivative converted to equity, liability | $ 51,600,000 | ||||||||||||||
Convertible Senior Notes [Member] | August 1, 2022 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument redemption price, percentage | 100.00% | ||||||||||||||
Convertible Senior Notes [Member] | August 1, 2027 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument redemption price, percentage | 100.00% | ||||||||||||||
Convertible Senior Notes [Member] | August 1, 2032 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument redemption price, percentage | 100.00% | ||||||||||||||
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 | $ 892,850 | 892,850 | |||||||||||||
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% | ||||||||||||||
Senior Secured Credit Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes maturity period | 5 years | ||||||||||||||
Maximum borrowing capacity | $ 125,000,000 | 125,000,000 | 125,000,000 | ||||||||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | 20,000,000 | ||||||||||||||
Interest paid | 564,600 | ||||||||||||||
Maximum borrowing capacity | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||||
Outstanding borrowing capacity amount | 10,000,000 | ||||||||||||||
Letters of credit outstanding amount | $ 0 | ||||||||||||||
Effective interest rate | 5.0625% | ||||||||||||||
Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | 75,000,000 | 75,000,000 | $ 1,900,000 | 75,000,000 | |||||||||||
Interest paid | 4,000,000 | ||||||||||||||
Maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 | $ 75,000,000 | ||||||||||||
Aggregate remaining principal amount | $ 69,400,000 | ||||||||||||||
Effective interest rate | 5.0625% | ||||||||||||||
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 |
Long-Term Debt - Schedule of Co
Long-Term Debt - Schedule of Company's Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Principal amount | $ 134,105 | $ 155,757 |
Deferred finance costs | 4,857 | 6,963 |
Total long-term debt | 129,248 | 148,794 |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 69,375 | 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 | $ 12,117 | $ 12,394 |
Long-Term Debt - Schedule of Pr
Long-Term Debt - Schedule of Principal Payments on Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 9,665 | |
2021 | 7,806 | |
2022 | 7,822 | |
2023 | 74,539 | |
2024 | 354 | |
Thereafter | 33,919 | |
Total principal payments | $ 134,105 | $ 155,757 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal: | |||
Current | $ 9,674 | $ 28,891 | $ (24,380) |
Deferred | 584 | (20,636) | 18,383 |
Provision for Federal income tax expense (benefit) | 10,258 | 8,255 | (5,997) |
State: | |||
Current | 1,785 | 4,162 | (20) |
Deferred | 317 | (578) | 1,244 |
Provision for State income tax expense | 2,102 | 3,584 | 1,224 |
Provision for income taxes expense (benefit) | $ 12,360 | $ 11,839 | $ (4,773) |
Income Taxes - Summary of U.S.
Income Taxes - Summary of U.S. Federal Income Tax Rate to Pretax Income (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax expense at federal rate | 21.00% | 21.00% | 35.00% |
State tax expense | 3.60% | 5.50% | (22.80%) |
Permanent items | 0.90% | 0.70% | (2.30%) |
Non-deductible conversion option liability | (255.00%) | ||
Non-deductible stock compensation | (0.40%) | 2.10% | (26.00%) |
Tax exempt interest | 1.60% | (1.60%) | 27.00% |
Non-deductible acquisition costs | 0.00% | 0.40% | (15.20%) |
Executive compensation 162(m) | 6.10% | 4.30% | (11.50%) |
Political contributions | 0.30% | 0.50% | (7.80%) |
Tax rate change | 0.60% | (2.30%) | 362.30% |
Other | (0.40%) | (0.20%) | (2.70%) |
Reported income tax expense | 30.10% | 30.40% | 81.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||
U.S. federal corporate tax rate | 21.00% | 21.00% | 35.00% |
Measurement period, description | The measurement period, as defined in SAB 118 for the Tax Act, begins on the enactment date of the Tax Act and ends when a company has obtained, prepared and analyzed the information that was needed in order to complete the accounting requirements under current accounting guidance. However, under no circumstances will the measurement period extend beyond one year from the enactment date of the Tax Act. | ||
Increase in gross deferred tax assets for loss reserve discounting | $ 702,861 | ||
Increase in gross deferred tax liabilities for reserve transition liability | 702,861 | ||
Operating loss carryforward expiration year | 2031 | ||
Capital loss carryforward | $ 400,000 | ||
Capital loss carryforward expiration year | 2023 | ||
Goodwill from asset purchases deductible for tax purposes | $ 6,000,000 | 6,000,000 | |
Non-deductable goodwill | 144,400,000 | $ 144,400,000 | |
Uncertain tax positions | 0 | ||
Federal [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | 450,000 | ||
State [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | $ 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Unearned premiums | $ 12,585 | $ 12,090 |
Unearned commission | 8,671 | 10,733 |
Net operating loss | 109 | |
Tax-related discount on loss reserve | 2,716 | 2,329 |
Unrealized loss | 2,631 | |
Stock-based compensation | 297 | 297 |
Accrued expenses | 757 | 2,321 |
Leases | 331 | |
Other | 1,890 | 1,443 |
Total deferred tax asset | 27,247 | 31,953 |
Deferred tax liabilities: | ||
Deferred acquisition costs | 17,871 | 17,494 |
Prepaid expenses | 153 | 112 |
Unrealized gain | 2,195 | |
Property and equipment | 1,029 | 664 |
Note discount | 478 | 710 |
Basis in purchased investments | 100 | 163 |
Basis in purchased intangibles | 16,977 | 18,982 |
Other | 1,067 | 1,533 |
Total deferred tax liabilities | 39,870 | 39,658 |
Net deferred tax liability | $ (12,623) | $ (7,705) |
Statutory Accounting and Regu_3
Statutory Accounting and Regulations - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 23, 2013 | |
Statutory Accounting Practices [Line Items] | ||||
Statutory net loss of insurance subsidiary | $ (16,300,000) | $ (64,500,000) | ||
Deposits held | 250,000 | |||
Statutory capital and surplus | $ 1,000,000 | |||
Dividends paid | $ 6,959,000 | 6,380,000 | $ 8,249,000 | |
Reinsurance Policy, Description | Statutory accounting requires a provision for reinsurance liability be established for reinsurance recoverable on paid losses aged over ninety days and for unsecured amounts recoverable from unauthorized reinsurers. | |||
Date of incorporation | Apr. 23, 2013 | |||
Maximum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividends paid | $ 10,000,000 | |||
Maximum [Member] | Florida [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Permitted dividend rate without prior approval of insurance regulatory authority | 10.00% | |||
Maximum [Member] | Rhode Island [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Permitted dividend rate without prior approval of insurance regulatory authority | 10.00% | |||
Maximum [Member] | Hawaii [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Permitted dividend rate without prior approval of insurance regulatory authority | 10.00% | |||
No Action Level [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 200.00% | |||
Company Action Level [Member] | Maximum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 200.00% | |||
Company Action Level [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 150.00% | |||
Regulatory Action Level [Member] | Maximum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 150.00% | |||
Regulatory Action Level [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 100.00% | |||
Authorized Control Level [Member] | Maximum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 100.00% | |||
Authorized Control Level [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 70.00% | |||
Mandatory Control Level [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 70.00% | |||
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% | |||
Heritage P&C [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 300.00% | |||
Zephyr [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Deposits held | $ 750,000 | |||
Dividends paid | $ 6,900,000 | 7,600,000 | ||
Zephyr [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-based capital | 300.00% | |||
NBIC [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory capital and surplus | $ 3,000,000 | |||
Heritage P&C, NBIC, and Zephyr [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory capital and surplus | 351,800,000 | 375,100,000 | ||
Heritage P&C and NBIC [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividends paid | $ 0 | $ 0 | $ 0 |
Statutory Accounting and Regu_4
Statutory Accounting and Regulations - Consolidated GAAP Net (Loss) Income to Statutory Net Income of Insurance Subsidiaries (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory Accounting Practices [Line Items] | |||||||||||
Consolidated GAAP net income (loss) | $ 12,818 | $ 8,133 | $ 721 | $ 6,964 | $ 3,929 | $ 5,989 | $ 2,408 | $ 14,829 | $ 28,636 | $ 27,155 | $ (1,119) |
Deferred acquisition costs | 4,156 | 31,377 | (1,101) | ||||||||
Net Income Reconciliation [Member] | |||||||||||
Statutory Accounting Practices [Line Items] | |||||||||||
Consolidated GAAP net income (loss) | 28,636 | 27,155 | (1,119) | ||||||||
Deferred income taxes | (339) | (16,868) | 32,644 | ||||||||
Deferred acquisition costs | (4,156) | (31,377) | 1,101 | ||||||||
Surplus note interest | (4) | ||||||||||
Non-statutory subsidiaries | (37,005) | (31,158) | 5,410 | ||||||||
Investment basis difference | 247 | 335 | 446 | ||||||||
Pre-acquisition income | 20,839 | ||||||||||
Equity compensation | (1,265) | (2,408) | (2,408) | ||||||||
Convertible notes | (1,613) | (1,570) | 1,051 | ||||||||
Commission revenue | 1,394 | (6,289) | (6,700) | ||||||||
Change in fair value income statement | (2,429) | 2,078 | |||||||||
Lease accounting standard | 137 | ||||||||||
Other | 94 | (4,372) | (709) | ||||||||
Statutory net (loss) income of insurance subsidiaries | $ (16,299) | $ (64,474) | $ 50,553 |
Accounts Payable and Other Li_3
Accounts Payable and Other Liabilities - Schedule of Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Deferred ceding commission | $ 37,464 | $ 44,819 |
Outstanding claim checks | 15,360 | |
Accounts payable and other payables | 7,225 | 8,556 |
Accrued dividends | 1,750 | 1,589 |
Accrued interest and issuance costs | 1,052 | 1,285 |
Lease obligations | 8,369 | |
Premium tax | 2,241 | |
Other liabilities | 387 | 460 |
Commission payables | 14,798 | 11,654 |
Total other liabilities | $ 71,045 | $ 85,964 |
Accrued Bonus Compensation - Ad
Accrued Bonus Compensation - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Compensation Related Costs [Abstract] | ||
Accrued employee's bonus compensation | $ 7.6 | $ 8.2 |
Accrued employee's bonus compensation paid in cash | $ 6 | $ 2.2 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2019 | Jan. 31, 2017 | Dec. 31, 2019 | Dec. 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 | $ 344,400 | $ 628,800 | ||
Heritage P&C and NBIC [Member] | Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Director annual compensation | $ 150,000 | |||
Comegys Insurance Agency, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Agency commission | $ 589,800 | $ 509,900 | ||
Comegys Insurance Agency, Inc. [Member] | Chief Executive Officer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Director annual compensation | $ 150,000 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Contribution for participating employees | $ 1,000,000 | $ 1,100,000 |
Defined Contribution Plan, Plan Name | 401(k) | |
Medical premium cost | $ 3,800,000 | 3,200,000 |
Additional liability for unpaid claims | 418,000 | $ 368,000 |
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 ($) | Aug. 01, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2016 |
Class Of Stock [Line Items] | ||||||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | |||||||
Common stock, shares outstanding | 28,650,918 | 28,650,918 | 29,477,756 | 28,650,918 | ||||||
Treasury stock, shares | 8,349,483 | 8,349,483 | 7,214,797 | 8,349,483 | ||||||
Additional paid-in capital | $ 329,568,000 | $ 329,568,000 | $ 325,292,000 | $ 329,568,000 | ||||||
Common stock voting rights | one vote | |||||||||
Stock repurchase program, authorized amount | $ 50,000,000 | 33,800,000 | $ 33,800,000 | $ 33,800,000 | ||||||
Stock repurchase program, expiration date | Dec. 31, 2020 | Dec. 31, 2020 | ||||||||
Treasury shares repurchased, shares | 1,134,686 | |||||||||
Treasury shares repurchased, value | $ 16,200,000 | |||||||||
Stock repurchased in connection with vesting of restricted stock unit | 237,620 | |||||||||
Stock repurchased in connection with vesting of restricted stock unit, value | $ 3,500,000 | |||||||||
Cash dividend | $ 1,749,800 | $ 1,772,063 | $ 1,791,323 | $ 1,806,944 | $ 7,120,000 | $ 6,380,000 | $ 6,464,000 | |||
Restricted Stock [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Unvested restricted common stock issued | 345,534 | 345,534 | 605,801 | 675,000 | 345,534 | 900,000 |
Equity - Summary of Cash Divide
Equity - Summary of Cash Dividends (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||||||
Cash dividend per common share | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |||
Total cash dividends paid | $ 1,749,800 | $ 1,772,063 | $ 1,791,323 | $ 1,806,944 | $ 7,120,000 | $ 6,380,000 | $ 6,464,000 |
Record date | Dec. 16, 2019 | Sep. 16, 2019 | Jun. 14, 2019 | Mar. 15, 2019 | |||
Payment date | Jan. 6, 2020 | Oct. 3, 2019 | Jul. 3, 2019 | Apr. 3, 2019 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 22, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Maximum tenure of stock option from the date of grant | 10 years | |||
Exercisable period of vested awards | 30 days | |||
Shares withheld to cover withholding taxes, value | $ (3,521,000) | $ (1,839,000) | $ 4,815,000 | |
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 | 155,801 | ||
Stock-based compensation expense | $ 5,400,000 | $ 5,300,000 | $ 4,800,000 | |
Unrecognized stock compensation expense | $ 5,600,000 | |||
Unrecognized stock compensation expense, period | 1 year | |||
Restricted stock vested and released | 260,267 | |||
Shares withheld to cover withholding taxes | 237,620 | 112,500 | 87,065 | |
Shares withheld to cover withholding taxes, value | $ 3,500,000 | $ 1,800,000 | $ 1,600,000 | |
Recognized tax benefit from restricted stock awards and related paid dividends | $ 0 | $ 0 | $ 0 | |
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 | 1,551,018 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning balance, Number of shares | 605,801 | 675,000 | 900,000 |
Granted, Number of shares | 0 | 155,801 | |
Vested, Number of shares | (22,647) | (112,500) | (137,935) |
Canceled and surrendered, Number of shares | (237,620) | (112,500) | (87,065) |
Ending balance, Number of shares | 345,534 | 605,801 | 675,000 |
Beginning balance, Weighted-Average Grant-Date Fair Value per Share | $ 20.41 | $ 21.40 | $ 18.42 |
Granted, Weighted-Average Grant-Date Fair Value per Share | 16.10 | ||
Vested, Weighted-Average Grant-Date Fair Value per Share | 14.28 | 16.35 | 16.53 |
Canceled and surrendered, Weighted-Average Grant-Date Fair Value per Share | 14.82 | 16.35 | 17.41 |
Ending balance, Weighted-Average Grant-Date Fair Value per Share | $ 19.56 | $ 20.41 | $ 21.40 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) - Summary of Unaudited Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net premiums earned | $ 131,077 | $ 123,862 | $ 114,083 | $ 109,691 | $ 118,632 | $ 118,238 | $ 111,204 | $ 106,108 | $ 478,713 | $ 454,182 | $ 379,564 |
Investment income | 3,275 | 3,655 | 3,830 | 3,672 | 1,407 | 3,852 | 2,470 | 3,075 | |||
Total revenues | 138,502 | 131,699 | 122,843 | 118,261 | 124,878 | 125,295 | 117,972 | 112,026 | 511,305 | 480,171 | 406,623 |
Total operating expenses | 116,990 | 118,215 | 119,770 | 106,763 | 102,525 | 111,079 | 109,822 | 87,209 | 461,738 | 410,635 | 357,088 |
Operating income | 21,512 | 13,484 | 3,073 | 11,498 | 22,353 | 14,216 | 8,150 | 24,817 | 49,567 | 69,536 | 49,535 |
Net (loss) income | $ 12,818 | $ 8,133 | $ 721 | $ 6,964 | $ 3,929 | $ 5,989 | $ 2,408 | $ 14,829 | $ 28,636 | $ 27,155 | $ (1,119) |
Basic | $ 0.44 | $ 0.28 | $ 0.02 | $ 0.24 | $ 0.15 | $ 0.23 | $ 0.09 | $ 0.58 | $ 0.98 | $ 1.05 | $ (0.04) |
Diluted | $ 0.44 | $ 0.28 | $ 0.02 | $ 0.24 | $ 0.15 | $ 0.23 | $ 0.09 | $ 0.55 | $ 0.98 | $ 1.04 | $ (0.04) |
Condensed Financial Informati_3
Condensed Financial Information Heritage Insurance Holdings, Inc. - Schedule of Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenue: | ||||||||||||
Other revenue | $ 13,997 | $ 15,186 | $ 15,163 | |||||||||
Total revenue | $ 138,502 | $ 131,699 | $ 122,843 | $ 118,261 | $ 124,878 | $ 125,295 | $ 117,972 | $ 112,026 | 511,305 | 480,171 | 406,623 | |
Expenses: | ||||||||||||
General and administrative expense | [1] | 80,544 | 88,544 | 71,714 | ||||||||
Interest expense, net | 8,523 | 20,015 | 13,210 | |||||||||
Other non-operating expense, net | 48 | 10,527 | 42,217 | |||||||||
Benefit from income taxes | 12,360 | 11,839 | (4,773) | |||||||||
Net income (loss) | $ 12,818 | $ 8,133 | $ 721 | $ 6,964 | $ 3,929 | $ 5,989 | $ 2,408 | $ 14,829 | 28,636 | 27,155 | (1,119) | |
Heritage Insurance Holdings, Inc. [Member] | ||||||||||||
Revenue: | ||||||||||||
Other revenue | 6,180 | 1,858 | 1,949 | |||||||||
Total revenue | 6,180 | 1,858 | 1,949 | |||||||||
Expenses: | ||||||||||||
General and administrative expense | 11,699 | 19,005 | 17,792 | |||||||||
Amortization of debt issuance cost | 2,190 | 4,623 | 2,314 | |||||||||
Interest expense, net | 7,609 | 17,277 | 11,158 | |||||||||
Other non-operating expense, net | 48 | 9,791 | 41,013 | |||||||||
Total expenses | 21,546 | 50,696 | 72,277 | |||||||||
Loss before income taxes and equity in net income of subsidiaries | (15,366) | (48,838) | (70,328) | |||||||||
Benefit from income taxes | (511) | (9,545) | (6,120) | |||||||||
Loss before equity in net income of subsidiaries | (14,855) | (39,293) | (64,208) | |||||||||
Net income (loss) | $ (14,855) | $ (39,293) | $ (64,208) | |||||||||
[1] | Parenthetical values are presented in millions. |
Condensed Financial Informati_4
Condensed Financial Information Heritage Insurance Holdings, Inc. - Schedule of Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Cash Flow Statements Captions [Line Items] | |||
Net income (loss) | $ 28,636 | $ 27,155 | $ (1,119) |
Net cash provided by operating activities | 119,657 | 96,338 | 7,489 |
Investing Activities | |||
Purchases of investment available for sale | (228,047) | (211,963) | (210,070) |
Net cash provided by (used in) investing activities | (53,585) | 23,455 | (7,242) |
Financing Activities | |||
Proceeds from mortgage loan | 12,658 | ||
Shares tendered for income tax withholdings | (3,521) | (1,839) | (1,599) |
Purchase of treasury stock | (16,183) | (2,000) | (61,623) |
Dividends | (6,959) | (6,380) | (8,249) |
Net cash (used in) provided by financing activities | (45,434) | (31,953) | 47,556 |
Increase in cash, cash equivalents, and restricted cash | 20,638 | 87,840 | 47,803 |
Cash, cash equivalents and restricted cash, beginning of period | 262,370 | 174,530 | 126,727 |
Cash, cash equivalents and restricted cash, end of period | 283,008 | 262,370 | 174,530 |
Heritage Insurance Holdings, Inc. [Member] | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
Net income (loss) | (14,855) | (39,293) | (64,208) |
Net cash provided by operating activities | (10,869) | (20,094) | 27,154 |
Investing Activities | |||
Purchases of investment available for sale | 78,213 | ||
Dividends received from subsidiaries | 70,590 | 92,800 | 57,575 |
Acquisition of a business | (210,000) | ||
Net cash provided by (used in) investing activities | 55,083 | 49,690 | (74,212) |
Financing Activities | |||
Proceeds from exercise of stock options and warrants | 417 | ||
Proceeds from issuance of note payable, net of issuance costs | 110,769 | 114,335 | |
Proceeds from mortgage loan | 12,658 | ||
Shares tendered for income tax withholdings | (3,521) | (1,839) | (1,599) |
Purchase of treasury stock | (16,183) | (2,000) | (61,623) |
Dividends | (6,959) | (6,380) | (8,249) |
Net cash (used in) provided by financing activities | (45,434) | (31,953) | 55,939 |
Increase in cash, cash equivalents, and restricted cash | (1,221) | (2,357) | 8,881 |
Cash, cash equivalents and restricted cash, beginning of period | 13,892 | 16,249 | 7,368 |
Cash, cash equivalents and restricted cash, end of period | $ 12,671 | $ 13,892 | $ 16,249 |
Geographical Information (una_3
Geographical Information (unaudited) - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Geographical Information (una_4
Geographical Information (unaudited) - Schedule of Distribution of In-force Premium (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | $ 940,594 | $ 923,680 |
Policies In Force | 524,975 | 515,686 |
Florida [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | 486,520 | 505,992 |
Policies In Force | 220,154 | 230,937 |
New York [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | 184,924 | 179,650 |
Policies In Force | 92,057 | 92,431 |
New Jersey [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | 71,492 | 70,322 |
Policies In Force | 50,013 | 51,576 |
Massachusetts [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | 62,810 | 59,592 |
Policies In Force | 32,464 | 32,629 |
Hawaii [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | 53,493 | 53,480 |
Policies In Force | 65,008 | 67,181 |
Rhode Island [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | 24,106 | 20,784 |
Policies In Force | 14,826 | 13,189 |
North Carolina [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | 20,422 | 14,685 |
Policies In Force | 22,948 | 14,280 |
South Carolina [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | 13,804 | 9,502 |
Policies In Force | 9,926 | 6,411 |
Connecticut [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | 12,461 | 6,864 |
Policies In Force | 7,537 | 4,370 |
Alabama [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | 7,041 | 1,571 |
Policies In Force | 7,044 | 1,543 |
Georgia [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | 3,050 | 1,238 |
Policies In Force | 2,753 | $ 1,139 |
Virginia [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
In Force Premiums | 473 | |
Policies In Force | $ 245 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Feb. 26, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 |
Subsequent Event [Line Items] | |||||
Cash dividend, payable date | Jan. 6, 2020 | Oct. 3, 2019 | Jul. 3, 2019 | Apr. 3, 2019 | |
Dividend payable, record date | Dec. 16, 2019 | Sep. 16, 2019 | Jun. 14, 2019 | Mar. 15, 2019 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividend, declared date | Feb. 26, 2020 | ||||
Cash dividend per common share | $ 0.06 | ||||
Cash dividend, payable date | Apr. 3, 2020 | ||||
Dividend payable, record date | Mar. 16, 2020 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant - Schedule of Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $577,789 and $518,391) | $ 587,256 | $ 509,649 | ||
Cash and cash equivalents | 268,351 | 250,117 | ||
Other assets | 18,110 | 9,333 | ||
Total Assets | 1,939,670 | 1,768,713 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Other liabilities | 71,045 | 85,964 | ||
Total Liabilities | 1,490,871 | 1,343,380 | ||
Common stock | 3 | 3 | ||
Treasury | (105,368) | (89,185) | ||
Accumulated other comprehensive income (loss) | 7,330 | (6,527) | ||
Retained earnings | 217,266 | 195,750 | ||
Total Stockholders' Equity | 448,799 | 425,333 | $ 379,816 | $ 357,959 |
Heritage Insurance Holdings, Inc. [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 12,671 | 13,892 | ||
Investment in and advances to subsidiaries | 594,141 | 598,525 | ||
Other assets | 2,813 | 3,324 | ||
Total Assets | 609,625 | 615,741 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Other liabilities | 160,826 | 190,408 | ||
Total Liabilities | 160,826 | 190,408 | ||
Common stock | 3 | 3 | ||
Paid-in-capital | 329,568 | 325,292 | ||
Treasury | (105,368) | (89,185) | ||
Accumulated other comprehensive income (loss) | 7,330 | (6,527) | ||
Retained earnings | 217,266 | 195,750 | ||
Total Stockholders' Equity | 448,799 | 425,333 | ||
Total Liabilities and Stockholders' Equity | $ 609,625 | $ 615,741 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant - Schedule of Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenue: | ||||||||||||
Other revenue | $ 13,997 | $ 15,186 | $ 15,163 | |||||||||
Total revenue | $ 138,502 | $ 131,699 | $ 122,843 | $ 118,261 | $ 124,878 | $ 125,295 | $ 117,972 | $ 112,026 | 511,305 | 480,171 | 406,623 | |
Expenses: | ||||||||||||
General and administrative expense | [1] | 80,544 | 88,544 | 71,714 | ||||||||
Interest expense, net | 8,523 | 20,015 | 13,210 | |||||||||
Other non-operating expense, net | 48 | 10,527 | 42,217 | |||||||||
Benefit from income taxes | 12,360 | 11,839 | (4,773) | |||||||||
Net income (loss) | $ 12,818 | $ 8,133 | $ 721 | $ 6,964 | $ 3,929 | $ 5,989 | $ 2,408 | $ 14,829 | 28,636 | 27,155 | (1,119) | |
Heritage Insurance Holdings, Inc. [Member] | ||||||||||||
Revenue: | ||||||||||||
Other revenue | 6,180 | 1,858 | 1,949 | |||||||||
Total revenue | 6,180 | 1,858 | 1,949 | |||||||||
Expenses: | ||||||||||||
General and administrative expense | 11,699 | 19,005 | 17,792 | |||||||||
Amortization of debt issuance cost | 2,190 | 4,623 | 2,314 | |||||||||
Interest expense, net | 7,609 | 17,277 | 11,158 | |||||||||
Other non-operating expense, net | 48 | 9,791 | 41,013 | |||||||||
Total expenses | 21,546 | 50,696 | 72,277 | |||||||||
Loss before income taxes and equity in net income of subsidiaries | (15,366) | (48,838) | (70,328) | |||||||||
Benefit from income taxes | (511) | (9,545) | (6,120) | |||||||||
Loss before equity in net income of subsidiaries | (14,855) | (39,293) | (64,208) | |||||||||
Net income (loss) | $ (14,855) | $ (39,293) | $ (64,208) | |||||||||
[1] | Parenthetical values are presented in millions. |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant - Schedule of Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Cash Flow Statements Captions [Line Items] | |||
Net income (loss) | $ 28,636 | $ 27,155 | $ (1,119) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 5,379 | 5,273 | 4,815 |
Valuation on conversion feature | 41,013 | ||
Amortization of debt issuance cost | 1,419 | 3,885 | 2,314 |
Deferred income taxes | (898) | (21,563) | 19,619 |
Changes in operating assets and liabilities: | |||
Income taxes payable | 12,624 | ||
Accrued interest | 175 | (1,993) | 3,217 |
Other assets | (1,728) | 8,972 | (4,907) |
Other liabilities | (36,071) | (85,351) | 75,705 |
Net cash provided by operating activities | 119,657 | 96,338 | 7,489 |
INVESTING ACTIVITIES | |||
Collection (issue) of principle note receivable | 358 | (910) | |
Net cash provided by (used in) investing activities | (53,585) | 23,455 | (7,242) |
FINANCING ACTIVITIES | |||
Mortgage loan payments | (277) | (264) | |
Repurchase of convertible notes | (2,869) | (52,739) | (25,189) |
Repayments of long-term debt | (15,625) | (79,500) | |
Shares tendered for income tax withholdings | (3,521) | (1,839) | (1,599) |
Purchase of treasury stock | (16,183) | (2,000) | (61,623) |
Dividends | (6,959) | (6,380) | (8,249) |
Net cash (used in) provided by financing activities | (45,434) | (31,953) | 47,556 |
Increase in cash, cash equivalents, and restricted cash | 20,638 | 87,840 | 47,803 |
Cash, cash equivalents and restricted cash, beginning of period | 262,370 | 174,530 | 126,727 |
Cash, cash equivalents and restricted cash, end of period | 283,008 | 262,370 | 174,530 |
Heritage Insurance Holdings, Inc. [Member] | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
Net income (loss) | (14,855) | (39,293) | (64,208) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 5,379 | 5,273 | |
Net realized gains | 49 | 9,790 | |
Valuation on conversion feature | 3,252 | ||
Amortization of debt issuance cost | 4,623 | ||
Deferred income taxes | 334 | (1,325) | |
Changes in operating assets and liabilities: | |||
Prepaid | (659) | 121 | |
Income taxes payable | 351 | (5,080) | |
Dividends payable | 1,589 | ||
Accrued interest | 444 | (3,771) | |
Other assets | 2,182 | (3,521) | |
Other liabilities | (4,094) | 7,338 | |
Net cash provided by operating activities | (10,869) | (20,094) | 27,154 |
INVESTING ACTIVITIES | |||
Dividends received from subsidiaries | 70,590 | 92,800 | 57,575 |
Collection (issue) of principle note receivable | 358 | (910) | |
Investments and advances to subsidiaries | (15,865) | (42,200) | |
Net cash provided by (used in) investing activities | 55,083 | 49,690 | (74,212) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of note payable, net of issuance costs | 110,769 | 114,335 | |
Repayment of secured senior notes | (79,500) | ||
Mortgage loan payments | (277) | (264) | |
Repurchase of convertible notes | (2,869) | (52,739) | |
Repayments of long-term debt | (15,625) | ||
Shares tendered for income tax withholdings | (3,521) | (1,839) | (1,599) |
Purchase of treasury stock | (16,183) | (2,000) | (61,623) |
Dividends | (6,959) | (6,380) | (8,249) |
Net cash (used in) provided by financing activities | (45,434) | (31,953) | 55,939 |
Increase in cash, cash equivalents, and restricted cash | (1,221) | (2,357) | 8,881 |
Cash, cash equivalents and restricted cash, beginning of period | 13,892 | 16,249 | 7,368 |
Cash, cash equivalents and restricted cash, end of period | $ 12,671 | $ 13,892 | $ 16,249 |
Schedule V - Valuation Allowa_2
Schedule V - Valuation Allowances and Qualifing Accounts (Detail) - Allowances for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Beginning balance | $ 0 | $ 0 |
Charges in earnings | 290 | 0 |
Charges to other accounts | 0 | 0 |
Deductions | 0 | 0 |
Ending balance | $ 290 | $ 0 |
Schedule VI - Supplemental In_2
Schedule VI - Supplemental Information Concerning Consolidated Property and Casuality Insurance Operations (Detail) - Consolidated Property and Casuality Insurance [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Information For Property Casualty Insurance Underwriters [Line Items] | ||
Reserves for Unpaid Losses and LAE | $ 613,533 | $ 432,359 |
Incurred Losses and LAE Current Year | 276,985 | 224,080 |
Incurred Losses and LAE Prior Years | (3,696) | 13,345 |
Paid losses and LAE | 235,238 | 210,303 |
Net Investment Income | 14,432 | 13,280 |
Deferred Policy Acquisition Costs ("DPAC") | 77,211 | 73,055 |
Amortization of DPAC, Net | 144,939 | 139,630 |
Net Premiums Written | 501,373 | 445,898 |
Net Premiums Earned | 478,713 | 454,182 |
Unearned Premiums | $ 486,220 | $ 472,357 |